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Creditors Collection Tool As a wage earner, nobody wants to see their wages garnished. Whenever a person is working for wages and they have an outstanding monetary judgment against them, there is always the risk and concern that a wage garnishment summons could be forthcoming. Judgment creditors and their lawyers have access to information which+ Read More

The post Wage Garnishment Proceedings: An Employer’s Perspective appeared first on David M. Siegel.

5 days 15 hours ago

Today, a CVS Pharmacy located in Naples, Florida on the way to Marco Island, Florida is open for business. While this may spell good news for tourists in need of sunscreen and the seasonal “snow birds” picking up their toiletries, the Board of County Commissioners is not so thrilled. Recently, the Board gave County Attorney, … Continue reading

The post CVS Pharmacy: (W)ealth is Everything appeared first on Robins Kaplan Trial Attorneys Blog.

5 days 16 hours ago

In a decision released on November 17, 2016, the Third Circuit Court of Appeals reversed the holding of the Delaware Bankruptcy Court, affirmed by the District Court, that EFIH is not required to pay make-whole payments. In re Energy Future Holdings Corp., 16-1351, _ F.3d _ (3d Cir. Nov. 17, 2016).

Summary of Facts

In 2010, Energy Future Intermediate Holding Company LLC and EFIH Finance Inc. (together “EFIH”) borrowed approximately $4 billion. In return, EFIH issued notes secured by a first priority lien on their assets. The indenture governing the loan (the “First Lien Indenture”) allowed an early redemption prior to December 1, 2015 provided that EFIH paid a “redemption price equal to 100% of the principal amount of the Notes redeemed plus the Applicable Premium [i.e., the make-whole] . . . and accrued and unpaid interest” (the “Optional Redemption Provision”). The First Lien Indenture also provided for an immediate acceleration of “all outstanding Notes” in the event EFIH filed for bankruptcy (the “Acceleration Provision”). The Acceleration Provision provided the First Lien Noteholders the right to “rescind any acceleration [of] the Notes and its consequences[.]”

5 days 16 hours ago

As the financial services sector and Republican politicians draft the obituary of the Dodd-Frank Act, it remains to be seen whether that landmark legislation will be survived by the Financial Stability Oversight Council (“FSOC”). Whether FSOC itself survives the advancing wave of deregulation, however, it seems increasingly likely that the FSOC’s reasons for existing will not.

Section 111 of the Dodd-Frank Act created the inter-agency FSOC, made up of the heads of eight independent financial regulators and chaired by the Secretary of the Treasury. In general, the FSOC is tasked with identifying and responding to risks to the financial stability of the U.S. financial system and with encouraging discipline in the financial services market.  Like the Department of Homeland Security, the FSOC was created to centralize across federal agencies the analysis and response to financial security threats.

In particular, the FSOC was vested with the authority to determine whether a bank or nonbank financial institution with more than $50 billion in assets is subject to heightened regulation as a “systemically important financial institution” or “SIFI.” SIFIs are the latest incarnation of financial institutions that have long been called “too big to fail,” because they are critically important to our financial system.

Read More from: Hughes Hubbard & Reed

5 days 16 hours ago

     California's tiered homestead exemption protects a debtor's dwelling to the extent of $75,000, $100,000, or $175,000, depending upon the debtor's status, protects a like amount of proceeds of an execution sale of the homestead for six months following sale, and protects a dwelling acquired with the proceeds within the six-month period. Cal. Code Civ. Pro. §§ 704.710 – 704.730. The short six-month window seriously undermines Chapter 7 relief to a California debtor who would be willing to sacrifice non-exempt equity in a dwelling, such as a surviving spouse, recently widowed, who is burdened with unmanageable unsecured debt and can no longer afford mortgage payments.

Read More from: Credit Slips

5 days 17 hours ago
David Evans has an interesting article on PYMNTS that argues that "The fundamental problem with the CFPB ... isn’t who’s on top. It is that the CFPB does not have an institutional desire, or incentives, to make sure that the financial services industry supplies consumers with products that consumers need, including loans.” It’s refreshing to hear a CFPB critic argue that the issue isn’t really with the CFPB’s structure, but with its worldview. But Evans is still wrong. 

