ABI Blog Exchange

Once you opt to surrender you home in your Oregon Bankruptcy, you will probably want to stay in the house for as long as you can. All too often we have seen Oregon Bankruptcy clients move out of homes in bankruptcy, thinking the foreclosure would soon follow. But lenders often change course. The rapid foreclosure that was on track for sale prior to the bankruptcy may now languish for months and sometimes years on end. So why not stay in the house for as long as you can. Moreover, if you live in a condo, HOA fees start to accrue after your case until the foreclosure is completed, so why not get something for your money. Once the foreclosure sale is completed, it’s time to contact the lender to make a “cash for keys” deal. Fulfilling your end of this deal may enable you to walk away with several thousand dollars to secure your first rental. Make sure the bank puts your deal in writing. The Department of Housing and Urban Development offers free counseling to help you negotiate and evaluate cash for keys offers.  Take advantage of this service. The downside is that these deals usually require that you leave the house in “broom clean” condition. You must treat your move out as you would if you were moving out of an apartment and were looking to get your deposit back. You really need to remove all furniture and clean up the home. You also must turn in all house keys and garage door openers or remotes. The bank will normally inspect the home after you move out.

Read More from: Oregon Bankruptcy Lawyer

9 hours 19 min ago
This is the next post in Plan Proponent’s series on the confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece). In this post, we’ll cover the Commission’s recommendations regarding “class-skipping” and “intra-class discriminating” distributions. Overview of Plan “Gifting” Provisions As we have discussed in other posts, the Bankruptcy Code establishes a relative priority of claims and the order in which claims must be paid. Although the “let’s make a deal” approach is usually the path of least resistance in plan confirmation, consensus is not always possible and “cramdown” is the only option. Cramdown (i.e., confirming a plan over the objection of a class of dissenting creditors) requires 1 of 2 things: (1) paying such class in full or (2) ensuring that no junior classes receive property on account of their junior claims/interests. In a nutshell, that’s the absolute priority rule–Section 1129(b)’s requirement that a plan must be “fair and equitable.”

Read More from: Plan Proponent

13 hours 43 min ago
This is the next post in Plan Proponent’s series on the confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece). In this post, we’ll cover the Commission’s recommendations regarding Section 1129(b)(2)(A) and “cramdown” interest rates. Background on Cramdown Rates and Till At least for plans proposing deferred cash payments to secured creditors, the issue of the appropriate rate of interest is arguably the most important and most litigated plan confirmation issue. Under Section 1129(b)(2)(A), “cramdown” requires 1 of 3 things: (i) preserving the secured creditor’s lien and making deferred cash payments having a present value equal to a secured creditor’s allowed secured claim; (ii) a sale of the secured creditor’s collateral with its lien following the proceeds; or (iii) providing the secured creditor the “indubitable equivalent” of its claim.

Read More from: Plan Proponent

1 day 12 hours ago
I recently saw Richard Linklater’s film “Boyhood.”  It follows a little boy named Mason Evans Jr. and his family from when he was six years old all the way to when he turns eighteen and goes off to college.  The film’s gimmick–which never felt gimmicky–was that Linklater made the movie over twelve years so he could use the same child actors to play Mason and his sister all the way through and capture them as they age.  The film was almost three hours long, but it was touching and kept my attention. The heart of the film is Mason’s fierce mom, Olivia, a role for which Patricia Arquette won an Oscar.  Mason’s parents are divorced, and Mason’s dad, Mason Sr., played by Ethan Hawke, is a kind of lost and befuddled soul who just wasn’t ready to be a dad when the kids were young, but is nice enough to the kids.  Olivia also goes through a couple of other husbands in the movie, and both of these men turn out to be awful. The story of Boyhood is really the story of Olivia transcending these relationships while she raises her kids and completes her education, ultimately becoming a professor of psychology.  The men are ciphers, plot devices in her story arc, but I was interested in what Linklater intended these men to convey about manhood.  Mason Sr. is a nice enough guy, but not much of a match for Olivia.  The next husband turns out to be an abusive drunk.  The third clearly has an anger issue.

