ABI Blog Exchange

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.
5 hours 44 min 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.
7 hours 59 min 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.
8 hours 25 min 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
10 hours 2 min 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

10 hours 13 min 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.
10 hours 40 min 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

10 hours 50 min 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

12 hours 13 min 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

12 hours 51 min ago
Wall Street Journal In a review of former Sen. Barney Frank's new autobiography, "Frank: A Life in Politics From the Great Society to Same-Sex Marriage," the Wall Street Journal recounts what former House Speaker Tip O'Neill told his colleague: Frank could have been the first Jewish Speaker of the House of Representatives, had he not been gay. James Kirchick's review says little about Frank's work on banking matters, and doesn't mention the Dodd-Frank Act. "Many readers'Â...

Read More from: BankThink

13 hours 8 min ago
Jonathan Schalit A recent decision by the United States Court of Appeals for the Seventh Circuit underscores the substantial risks secured lenders take when they narrowly define the obligations intended to be secured by their borrowers’ assets.  State Bank of Toulon v. Covey (In re Duckworth), 2014 U.S. App. LEXIS 22054 (7th Cir. Ill. Nov. 21, 2014) Duckworth involved a farmer (the “Borrower”) who borrowed $1,100,000 (the “Loan”) from the State Bank of Toulon (the “Bank”) on December 15, 2008. The Borrower pledged his crops and farm equipment as collateral (collectively, the “Collateral”) to secure his obligation to repay the Loan and executed two documents: (1) a promissory note dated December 15, 2008 (the “Note”), and (2) an Agricultural Security Agreement dated December 13, 2008 (the “Security Agreement”). The Security Agreement adequately described the Collateral as required under Section 9-108(b)(2) of the Uniform Commercial Code (the “UCC”) and the Bank filed a UCC-1 Financing Statement (the “Financing Statement”) with the Illinois Secretary of State in accordance with Sections 9-301 and 9-501 of the UCC.  The Financing Statement correctly identified the collateral, as required under Section 9-502(a)(3) of the UCC, however, the Security Agreement incorrectly described the Borrower’s obligation as arising under a note dated December 13, 2008 rather than the correct date of the Note, December 15, 2008.

Read More from: Bankruptcy Law Watch

13 hours 35 min ago
Ukraine is telling investors it must trim external debt by $15.3 billion. Its bonds have CACs but no aggregation, and a 50% vote is needed to bind holdouts. (Modification requires a quorum of at least 2/3 in aggregate principal amount; 75% of "persons voting" must approve the modification.) Faced with some determined investors, it will have to make holding out unattractive in order to gain approval on favorable terms, and this means dusting off its bonds to see what clauses work to its advantage.

Read More from: Credit Slips

1 day 3 hours ago
Per www.forbes.com:3/26/2015By Madalina IacobThe record drop in oil prices over the last six months has consumers – and some investors – cheering. Optimists believe that the economy is ripe for a boost as would-be shoppers earmark their extra cash to spend on anything from dining out to apparel.While shopping sprees may prop up some economic segments, there’s a darker side to the oil price plunge. Dozens of small oil and gas exploration and production companies in US regions like the Bakken formation and Permian basin collectively took out tens of billions of dollars of debt in recent years – predicated on the assumption that $100 per barrel oil was here to stay. Those highly levered capital structures are already starting to crack, as earnings slow down and the cost to drill doesn’t justify the revenue that the oil brings in.A handful of the high-cost, debt-saddled exploration and production companies have already hired restructuring advisors and in a few cases have pulled the trigger and filed for Chapter 11.For more, see: http://www.forbes.com/sites/debtwire/2015/03/26/vulnerable-oil-producers...

Read More from: The COMI

1 day 4 hours ago
Is the foreclosure crisis over? Yes and no. Since 2007, about six million homes have been sold at foreclosure sales (Foreclosures Public Data Summary Jan 2015). Today, about one million homes are still somewhere in the foreclosure process. Homeowners behind in their payments have declined from 15% at the 2010 peak of the crisis to less than 8% now (MBAA delinquent plus in foreclosure at 12/31/14).  Most of the still-troubled loans were originated before 2007. The best news is that new foreclosure starts are now down to pre-crisis levels, at less than one-half of one percent of all mortgages, if we take 2006 to be the pre-crisis level. So new home loans, those made since 2008, are doing very well, and what remains is the legacy of those bad loans that triggered the crisis, right? Not exactly. 

