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Kansas City bankruptcy lawyer Rachel Foley wrote about forgiveness in the bankruptcy context.

She wasn’t talking about the forgiveness of debt, but about the negative emotions that can eat you up.

Shed the anger at others who threaten your family’s well being, she counseled, and look forward.

I don’t often see clients who need to forgive their creditors or others they see as responsible for their plight.

Closer to home

My clients need to forgive themselves.

They arrive in my office, certain that even making an appointment with a bankruptcy lawyer is an admission of guilt.

Guilty of what?

Of job loss?

Of investments that crashed?

Of illness?

Of divorce?

Sometimes, there is a decision or a pattern that, seen from the outside, was poor judgment.  But that isn’t a character failing.

1 week 5 days ago

Gail DonaldsonThanksgiving is a time to spend with family, have delicious food, hunting for deer and watching football in the south.  We have so many things to be thankful for this year and we hope you and your family’s Thanksgiving is filled with lots of love and fun memories this year.

Thanksgiving is also the trigger for holiday shopping across the country.  As you prepare for this week’s Black Friday, please keep these tips in mind so January is not filled with a shopper’s hangover!

Read More from: Bonds & Botes, P.C.

2 weeks 16 hours ago

Most Americans can't afford health insurance

In the aftermath of the recent presidential election, many people are currently wondering what is going to happen to their health insurance plans. Throughout the election, there was a debate about whether Obamacare would remain the law of the land if and when Donald Trump got elected president. Now that Trump has won the election, there are ongoing concerns from a lot of Americans about what parts, if any, of Obamacare will stay in effect.

The reality is that health care coverage is an important consideration for just about every person in the US, especially as more and more Americans find themselves struggling with debt concerns. Now a recent survey indicates that approximately half of all people who need health care coverage would not be able to afford a health care plan that requires more than $100 per month in payments.

2 weeks 1 day ago

The European Commission has just released its proposal for another Insolvency Directive, finally tackling the very sticky issue of substantive harmonization. I had hoped the Directive would push Member States toward greater harmonization of their consumer insolvency regimes, and I even made some proposals for principles and rules for such a move, but because cross-border lending to individuals for personal consumption remains quite limited in Europe (only about 5% of total household lending), the Commission concluded that "the problem of consumers' over-indebtedness should be tackled first at national level." (p. 15)  Nonetheless, the Commission's explanatory memo heartily endorses applying the principles on discharge in this new Directive (principally, providing a full and automatic discharge after a maximum 3-year process) to all natural persons, both entrepreneurs and consumers.

Read More from: Credit Slips

2 weeks 1 day ago

Threats to the Consumer Financial Protection Bureau's future became more real with Donald Trump's victory, but all the outrage over the bureau's policies is overblown.

Read More from: BankThink

2 weeks 1 day ago

gadsden attorney Carla HandyNicholas Cage is a household name in America.  A famous actor best known for his role of “Hi” McDunnough in Raising Arizona, spent the better part of the 2000’s buying copious amounts of real estate, art, jewelry, spectacular cars and exotic animals, including two King Cobras (because what home is complete without at least two??).   In 2009, the spending spree came to a drastic halt when, as noted by my law partner Amy Tanner, Cage ran afoul of the IRS for failing to pay $6 million in federal income tax.  Since 2009, Mr. Cage has lost at least four pieces of real estate to foreclosure, including a residence in New Orleans known to be one of the most haunted homes in American.  In addition, several other properties have been sold by Mr.

Read More from: Bonds & Botes, P.C.

2 weeks 1 day ago

Businessman falling

According to the European Commission, every year in the EU, 200,000 firms go bankrupt, resulting in over 1.7 million people losing their jobs. Currently, too many viable companies in financial difficulties are steered towards liquidation rather than early restructuring. Also, too few entrepreneurs get a second chance.

Read More from: eSQUIRE Global Crossings

2 weeks 1 day ago

The GOP victories boosted expectations of federal regulatory action easing up, but such a scenario would likely create a void of power for certain state agencies to fill.

Read More from: BankThink

2 weeks 1 day ago

Receiving Wide Coverage ... Sherwood leaves Goldman: Michael Sherwood, co-head of Goldman Sachs's European operations and often named as a potential successor to Goldman CEO Lloyd Blankfein, is leaving after a 30-year career at the bank. Since joining Goldman at age 20 in 1986, Sherwood played a key role in pushing the bank's growth in Europe and emerging markets. "The departure removes one of Goldman's longest serving European executives at a time when the bank isÂ...

Read More from: BankThink

2 weeks 1 day ago

On Thanksgiving, I’m mindful of how precious the American approach to insolvency is.

In the U.S.  a bankruptcy discharge provides the proverbial fresh start to move forward with life. Money troubles do not have to cloud a life forever.

Bankruptcy is widely available and broadly effective in getting people a fresh financial start.

On the individual level, bankruptcy relief ends worry, stress, living on the financial brink.

On the societal level, a fresh start keeps the indebted from disappearing into the economic underground.

It enables people to refocus their financial priorities on providing for family security, health and retirement.

It lessens the sting of a failed business venture.  It allows the failed entrepreneur to shake off the effects of the unsuccessful business and position herself for the next great idea.

