ABI Blog Exchange

As Ursula the Sea Witch once said “Life’s full of tough choices, isn’t it?”  The Sixth Circuit was recently faced with its own “tough choice” on choice of law in Sutherland v. DCC Litigation Facility, Inc., No. 13-1497 (6th Cir. Feb. 20, 2015).  In Sutherland, the Sixth Circuit was asked to determine which state’s statute of limitations rules should apply to a lawsuit filed in North Carolina by a Virginia resident, which was subsequently transferred to Michigan.  The Sixth Circuit analyzed the venue transfer rules and ultimately determined that the statute of limitations rules of the state where the lawsuit was originally filed should be applied.  Background:
4 days 8 hours ago
Time is running out on your 2011 tax return. Whaaaat?, you say.  You’re working on 2014 between now and April 15th. But if you’re one of those people who overlooked a tax deduction or, better yet, a tax credit like EITC, you’re running out of time to amend your 2011 return and capture some of that money. An amended return must be filed within three years of the date you filed the original return or within two years of when you paid the tax. Fix your tax glitches Tax law allows you to amend returns when you’ve discovered an error, that’s not math related. (If it’s just math, the IRS will fix it without an amendment.) I’ve written lots  about overlooked tax deductions and credits. Remember that you can not only do better with this year’s return, you have the right to go back to the last three tax years to claim money you left on the table in prior years.  But the IRS may correct your math blunders, but it won’t claim overlooked deductions or credits for you. Overlooked tax savings
4 days 8 hours ago
Apple Pay, Samsung Pay and Google Wallet are among the mobile payment services vying for dominance. Here's what every banker needs to know to get a game plan in place.

Read More from: BankThink

4 days 9 hours ago
Apple Pay, Samsung Pay and Google Wallet are among the mobile payment services vying for dominance. Here's what every banker needs to know to get a game plan in place.

Read More from: BankThink

4 days 9 hours ago
The Ninth Circuit BAP has isssued the following statement: Pursuant to 28 U.S.C. § 2071(b), comments are invited on the proposed amendments to the Rules of the United States Bankruptcy Appellate Panel of the Ninth Circuit. The BAP Rules are being updated to reflect changes resulting from electronic filing and to eliminate rules which are redundant in light of recent changes to the Federal Rules of Bankruptcy Procedure. The proposed new rules are available at this link. Please direct comments to Susan M. Spraul, Clerk of Court at comment_ca09bap@ca9.uscourts.gov. Comments must be submitted on or before May 8, 2015.
4 days 9 hours ago
The realities of the bankruptcy venue provisions require potential debtors and their advisers to prudently weigh the legal significance of a bankruptcy filing in various courts. In a recent decision, U.S. Bankruptcy Judge Kevin Gross of the District of Delaware reviewed the Bankruptcy Code’s venue provisions and considered the various interests of a bankruptcy estate’s stakeholders when he transferred a “first-filed” bankruptcy petition from Delaware’s bankruptcy court to the court’s counterpart in the Northern District of Illinois, in In re Caesars Entertainment Operating (Bankr. D. Del. Feb. 2, 2015). On Jan. 15, Caesars Entertainment Operating Co. Inc. made a strategic decision to file its bankruptcy proceedings in the U.S. Bankruptcy Court for the Northern District of Illinois on the heels of a Jan. 7 involuntary bankruptcy petition filed in Delaware’s bankruptcy court by a group of second lien noteholders. Following a hearing on the petitioning creditors’ motion seeking a determination under Federal Rule of Bankruptcy Procedure 1014(b) as to proper venue, Gross ruled that the venue provisions of the Bankruptcy Code under the circumstances supported the transfer of the Delaware case to the Illinois bankruptcy court because it was in the “interest of justice” to do so.
4 days 9 hours ago
European Pressphoto Agency
RadioShack ’s chances of surviving bankruptcy are growing increasingly dim, as top-ranking lenders mounted a new challenge to the company-saving bid from hedge fund Standard General LP, which has been declared the highest and best offer at an auction. 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.”) MF Global Inc. wants court approval to pay $461 million owed to its creditors, the second such payment now that it has paid back most of its customers, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