Read More from: Spiritually Bankrupt

1 day 21 hours ago
This week on The Broke and the Beautiful, a bankrupt boarding school wants to call on Taylor Swift for help, and a study finds nearly one of six NFL players file for bankruptcy. Also, actress Kelly Rutherford spoke out about the custody battle that led to her bankruptcy.
Taylor Swift poses at the 2015 iHeartRadio Music Awards in Los Angele in this file photo taken March 29. The American Boychoir School, which filed for bankruptcy last week, may consider reaching out to Ms. Swift for help.
Danny Moloshok/Reuters

Read More from: WSJ.com: Bankruptcy Beat

2 days 5 hours ago
This week on The Broke and the Beautiful, a bankrupt boarding school wants to call on Taylor Swift for help, and a study finds nearly one of six NFL players file for bankruptcy. Also, actress Kelly Rutherford spoke out about the custody battle that led to her bankruptcy.
Taylor Swift poses at the 2015 iHeartRadio Music Awards in Los Angele in this file photo taken March 29. The American Boychoir School, which filed for bankruptcy last week, may consider reaching out to Ms. Swift for help.
Danny Moloshok/Reuters

Read More from: WSJ.com: Bankruptcy Beat

2 days 5 hours ago
A Florida telemarketing firm that the state’s consumer watchdog has called a scam filed for bankruptcy protection. Facing a lawsuit over allegedly deceptive practices, Federal Verification Co., which promised to help small businesses win lucrative U.S. government contracts, filed for bankruptcy on Monday to try to stop an upcoming trial. In November, Florida Attorney General Pam Bondi sued Federal Verification for allegedly charging high upfront fees to customers who were “given false hope of a [General Services Administration] contract,” according to the 19-page lawsuit. Her office has received more than 200 complaints about Federal Verification and dozens of related businesses since 2012, the lawsuit said. “Customers report being deceived and scammed,” the lawsuit said. “Many customers express great frustration with the failure of Federal Verification to timely and accurately prepare their application as promised, and to submit it to the GSA after several months to more than two years since paying hefty fees.”

Read More from: WSJ.com: Bankruptcy Beat

2 days 6 hours ago
A Florida telemarketing firm that the state’s consumer watchdog has called a scam filed for bankruptcy protection. Facing a lawsuit over allegedly deceptive practices, Federal Verification Co., which promised to help small businesses win lucrative U.S. government contracts, filed for bankruptcy on Monday to try to stop an upcoming trial. In November, Florida Attorney General Pam Bondi sued Federal Verification for allegedly charging high upfront fees to customers who were “given false hope of a [General Services Administration] contract,” according to the 19-page lawsuit. Her office has received more than 200 complaints about Federal Verification and dozens of related businesses since 2012, the lawsuit said. “Customers report being deceived and scammed,” the lawsuit said. “Many customers express great frustration with the failure of Federal Verification to timely and accurately prepare their application as promised, and to submit it to the GSA after several months to more than two years since paying hefty fees.”

Read More from: WSJ.com: Bankruptcy Beat

2 days 6 hours ago
For years, we have referred our bankruptcy clients to Mario Puglise, Bankruptcy Specialist at Jefferson Chevrolet in Detroit, for vehicle financing during or after a bankruptcy filing.  He specializes in car financing for Michigan families who filed for bankruptcy protection.  We sat down for an interview to discuss: How he is able to help bankruptcy […] The post Purchasing a Vehicle During or After Filing for Bankruptcy: The Facts Directly from a Detroit Car Salesman appeared first on Acclaim Legal Services, PLLC.

