ABI Blog Exchange

  The Bankruptcy Court in the Southern District of New York found that Wells Fargo's practice of freezing bank accounts in chapter 7 without the request of the trustee, and despite no money being owed to Wells Fargo, constituted a violation of the automatic stay.  In re Weidenbenner, 521 B.R. 74, 2014 WL 7139994 (Bankr. S.D. N.Y., 2014).  At the time of filing on 7 March 2014 the Debtor had four accounts with Wells Fargo, all of which was claimed as exempt.   On 12 March 2014 Wells Fargo placed an administrative freeze on all accounts which totalled $6,923.54.  This freeze caused some of the debtor's checks to bounce, incurring an additional fee to Kohl's.  On the same day as the freeze, Wells Fargo sent a notice to the trustee by amail and regular mail requesting instructions for what should be done with the estate funds, which were not turned over to the trustee.  On 17 March the trustee advised Wells Fargo by fax to release the funds to the Debtors.  Wells Fargo sent notices to the Debtors by email the same day that the funds had been released.  Debtors filed a motion for sanctions against Wells Fargo on 23 March alleging that Wells Fargo violated the automatic stay by placing the freeze on the funds.  On 15 July Wells Fargo responded alleging that §542(d) required them to turn the funds over to the trustee.

Read More from: Tampa Bankruptcy

1 week 9 hours ago
Here at Shenwick & Associates, as part of our bankruptcy, creditors' rights and asset protection planning practice, we get many questions about spendthrift trusts.A spendthrift trust is a trust that is settled for the benefit of a person (usually a person who is believed to be unable to control his or her spending) that gives a trustee authority to make decisions as to how the trust funds may be spent for the benefit of the beneficiary. In this post, we are specifically not discussing trusts that are self–settled (where the grantor/settlor is also the beneficiary). Creditors of the beneficiary generally (but with exceptions, discussed below) cannot reach the funds in the trust, and the funds are not actually under the control of the beneficiary.To qualify as a spendthrift trust, the trust agreement should generally include a spendthrift provision–a provision that creates an irrevocable trust preventing creditors from attaching the interest of the beneficiary in the trust before that interest (cash or property) is actually distributed to him or her. Also, the trust agreement should not provide for mandatory distributions to beneficiaries (which allows the accumulation of income), but should provide for distributions at the discretion of the trustee. However, once a distribution is made from the trust to the beneficiary, creditors can attach that distribution.In New York, there are two ways a creditor can attach the income a beneficiary receives from a trust.

Read More from: Shenwick & Associates

1 week 10 hours ago
In this May 6, 2014, file photo, Texas entrepreneur Sam Wyly arrives to U.S. District Court in New York.
Associated Press
Hit by a massive fine for allegedly hiding stock trades, ex-billionaire Sam Wyly may be taking some of the artwork off the walls of his Texas home to sell for cash as he downsizes his lifestyle in bankruptcy. Mr. Wyly is preparing to sell dozens of pieces of art and antiques through a Dallas auction house on May 20. It’s tough to tell how much money the artwork could sell for because some of the pieces could be editioned prints or copies, not originals. The list, for example, includes a Norman Rockwell portrait of President Richard Nixon, but that’s clearly not the original one that hangs in the Smithsonian. The list advertises several John James Audubon bird prints and an Andy Warhol as well, though most of the art is from unknown artists. Fine art experts from several auction houses walked through Mr. Wyly’s house in December and January to come up with estimates on how much pieces are worth, according to documents filed in U.S. Bankruptcy Court in Dallas.

Read More from: WSJ.com: Bankruptcy Beat

1 week 10 hours ago
In this May 6, 2014, file photo, Texas entrepreneur Sam Wyly arrives to U.S. District Court in New York.
Associated Press
Hit by a massive fine for allegedly hiding stock trades, ex-billionaire Sam Wyly may be taking some of the artwork off the walls of his Texas home to sell for cash as he downsizes his lifestyle in bankruptcy. Mr. Wyly is preparing to sell dozens of pieces of art and antiques through a Dallas auction house on May 20. It’s tough to tell how much money the artwork could sell for because some of the pieces could be editioned prints or copies, not originals. The list, for example, includes a Norman Rockwell portrait of President Richard Nixon, but that’s clearly not the original one that hangs in the Smithsonian. The list advertises several John James Audubon bird prints and an Andy Warhol as well, though most of the art is from unknown artists. Fine art experts from several auction houses walked through Mr. Wyly’s house in December and January to come up with estimates on how much pieces are worth, according to documents filed in U.S. Bankruptcy Court in Dallas.

