ABI Blog Exchange

The law governing Arizona anti-deficiency protection for residential property has finally been clarified by the Arizona Supreme Court. Arizona Revised Statute: 33-814 G. If trust property of two and one-half acres or less which is limited to and utilized for either a single one-family or a single two-family dwelling is sold pursuant to the trustee’s power of sale, no action may be maintained to recover any difference between the amount obtained by sale and the amount of the indebtedness and any interest, costs and expenses. History:  Property not yet fully constructed does not qualify as “limited to and utilized for one or two family dwelling” Borrowers never intended on residing in the real property.  DEFICIENCY allowed.: Mid Kansas, id at 129, 804 P2d at 117.  But the Court of Appeals put a bizarre twist on that concept in M&I vs Mueller, (Az Ct Appeals, Div 1, 12/27/11) 1 CA-CV 10-0804, CV 2009-031468 (explanation – in Mid Kansas, where the borrower was a corporation that never intended to occupy the property, the Muellers intended to live in the single-family home upon its completion.
1 day 6 hours ago
Three years after bankruptcy, Ron buys his retirement home. Here’s a heart-warming email this week from “Ron.”  He filed bankruptcy with me in August 2011 and let me know he is pre-approved to buy a house in his retirement destination. His message line was “Thank you for getting us back on track….” Here are his […]The post Three years after bankruptcy, Ron buys his retirement home. by Robert Weed appeared first on Robert Weed.

Read More from: Robert Weed

2 days 6 hours ago
A good friend of mine, Larry Karandreas, said “good advice = bad faith?”.  This is a warning to all consumer debtor attorneys and their clients.  The adage refers to the reality that the consumer bankruptcy world is changing.  Reduced bankruptcy filings result in the bankruptcy trustees, their attorneys and the US Trustee’s Office having more time to spend nit-picking every bankruptcy case filed.  What was good solid pre-bankruptcy planning yesterday may result in a bankruptcy action alleging “bad faith” today. The behind the scenes reason for this increased scrutiny is that the bankruptcy trustees and their attorneys are hungry.  Their firm and life style were built  on earning a certain amount of money.  For instance, 0ne trustee attorney in Arizona received over One Million dollars in 2013.   When bankruptcy filings were up there was plenty of work to be done on those files where debtors actually did something inappropriate.  The bankruptcy system was well-served by the trustees and their attorneys pursuing the bad actors who had committed a bad faith act.  This was healthy for the system and the creditors.  The debtor received their discharge and all was well with the world.
2 days 8 hours ago
Guy and Pam came to see me yesterday, after the got sued by Citibank.  They got sued by Citibank, because they thought an outfit called Pure Solutions told them to stop paying their bills. Stop paying your bills? Like most people, Guy and Pam considered bankruptcy as last resort.  So when they started to get […]The post Pure Solutions–A New “Avoid Bankruptcy” Scam? by Robert Weed appeared first on Robert Weed.

Read More from: Robert Weed

2 days 9 hours ago
In re FAH Liquidating Corp. (f/k/a Fisker Automotive Holdings, Inc.), No. 13-13087 (KG) (Bankr. D. Del. Jan. 21, 2015) In this Opinion out of the successful, but not extraordinarily successful, Fisker Automotive Holdings, Inc. bankruptcy case, Judge Gross denied a request made by the professionals of the Official Committee of Unsecured Creditors (the “Professionals”) for a fee enhancement aggregating nearly $2.5 million, an amount more than 50% of their total fees previously approved and paid under section 328(a).  The Court’s Opinion can be summed up in just three sentences:  “The Court is disinclined to award fee enhancements in cases where professionals have been paid handsome market-rate hourly fees and creditors have received less than full recovery.  Some of the attorneys in this case charged and were paid over $1,000 per hour.  When attorneys are paid at that rate, the Court expects that work performed will be exceptional.”  Op. at 18. Read More › Tags: Retention and Compensation

