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[wsj-responsive-image P="//art.wsj.net/api/photos/33346776/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/33346776/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/33346776/smartcrop?height=853&width=1280" caption="A Caterpillar Inc. D10R Crawler Tractor bulldozer moves coal at an Alpha Natural Resources Inc. coal preparation plant in Logan County near Yolyn, W.V. The Justice Department says McKinsey can't advise Alpha." credit="Bloomberg News" placement="Inline" suppressEnlarge="false" ] Bankruptcy watchdogs from the Justice Department are objecting to confidential adviser McKinsey & Co.’s restructuring arm to work on Alpha Natural Resources Inc.’s and SunEdison Inc.’s chapter 11 cases, but McKinsey isn’t naming names. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”)

Read More from: WSJ.com: Bankruptcy Beat

1 week 6 days ago
Stambaugh v. PNC Bank, N.A. (In re Stambaugh), 532 B.R. 572 (Bankr. M.D. Pa. 2015) – A chapter 13 debtor sought to establish the priority of certain mortgages, and the bank that held all of the mortgages attempted to reorder the … Continue reading →
1 week 6 days ago
 By: Donald L Swanson
“Testimony from the mediator would be crucial . . . and . . . refusing to compel that testimony posed a serious threat.” “It became clear that the mediator’s testimony was essential to doing justice here–so we decided to use it.” Wayne Brazil, Magistrate Judge, U.S District Court for Northern California
The case is Olam v. Congress Mortgage Co., et al., 68 F.Supp.2d 1110 (N.D. Cal. 1999). Plaintiff files suit against her lender for violating the federal Truth in Lending Act and related standards. Before trial, the parties agree to mediate their disputes.  A mediation session occurs, and a binding settlement agreement is signed. Thereafter, plaintiff suffers settler’s remorse and wants to back out of the deal. Defendants insist on enforcing the deal, and they file a Motion with the Court to do just that. Plaintiff hires a new attorney and files an Opposition to the enforcement Motion. The Opposition document identifies two grounds for setting aside the settlement agreement: –the agreement is unconscionable; and –plaintiff signed the agreement under undue influence.

Read More from: Mediatbankry

1 week 6 days ago
Action Item. In every bankruptcy mediation where the fight is still fresh, we need to recognize that a one-and-done session expectation is probably unrealistic—and adjust our expectations accordingly.

Read More from: Mediatbankry

1 week 6 days ago
Walk in registration available for Thursday’s day long training for lawyers and staff new to consumer bankruptcy practice at San Francisco’s Marriott Marquis. NACBA presents a full day of bankruptcy basics starting with a survey of consumer bankruptcy law, exploring schedules, exemptions, and the means test,  winding up with a look at Chapter 13 plans; and the intersection of family law and bankruptcy. Small group, elite practitioners as teachers, and a laser focus on what you need to know to serve clients well. Workshop runs 9-5  Thursday, May 19, 2016.  Arrive early to register.  Cost is $199 for convention attendees;  $299 if not registered for the convention. Program details Hope to see you there.       Image courtesy of Karsten Selferlin, presented under Creative Commons license.
1 week 6 days ago
By Louis S. RobinLaw Offices of Louis S. RobinLongmeadow, MAYesterday, the Supreme Court ruled that a debtor may not be discharged from a debt arising from a fraudulent transfer.   No. 15-145, Husky International Electronics, Inc. v. Ritz (5/16/16).   The case can be found here.    In short, the principal of a debtor corporation transferred assets, without consideration, to other companies he controlled in order to avoid payment to creditors of the initial debtor corporation. The principal eventually filed under Chapter 7.  The Supreme Court sent the case back to the Fifth Circuit which had found that section 523(a)(2)(A) requires a false representation.    Instead, Justice Sotomayor ruled that "actual fraud" was a broader concept. She provides an interesting review of “fraud” and “fraudulent transfers” dating back to 1571’s Statute of Elizabeth, finding that “fraud” was a very broad term, with “actual” meaning a more specific intent (so that the principal committed general fraud, but knew exactly what he was doing).