Read More from: WSJ.com: Bankruptcy Beat

1 week 10 hours ago
In this May 6, 2014, file photo, Texas entrepreneur Sam Wyly arrives to U.S. District Court in New York.
Associated Press
Hit by a massive fine for allegedly hiding stock trades, ex-billionaire Sam Wyly may be taking some of the artwork off the walls of his Texas home to sell for cash as he downsizes his lifestyle in bankruptcy. Mr. Wyly is preparing to sell dozens of pieces of art and antiques through a Dallas auction house on May 20. It’s tough to tell how much money the artwork could sell for because some of the pieces could be editioned prints or copies, not originals. The list, for example, includes a Norman Rockwell portrait of President Richard Nixon, but that’s clearly not the original one that hangs in the Smithsonian. The list advertises several John James Audubon bird prints and an Andy Warhol as well, though most of the art is from unknown artists. Fine art experts from several auction houses walked through Mr. Wyly’s house in December and January to come up with estimates on how much pieces are worth, according to documents filed in U.S. Bankruptcy Court in Dallas.

Read More from: WSJ.com: Bankruptcy Beat

1 week 10 hours ago
Under its existing policy, ISS will recommend against the election of boards of directors who adopt bylaw or charter amendments that they view as materially diminishing shareholder rights without obtaining shareholder approval.  
1 week 13 hours ago
In re SCH Corp., No. 14-2888, 2015 WL 756552 (3d Cir. Feb. 24, 2015) In April, the District Court affirmed an oral ruling of the Bankruptcy Court issued in the In re SCH Corp. post-confirmation bankruptcy proceedings, approving under Bankruptcy Rule 9019 and the Martin factors a post-confirmation settlement (the “Settlement”) reached between the debtors’ post-confirmation “Responsible Officer” and a subsidiary (“NCG”) of the debtors’ plan proponent and sponsor, secured lender, and asset acquiror (“LLCP”).  Our analysis of that ruling can be found here.  In this recent Opinion of the Third Circuit, the Court of Appeals vacated the District Court’s order, finding the Settlement to be a plan modification under section 1127 of the Bankruptcy Code, a secondary argument made by the appellants, the “CFI Claimants”, which was not addressed in detail before either the Bankruptcy or the District Courts. Read More › Tags: 9019 Settlements, Modifications

Read More from: Delaware Bankruptcy Insider

1 week 13 hours ago
A more efficient, customer-friendly process for small-dollar commercial loan requests is a matter of competitive necessity for most community banks.

Read More from: BankThink

1 week 13 hours ago
Parma’s supporters shout slogans during a protest march in Parma, Italy, Feb. 22, ahead of the scheduled Italian Serie A soccer match between Parma FC and Udinese Calcio. The match has been called off because Parma was unable to afford to host the game.
Elisabetta Baracchi/European Pressphoto Agency
American sports teams usually survive and often thrive after bankruptcy, but the same isn’t always true for European soccer clubs. Parma, which plays in Italy’s Serie A, is the latest soccer club to find itself teetering toward possible doom, having canceled its most recent game because it couldn’t afford to pay stewards and security staff. Players have reportedly not been paid this season, and the team is said not to be able to afford water for its practices. The club has a March 19 date set at which the company could agree to go into “controlled administration.”

Read More from: WSJ.com: Bankruptcy Beat

1 week 14 hours ago
Parma’s supporters shout slogans during a protest march in Parma, Italy, Feb. 22, ahead of the scheduled Italian Serie A soccer match between Parma FC and Udinese Calcio. The match has been called off because Parma was unable to afford to host the game.
Elisabetta Baracchi/European Pressphoto Agency
American sports teams usually survive and often thrive after bankruptcy, but the same isn’t always true for European soccer clubs. Parma, which plays in Italy’s Serie A, is the latest soccer club to find itself teetering toward possible doom, having canceled its most recent game because it couldn’t afford to pay stewards and security staff. Players have reportedly not been paid this season, and the team is said not to be able to afford water for its practices. The club has a March 19 date set at which the company could agree to go into “controlled administration.”

Read More from: WSJ.com: Bankruptcy Beat

1 week 14 hours ago
Parma’s supporters shout slogans during a protest march in Parma, Italy, Feb. 22, ahead of the scheduled Italian Serie A soccer match between Parma FC and Udinese Calcio. The match has been called off because Parma was unable to afford to host the game.
Elisabetta Baracchi/European Pressphoto Agency
American sports teams usually survive and often thrive after bankruptcy, but the same isn’t always true for European soccer clubs. Parma, which plays in Italy’s Serie A, is the latest soccer club to find itself teetering toward possible doom, having canceled its most recent game because it couldn’t afford to pay stewards and security staff. Players have reportedly not been paid this season, and the team is said not to be able to afford water for its practices. The club has a March 19 date set at which the company could agree to go into “controlled administration.”

