ABI Blog Exchange

In a case of first impression, the Ninth Circuit held that the unsecured portion of a secured debt, for which the debtor’s liability has been discharged in a prior chapter 7 proceeding, is still a debt for determining the debtor’s eligibility to be a debtor under chapter 12 of the Bankruptcy Code.  Davis v. U.S. Bank (In re Carolyn Davis), 2015 WL 662001 (9th Cir.

Read More from: Creditors' Rights

1 day 9 hours ago
A growing lack of transparency between some businesses and their banking service providers threatens our ability to effectively manage money laundering and terrorist financing risk.

Read More from: BankThink

1 day 9 hours ago
Receiving Wide Coverage ... When Nob Met Dread: Two federal officials assigned to investigate Silk Road, the digital marketplace for drugs that only accepted payment via Bitcoin, have been charged with illegally using the defunct black-market service to enrich themselves. An agent with the Drug Enforcement Administration and a Secret Service agent have resigned and been charged with money laundering and wire fraud. The DEA agent, named Carl Mark Force IV, has also been charged with...

Read More from: BankThink

1 day 9 hours ago
Altegrity Inc., which gained notoriety for vetting former National Security Agency contractor Edward Snowden, said its restructuring plan would pay general unsecured creditors just over two cents on the dollar for their claims. Read 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.”) The Wall Street Journal reports on the Securities and Exchange Commission’s charges against Lynn Tilton and her Patriarch Partners firm for fraud. According to WSJ, the Puerto Rico Electric Power Authority got an extended deadline for some loans.

Read More from: WSJ.com: Bankruptcy Beat

1 day 9 hours ago
Altegrity Inc., which gained notoriety for vetting former National Security Agency contractor Edward Snowden, said its restructuring plan would pay general unsecured creditors just over two cents on the dollar for their claims. Read 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.”) The Wall Street Journal reports on the Securities and Exchange Commission’s charges against Lynn Tilton and her Patriarch Partners firm for fraud. According to WSJ, the Puerto Rico Electric Power Authority got an extended deadline for some loans.

Read More from: WSJ.com: Bankruptcy Beat

1 day 9 hours ago
In the final month of his senatorial career, Senator Tom Coburn (R, Oklahoma) published a long, detailed, and highly-specific criticism of the Internal Revenue Code, entitled “Tax Decoder.” Jim McTague, writing in the December 15, 2014 issue of Barron’s, pronounces it “delicious.” Read more here.
1 day 10 hours ago
T. Rowe Price’s proxy voting policies explains that its Proxy Committee develops the firm’s positions on major proxy voting issues.  The Proxy Committee comprises portfolio managers, investment analysts, operations managers and internal legal counsel, and relies upon its own research, independent research provided by ISS and Glass Lewis, and information presented by companies’ management and shareholder groups, in establishing policies.
1 day 10 hours ago
Authored by Adam B. Brandon of Rogers TowersThe Truth in Lending Act (“TILA”) requires lenders to make certain disclosures to borrowers before the parties close on a residential mortgage.  TILA also affords borrowers the right to rescind a mortgage for any reason for three day after the transaction.  Furthermore, if a lender fails to make the disclosures that TILA requires, then the borrower may rescind the transaction within three years or until the sale of the secured property, whichever comes first. On January 23, 2015, the U.S. Supreme Court issued a significant opinion that clarifies how a borrower may exercise the right to rescind.  Previously, many federal courts required a borrower seeking rescission to file a declaratory judgment action.  If the borrower failed to file suit within three years, the borrower lost the right to rescind forever.  However, in Jesinoski v. Countrywide Home Loans, the Supreme Court ruled that the plain text of TILA only requires a borrower to provide timely written notice of rescission to the lender.

Read More from: Florida Banking Law Blog

1 day 10 hours ago
Per www.reuters.com:WASHINGTON, MARCH 30 | BY LAWRENCE HURLEY(Reuters) - The U.S. Supreme Court on Monday left intact a ruling that prevents plaintiffs from suing banks that they say aided and abetted convicted fraudster Bernie Madoff.The high court declined to hear two separate appeals filed by investors in foreign investment vehicles that lost money when Madoff's the Ponzi scheme collapsed in 2008. They had sued Madoff's bankers, JPMorganChase & Co and Bank of New York Mellon Corp, and others.For more, see: http://www.reuters.com/article/2015/03/30/usa-court-securities-idUSL2N0W...

