ABI Blog Exchange

Reuters
Attorneys general around the country are leaping aboard the consumer privacy bandwagon in RadioShack ’s bankruptcy, vowing to protect the personal data of 117 million consumers as the iconic retailer goes up for grabs. Texas Attorney General Ken Paxton started the bandwagon rolling, objecting in advance of the auction that began Monday in New York. His filing said RadioShack promised not to sell or rent its customer data and that anyone who tries will answer to the state of Texas. In case you’re wondering how a retailer with solid data on 117 million consumers wound up in bankruptcy in the first place, it should be noted that the number was blurted out by an unidentified RadioShack representative at a deposition.

Read More from: WSJ.com: Bankruptcy Beat

3 days 18 hours ago
For ex-bankers like Ruth Porat, who is leaving Morgan Stanley for Google, free-flowing cash and a sunnier climate are only part of Silicon ValleyÂ's allure, industry observers note. The tech sector is also mercifully light on regulation.

Read More from: BankThink

4 days 6 hours ago
The Pew Charitable Trusts today released a report focusing on the market for auto title loans. The report brings together data from a wide variety of sources (including Slips contributor Nathalie Martin's work) to provide a clear, succinct, and thorough overview of the mechanics of this under-studied industry. It also, and most interestingly, includes the results of Pew's nationwide survey of borrowers and discussions with focus groups. The empirical data underscore how similar auto title loans are to payday loans, and how regulation of this part of the alternative finance industry also is greatly needed. The report is particularly timely in light of the Consumer Financial Protection Bureau's anticipated upcoming release of payday loan rules, and its field hearing tomorrow in Richmond on payday lending.  

Read More from: Credit Slips

4 days 8 hours ago
Things are starting to get tense in the Bankruptcy Final Four this year, as the financial powerhouses are pitted against key procedural changes to chapter 11.  In one bracket, we have Kill Till (the crowd favorite, and by far the best excuse we’ve had to quote Tarantino movies on the Weil Bankruptcy Blog) up against a series of proposed changes to chapter 11 plans and voting. In the other, a presumptive prohibition on roll-ups is pitted against a presumptive 60-day breathing spell before a debtor can sell substantially all of its assets. A very presumptive bracket indeed.  Of course, both the financial considerations and the procedural requirements have important ramifications on each other – for example, allowing a subordinated creditor to vote on a chapter 11 plan will have bearings on pricing and exercise of remedies, and any changes to the valuation regime will shift the balance of power in determining how to proceed with a chapter 11 strategy.  And, like the Princeton women, plenty of potential overhauls to the chapter 11 process have remained underappreciated to this point. (Let us know your thoughts in the comments!)  But in the end, only two of the ABI Commission’s recommendations will move on to our Championship Round. So, in the words of Grandmaster Melle Mel, “Vote – Vote – Everybody get up and vote!”* *Jesse, Grandmaster Melle Mel (1984) Vote here.
4 days 10 hours ago
On January 21, 2015, Congressman John Delaney introduced H.R. 411 entitled “The Discharge Student Loans in Bankruptcy Act of 2015″. The Bill would make certain government guaranteed and insured student loans dischargeable in bankruptcy. The Congressman correctly recognized a huge issue facing us- student loan debt. In April 2014, a staff report issued by the Federal Reserve Bank of New York reported that it had studied the growth of student loan debt. It reported that between 2004 and 2012, the total student loan debt in the United States tripled from 364 billion in 2004 to 966 billion in 2012. The report recognized that as of the fourth quarter of 2012, about 17% or 6.7 million borrowers were ninety days or more delinquent on their student loan payments. Although the delinquency rate was high, many more borrowers are not paying down their loan balance. The report also cited statistical information that indicated tightening of mortgage eligibility for high student debt borrowers because it may exceed maximum debt to income ratio requirements. The report concluded that nearly one third of the borrowers in repayment are delinquent on student loan debt, “a fact that is masked by large numbers of borrowers were either in deferment or grace periods.”
4 days 12 hours ago
Social media data offers banks a vast, relatively untapped source of insights about everything from marketing to identifying new customers, talent and potential risk management issues. The key is assembling a team that knows how to mine social media for information.

