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On May 20, 2016 Intervention Energy and certain of its affiliates (collectively, “Intervention” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. According to the declaration of Intervention’s President, John R. Zimmerman (the “Zimmerman Declaration”), the Debtors primarily engage in the exploration and production of oil and natural gas primarily in North Dakota.  Debtors have interests in approximately 600 producing wells across the Bakken formation.  Debtors’ liabilities total approximately $140 million owed pursuant to a 2012 Note Purchase Agreement with EIG Management Company, LLC, as administrative agent.  See Zimmerman Declaration at 9-11 and 23-26. The Debtors are seeking to have their bankruptcy cases jointly administered under the lead bankruptcy case In re Intervention Energy Holdings, LLC., et al., Case No. 16-11247. A copy of the Zimmerman Declaration can be accessed here: Download Zimmerman Declaration. For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney.  For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring/.
1 week 17 hours ago
Timothy Bennett has joined law firm Seyfarth Shaw as senior counsel in the firm’s corporate department. Mr. Bennett focuses on distressed and special situations sectors and has worked with brokerages, hedge funds and banks. He has experience in bankruptcy claims, loan portfolios and interests in liquidating funds. Mr. Bennett earned his law degree from Seton Hall University School of Law. Michael Eisenband and Carlyn Taylor are now global co-leaders of the corporate finance and restructuring group at advisory firm FTI Consulting. Mr. Eisenband will focus on the restructuring practices, while Ms. Taylor will work on business transformation. Ms. Taylor, who has worked in the restructuring group since 2002, is based in Denver. New York-based Mr. Eisenband most recently was senior managing director with the restructuring group, where he has worked since 2004.

Read More from: WSJ.com: Bankruptcy Beat

1 week 22 hours ago
This is the second in a blog series on student loan debt and other money matters faced by college graduates. Check out the first blog article in this series, “Pay Back Your Student Loans before the Interest Charges Spiral Out of Control.” When students finish college and enter the real world, they may be unprepared for the financial obligations that come with getting a job, paying monthly bills like rent, utilities and car payments, and covering other necessary expenses. The reality is that debts can quickly pile up and become overwhelming. Although this is true for anyone, it’s especially likely for recent college graduates who have spent several years relatively insulated from serious financial responsibilities while attending school. One of the best ways to ensure that you do not end up buried underneath a mountain of debt after leaving college is to learn how to properly manage your personal finances. One money lesson that every college graduate would be best served by understanding is the importance of minimizing credit card debt.
1 week 22 hours ago
Last week, the U.S. Supreme Court in Husky International Electronics, Inc. v. Ritz held a chapter 7 debtor accountable for “actual fraud” despite the absence of a specific fraudulent misrepresentation.  The Court’s expansive reading of section 523(a)(2)(A) of the Bankruptcy Code gives creditors a new weapon in their fight to attack the discharge of their debts. Husky is a supplier of components used in electronic devices.  Between 2003 and 2007, Husky supplied Chrysalis Manufacturing Corp. with product and during that period, Chrysalis incurred a six-figure debt to Husky.  Daniel Ritz served as a director of Chrysalis and owned at least 30 percent of the common stock.  During this four year time period, Ritz initiated several large cash transfers from Chrysalis to other entities that Ritz controlled—funds that could have been used to pay Chrysalis’s creditors, including Husky, which was owed approximately $164,000.  Husky subsequently sued Ritz under a provision of Texas law that holds a corporate shareholder liable for the corporation’s fraudulent transfers.  Ritz then filed for protection under chapter 7 of the Bankruptcy Code.

Read More from: eSQUIRE Global Crossings

1 week 23 hours ago
Wall Street Journal Enough with the big bank-small bank divide, says First National Bank of Dennison chairman and chief executive Blair Hillyer. Competition between differently sized banks is better for customer experience and better for business, he says. It's difficult when all banks are operating "with Washington as our co-CEO," but nevertheless it is important "to work together if we're going to remain relevant in this brave, new financial world." His comments came in a letter...

Read More from: BankThink

1 week 23 hours ago
The nascent industry's early success will mean very little if these new companies don't take necessary steps to position themselves for the long term.

Read More from: BankThink

1 week 23 hours ago
  I have written previously about the topic of arbitration.  In sum, arbitration is a basic restriction of consumer rights. The basic argument for arbitration is that greedy trial lawyers like to sue businesses and make money.  If lawyers aren’t allowed to sue a business for illegal acts in a court of law, then the business will pass along the savings to the consumer and it will save everyone a lot of money.  Yeah, right.   If businesses weren’t doing illegal things, then lawyers would have no basis to sue them in the first place.   Arbitration is a forced agreement used by businesses with their consumer customers to say, in essence,  you are going to pay me for something, either a service or product, and if I cause harm to you in any way, you agree you cannot sue me in court.

