Many of my clients come to me six months after cashing out their 401(k). At the time, it seemed to be a good idea to solve a short-term cash crunch. Unfortunately, cashing in a 401(k) can cause problems in the future. It is often easy to cash in your 401(k) as long as you can prove you are having a hardship, such as temporary cash-flow problems created by the loss of a job or an emergency home repair. Sometimes I hear they have simply paid down a credit card or caught up a loan, with no ability to pay the very next month. In essence, they have put a band aid on their financial situation that often times awakens only a few months later. Also, in the panic of cashing in the 401(k), it probably came as a surprise that 20% or more is paid in taxes plus another 10% in early pay out penalties. So the $3,000.00 they thought they were getting ended up barely $2,000.00. If you
Mediation needs to be included — explicitly and by name — in the Federal Rules of Bankruptcy Procedure.
The new mediation provision must cover two specific subject areas: (i) mediation authorization, and (ii) mediation confidentiality.
Authorization. If a city is a Chapter 9 debtor in a jurisdiction without local mediation rules, does authority exist to appoint a mediator? What if the bankruptcy judge wants to appoint a proactive mediator team, like Detroit: does the judge have authority to do so?
Such questions could be resolved affirmatively by a Federal bankruptcy rule.
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Theresa Giudice’s bankruptcy keeps on providing blog fodder – for me and other bankruptcy attorneys. Bankruptcy Settlement of Reality TV Star This is just too juicy. Not from a salacious point of view, but, so many legal issues in this hot mess of a case. I blogged earlier about her bankrupt Teresa Giudice blaming her [...]
The post Bankruptcy Settlement of Reality TV Star – Being Challenged appeared first on Detroit Bankruptcy Lawyer Kurt O'Keefe.
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In early November, the Ninth Circuit held in In re New Investments, Inc. that a debtor was required to “cure” defaults to an agreement using a post-default interest rate, overturning its prior, decades-old decision In re Entz-White Lumber & Supply, Inc., which had held that a debtor could cure agreements at pre-default interest rates.
New Investments, Inc. (“New Investments”) borrowed approximately $3 million from Pacific L 51, LLC (“Pacifica”) to purchase hotel property. The loan accrued interest at a five percent rate which would increase to thirteen percent after an event of default. New Investments defaulted in 2009 and filed for chapter 11 relief thereafter. In the bankruptcy case, New Investments’ plan of reorganization proposed to “cure” the default under the loan agreement by selling the hotel property and using the proceeds to pay Pacifica at the pre-default interest rate of eight percent. Pacifica objected to the plan by arguing that it was entitled to the higher post-default interest rate of thirteen percent.
The bankruptcy court confirmed New Investments’ plan over Pacifica’s objection and Pacifica timely appealed directly to the Ninth Circuit Court of Appeals.
Read More from: Business Finance & Restructuring News - Weil
“Don’t Bet The Farm On It” When is a million dollar equity cushion not enough? Despite a purported cushion of at least $1.2 million, the Bankruptcy Court for the District of Nebraska recently held that a proposed Chapter 12 plan’s repayment terms were unreasonable because: (i) the plan did not provide any periodic adjustment to … Continue reading
The post Elkhorn Crossing, LLC: An Equity Cushion is Not Enough appeared first on Robins Kaplan Trial Attorneys Blog.
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Credit Slips is honored to have been selected as part of the ABA Journal's Blawg 100, their annual list of the top 100 blogs about law and lawyering. It is our second year in a row for inclusion on the list.
We appreciate all of our readers and are humbled by the time you spend with us. The comments to the posts continually demonstrate that one of the things that makes this blog work is our readership. Thanks for visiting.
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Consumers' providing bank credentials to third-party services is akin to handing over their house keys. To mitigate screen-scraping risks, banks and fintech companies must first address issues related to security, transparency and control.
Post-crisis regulations were not only costly but may have undermined executive accountability by turning CEOs into compliance managers instead of drivers of business decisions.
Receiving Wide Coverage ...
Wall Street ties: Steven Mnuchin, a former Goldman Sachs executive, is expected to be named Treasury secretary by President-elect Donald Trump. "Mr. Mnuchin's Wall Street pedigree presents a contrast with the populist themes Mr. Trump struck in his campaign, railing against big banks and vowing to close tax loopholes that benefit hedge funds," the Wall Street Journal commented. "Mr. Trump also repeatedly attacked his rivals in the primary and general elections for...
Now that Thanksgiving and Black Friday are behind us, the Holiday shopping season is in full swing. Many of you likely made purchases using credit cards or other credit accounts to make gift purchases. If you’re already in a tight financial situation, keep in mind that the Bankruptcy Code has provisions built in that prevent a person from discharging debts that have been recently incurred.
In re Jackson 554 B.R. 156 (BAP 6th Cir. 2016) – At the request of a chapter 7 debtor, the bankruptcy court reopened his case and sanctioned the debtor’s condominium association for violating his discharge. On appeal the Bankruptcy Appellate … Continue reading
Read More from: Bankruptcy-RealEstate-Insights
Americans could have significantly more money saved for their retirement, if not for all the fees that the asset management industry charges. What's worse is most savers are unclear how much they are paying, to whom, and for what. The authors of "What They Do With Your Money: How the Financial System Fails Us and How to Fix It" propose some changes that they say would not only help the economy grow faster but improve corporate America overall.
Read More from: Nebraska Debt and Bankruptcy Blog
The economy still hasn’t fully rebounded from the recession, leaving plenty of families with difficult financial decisions to be made. One question that many people find themselves asking is: Should I plan for my future retirement right now, or should I focus on paying off my current bills and other debt obligations and worry about my retirement later? The answer for you may not be clear, especially when you’ve got a mountain of debt and serious concerns about whether you may need to consider filing for bankruptcy.
Read More from: The Law Office of Joel R. Spivack
Signs point to international regulatory reform having passed its peak, with European regulators delaying policies and agitating against further Basel III rules.
Read More from: In The (Red) Business Bankruptcy Blog
We are quickly approaching the beginning of a new year. Many people see the new year as a new beginning and a time to make a fresh start or seek some sort of improvement from the past year. Many folks may decide to consider looking for a home and taking out a mortgage in the coming year. Before seeking a mortgage loan, it is smart to review your credit history and make any improvements you can in order to help yourself get the credit you want or need.
Read More from: eSQUIRE Global Crossings
The Internal Revenue Service's petition for information on Coinbase customers is an overreach that should concern Americans regardless of whether they use bitcoin.