Read More from: CLLA Bankruptcy Blog

1 week 6 days ago
We are a consumer bankruptcy law firm helping persons and businesses with their financial situation.  If you believe we can be of assistance to you, please contact us today at johnrogers@glasgow-ky.com  or toll-free at 1-888-651-9353 and put our experience to work for you.  We offer a free initial consultation and we are available to accommodate your schedule and meet with you on weekends or during the evening. Click here to see what our clients have said about our representation of them over the years. We are located in Glasgow, Kentucky at 111 West Wayne Street, one block off of the Square in Glasgow.  Glasgow is conveniently located on the Louie B. Nunn Cumberland Parkway, for those traveling from west or east of Glasgow We are Board Certified in Consumer Bankruptcy Law by the American Board of Certification… one of the few attorneys in Kentucky so certified www.abcworld.org . We are an active member of the National Association of Consumer Bankruptcy Attorneys, serving as Kentucky State Chair of this organization. www.nacba.com
1 week 6 days ago
Crooked lawyers, judges and doctors are often common fodder in works of fiction.  The story of how Kentucky attorney Eric Conn, Administrative Law Judge (ALJ) David Daugherty and Dr. Alfred Adkins among others allegedly conspired together to defraud the U.S. Government out of millions of dollars by way of rigged Social Security Administration (SSA) Disability claims is stranger than fiction. Last April, the Department of Justice (DOJ) indicted Conn, “Mr. Social Security,” with several criminal counts, including conspiracies to commit mail fraud, wire fraud, witness retaliation, destruction of records, making false statements, and money laundering among others.  Daugherty and Bradley were similarly charged. The immediate result was that hundreds of Conn’s clients lost their disability benefits and will now have to start the lengthy process of applying for them all over again.

Read More from: Bonds & Botes, P.C.

1 week 6 days ago
      A district court in Michigan affirmed the bankruptcy court's finding that once the debtor signed an lease assumption agreement post-petition, they could not revoke it despite the failure to comply with the requirements for reaffirmation.  Williams v. Ford Motor Credit Co., LLC, No. 15-CV-14201, 2016 WL 2731191 (E.D. Mich. May 11, 2016).  The debtors filed under chapter 7 on 8 June 2015, stating an intent to assume the lease with Ford Motor Credit.  Ford sent them an assumption agreement, which was signed by the debtors on 16 July 2015.  The assumption referenced 11 U.S.C. 365(p) as the basis of the assumption, and averred that the protections under 11 U.S.C. 524(a) did not apply to the lease.  Debtors also signed a stipulation for assumption of the lease, which was filed by Ford with the bankruptcy court on 28 July 2015.     Debtors changed their mind and filed a notice of rescission of the lease assumption on 4 August 2015. Ford's counsel sent a letter challenging the right to rescind the agreement.   A discharge was entered 15 September 2015.  The debtors reopened the case and filed to determine that the assumption was invalid for failure to comply with the reaffirmation requirements.  The bankruptcy court rejected this argument, finding that §524 does not apply to leases assumed under §365.  The district court affirmed, citing §365(p).
 Section 365(p) specifically addresses the assumption of a personal property lease by a debtor.

Read More from: Tampa Bankruptcy

1 week 6 days ago
As these economic times get tougher and tougher for debtors, I am confronted on a weekly and sometimes daily basis regarding their plight. In the most recent case, a debtor was having a difficult time making his rent payment and was concerned about being evicted. He then remembered that he had hired an attorney four+ Read More The post Attorney Fee Concept Often Difficult For Clients To Grasp appeared first on David M. Siegel.
1 week 6 days ago
In our latest installment of “Breaking the Code”, we take a look at a common section of the Bankruptcy Code that comes up in nearly every chapter 11 case: section 365(a).  Section 365 contains one of the most powerful rights conferred upon a chapter 11 Debtor: the right to take a step back, evaluate its contracts and leases, and assume profitable agreements while rejecting unprofitable agreements.  An issue that often comes up when a Debtor has a number of contracts or leases with a single counterparty is whether a debtor can cherry pick among those agreements in its assumption/rejection decisions?  Is there a uniform federal standard?  Unfortunately, no – it is a fact specific analysis that varies state to state and depends on the governing law of the contract.  Contracts Assumed As a Whole
2 weeks 1 hour ago
Requiring the bank regulators to disclose the numerical grades they give for capital, assets and other factors would subject them to the same market discipline they demand for banks.

Read More from: BankThink

2 weeks 1 hour ago
  (Getty Images)[1] Talk about timing. Yesterday, barely a week after Dave blogged about Justice Thomas’ admission that he might enjoy and appreciate bankruptcy cases more than his colleagues, Justice Thomas was the sole dissenting justice in the Supreme Court’s 7-1 decision in Husky International Electronics, Inc. v. Daniel Lee Ritz. The stated issue before the Court: Does the term “actual fraud” in 11 U.S.C. § 523(a)(2)(A) require a misrepresentation? The Court answered “No.” Justice Thomas disagreed. We’ll cover Husky in 2 posts. Today, I’ll provide the overview that all Supreme Court decisions merit. Next, I’ll attempt to untangle Justice Sotomayor’s dicta (holding?) regarding the term “obtained by” in § 523(a)(2). Thus, over the next couple of days, we’ll aim to sort out whether the Supreme Court’s surgical attempt to resolve a limited split between the Fifth and Seventh Circuits spilled over into and, thus, clouded (rather than illuminated) our understanding of § 523(a)(2)(A). Overview of the Case The Husky facts do not represent a typical voidable transfer[2]. As a result, they’re necessary to, but also might obstruct, a clear understanding of the majority’s opinion.