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

1 week 23 hours ago
As a general rule, you are not responsible for the debts of your spouse. Also, if you marry someone you do not become obligated to pay the debts they incurred prior to the marriage. But there is one major exception to these rules. You are liable for medical debts of your spouse under a legal theory called the Doctrine of Necessities. The necessities rule is not limited to medical bills. It could apply to utilities, rent, food, clothing and any other necessities, but the most common lawsuit utilizing this legal concept is in the collection of medical debts.
In Nebraska, when you marry someone you also marry their future medical debts.
If your spouse incurs medical debts during the marriage, you are liable for the debt.  Even if the bills only come in the name of your spouse.  Even if you did not sign for the debts.  Even if you did not authorize the treatment. Even if you are separated.  In Nebraska, when you marry someone you also marry their future medical debts. This doctrine has been accepted in Nebraska courts.
1 week 1 day ago
A second mortgage is not a second mortgage if it didn’t get recorded until AFTER a bankruptcy is filed. The debt is unsecured and is discharged in the bankruptcy.
Kentuckiana Bankruptcy Opinions (Bankr. W.D. Ky. May 19, 2016) The bankruptcy court grants summary judgment in favor of the debtor, holding a mortgage debt had been discharged in the Chapter 7 and the recording of the mortgage and foreclosure action constituted a violation of the automatic stay and the discharge injunction. The mortgagee had failed to record the mortgage prepetition, and it contained a provision that stated the lien did not attach until recorded. The court rejects the creditor’s argument that an equitable lien arose, in part because the creditor had control over attachment and simply failed to record for approximately one year before the bankruptcy was filed. The court also rejects the creditor’s argument that the post-bankruptcy state court foreclosure judgment could not be disturbed under the Rooker-Feldman doctrine. Opinion below. Judge: Fulton Attorney for Debtor: Marcus H. Herbert Attorneys for Creditor: David C. Nalley, Gregory A. Stout 2016-05-19 – in re isaacs
1 week 1 day ago
  1. Jeffrey Scholnick was recently part of a panel discussion for a seminar on Student Loans in bankruptcy.
  2. Jeff recently had an exclusive interview with Fonseca, a Latino singer, who performed at the Fillmore in Silver Spring, MD.  You can find the English and Spanish versions of Jeff’s article here, on page 25/48. (Mundo Latino – Mayo 2016)
  3. Additionally, Jeff Scholnick has been appointed the Legal Advisor to the Mundo Latino Baltimore Newspaper!  You can find past editions of the newspaper here!

Read More from: Scholnick Law

1 week 1 day ago
The company behind brands like Fab laundry detergent and Rit dye, Phoenix Brands LLC, filed for chapter 11 protection to sell its business. 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.”) DBR reports in WSJ on the bankruptcy of shale company Intervention Energy Holdings LLC. SunEdison Inc.’s junior creditors will conduct a bankruptcy probe, DBR reports in WSJ. Carl Icahn, the new owner of the Trump Taj Mahal in Atlantic City, wants to make the casino great again, the Associated Press reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
After extensive briefing and hearings, the U.S. District Court presiding over the appeal (foreign readers: general trial judges in the U.S. federal court system sit in an appellate capacity over the specialized bankruptcy courts) from the U.S. Nortel proceedings punted this week.  More precisely, the judge, almost resignedly, acknowledged that the appellate appetite of the parties showed little sign of abatement and so has recommended that the appeal go straight to the U.S. Court of Appeals for the Third Circuit (which would hear any appeal from the District Court).  If the appellate court takes this direct appeal, which it almost certainly will, this could very well be the final stage.  Stay tuned!

Read More from: Credit Slips

1 week 1 day ago
It has become something like conventional wisdom that the pending SCOTUS case involving the Recovery Act is no longer relevant. After all, the giant interest payment due July 1 is largely attributable to GO bonds, and the Commonwealth itself is not even subject to the Recovery Act. And the pending PROMESA bill would expressly override the Recovery Act. Taking the last point first, we should not assume that PROMESA will be enacted before the Supreme Court rules. Indeed, there are many political reasons why Congress – the Senate in particular – might want to wait until the Supreme Court acts before advancing PROMESA.  Moreover, what the Supreme Court says with regard to the Recovery Act matters. For example, what if they rule that the 1984 addition of section 101's definition of "State" was impermissible, in the way that it treated the Commonwealth? That might render the Recovery Act subject to section 903 preemption, while at the same time allowing Puerto Rico the ability to authorize its municipal entities to file under chapter 9. That could possibly force some rethinking of PROMESA, although I think we will still see some legislation. The details might change, however, if SCOTUS effectively amends the current Bankruptcy Code.