Read More from: WSJ.com: Bankruptcy Beat

1 week 14 hours ago
Foreclosure I think it’s safe to say that the peak of the foreclosure crisis is behind us. Many people have already lost their homes, sold their homes, walked away from their homes or reorganized their debt through chapter 13 bankruptcy. Others have received modification offers from lenders, offers for deeds in lieu of foreclosure, relocation+ Read More The post Extending The Time In Your Home Through Bankruptcy appeared first on David M. Siegel.
1 week 14 hours ago
Authored by Michael S. Waskiewicz and Armando Nozzolillo and Michael S. Waskiewicz and Armando Nozzolillo of Rogers TowersIn the latest chapter of “lien stripping,” the Honorable Judge Erik P. Kimball of the Southern District of Florida, Bankruptcy Court, recently grappled with the issue of whether a debtor can strip a completely unsecured junior mortgage on abandoned property.  In Bodensiek, a creditor held two mortgages on the debtor’s homestead property.  However, the minimal value of the homestead property rendered the creditor’s second mortgage completely under water.  Prior to the debtor filing a motion to strip creditor’s second mortgage, the Chapter 7 Trustee issued a Notice of Abandonment related to the homestead property.

Read More from: Florida Banking Law Blog

1 week 14 hours ago
The federal government requires all potential filers to go through credit counseling before declaring bankruptcy. The purpose of credit counseling is to determine if there are other ways you can resolve your financial problems besides filing under Chapter 7 or Chapter 13.  One of the common alternatives frequently compared against bankruptcy is called “debt consolidation.”  How are these two options different?  Which one is better? Our Harrisburg bankruptcy attorneys explain the pros and cons. How Does Debt Consolidation Work? Before we can compare bankruptcy against debt consolidation, we need to go over what debt consolidation is and how it works. As the name suggests, debt consolidation involves lumping multiple debts together into a single, more manageable debt. The general idea is that most debtors have an easier time handling one debt than trying to balance numerous payments which are all on different schedules and are paid toward different creditors. Debt consolidation has two objectives: to simplify the repayment process for debtors, while simultaneously reducing monthly payments and interest rates.  Essentially, you would be taking out a new loan in order to pay off the debts you have already incurred.

Read More from: Young, Klein & Associates

1 week 14 hours ago
Winding Down. If a corporation’s board of directors decides that the business needs to be wound down, there are a number of legal paths to consider. Determining the best approach is fact-dependent, and the corporation and its board should get legal advice before making a decision. Sometimes a bankruptcy filing is needed, either a Chapter 11 reorganization (perhaps to complete a going-concern sale) or a Chapter 7 liquidation bankruptcy (in which a trustee will be appointed to liquidate the business). In other cases, an assignment for the benefit of creditors might be a good choice. A Delaware Corporate Dissolution. This post takes a high-level look at another, often simpler option: the corporate dissolution.  It assumes that the business is a Delaware corporation, since many corporations incorporate there. The laws of the state of incorporation govern the dissolution process, so it’s important to remember that the process described below will differ if the business is incorporated in another state.
1 week 14 hours ago
The Canadian subsidiary of embattled for-profit education company Corinthian Colleges Inc . has filed for bankruptcy under Canada’s insolvency law after an Ontario education regulator took action against the company’s 14 Canadian campuses. Read the Daily Bankruptcy Review article in The Wall Street Journal. (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.”) Following the collapse of yet another deal to sell Atlantic City, N.J.’s defunct Revel Casino Hotel, time may be running out for the resort to find a savior. WSJ has the DBR article here. RadioShack Corp. is defending its auction process to creditors in court, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 15 hours ago
The Canadian subsidiary of embattled for-profit education company Corinthian Colleges Inc . has filed for bankruptcy under Canada’s insolvency law after an Ontario education regulator took action against the company’s 14 Canadian campuses. Read the Daily Bankruptcy Review article in The Wall Street Journal. (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.”) Following the collapse of yet another deal to sell Atlantic City, N.J.’s defunct Revel Casino Hotel, time may be running out for the resort to find a savior. WSJ has the DBR article here. RadioShack Corp. is defending its auction process to creditors in court, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 15 hours ago
The Canadian subsidiary of embattled for-profit education company Corinthian Colleges Inc . has filed for bankruptcy under Canada’s insolvency law after an Ontario education regulator took action against the company’s 14 Canadian campuses. Read the Daily Bankruptcy Review article in The Wall Street Journal. (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.”) Following the collapse of yet another deal to sell Atlantic City, N.J.’s defunct Revel Casino Hotel, time may be running out for the resort to find a savior. WSJ has the DBR article here. RadioShack Corp. is defending its auction process to creditors in court, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 15 hours ago
The finance and technology industries should take some of the energy they've poured into mobile payments and put it toward making small-dollar loans more affordable.

Read More from: BankThink

1 week 15 hours ago
The Securities and Exchange Commission recently approved a FINRA rule requiring brokerage firms to put in writing their procedures for verifying the accuracy of a broker’s registration Form U4. Under the terms of the new rule, which goes into effect on July 1, brokerage firms will now be required to conduct a search of “reasonably available public records,” on all new hires and registrants. Read more here.
1 week 17 hours ago

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