Read More from: Plan Proponent

2 weeks 1 hour ago
Google should be applauded for deciding to ban payday loan-sponsored ads. But it should tweak some of the details so legitimate lenders can still advertise.

Read More from: BankThink

2 weeks 3 hours ago
Receiving Wide Coverage ... Laplanche's Selective Disclosure: The Justice Department would like to have a few minutes with the founder of LendingClub, and a few of his former colleagues at the online marketplace lender. A DOJ grand jury subpoenaed the company on Monday, LendingClub said in a regulatory filing, without disclosing details of the nature of the subpoena. LendingClub said it's cooperating. LendingClub also said Monday it's looking for additional funding for its loans. ...

Read More from: BankThink

2 weeks 3 hours ago
The US Supreme Court provides further guidance to bankruptcy lawyers, attorneys and practitioners on when “fraud is fraud” for purposes of §523(a)(2)(A) of the Bankruptcy Code. The Court says: “The term “actual fraud” encompasses fraudulent conveyance schemes, even when those schemes do not involve a false representation.” Click on the link below to read the opinion that came out yesterday. The Opinion
2 weeks 4 hours ago
On May 12, 2016, Penn Virginia Corporation and certain of its affiliates (collectively, “Penn Virginia” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Eastern District of Virginia, Richmond Division.  According to the declaration of Penn Virginia’s Chief Restructuring Officer, R. Seth Bullock (the “Bullock Declaration”), Penn Virginia has entered into a restructuring support agreement with holders of more than 87% of issued debt. The agreement contemplates a plan that would include amongst other things, a debt-for-equity conversion for holders of unsecured noteholders and cancellation of existing equity interests in the Debtors.  See Bullock Declaration at 7. Debtors are oil and gas E&P companies with assets including approximately 100,000 acres in the Eagle Ford shale in South Texas and some oil and natural gas producing properties in Oklahoma and Pennsylvania. See Bullock Declaration at 6-9. Debtors’ liabilities total approximately $1.3 billion in funded debt obligations, which include:    (i) $113 million in secured debt pursuant to a 2012 reserve-based credit facility with Wells Fargo Bank N.A., as administrative agent; and (ii) $1.075 billion in principal and $44 million in interest pursuant to senior unsecured notes with Wilmington Savings Fund Society as successor indenture trustee.  See Bullock Declaration at 28-33.
2 weeks 5 hours ago
[wsj-responsive-image P="//art.wsj.net/api/photos/37530272/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/37530272/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/37530272/smartcrop?height=853&width=1280"credit="Reuters" placement="Inline" suppressEnlarge="false" ] Oklahoma-based SandRidge Energy Inc. became the latest oil and gas company to file for chapter 11 bankruptcy amid the industry downturn. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Phone book publisher Dex Media Inc. filed for chapter 11 protection Monday evening, DBR reports in WSJ. Caesars Entertainment bondholders want the right to sue the casino company and its private-equity backers, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 5 hours ago
Image is from Kuriositas.com By Donald L. Swanson I’m in a mediation session for a state court commercial case. The parties have been at it for a couple years. And everyone’s expectation is that this will be a one-and-done session. One of the first things Plaintiff’s president says to me is, “Can you believe we’ve paid over [$xxx] in attorney fees?!” One of the first things Defendant’s president says to me is, “I absolutely hate sitting through depositions!” Additionally, it’s obvious from the beginning that everyone grasps this concept: “Our case will be a close-call at trial, and we might lose.” And I’m thinking, “The parties are weary of the fight and want to get it over.  This case will settle today—100% certainty.” Sure enough, both parties are highly motivated to settle—and they get it done. By contrast, I’m in another mediation session over Chapter 11 plan confirmation disputes between two parties. Denial of confirmation, with opportunity to amend, occurred recently.  And trial on the amended plan is scheduled in about a month. The confirmation battle has been running for several months. But the battle has been limited: –no written discovery, no depositions, no inspection of property, no preliminary motions, no pretrial motions; and –fees incurred to date are relatively small on both sides.

Read More from: Mediatbankry

2 weeks 7 hours ago
I met with some new bankruptcy clients yesterday, and, like nearly all of my bankruptcy clients, they feel bad. Horrible.  Their debt crisis is eating them up.  Obviously, they feel like, filing bankruptcy is a sin.  Or, that having debts they cannot pay is a sin. What Does the Bible Say About Debt? From the [...] The post Is Filing Bankruptcy A Sin? appeared first on Detroit Bankruptcy Lawyer Kurt O'Keefe.

Read More from: Stop Creditor

2 weeks 8 hours ago

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