Read More from: Credit Slips

1 week 1 day ago
Dear Experian, A judgment was filed against me. If a judgment is discharged in your Chapter 7 bankruptcy, can it be removed from your report? – JLB From The “Ask Experian” team – Dear JLB, The court judgment will appear as a public record in your credit report and will remain for seven years from the filing date. Any public record item in a credit report would likely be considered very negative and could affect your ability to qualify for a new rental agreement. If included in bankruptcy, the judgment will be removed when the bankruptcy is discharged. You may want to submit documentation of the bankruptcy filing, discharge, and schedule of debts showing the judgment was included. A Chapter 7 bankruptcy will continue to be reported for 10 years from the filing date, regardless of the discharge date. Any collection accounts discharged through bankruptcy are updated to show that they were included in the bankruptcy, but will still show the account history for seven years. Thanks for asking. The post Will Bankruptcy Remove Judgments From Credit Report? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
1 week 2 days ago
The Consumer Financial Protection Bureau (CFPB) issued a report finding that one-in-five borrowers who take out a single-payment auto title loan have their car or truck seized by their lender for failing to repay their debt. According to the CFPB’s research, more than four-in-five of these loans are renewed the day they are due because borrowers cannot afford to repay them with a single payment. More than two-thirds of auto title loan business comes from borrowers who wind up taking out seven or more consecutive loans and are stuck in debt for most of the year. “Our study delivers clear evidence of the dangers auto title loans pose for consumers,” said CFPB Director Richard Cordray. “Instead of repaying their loan with a single payment when it is due, most borrowers wind up mired in debt for most of the year. The collateral damage can be especially severe for borrowers who have their car or truck seized, costing them ready access to their job or the doctor’s office.”  Read more..
1 week 2 days ago
The Reaffirmation Agreement Over 90% of the Chapter 7 debtors that I assist with auto loans choose to keep that auto while filing a Chapter 7 bankruptcy. This is done through the signing of a reaffirmation agreement which is prepared and provided by the auto lender. The agreement is rather lengthy and filled with unnecessary+ Read More The post Reaffirming On Your Auto Loan Through Chapter 7 appeared first on David M. Siegel.
1 week 2 days ago
I bear no hard feelings for the JPMorgan Chase CEO, but our disagreement underscores a rift between how Wall Street firms and community banks view the post-crisis landscape.

Read More from: BankThink

1 week 3 days ago
  On Tuesday, we blogged about the Supreme Court’s decision in Husky International Electronics Inc. v. Daniel Lee Ritz. The decision focused on the phrase “actual fraud” in 11 U.S.C. § 523(a)(2)(A), which excepts from discharge any debts arising from money, property, services, or credit “to the extent obtained by . . . false pretenses, a false representation, or actual fraud.” Regardless of what we think of the merits of the case, the Supreme Court held in a precise, narrow Part A of the opinion that “actual fraud” doesn’t require, as urged by the Fifth Circuit and Justice Thomas (in his dissent) a false representation. As promised, we’ll now cover Part B of the opinion, arguably the more interesting but almost more confusing part of the opinion. Decoding Part B of Husky v. Ritz

Read More from: Plan Proponent

1 week 3 days ago
If your wages are being garnished, or you know they will be, filing an Elkhorn Chapter 7 Bankruptcy will most likely stop the wage garnishment. An Elkhorn Chapter 7 Bankruptcy stops most wage garnishments because the moment you file a bankruptcy petition, an automatic stay immediately goes into effect. The bankruptcy laws are designed to protect you, and an automatic stay does just that.   What Is An Automatic Stay? An automatic stay protects you from creditors. The bankruptcy law requires most creditors to stop all collection activities against you during the automatic stay because your monies, assets, and property are now part of the bankruptcy estate and some portions may be exempt under bankruptcy law. Creditors are not allowed to garnish your wages, attach liens to your property, repossess assets, foreclose on your property, call you, or send you collection letters during the automatic stay.

Read More from: Wynn at Law, LLC

1 week 3 days ago

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