Read More from: Acclaim Legal Services

2 days 6 hours ago
Debt restructuring is the second largest source of outside financing for Ukraine’s new IMF program. The Fund itself brings $17.5 billion over four years; $9.6 billion comes from governments and other multilaterals (including Europe, the United States, and most recently, China), leaving $15.3 billion for the "debt operation." The jargon makes debt restructuring sound like a mix of surgery, conspiracy, and military campaign, which together pretty much sum up Ukraine's challenge. First, the surgery. The IMF has been unusually prescriptive about the debt deal parameters, even as it tells Ukraine and its creditors to get there voluntarily ... by the first program review in June 2015. On top of $15.3 billion in cash flow savings (out of $19.9 billion in scheduled payments, see table), Ukraine has to get its debt stock under 71% of GDP by 2020, and avoid payment spikes long after the program ends. Gross budget shortfalls cannot exceed 12% of GDP in any given year and 10% on average through 2025. This is quite a turn-about from less than a year ago, when IMF staff and management described Ukraine’s debt as “sustainable with high probability” subject to “uncertainties that come from geopolitics” (aka who knows, but keep paying for now). Over 2014, public debt went from 40.6% to 72.7% of GDP; it is headed for 94% in 2015—up from projections of 63.5% a year ago. 

Read More from: Credit Slips

2 days 8 hours ago
The Small Business, Enterprise and Employment Act (the “Act”) became one of the last acts of the current Parliament when it received Royal Assent on 26 March 2015. The Act includes important changes for insolvency practitioners and other participants across the entire restructuring & insolvency market, tucked away amongst a hotchpotch of other subjects (pub code adjudication, childcare and schools and significant changes to company law, to name a few!). Continue reading >>>
2 days 8 hours ago
In an Austin, Texas, courtroom Monday, WBH Energy LP will ask a bankruptcy judge to approve bidding procedures that could see the company’s assets sold for at least $25 million. WBH Energy’s lender, investment firm Castlelake LP, has agreed to serve as the lead bidder at an upcoming bankruptcy auction. The lender intends to credit bid—or offer to forgive some of the debt it is owed—for the independent oil company’s assets. WBH is asking for at least $15 million for its oil and gas properties, some 2,570 acres throughout the Barnett Shale region in Texas. It has 39 wells in operation and six others drilled. The company is also seeking at least $10 million for its personal property. Under the proposed auction rules, Castlelake, formerly known as TPG Credit, is required to simultaneously bid on the oil and gas properties and the personal property. If a judge blesses the company’s proposed timeline, bids will be due July 31, with an auction held Aug. 10. A sale hearing is slated for Aug. 12. WBH Energy, which filed for chapter 11 protection in January, is one of a number of oil and natural gas companies that have been grappling with a sharp drop in oil prices since last June.

Read More from: WSJ.com: Bankruptcy Beat

2 days 9 hours ago
In an Austin, Texas, courtroom Monday, WBH Energy LP will ask a bankruptcy judge to approve bidding procedures that could see the company’s assets sold for at least $25 million. WBH Energy’s lender, investment firm Castlelake LP, has agreed to serve as the lead bidder at an upcoming bankruptcy auction. The lender intends to credit bid—or offer to forgive some of the debt it is owed—for the independent oil company’s assets. WBH is asking for at least $15 million for its oil and gas properties, some 2,570 acres throughout the Barnett Shale region in Texas. It has 39 wells in operation and six others drilled. The company is also seeking at least $10 million for its personal property. Under the proposed auction rules, Castlelake, formerly known as TPG Credit, is required to simultaneously bid on the oil and gas properties and the personal property. If a judge blesses the company’s proposed timeline, bids will be due July 31, with an auction held Aug. 10. A sale hearing is slated for Aug. 12. WBH Energy, which filed for chapter 11 protection in January, is one of a number of oil and natural gas companies that have been grappling with a sharp drop in oil prices since last June.

Read More from: WSJ.com: Bankruptcy Beat

2 days 9 hours ago
Tony Gutierrez/Associated Press
Texas Attorney General Ken Paxton says a plan to sell the RadioShack Corp. name and customer lists jeopardizes the privacy promises made during the decades when the company pioneered the field of consumer electronics retailing. 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.”) LightSquared’s bankruptcy has hit another milestone: $2 billion in losses since Philip Falcone’s wireless venture filed for chapter 11 protection in May 2012., DBR reports in The Wall Street Journal.