Read More from: Credit Slips

2 days 9 hours ago
When individuals are in financial distress and need relief they should look at all their options and choose the solution that will help them get back on their feet the fastest.  While bankruptcy is the right option for many of my clients, some individuals come to me with too little debt to file for bankruptcy.  Others come to me clearly in a financial crisis, but with too much income to qualify for a “good deal” when filing for bankruptcy relief.  For many of these individuals the best solution is debt negotiation.
2 days 10 hours ago
For those bankruptcy practitioners that also file Fair Debt Collection Practice Act claims, the general practice for the Chapter 13 bankruptcy practitioners is to review proof of claims at some point past the claims bar date and then object to proofs of claims for debt that is not enforceable under state law. Upon disallowance pursuant to the statute of limitations, the practitioner would schedule the FDCPA claim on schedule B, and cause a FDCPA case to be filed in District Court. Some pundits have stated that the filing of a proof of claim is itself not subject to the FDCPA. However, the Seventh Circuit’s approach examines whether the FDCPA claim raises a direct conflict with the Bankruptcy Code, or whether both the Bankruptcy Code and the FDCPA can be enforced against the debt collector. McMahon v. LVNV Funding, LLC, 744 F.3d 1010, 1020 (7th Cir.2014). This seems to be an uptrending authority. Recently the Sixth Circuit rule upon communications from debt collectors to debtors that offered to settle debt but omitted the fact the debt was unenforceable. Buchanan v. Northland Group, Inc., No. 13-2523 (6th Cir., Jan. 13, 2015). The court also noted that “[a] misrepresentation about the limitations period amounts to a ’straightforward’ violation of [the FDCPA],” citing the Seventh Circuit Court of Appeals decision in McMahon v. LVNV Funding, LLC, 744 F.3d 1010, 1020 (7th Cir.2014).
2 days 21 hours ago
The government is a major player in the marketplace as a buyer of goods and services, but legal scholars seldom pay attention to the law governing federal acquisitions. As it turns out this nearly completely ignored branch of contract law is actually way ahead of the curve, at least on the question of shrinkwrap and clickwrap contracts.  Title 48 of the Code of Federal Regulations contains the Federal Acquisition Regulations promulgated by the General Services Administration. Among them is a true gem that was promulgated in 2013 that addresses contracts that purport to bind the government to indemnify the government contractor in violation of the Anti-Deficiency Act: If the EULA, TOS, or similar legal instrument or agreement is invoked through an “I agree” click box or other comparable mechanism (e.g., “click-wrap” or “browse-wrap” agreements), execution does not bind the Government or any Government authorized end user to such clause.

Read More from: Credit Slips

3 days 5 hours ago
This week on The Broke and the Beautiful, Kanye West wants to buy Karmaloop, Parma hits another bump in the road, and U.K. boxer Ricky Burns was declared bankrupt.
In this Dec. 1 file photo, Kanye West performs during the World AIDS Day (RED) concert in Times Square in New York.
Charles Sykes/Associated Press
It might take a little longer than four five seconds, but Kanye West is interested in buying Karmaloop out of bankruptcy. According to Billboard, the hip-hop artist, who is collaborating with entrepreneur Damon Dash, spoke with company founder Greg Selkoe about acquiring the online online streetwear retailer. In a series of Instagram video posts, Mr. West and Mr. Dash spoke of their intentions, saying they wanted to “take over the world” and “create a whole new industry.”

Read More from: WSJ.com: Bankruptcy Beat

3 days 8 hours ago
This week on The Broke and the Beautiful, Kanye West wants to buy Karmaloop, Parma hits another bump in the road, and U.K. boxer Ricky Burns was declared bankrupt.
In this Dec. 1 file photo, Kanye West performs during the World AIDS Day (RED) concert in Times Square in New York.
Charles Sykes/Associated Press
It might take a little longer than four five seconds, but Kanye West is interested in buying Karmaloop out of bankruptcy. According to Billboard, the hip-hop artist, who is collaborating with entrepreneur Damon Dash, spoke with company founder Greg Selkoe about acquiring the online online streetwear retailer. In a series of Instagram video posts, Mr. West and Mr. Dash spoke of their intentions, saying they wanted to “take over the world” and “create a whole new industry.”

Read More from: WSJ.com: Bankruptcy Beat

3 days 8 hours ago
Peter King considers the implementation of the Bank Recovery and Resolution Directive in a new article in the Butterworths Journal of International Banking and Financial Law. Key points:
  • Full implementation leaves uncertainties which are unlikely to be resolved until the failure of a major bank.
  • A particular problem is whether a court outside the EU would recognise a bail-in ordered by a resolution authority in another EU member state.
  • The interaction between “market contracts” and bail-in powers (where, for instance, a bank acting as a clearing member is subjected to bail-in) remains unclear.
Please click here for the full article, “The EU Bank Recovery and Resolution Directive: moving towards full implementation”.
3 days 9 hours ago

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