Read More from: Delaware Bankruptcy Insider

2 days 12 hours ago
Once a tenant files for bankruptcy, it has three options regarding the lease: it can assume the lease and continue performing all obligations, or assume and assign the lease to a third party, or reject the lease and surrender the premises and terminate performance. Section 365 of the Bankruptcy Code gives the bankrupt tenant 120 days to decide if it will assume or reject the lease. During this period, the tenant can request one 90 day extension of time to decide whether to assume or reject. After the extension period expires, any further extensions require written consent from the landlord. If the debtor-tenant fails to assume or reject the lease within the 120 day period, and no extension is granted, the lease is deemed rejected by operation of law. This is a significant provision for landlords and one of several reasons why landlords should stay fully informed as to the debtor-tenant’s intentions regarding its lease. To be proactive, landlords (or their counsel) should review all pleadings filed in thetenant’s bankruptcy proceeding to see if the debtor-tenant sought an extension of time to assume or reject. Additionally, landlords should review the tenant’s motions to assume, motions to assume and assign, as well as motions to reject leases. The exhibits to these motions often contain schedules identifying the leases affected by the motion.
2 days 13 hours ago
In ruling on a very unfortunate situation (more on that below), Judge Shannon issued an opinion on July 24, 2014 in the Aro bankruptcy, holding that a state court decision concerning the validity of a lien cannot be challenged in Bankruptcy Court.  In the opinion in this case issued on January 22, 2015 (the “Opinion”), Judge Shannon analyzed the value of the lien and applicable interest rates.  The Opinion is available here. Background In 1989 Charles W. Aro signed a mortgage on his personal residence as security for a lease of commercial laundry equipment.  After falling on hard times, Aro filed for Chapter 13 bankruptcy in 1994.  The laundry equipment, originally purchased for $40,000, was sold for $28,000, leaving Aro’s lender with a secured deficiency claim of $12,000.
3 days 2 hours ago
As Germany vs. Greece, and Germany vs. the EU Southern and Western edges, heats up yet again, some important historical context, over at Spiegel.

Read More from: Credit Slips

3 days 2 hours ago
This week on The Broke and the Beautiful, Teresa Giudice looks “so amazing” in prison, TLC is using Kickstarter to fund their final album, and Timothy Durham was profiled on CNBC true-crime TV show “American Greed.”
Teresa Giudice, 41, arrives at the in court in Newark, N.J., in this file photo taken March 4, 2014. 
Eduardo Munoz/Reuters

Read More from: WSJ.com: Bankruptcy Beat

3 days 8 hours ago
This week on The Broke and the Beautiful, Teresa Giudice looks “so amazing” in prison, TLC is using Kickstarter to fund their final album, and Timothy Durham was profiled on CNBC true-crime TV show “American Greed.”
Teresa Giudice, 41, arrives at the in court in Newark, N.J., in this file photo taken March 4, 2014. 
Eduardo Munoz/Reuters

Read More from: WSJ.com: Bankruptcy Beat

3 days 8 hours ago
Join us for Episode 20 of Accredited Investor Markets Radio, a discussion with Ron Miller of StartEngine. Host and Managing Editor of AccreditedInvestorMarkets.com, Alicia Purdy, chats with Ron about why unaccredited investors could be a boon, rather than a threat, to crowdfunding. Ron also weighs in on the effects unaccredited investors can have in the startup space, how an accredited investor can best navigate this new territory and what StartEngine has been working on, including growing an equity crowdfunding platform.   You can find out more about crowdfunding and equity crowdfunding by visiting www.aimkts.com   You can learn more about Ron Miller and StartEngine here.   He can also be found here: Ron Miller Twitter: @ronstartengine StartEngine Twitter: @StartEngineLA Ron Miller: LinkedIn StartEngine : LinkedIn   About Ron Miller:
3 days 9 hours ago
A pair of top bankruptcy media experts are Leon Bayer and Jeffrey Wishman of Bayer, Wishman & Leotta. They are both California State Bar Certified Bankruptcy Specialists. They have each practiced bankruptcy law in Los Angeles, California for more than 34 years. They have provided dozens of interviews in the media. They come armed with catchy, quotable sound bites. Plus, three decades each of bankruptcy courtroom experience. They can explain complex legal issues in the simple, easy to understand terms that you need for your media presentation. Their bankruptcy media expertise covers print, TV, and radio. They are willing to be interviewed, or simply help you with background. Either way, they will quickly get you up to speed. A brief phone conversation with these bankruptcy lawyers will save you hours of research time.  They can be reached at telephone 213-629-8801.  

Read More from: Los Angeles Bankruptcy Blog

3 days 10 hours ago
A recap of the informed opinions (and the discussions they generated) on BankThink this week.