Read More from: WSJ.com: Bankruptcy Beat

2 days 10 hours ago
Tony Gutierrez/Associated Press
Texas Attorney General Ken Paxton says a plan to sell the RadioShack Corp. name and customer lists jeopardizes the privacy promises made during the decades when the company pioneered the field of consumer electronics retailing. 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.”) LightSquared’s bankruptcy has hit another milestone: $2 billion in losses since Philip Falcone’s wireless venture filed for chapter 11 protection in May 2012., DBR reports in The Wall Street Journal.

Read More from: WSJ.com: Bankruptcy Beat

2 days 10 hours ago
According to Amalgamated Bank, the Trustee to the LongView Funds, five companies have agreed to adopt new measures to limit payments in the event of a change in control. Amalgamated Bank submitted several shareholder proposals asking boards to adopt a policy that there will only be vesting on a partial, pro rata basis upon a senior executive’s termination in a change in control situation, instead of acceleration of vesting. In 2014, four companies received more votes in favor of these proposals than against them. Valero Energy has adopted such a policy, which is posted on its website.
2 days 10 hours ago
Ukraine's bond restructuring talks are in high gear, and, as ever, Russia is trouble du jour. Not only is it threatening to hold out in the bond deal and take Ukraine to arbitration, Russia also seems poised to block IMF disbursements to Ukraine using an arcane Fund policy on "lending into arrears." My hunch is that this last risk is overblown, and in any event should not drive IMF policy or Ukraine's restructuring strategy.  Mark and Mitu have an excellent post reviewing the latest controversy, wherein Russia argues that its $3 billion Eurobond is government-to-government ("official") debt to escape the bond restructuring. Just last year, Russia argued that the bond was commercial debt and refused to list it in the Paris Club of official creditors, presumably to escape official debt restructuring. In other words, Russia just wants its money back. 

Read More from: Credit Slips

2 days 19 hours ago
Vancouver bankruptcy filers will be happy to hear that the U.S. Bankruptcy Court for the Western District of Washington is now offering debtors the ability to receive court notices and orders via email through a program called “Debtor Electronic Bankruptcy Noticing” or “DeBN.” Registering for DeBN is free and enables debtors to receive and view notices sent to you by email. A Washington debtor must file a written request with the bankruptcy court in order to participate in the DeBN program. Our firm is happy to file these requests for any Vancouver client looking for quicker access to their bankruptcy records. The original post is titled Vancouver Bankruptcy Filers Get Real Time Notice from Court , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .

Read More from: Oregon Bankruptcy Lawyer

2 days 20 hours ago
Over at Dealb%k, I argue that section 117 of Dodd-Frank is more Siouxsie and the Banshees than Eagles.

Read More from: Credit Slips

2 days 23 hours ago
The owner of a small, struggling business can get sticker shock at the $100,000 to $300,000 price of a corporate reorganization in bankruptcy. Meet the Florida lawyer who fixed VitaChef Steamer Skillets’ financial problems for a fraction of that amount. Jason Burgess put VitaChef into bankruptcy in November 2013 and wrote a 22-page survival plan for its founders—a group that patented and made at least 5,500 of the kitchen gadgets but ran out of money to advertise. Under the plan, VitaChef’s owners agreed to put in money to pay creditors half of their combined $400,000 in debt. No one objected to trigger an expensive courtroom fight, perhaps because those creditors knew they’d get far less money if the company shut down. The final tab: $12,473.73. “I hate to think that a legitimate business with cash flow would be prohibited from cash flow because they can’t afford the attorney fees,” said Mr. Burgess, 33 years old, who charges $275 an hour. But bankruptcy lawyers across the country say their industry is turning away small companies that might be saved by chapter 11 protection. The problem has prompted some restructuring industry leaders to push for federal law changes that would make the process cheaper.

Read More from: WSJ.com: Bankruptcy Beat

3 days 4 hours ago

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