2 weeks 1 day ago

The whole includes its parts

By: Donald L. Swanson

Each United States district court shall,” by local rule:

–“authorize . . . the use of alternative dispute resolution processes in all civil actions, including adversary proceedings in bankruptcy”;

–“devise and implement its own alternative dispute resolution program . . . to encourage and promote the use of alternative dispute resolution in its district”;

Read More from: Mediatbankry

2 weeks 1 day ago

In re Intervention Energy Holdings, LLC, 553 B.R. 258 (Bankr. D. Del. 2016) – A creditor objected to the bankruptcy filing of a limited liability company on the basis that the filing was unauthorized. Specifically, under the LLC’s operating agreement … Continue reading

2 weeks 1 day ago

In a recent November 17, 2016 opinion, Delaware Trust Co. v. Energy Future Intermediate Holding Company LLC, Case No. 16-1351, the Third Circuit Court of Appeals reversed two lower court opinions by holding that make-whole premiums can be enforceable even if the debt was automatically accelerated by a voluntary bankruptcy filing.  The Third Circuit’s opinion is significant because it now puts borrowers on notice that under New York law, a debtor filing for bankruptcy may not necessarily be allowed to avoid redemption provisions and any related make-whole premiums similar to those involved in this case.  Instead, in specifically examining the intent and language of those provisions, courts may, as the Third Circuit did here, read such automatic acceleration provisions and optional redemption provisions in harmony.

Background Facts

Energy Future Holding Company LLC and EFIH Finance Inc. (collectively, “Energy Future”) borrowed over $4 billion at a 10% interest rate by issuing notes secured by first- and second-priority liens on Energy Future’s assets.  The Indentures governing the loans had two important provisions relevant to the Third Circuit’s opinion:

2 weeks 2 days ago

The biggest money pit I see when I interview prospects with financial problems is the car — always.  I have even seen people paying half of their disposable income in car payments (plus insurance, tolls, repairs, maintenance, tickets and all the other costs we don’t often consider).  It’s insane.  Here’s a post from Jay Miles in, in answer to a young man thinking about buying a Tesla, that says it perfectly:

No, don’t buy a car.  Cars don’t make money.  They’re depreciating assets.  You already have a wife, so there’s no need to show off.

Mathematically, it doesn’t make sense to ever spend more than $20,000 on a vehicle.  Despite being a cool Tesla, it won’t hold its residual value any more than another flashy brand.

2 weeks 2 days ago

Beginning December 1, 2016, Proposed Federal Bankruptcy Rule, Fee and Form Changes will take effect.  The bulk of the changes will relate to litigation and notice provisions.  There will not be significant changes to the debtor’s bar.  There will be a $1.00 increase in filing fees for amending the creditor list or notice list.  The+ Read More

The post New Bankruptcy Rule, Fee and Form Changes Effective 12-1-16 appeared first on David M. Siegel.

2 weeks 2 days ago

With access to financial transaction data under threat by hurdles imposed by certain financial institutions, it should be up to consumers to decide how their data is used to improve their financial well-being.

Read More from: BankThink

2 weeks 2 days ago

Just a handful of modern big-city bankruptcies have revealed foundational questions about chapter 9's fit within federal courts and constitutional jurisprudence. Given that chapter 9 no longer is simply an adjustment of bond debt, bankrupt cities restructure a wide range of claims in their plans, including those arising from long-lingering disputes; to this point, a Ninth Circuit panel just heard oral argument on a dispute from Stockton's exercise of its eminent domain power twelve years before Stockton filed its chapter 9 petition, only to put the case on hold pending rehearing en banc of a chapter 11 equitable mootness dispute. But my commentary today focuses on the impact of events and decisions during a bankruptcy case. If cases no longer must be prepackaged, a city's decisionmakers have a longer period of automatic stay protection during which to act in ways that might generate controversy, causes of action, or both.

Read More from: Credit Slips

2 weeks 2 days ago

wait to file bankruptcyFile bankruptcy before the end of the year and you fix only a part of your tax problems.

Tax troubles are at the heart of many bankruptcy filings.  It makes sense:  bankruptcy is a powerful and predictable tool to get out of tax debt.

Yet I’ve been telling clients for weeks now:  don’t file…..yet.

Wait til January.

Why wait to discharge taxes

Because most people who owe back taxes are facing similar trouble for the current tax year.

Come the end of this tax year on December 31st, they’ll owe taxes for 2016, taxes for which they are underwithheld.

In Chapter 13, which is almost always the better chapter for tax troubles, the Chapter 13 plan doesn’t address tax years that aren’t closed.

That means that your liability for the year in which you file bankruptcy doesn’t get priority for payment over your credit card debts.

2 weeks 2 days ago

James EzzellThe short answer is yes, no and maybe.

As I have discussed in my previous blog posts, our bankruptcy practice often syncs neatly with our Social Security disability practice. Another aspect I have touched on as well is Social Security retirement itself, what is it, what numbers and figures we are talking about and so on.

I often see individuals during the lengthy process between applying for and actually being awarded disability benefits reach the age where they can file for retirement benefits “early” while still waiting on the outcome of their appeal, just as eligible non-disabled individuals can.

Read More from: Bonds & Botes, P.C.

2 weeks 2 days ago