Read More from: BankThink

4 days 12 hours ago
Planning on filing a Kenosha bankruptcy this year? Be sure not to miss your income tax return filing deadline of April 15th. Sending your income tax return late to the IRS can cause collateral damage to your Kenosha bankruptcy case. The law regarding tax debts and bankruptcy states that recent income tax debts are not dischargeable in a Kenosha bankruptcy. However, old tax debts may be dischargeable. Of course, the tax debt must also qualify for discharge under the current Bankruptcy Code. Recently, the First, Fifth, and Tenth Court of Appeals ruled that a late filed tax return does not qualify as a “tax return” according to the language in the Federal Bankruptcy Code. The recent rulings center on a statement included in the 2005 changes to the Bankruptcy Code. This new language reads that a tax return is defined as a tax filing that “satisfies the requirements of applicable non-bankruptcy law (including applicable filing requirements).” In plain English, tax returns filed by the IRS without cooperation from the debtor are not recognized as “tax returns”. This means any tax return not filed on time may not be dischargeable debt in either a Kenosha Chapter 7 Bankruptcy or a Kenosha Chapter 13 Bankruptcy if not paid in full.

Read More from: Wynn at Law, LLC

4 days 13 hours ago
Noxious Weeds! What happens when you surrender a home in bankruptcy?  Must you move the second a bankruptcy is filed?  Do they give you time to move or will your possessions be thrown out on the front lawn for the neighbors to view? When you surrender a home through bankruptcy, there will be a specific process for the lender to obtain the home.  Let’s walk through the general process.
  1.  In a Chapter 7, the lender must wait until the 341 Meeting of Creditors  so the trustee may determine whether or not he or she wants the property.
  2. If the trustee, abandons the property, the lender may lift the automatic stay to begin foreclosure proceedings or they may wait until your discharge.
    • If the automatic stay is lifted, your attorney should update you the lender is seeking permission to foreclose.

Read More from: Bankruptcy Law Network

4 days 14 hours ago
Proposed legislation in the U.S. Congress would revise the Title III equity crowdfunding landscape by roping off a restricted, sky-box-like section just for accredited investors. Some securities professionals expect Congress to enact this legislation by summer 2015.  Read more here.
4 days 14 hours ago
The United States Supreme Court heard arguments yesterday from a homeowner and a bank on whether second mortgages with no equity to attach to can be stripped off in Chapter 7 bankruptcy … the transcript of the oral argument is here.
4 days 14 hours ago
The CFPB's complaint portal will only be helpful to consumers if the agency takes the time to verify or contextualize their concerns.

Read More from: BankThink

4 days 14 hours ago
Sale signs greet customers walking to the RadioShack at Valley View Plaza in Marion, Ind., on Friday, Feb. 20.
The Chronicle-Tribune/Associated Press
Salus Capital Partners says it has made a “materially superior” offer for RadioShack Corp. at a bankruptcy auction for the electronic retailer’s assets and wants a bankruptcy judge to intervene before a winner is a declared. 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.”) A fund that invested exclusively in Bernard Madoff’s massive Ponzi scheme has struck a deal that frees up $93 million to pay back victims of the fraud, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

4 days 15 hours ago
Sale signs greet customers walking to the RadioShack at Valley View Plaza in Marion, Ind., on Friday, Feb. 20.
The Chronicle-Tribune/Associated Press
Salus Capital Partners says it has made a “materially superior” offer for RadioShack Corp. at a bankruptcy auction for the electronic retailer’s assets and wants a bankruptcy judge to intervene before a winner is a declared. 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.”) A fund that invested exclusively in Bernard Madoff’s massive Ponzi scheme has struck a deal that frees up $93 million to pay back victims of the fraud, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

4 days 15 hours ago
Receiving Wide Coverage ... Go West, CFOs: Ruth Porat's move from chief financial officer at Morgan Stanley to the same position at Google has sparked a surge of think pieces on Wall Street's diminished lure compared to the creative yet lucrative jobs in Silicon Valley Â-- and more than a few contrarian responses. The New York Times' Neil Irwin cheers Porat's decision as an indicator that the tech sector has dibs on the country's top talent,Â...