4 days 9 hours ago
European Pressphoto Agency
RadioShack ’s chances of surviving bankruptcy are growing increasingly dim, as top-ranking lenders mounted a new challenge to the company-saving bid from hedge fund Standard General LP, which has been declared the highest and best offer at an auction. 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.”) MF Global Inc. wants court approval to pay $461 million owed to its creditors, the second such payment now that it has paid back most of its customers, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

4 days 9 hours ago
Wall Street Journal The Journal takes a look at the Consumer Financial Protection Bureau's upcoming rules for payday lenders, set to be released today, as did American Banker in today's edition. The Journal's piece includes a quote from Lauren Saunders at the National Consumer Law Center, who said the CFPB's proposal doesn't go far enough. "The CFPB has taken an either/or approach: prevention or protection. But borrowers need both," Saunders said. The Journal also quoted DennisÂ...

Read More from: BankThink

4 days 10 hours ago
Reuters
Attorneys general around the country are leaping aboard the consumer privacy bandwagon in RadioShack ’s bankruptcy, vowing to protect the personal data of 117 million consumers as the iconic retailer goes up for grabs. Texas Attorney General Ken Paxton started the bandwagon rolling, objecting in advance of the auction that began Monday in New York. His filing said RadioShack promised not to sell or rent its customer data and that anyone who tries will answer to the state of Texas. In case you’re wondering how a retailer with solid data on 117 million consumers wound up in bankruptcy in the first place, it should be noted that the number was blurted out by an unidentified RadioShack representative at a deposition.

Read More from: WSJ.com: Bankruptcy Beat

4 days 12 hours ago
Reuters
Attorneys general around the country are leaping aboard the consumer privacy bandwagon in RadioShack ’s bankruptcy, vowing to protect the personal data of 117 million consumers as the iconic retailer goes up for grabs. Texas Attorney General Ken Paxton started the bandwagon rolling, objecting in advance of the auction that began Monday in New York. His filing said RadioShack promised not to sell or rent its customer data and that anyone who tries will answer to the state of Texas. In case you’re wondering how a retailer with solid data on 117 million consumers wound up in bankruptcy in the first place, it should be noted that the number was blurted out by an unidentified RadioShack representative at a deposition.

Read More from: WSJ.com: Bankruptcy Beat

4 days 12 hours ago
For ex-bankers like Ruth Porat, who is leaving Morgan Stanley for Google, free-flowing cash and a sunnier climate are only part of Silicon ValleyÂ's allure, industry observers note. The tech sector is also mercifully light on regulation.

Read More from: BankThink

5 days 1 hour ago
The Pew Charitable Trusts today released a report focusing on the market for auto title loans. The report brings together data from a wide variety of sources (including Slips contributor Nathalie Martin's work) to provide a clear, succinct, and thorough overview of the mechanics of this under-studied industry. It also, and most interestingly, includes the results of Pew's nationwide survey of borrowers and discussions with focus groups. The empirical data underscore how similar auto title loans are to payday loans, and how regulation of this part of the alternative finance industry also is greatly needed. The report is particularly timely in light of the Consumer Financial Protection Bureau's anticipated upcoming release of payday loan rules, and its field hearing tomorrow in Richmond on payday lending.  

