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A likely sale of CIT Group's aircraft unit (and a whole lot of other stuff) is keeping Ellen Alemany busy, a former Wall Street banker talks about big data as a financial weapon of mass discrimination targeting women and the poor, and First Busey shows how investing in employees pays off. Also, TIAA's Kathie Andrade, Deloitte's Cathy Engelbert and (to spice things up) Victoria Beckham.

Read More from: BankThink

2 weeks 2 days ago

steering your financial course

Chapter 13 bankruptcy is about protecting assets, I read somewhere on the internet.

That sells Chapter 13 short by half in my view.

It’s not just about assets.

Many of my Chapter 13 clients have no meaningful assets to protect.  Assets to protect isn’t what made 13 right for them.

It’s that Chapter 13 kept them in control.

  • Control of creditor interaction.
  • Control of income.
  • Control of assets, too

In the face of a creditor who is entitled to levy, garnish, and harass, Chapter 13 lets the debtor-client stay at the helm of their financial life.

2 weeks 2 days ago

Without incentives to shoot higher, banks usually settle for "Satisfactory" on their Community Reinvestment Act exams, but many find that not getting a better grade has consequences.

Read More from: BankThink

2 weeks 2 days ago

The ability of a secured creditor to credit bid its debt in connection with a sale of a debtor’s assets received a strong boost in a decision last month in the Chapter 11 case of Aeropostale from U.S. Bankruptcy Judge Sean Lane of the Southern District of New York.  Two recent decisions, Fisker Automotive and Free Lance-Star Publishing Co., had surprised many observers by narrowing the rights of secured creditors to credit bid, and resurrected uncertainty about a debtor’s ability to limit those rights (a dispute that had appeared to have been resolved in favor of secured creditors only a few years earlier by the Supreme Court’s decision in RadLax Gateway Hotel).  In particular, Fisker Automotive and Free Lance-Star Publishing Co. suggested that the potential of a credit bid to “chill” bidding by other prospective buyers could suffice to limit a secured creditor’s rights.  Judge Lane’s ruling in Aeropostale significantly walks back those decisions and narrows the grounds on which credit bidding rights can curtailed.  (Kelley Drye & Warren LLP represents parties in the Aeropostale case but took no part in the matters discussed here.)

Read More from: Bankruptcy Law Insights

2 weeks 2 days ago

ScripsAmerica, Inc. (OTCBB: SCRC) has filed a chapter 11 petition before the United States Bankruptcy Court for the District of Delaware (Case No. 16-11991).  The case has been assigned to the Honorable Laurie Selber Silverstein.  The debtor is a provider of pharmaceutical supply chain management services headquartered in Clifton, New Jersey.  According to the debtor, the filing is in response to the cessation of its main business line and ongoing litigation in California.  The petition (including the list of top 20 creditors) and first day declaration are provided.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.

2 weeks 2 days ago

Receiving Wide Coverage ...

Two heads...: JPMorgan Chase said Mark Leung, head of its Asia Pacific equities business since 2014, and Jason Sippel, global head of prime services, will together run the bank's global equities division. The two replace Tim Throsby, who left to run Barclays' corporate and international division. Wall Street Journal, Financial Times Wall Street Journal ...

Read More from: BankThink

2 weeks 2 days ago

B. Grant McNuttWhen you file your Bankruptcy petition, the Bankruptcy Court will send all your creditors a Notice of Bankruptcy Case (Form 309).  This Notice among other things will tell your creditors specifically which Chapter you have filed, be it a Chapter 7 or Chapter 13 Bankruptcy.  They usually receive this Notice within 7 to 10 days from your filing.  Don’t fret about the seemingly long time frame though, because the moment you file your Bankruptcy case, an automatic stay goes into effect.  The automatic stay stops your creditors immediately in their tracks and prohibits them from initiating or continuing any collection activities against you.  In other words, it stops your creditors in their tracks.

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

2 weeks 2 days ago

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Incongruity = Right of Way Issues (photo by Marilyn Swanson)

By: Donald L Swanson

Each United States district court shall authorize . . . the use of alternative dispute resolution processes in all civil actions, including adversary proceedings in bankruptcy.

28 U.S.C. § 651.

To date, many bankruptcy courts are still without local mediation rules, despite such statutory language.

How can this be?

An Explanation

One explanation is that, many years ago, the Administrative Office of the United States Courts determined that the above quoted language (“all civil actions, including adversary proceedings in bankruptcy”) applies “only to adversary proceedings where the reference has been withdrawn” by the district court.

This explanation is faulty.

Here are some reasons why it’s a faulty explanation.

Read More from: Mediatbankry

2 weeks 2 days ago

NJ Bankruptcy Tax Issues LawyerIt used to be assumed that getting married would help to alleviate debt concerns because doing so would have a positive effect on a person’s tax bill, among other things. However, that may not actually be the case, especially if both spouses have high annual incomes. Beyond that, getting married can potentially reduce a person’s mortgage deductions when filing taxes.