Read More from: BankThink

4 days 15 hours ago
The SEC’s proposed rules on pay ratio disclosure is again the focus of Congressional attention, as three members of the House, Congressional Progressive Caucus Co-Chairs Representatives Raúl Grijalva (D-AZ) and Keith Ellison (D-MN), joined by Financial Services Committee member Maxine Waters (D-CA), sent a letter to the SEC asking them to finalize those rules.  
4 days 16 hours ago
Morris v. Ark Valley Credit Union (In re Gracy), 522 B.R. 686 (Bankr. D. Kan. 2015) – A chapter 7 trustee sought to avoid a credit union’s security interest in a manufactured home by asserting his strong arm powers as a hypothetical lien … Continue reading →
4 days 18 hours ago
On February 25, 2015, the Nebraska bankruptcy court issued a new student loan opinion that should lift the hopes of debtors overburdened by student loans.   See In re DeLaet, Case #13-04032. What is striking about this opinion is that the court granted a discharge of student loans to a relatively young debtor in good health. The facts of the case are as follows:
  • The debtor is 28 years old and is in good physical health.
  • The debtor had no dependents and was engaged to be married.
  • She graduated from college in 2009 with a degree in Fine Arts and English.
  • She owed $169,711 of student loans.
  • $27,045 of her loans were Federal Student Loans and those loans were enrolled in an Income Based Repayment (“IBR”) plan  with the Department of Education.  None of the federal student loans were discharged.
  • $142,66 of the loans were Private Student Loans (i.e., not guaranteed by the government).
  • The debtor was unable to find work in her field of study and testified that she submitted hundreds of job applications.
5 days 4 hours ago
Most of the posts on this blog, and in fact on most bankruptcy blogs, focus on the consumer as the bankruptcy debtor.  That makes sense–most bankruptcy cases involve a consumer debtor and a number of institutional creditors, like banks and credit card companies.  And those banks and credit card companies have in-house lawyers, and white-shoe law firms on retainer–they don’t need to read blogs to find out what to do about that bankruptcy notice they just got.  But there are times when the shoe is on the other foot–when the consumer is the creditor, and gets that bankruptcy notice.  It can be difficult, if not impossible, for a consumer in that situation to figure out what to do.

Read More from: Bankruptcy Law Network

5 days 8 hours ago
In the on-going saga of the Conex v. Car-Ber Testing, Inc. adversary proceeding (see our prior post here), Judge Leonard P. Stark, of the United States District Court for the District of Delaware, denied the Chapter 7 Trustee’s request to allow a direct appeal to the Third Circuit Court of Appeals of the Bankruptcy Court’s opinion that permitted the defendant in a preference action to use the new value defense – even though the “new value” had been paid post-petition.  Stanziale v. Car-Ber Testing, Inc., Civ. No. 14-cv-179-LPS (D. Del. Mar. 23, 2015) The basis of the underlying opinion was the Third Circuit’s opinion in the case of Friedman’s Litigation Trust v. Roth Staffing Companies LP, Case. No. 13-1712 (see our Friedman’s blog post here).
5 days 9 hours ago
All’s fair in love bankruptcy and war . . . except when one side decides to keep fighting after there’s been a truce.  The petitioning creditors in In re BG Petroleum, LLC, a recent decision from the Bankruptcy Court for the Western District of Pennsylvania, apparently forgot this rule. In BG Petroleum, the court gave a lesson on the basic principles of contract law in ruling on dueling motions filed by the debtor BG Petroleum, LLC and the petitioning creditors who commenced its involuntary chapter 11 case.  What Started this Fight?
5 days 11 hours ago

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