Read More from: BankThink

3 days 10 hours ago
The timing of a bankruptcy petition filing is often a carefully calculated decision that a debtor makes to obtain certain protections of the Bankruptcy Code, most notably, the automatic stay, in advance of a looming event. In many cases, a debtor may be close to tripping a covenant, missing a debt payment, or a creditor may be attempting to foreclose on the debtor’s assets. The debtor must be cognizant of the timing of these events as the protections of the Bankruptcy Code only apply after the petition has been filed. In In re Buckskin Realty, Inc, the United States Bankruptcy Court for the Eastern District of New York explained that it would not grant nunc pro tunc relief to deem a bankruptcy petition filed earlier than it actually was when substantive rights would be altered. Where the debtor’s principal argued that he could not file the bankruptcy petition to invoke the automatic stay before the foreclosure sale on the grounds that the subway directions to the courthouse were wrong and caused the delayed filing, the court held excusable neglect and inaccessibility of the clerk’s office could not be used as a means to deem an earlier filing of a bankruptcy petition. Background
3 days 11 hours ago
WHERE DOES IT SAY THAT IN THE CODE? Wednesday, January 28th 2:00 Eastern   Join the Academy for a free webinar on “WHERE IN THE CODE DOES IT SAY. . . .” We use shorthand jargon like “cramdown,” “lien stripping,” or paying a claim “outside the plan.” We know general concepts like paying interest on secured claims, curing mortgage arrearages, and recovering a car that was repossessed before the petition was filed.  But where in the Code does it say you can do any of these things?   In this fast-paced webinar, Chapter 13 Trustee Beverly Burden and Berger Singerman’s Ashley Dillman Bruce  will look at Code provisions underlying a variety of concepts or phrases that we often take for granted. The webinar is a must for novice bankruptcy attorneys and is an ideal refresher for experienced practitioners.
3 days 11 hours ago
Shipping company Nautilus Holdings Ltd. has a chance to clear the final hurdle to leaving bankruptcy protection if a judge approves the Bermuda company’s reorganization plan next Friday. Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, N.Y., could approve the company’s plan after finding out at a hearing whether creditors voted in favor of it. While the reorganization plan was expected to undergo minor tweaks, an earlier version called for Nautilus to restructure $772.6 million in debt. Nautilus would continue to own some of the 16 ships in its fleet under revised credit terms, while some ships would go to its lenders, but all 16 container ships are expected to remain under Nautilus’s management. The plan calls for many of the loans to be repaid in full under new terms, while some of the debt would be converted to equity. Nautilus filed for bankruptcy on June 23, blaming a severe downturn in international container shipping and burdensome charter contracts. Shipping companies borrowed heavily to expand fleets around 2008—a peak year for activity—and then struggled to repay that debt. Shipping companies that have recently filed for bankruptcy to restructure their debt include Excel Maritime Carriers Ltd., Overseas Shipholding Group Inc. and Genco Shipping and Trading Ltd.

Read More from: WSJ.com: Bankruptcy Beat

3 days 12 hours ago
Shipping company Nautilus Holdings Ltd. has a chance to clear the final hurdle to leaving bankruptcy protection if a judge approves the Bermuda company’s reorganization plan next Friday. Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, N.Y., could approve the company’s plan after finding out at a hearing whether creditors voted in favor of it. While the reorganization plan was expected to undergo minor tweaks, an earlier version called for Nautilus to restructure $772.6 million in debt. Nautilus would continue to own some of the 16 ships in its fleet under revised credit terms, while some ships would go to its lenders, but all 16 container ships are expected to remain under Nautilus’s management. The plan calls for many of the loans to be repaid in full under new terms, while some of the debt would be converted to equity. Nautilus filed for bankruptcy on June 23, blaming a severe downturn in international container shipping and burdensome charter contracts. Shipping companies borrowed heavily to expand fleets around 2008—a peak year for activity—and then struggled to repay that debt. Shipping companies that have recently filed for bankruptcy to restructure their debt include Excel Maritime Carriers Ltd., Overseas Shipholding Group Inc. and Genco Shipping and Trading Ltd.

Read More from: WSJ.com: Bankruptcy Beat

3 days 12 hours ago
Hacker groups like Anonymous have announced plans to target banks that are helping to finance ISIS and other terrorist organizations. But it is governments, banks and regulators that need to work harder at rooting out the sources of ISIS's funding.

Read More from: BankThink

3 days 12 hours ago
Hacker groups like Anonymous have announced plans to target banks that are helping to finance ISIS and other terrorist organizations. But it is governments, banks and regulators that need to work harder at rooting out the sources of ISIS's funding.

Read More from: BankThink

3 days 12 hours ago
WBH Energy files for Chapter 11 Bankruptcy Protection | January 5, 2015 WBH Energy and 2 affiliates filed for protection under Chapter 11 of the United States Bankruptcy Code on January 5, 2015 In the United States Bankruptcy Court for the Western District of Texas under Case No. 15-10003. WBH could be the first U.S. petroleum firm to file for Chapter 11 bankruptcy protection following OPEC’s price fixing endeavors, signaling problems for the states shale production industry. The Debtors in the jointly administered proceedings are WBH Energy Partners LLC (15-10004), WBH Energy, LP (15-10003), and WBH Energy GP, LLC (15-10005). Joseph S. Warnock is the Vice President of the above-referenced debtors and debtors in possession (collectively, the “Debtors” or “WBH”) and discusses the filing: “Together, the Debtors operate an oil and gas exploration and production business with a primary focus on the Barnett Combo Play of the Fort Worth Basin. Each of the Debtors is a Texas entity, is based in Austin, Texas, and was founded in 2011. “WBH Energy, LP is a real property holding company that owns working interests in approximately 1,500 leases consisting of approximately 2,570 net acres throughout the Barnett Combo Play. Of those leases, approximately 30 horizontal wells and 7 vertical wells are currently producing and 6 horizontal wells have been drilled and cased. WBH Energy, LP is managed by its general partner, WBH Energy GP, LLC.

Read More from: Richard G. Grant, P.C.

3 days 13 hours ago

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