Annual Income and Tax Obligations

Under some circumstances, of course, marriage will do wonders for a person’s yearly tax requirements. For instance, when one spouse earns significantly more money than the other spouse, the couple’s joint tax bill will likely go down after marriage.

2 weeks 3 days ago

When someone is looking to file chapter 13 bankruptcy, they obviously want to pay back as little as possible. They also want to gain the greatest amount of relief during the process. There are a number of factors that go into determining whether or not the monthly payment is going to be high, low, or+ Read More

The post Paying Back As Little As Possible Under Chapter 13 appeared first on David M. Siegel.

2 weeks 3 days ago

Despite their slowdown in growth, marketplace lenders are still in good position to gain from the digitization of the financial services industry.

Read More from: BankThink

2 weeks 3 days ago

Fintech is transforming consumer financial services, but automation and data innovation can also help banks meet their growing regulatory demands.

Read More from: BankThink

2 weeks 3 days ago

Lawyer Nick GajewskiNow that the new school year has started, parents everywhere are looking at their bank accounts and wondering when school got so expensive.  Between new clothes for the kids, fees for class trips, and the cost of new school supplies, its normal for budgets to be stretched in the Fall. As a result, we often see an increase in the number of people considering filing for bankruptcy relief.

Back to School Costs Add Up

For any bankruptcy filing, the Court requires a current household budget of total income and expenses.  Clients often under-estimate their income and wonder “If I’m making that much money, where is it all going?”  Usually the answer is that the income is going to cover things like back-to-school expenses.  It may only happen once a year, back-to-school shopping can add up to a large part of a family budget.  Luckily, we can include clothing and school supplies and fees as part of your total expenses.  Any parent can tell you that children are expensive, and the Court understands the reality of paying for school.

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

2 weeks 3 days ago

The financial road isn't always smooth

Sometimes I think my client’s only touch with reality is in the form of  television shows.

And when reality hits them, it’s a trainwreck.

Think  Chapter 13 cases where my client wants to keep all of his assets with secured debts AND pay off back support or, more often, non dishchargeable taxes.

The Problem

Secured debts are things like car loans, home mortgages , and property taxes.

If you don’t pay a secured debt, the creditor has the right to take the asset that is the collateral.

More on secured debts in bankruptcy

In Chapter 13, you get a choice on secured debts:  you can cure any back payments through the Chapter 13 plan or you can surrender the asset.

2 weeks 3 days ago

Receiving Wide Coverage ...

Leaving: Tim O'Hara, the head of Credit Suisse's global markets division for just the past 10 months after a 30-year career at the bank, is leaving. He will be replaced by Brian Chin, co-head of credit. The unit has suffered heavy losses over the past year. Wall Street Journal, Financial Times Wall Street Journal ...

Read More from: BankThink

2 weeks 3 days ago

Official Comm. of Unsecured Creditors v. T.D. Investments I, LLP (In re Great Lakes Quick Lube LP), 816 F.3d 482 (7th Cir. 2016) – A chapter 11 debtor relinquished 2 leases prior to filing bankruptcy. The unsecured creditors’ committee sought … Continue reading

2 weeks 3 days ago

The Consumer Financial Protection Bureau's consumer complaint database has contained narratives for over a year now. Each month, the CFPB publishes a report that summarizes the complaints received over the previous three months, and that focuses on a specific product and geographic area. (The latest report was published on August 31.) The higher-level summary offered by these reports is interesting and I have referenced them in class on occasion.

The consumer complaint narratives tell as interesting, but often different stories. However, they are harder to sort through systematically. In preparation for a symposium, I recently took a random sample of complaints with narratives published in the year period between May 2015 and April 2016. Having now read thousands of narratives, one trend stood out to me rather quickly -- narratives that talked about the consumer's prior bankruptcy or a relative's bankruptcy. About 5% of the narratives discuss bankruptcy.

Read More from: Credit Slips

2 weeks 4 days ago

State regulators' resistance to the idea of a national fintech charter is not surprising, but state-by-state regulation imposes heavy burdens that reverse the cost savings and expanded reach available through fintech.

Read More from: BankThink

2 weeks 4 days ago

Kathryn DavisOne of the world’s largest container shipping companies, Hanjin Shipping Co., has filed for bankruptcy.  Hanjin is a South Korean company and filed for bankruptcy protection under Chapter 15 of the Bankruptcy Code.

Chapter 15 Bankruptcy and Model Law

Chapter 15 is a newer chapter of the Bankruptcy Code.  It was added by the Bankruptcy Abuse Prevention and Protection Act of 2005.  Chapter 15 is where the United States implemented the Model Law on Cross-Border Insolvency adopted by the United Nations Commission on International Trade Law in 1997.   The purpose of Chapter 15 and of the Model Law is to provide an effective way to deal with insolvency cases that involve debtors, creditors, assets and interested parties in more than one country.  The statute specifies five objectives of Chapter 15:

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

2 weeks 4 days ago

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