Read More from: Credit Slips

5 days 20 hours ago
This post is an extended aside from my previous post about David Evans' argument about the CFPB's mindset and institutional incentives.  The point isn't critical to Evans' argument, but I'm writing because it really irks me because it shows such a lack of understanding about the CFPB.  Specifically, Evans suggests that the CFPB's supposed emphasis on preventing consumer harms rather than maximizing consumer welfare stems from the CFPB’s “intellectual foundation in behavioral economics.” This just wrong.  The CFPB really doesn’t have a behavioral economics DNA. (Heck, behavioral economics hasn't made much of a mark on government in general).  

Read More from: Credit Slips

5 days 21 hours ago

Attorney Ron SykstusI recently saw in the news where President-elect Donald Trump is thinking about getting security clearances for his children and son-in-law.

For everyone else, getting a security clearance is a much more arduous and burdensome process, unless your father is the President!  In fact, I get several calls per month from prospective clients who tell me that they want to get a good-paying job that requires a security clearance and they ask me for help to get them one.  Unfortunately, that is not how the security clearance system works.

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

5 days 21 hours ago

The president-elect could take aim at the Federal Reserve's ties to Wall Street, bailout authority and other reforms if he really means to take steps to help working people.

Read More from: BankThink

5 days 21 hours ago

Xtera Comunicacoes Do Brasil LTDA has filed a voluntary petition for chapter 11 bankruptcy relief in the United States Bankruptcy Court for the District of Delaware (Case No: 16-12632 (KJC)).  This case is related to the recently filed Xtera Communications, Inc. bankruptcies. The debtor has filed a motion for an order directing that certain orders in the Xtera Communications, Inc. bankruptcy cases (Case No: 16-12577 (KJC)) be made applicable to the additional debtor in this subsequently filed case.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.


5 days 21 hours ago

cheat sheet for means test

The bankruptcy means test has a fatal weakness in its attempt to keep people out of bankruptcy.

In a logic that only Congress could employ, the means test deducts future expenses from your past income.

That’s the universal formula that is supposed to mathematically determine whether a person genuinely “needs” bankruptcy.

If you pass the means test, you get to choose the chapter of bankruptcy that furthers your goals.

Fail, and you’re limited to Chapter 13, or some non bankruptcy form of relief.

So, the magic calculation deducts future living expenses in certain categories from income from your recent past.

But, since we don’t know what the future brings, we get to project what those deductible expenses might be.

5 days 23 hours ago

Hampshire Group Ltd., a provider of fashion apparel across a range of product categories, channels of distributions and price points, and two of its U.S. subsidiaries have filed voluntary petitions for chapter 11 bankruptcy relief in the United States Bankruptcy Court for the District of Delaware (Case No: 16-12634).  The petition lists between $10 million and $50 million in both assets and liabilities.  According to the debtor’s press release, the company has received a commitment from Salus Capital Partners LLC, its senior secured creditor, for the use of cash collateral to facilitate the orderly wind-down of its licensed business operations.  The case has been assigned to the Honorable Laurie S. Silverstein.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.

5 days 23 hours ago

The election results will only intensify factors making competition with bank lenders more difficult, including the effect of interest rates as well as the regulatory environment.

Read More from: BankThink

5 days 23 hours ago

attorneys fees in Chapter 13Very few bankruptcy judges ever represented average individuals in bankruptcy before they became judges.

Fewer were sole practitioners,who must rely on the fees they earn and collect to stay in business.

Those two factors seem to create the chasm between bench and bar over attorneys fees in consumer bankruptcy cases.

This post starts from the experiences of  a colleague who sought approval for fees toward the end of a Chapter 13 case.  That fee application resulted in a written opinion denying in part the request for fees over and above the flat fee or “no look” fee available in this district. Some assumptions underlying the written opinion are ill considered; having been written down, the view of the judge writing  may attract a following beyond the facts of the case in question.