Read More from: The COMI

2 days 1 hour ago
In general, you can file a chapter 7 bankruptcy case once every eight years. For example, if you filed on January 1, 2008, then you would not be eligible to file another chapter 7 bankruptcy case until January 2, 2016. If you filed the case in between those two dates, the chapter 7 trustee or+ Read More The post Can I File Chapter 7 Bankruptcy Again? appeared first on David M. Siegel.
2 days 2 hours ago
Every parent has thought about it, but few want to discuss it.  What happens to your children if you and your spouse both pass away before your children grow up.  Who will care for them?  Who will cover the costs of raising them? How will they go to college?  Who will control their inheritance?  These are very tough questions, but they must be answered. A proper estate plan can account for this worst case scenario.  A guardian can be named to care for your children and a back up guardian can be chosen in case the first choice is unable or unwilling to serve.  A revocable trust can be set up that dictates the terms under which money shall be disbursed, first to the guardian and later to your children.  The Trustee should be someone that you trust to work with your children’s guardian, but also protect your children’s financial future.  Life insurance can be purchased and the alternative named beneficiary can be your revocable trust. Terms of the trust can also include information about college attendance, military service, or other career paths.
2 days 4 hours ago
Bloomberg reported recently on a gem and mineral show held at the Tucson Convention Center. While diamonds, gold, and select other precious metals have, since antiquity, been a recognized store of value, there appears to be an expanding universe of gems and minerals that people are looking toward as an investment. Read more here.
2 days 5 hours ago
No matter how deep your hole of debt, you want to keep bankruptcy as a last resort. If there’s a way out of debt that doesn’t involve a trip to a bankruptcy lawyer, that’s what you want to do. After all, bankruptcy costs money and takes time. You have to give up all sorts of financial information, and it doesn’t cover all types of debt. Most important, bankruptcy is a tool you can’t use all the time. Better to save your best option for last. Most of my job as a bankruptcy lawyer is to help my clients understand that I’m the last stop on the train, not the first. Consultations usually involve laying out all the options and then looking at which one is the best. If filing for bankruptcy is the right way to go, I can usually help. But here are some of the other choices you should look at first. Debt Consolidation Debt consolidation involves taking out a new loan to pay off the other ones. If you qualify for new financing at a better rate than the existing debts, it may make sense. Unfortunately, most of the people who meet with me are already past due on their debts and so don’t qualify for a new loan. Still, it’s worth it for you to try as a way to get out of debt.
2 days 5 hours ago
In order to properly file for Chapter 7 bankruptcy a debtor must first qualify for Chapter 7 as determined by the U.S. Bankruptcy Code. Additionally, in 2005 Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) that requires debtors to submit their income to a means test before they can qualify for a Chapter 7 filing. The means test determines whether or not a debtor’s income is low enough such that they qualify for a Chapter 7 bankruptcy filing. A Chapter 7 filing may discharge all that the debtor owes, and thus Congress wanted to ensure that only those who truly needed this tool were using it. If the means test shows that a debtor makes too much money, it is presumed that the debtor is attempting to abuse the bankruptcy code by filing for Chapter 7. The debtor will then have the option of filing for a Chapter 13 bankruptcy, and thereby will be required to pay a portion of their unsecured debt. Rebutting the Presumption of Abuse
2 days 6 hours ago
Not only do the FDIC's limitations on brokered deposits curtail bank earnings, they deny banks the ability to use brokered deposits to meet community lending needs.

Read More from: BankThink

2 days 7 hours ago
NORTH OF THE BORDER UPDATE This article has been contributed by Martin Desrosiers and Julien Morissette, partner and associate respectively, in the Insolvency & Restructuring Group of Osler, Hoskin & Harcourt LLP. The Bankruptcy and Insolvency Act permits creditors to file an application in bankruptcy against a debtor if certain conditions are met. While these applications are relatively rare (most debtors voluntarily file for protection) they may be used as a last-ditch effort to collect a debt. The conventional wisdom is that a company which has publicly admitted to insolvency can never successfully defend such an application. In a recent judgment, an Ontario court refused to bankrupt a company precisely in that situation.  Background Litigation In early 2011, Darryl Stretch and a company he controlled entered into an Executive Consulting Agreement with Solid Gold Resources Corp., a junior mining exploration and development company. Stretch was Chief Executive Officer of Solid Gold for a time. In late 2012, Solid Gold terminated the Agreement.
2 days 7 hours ago
As US Investigations Services was working to hang on to hundreds of millions of dollars in federal contracts, the security screening firm called on a former chairman of the Joint Chiefs of Staff, Michael G. Mullen, for help. Exactly what a former top military adviser to two U.S. presidents was doing at the beleaguered company has not been revealed. US Investigations is the firm that vetted Edward Snowden for work at the National Security Agency and Washington Navy Yard gunman Aaron Alexis for his federal contract work. Last year, it was hit with a massive cyberattack that exposed the personnel files of 25,000 Department of Homeland Security employees to hackers. If the company was hauling out the heavy artillery to try to save its taxpayer-funded business, the effort failed. Now bankrupt, US Investigations, or USIS, won’t say when the retired admiral was hired.  It won’t say what he did. And it won’t say what it paid Adm. Mullen, who is identified as a company “insider” in court documents. Adm. Mullen did not respond to questions.

Read More from: WSJ.com: Bankruptcy Beat

2 days 7 hours ago
As US Investigations Services was working to hang on to hundreds of millions of dollars in federal contracts, the security screening firm called on a former chairman of the Joint Chiefs of Staff, Michael G. Mullen, for help. Exactly what a former top military adviser to two U.S. presidents was doing at the beleaguered company has not been revealed. US Investigations is the firm that vetted Edward Snowden for work at the National Security Agency and Washington Navy Yard gunman Aaron Alexis for his federal contract work. Last year, it was hit with a massive cyberattack that exposed the personnel files of 25,000 Department of Homeland Security employees to hackers. If the company was hauling out the heavy artillery to try to save its taxpayer-funded business, the effort failed. Now bankrupt, US Investigations, or USIS, won’t say when the retired admiral was hired.  It won’t say what he did. And it won’t say what it paid Adm. Mullen, who is identified as a company “insider” in court documents. Adm. Mullen did not respond to questions.

Read More from: WSJ.com: Bankruptcy Beat

2 days 7 hours ago
The CFPB's proposed reforms for payday and other high-cost loans are both welcome and long overdue. But there are two ways the agency can further improve future requirements.

Read More from: BankThink

2 days 9 hours ago
Chronicle-Tribune/Associated Press
Salus Capital Partners, the hedge fund trying to gain control of RadioShack , has changed its mind about increasing its offer for the battered retail operation. 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.”) Plastic-surgery chain Lifestyle Lift filed for chapter 11 protection Friday, 3 1/2 weeks after abruptly shutting down its business and laying off its staff of nearly 400, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

2 days 9 hours ago

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