Read More from: Credit Slips

5 days 2 hours ago
Things are starting to get tense in the Bankruptcy Final Four this year, as the financial powerhouses are pitted against key procedural changes to chapter 11.  In one bracket, we have Kill Till (the crowd favorite, and by far the best excuse we’ve had to quote Tarantino movies on the Weil Bankruptcy Blog) up against a series of proposed changes to chapter 11 plans and voting. In the other, a presumptive prohibition on roll-ups is pitted against a presumptive 60-day breathing spell before a debtor can sell substantially all of its assets. A very presumptive bracket indeed.  Of course, both the financial considerations and the procedural requirements have important ramifications on each other – for example, allowing a subordinated creditor to vote on a chapter 11 plan will have bearings on pricing and exercise of remedies, and any changes to the valuation regime will shift the balance of power in determining how to proceed with a chapter 11 strategy.  And, like the Princeton women, plenty of potential overhauls to the chapter 11 process have remained underappreciated to this point. (Let us know your thoughts in the comments!)  But in the end, only two of the ABI Commission’s recommendations will move on to our Championship Round. So, in the words of Grandmaster Melle Mel, “Vote – Vote – Everybody get up and vote!”* *Jesse, Grandmaster Melle Mel (1984) Vote here.
5 days 4 hours ago
On January 21, 2015, Congressman John Delaney introduced H.R. 411 entitled “The Discharge Student Loans in Bankruptcy Act of 2015″. The Bill would make certain government guaranteed and insured student loans dischargeable in bankruptcy. The Congressman correctly recognized a huge issue facing us- student loan debt. In April 2014, a staff report issued by the Federal Reserve Bank of New York reported that it had studied the growth of student loan debt. It reported that between 2004 and 2012, the total student loan debt in the United States tripled from 364 billion in 2004 to 966 billion in 2012. The report recognized that as of the fourth quarter of 2012, about 17% or 6.7 million borrowers were ninety days or more delinquent on their student loan payments. Although the delinquency rate was high, many more borrowers are not paying down their loan balance. The report also cited statistical information that indicated tightening of mortgage eligibility for high student debt borrowers because it may exceed maximum debt to income ratio requirements. The report concluded that nearly one third of the borrowers in repayment are delinquent on student loan debt, “a fact that is masked by large numbers of borrowers were either in deferment or grace periods.”
5 days 6 hours ago
Social media data offers banks a vast, relatively untapped source of insights about everything from marketing to identifying new customers, talent and potential risk management issues. The key is assembling a team that knows how to mine social media for information.

Read More from: BankThink

5 days 7 hours ago
Planning on filing a Kenosha bankruptcy this year? Be sure not to miss your income tax return filing deadline of April 15th. Sending your income tax return late to the IRS can cause collateral damage to your Kenosha bankruptcy case. The law regarding tax debts and bankruptcy states that recent income tax debts are not dischargeable in a Kenosha bankruptcy. However, old tax debts may be dischargeable. Of course, the tax debt must also qualify for discharge under the current Bankruptcy Code. Recently, the First, Fifth, and Tenth Court of Appeals ruled that a late filed tax return does not qualify as a “tax return” according to the language in the Federal Bankruptcy Code. The recent rulings center on a statement included in the 2005 changes to the Bankruptcy Code. This new language reads that a tax return is defined as a tax filing that “satisfies the requirements of applicable non-bankruptcy law (including applicable filing requirements).” In plain English, tax returns filed by the IRS without cooperation from the debtor are not recognized as “tax returns”. This means any tax return not filed on time may not be dischargeable debt in either a Kenosha Chapter 7 Bankruptcy or a Kenosha Chapter 13 Bankruptcy if not paid in full.

Read More from: Wynn at Law, LLC

5 days 8 hours ago
Noxious Weeds! What happens when you surrender a home in bankruptcy?  Must you move the second a bankruptcy is filed?  Do they give you time to move or will your possessions be thrown out on the front lawn for the neighbors to view? When you surrender a home through bankruptcy, there will be a specific process for the lender to obtain the home.  Let’s walk through the general process.
  1.  In a Chapter 7, the lender must wait until the 341 Meeting of Creditors  so the trustee may determine whether or not he or she wants the property.
  2. If the trustee, abandons the property, the lender may lift the automatic stay to begin foreclosure proceedings or they may wait until your discharge.
    • If the automatic stay is lifted, your attorney should update you the lender is seeking permission to foreclose.

Read More from: Bankruptcy Law Network

5 days 8 hours ago
Proposed legislation in the U.S. Congress would revise the Title III equity crowdfunding landscape by roping off a restricted, sky-box-like section just for accredited investors. Some securities professionals expect Congress to enact this legislation by summer 2015.  Read more here.
5 days 8 hours ago
The United States Supreme Court heard arguments yesterday from a homeowner and a bank on whether second mortgages with no equity to attach to can be stripped off in Chapter 7 bankruptcy … the transcript of the oral argument is here.
5 days 8 hours ago

Pages