6 days 26 sec ago

Work injuries come in all shapes and sizes. You could be laid up in bed for weeks, or able to perform light tasks and office work within a week of treatment. When determining what amount of worker’s compensation you should be receiving, it is important that you factor in your disability qualification as well as your physical and mental health.

Despite your best efforts to be safe at work, injuries do occur. If your job involves physical labor, your chances of sustaining a workplace injury will be higher than if you worked in an office setting. Because minor and temporary workplace injuries are more common, individuals who are injured at work are more likely to fall into several disability qualifications throughout their recovery. As each qualification is allotted a different commensurate compensation, it is important to understand the variations between them, and what these variations could mean for those who collect worker’s compensation as a result.

In Maryland, there are four different categories of disability resulting from workplace injuries:

Read More from: Scholnick Law

6 days 33 min ago


Section 546 of the Bankruptcy Code recognizes a vendor’s right to reclaim goods if unpaid for, and supplied to a debtor within forty-five days of the bankruptcy filing, while the debtor was insolvent. This right, known as a “reclamation right,” is created under section 2-702 of the Uniform Commercial Code, as adopted by applicable state law. Typically, claims based on reclamation rights lose value as a result of a senior secured lender’s lien on all the debtor’s assets. A recent Delaware ruling changes the treatment of such claims, benefiting vendors of insolvent buyers.

On August 24, 2016, in In re Reichold Holdings US, Inc,[1] the Delaware Bankruptcy Court found that reclamation rights maintain their senior secured priority status, over the rights of a postpetition senior secured lender where the reclamation rights are deemed to arise before the secured lender’s lien, and the proceeds of a postpetition loan were used to pay off the senior secured prepetition debt.

6 days 38 min ago

Receiving Wide Coverage ...

Racing Stripe: The latest round of private funding for Stripe, a start-up that offers software and services that process payments for businesses, has boosted the value of the company to just under $9.2 billion, nearly double what it was worth less than two years ago and making it the most valuable U.S. fintech company, according to the Wall Street Journal. "Stripe's investors think the company can capitalize on the fast growth of...

Read More from: BankThink

6 days 47 min ago

Kansas City bankruptcy lawyer Rachel Foley wrote about forgiveness in the bankruptcy context.

She wasn’t talking about the forgiveness of debt, but about the negative emotions that can eat you up.

Shed the anger at others who threaten your family’s well being, she counseled, and look forward.

I don’t often see clients who need to forgive their creditors or others they see as responsible for their plight.

Closer to home

My clients need to forgive themselves.

They arrive in my office, certain that even making an appointment with a bankruptcy lawyer is an admission of guilt.

Guilty of what?

Of job loss?

Of investments that crashed?

Of illness?

Of divorce?

Sometimes, there is a decision or a pattern that, seen from the outside, was poor judgment.  But that isn’t a character failing.

1 week 22 hours ago

Gail DonaldsonThanksgiving is a time to spend with family, have delicious food, hunting for deer and watching football in the south.  We have so many things to be thankful for this year and we hope you and your family’s Thanksgiving is filled with lots of love and fun memories this year.

Thanksgiving is also the trigger for holiday shopping across the country.  As you prepare for this week’s Black Friday, please keep these tips in mind so January is not filled with a shopper’s hangover!

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

1 week 2 days ago

Most Americans can't afford health insurance

In the aftermath of the recent presidential election, many people are currently wondering what is going to happen to their health insurance plans. Throughout the election, there was a debate about whether Obamacare would remain the law of the land if and when Donald Trump got elected president. Now that Trump has won the election, there are ongoing concerns from a lot of Americans about what parts, if any, of Obamacare will stay in effect.

The reality is that health care coverage is an important consideration for just about every person in the US, especially as more and more Americans find themselves struggling with debt concerns. Now a recent survey indicates that approximately half of all people who need health care coverage would not be able to afford a health care plan that requires more than $100 per month in payments.

1 week 3 days ago