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Deciding to file bankruptcy can be stressful on yourself and your family. Your attorney will help guide you through the process, but they can only do so much. Make sure to avoid the following actions when going through the bankruptcy process. Don’t pay a family member on a loan in the year before you file a bankruptcy If you file a Chapter 7 Bankruptcy the Trustee can seek the return of this money from your family member as a preferential transfer.  If you file a Chapter 13 Bankruptcy, it can cause your chapter 13 payment to increase. Don’t borrow money thinking you won’t have to pay it back The creditor could argue that you did this in bad faith or you did this with the intent to defraud your creditors. This could keep your bankruptcy from being approved. You might have to pay that debt back. Don’t throw away your billing statements When you are overwhelmed and cannot pay your debts, it is easy to just throw the statements away.  Your attorney will need to know who you owe and a good address for creditors in order to accurately give notice to your creditors. Don’t cash out your retirement

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

1 week 1 day ago
The determination by the Financial Stability Oversight Council (“FSOC”) that MetLife, Inc. (“MetLife”) could “pose a threat to the financial stability of the United States” was recently rescinded by the District Court for the District of Columbia.[1] Administrative law provided the grounds for the court’s conclusion that, in designating MetLife as “too big to fail,” FSOC failed to follow: (1) recent Supreme Court precedent requiring consideration of the costs and benefits of an administrative action; and (2) the agency’s own guidance.  The court’s decision provides a framework for other designated companies who have received a similar designation and seek to challenge that status.[2]  The decision also poses a hurdle for further designations by FSOC, which, in addition to following its own guidance, must consider whether the costs of designation to the company outweigh the benefits of heightened regulation. Background

Read More from: Hughes Hubbard & Reed

1 week 1 day ago
On May 9, 2016, Chaparral Energy, Inc. and certain of its affiliates (collectively, “Chaparral” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. According to the declaration of Chaparral’s Chief Executive Officer, Mark A. Fischer, (the “Fischer Declaration”), Chaparral’s operations include acquisition, exploration and development of oil and natural gas properties primarily in Oklahoma and Texas.  The Debtors operate certain of their properties. See Fischer Declaration at 12. Chaparral’s liabilities total approximately $1.8 billion and include (i)  $550 million under its 2010 Eight Restated Credit Agreement Notes  with U.S. Bank National Association; (ii) $1.2 billion in unsecured notes pursuant to certain indentures with Wilmington Savings Fund Society FSB as indenture trustee; (iii) $10 million under a mortgage note with Arvest Bank; (iv) $18.8 million on lease financing agreements with U.S. Bank National Association; and certain trade debts and installment notes.  See Fischer Declaration 18-26. The Debtors’ bankruptcy cases are being jointly administered in lead case captioned In re Chaparral Energy, Inc., et al., Case No. 11144. A copy of the Fischer Declaration can be accessed here: Download Fischer Declaration.
1 week 1 day ago
[wsj-responsive-image P="//art.wsj.net/api/photos/29921546/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/29921546/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/29921546/smartcrop?height=853&width=1280" credit="Associated Press" placement="Inline" suppressEnlarge="false" ] Los Angeles-based Breitburn Energy Partners filed for chapter 11 bankruptcy protection as it tries to restructure its balance sheet. 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.”) Sports Authority Holding Inc. is heading to auction Monday with bids from both liquidators and sporting-goods rivals, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
The Employment Tribunal ruled last month that ex-employees of Sahaviriya Steel Industries UK Limited (in liquidation) (“SSI”) are entitled to the maximum protective award for a complete failure by SSI to inform and consult with them about their redundancies (90 days’ pay for each of the 1100 employees affected). Because of the insolvency of SSI (see our blog here on the difficulties facing the steel industry), the employees will need to look to the Secretary of State’s National Insurance Fund for payment of the award. However due to the cap on payments out of the Fund (being a maximum of just £479 per week for 8 weeks) they will not recover anything like the full amount from it. The balance of their claims will be unsecured against SSI but given the levels of debt compared to the value of the assets in that business, they should sadly not expect to recover much – if any – of the extra. Consultation and insolvency The SSI case is another example of the stark reality that distressed businesses face when contemplating collective (20+) redundancies.

Read More from: eSQUIRE Global Crossings

1 week 1 day ago
Anywhere from three weeks to fifty days after you file your Chapter 13 bankruptcy paperwork, a meeting of creditors will be held. Seven days before the meeting you will be required to give the trustee copies of your federal income tax return for the previous tax year. If you were not required to file taxes, you will provide a statement saying so. The post Chapter 13 Bankruptcy Basics: Part Two appeared first on Tucson Bankruptcy Attorney.
1 week 2 days ago
In this article I am going to discuss Schedule C of the bankruptcy petition, which is property exemptions. Under federal and state bankruptcy laws, there are categories and amounts of property that are exempt from the bankruptcy process. This means that you are allowed to keep the property as part of your fresh start after bankruptcy. The post Property Exemptions in Bankruptcy appeared first on Tucson Bankruptcy Attorney.
1 week 2 days ago
You mean the tax liens won’t  go away when I get a bankruptcy discharge? The client was startled that the lien would live on beyond his bankruptcy. So, if all my debt doesn’t go away, what do I get from the bankruptcy discharge?  he asked. I thought the tax debt went away when I filed. It’s your personal liability that is wiped out when you get a bankruptcy discharge. Liens live on. What’s personal liability for debt In a nut shell, personal liability is the right of your creditor to use the powers of the law to reach your wages and your assets to satisfy a  debt. When you get a bankruptcy discharge, that personal liability is erased.  The discharged creditors can’t reach assets that you acquire after the bankruptcy, nor the assets that you exempted in your bankruptcy case. So, get a bankruptcy discharge that wipes out older taxes and the IRS can’t garnish your future wages or  levy your bank accounts.  Further, the existing tax lien won’t attach to assets you acquire in the future. Tax liens  on current assets
1 week 3 days ago
TGIF, right?!  Before kick starting your weekend — here’s what you need to know about the recent decision from the United States Court of Appeals for the Third Circuit in the chapter 11 cases of SemCrude L.P. and its debtor affiliates. FACTS SemGroup, L.P., a “midstream” energy company provided transportation, storage, and distribution of oil and gas products to oil producers and refiners.  From 2005 through to July 2008, when SemGroup filed for chapter 11, SemGroup had a significant line of credit from a syndicate of over 100 different lenders.  Despite prohibitions in its credit agreement, SemGroup participated in certain types of high risk trading activity unbeknownst to the lenders.  Due to the erratic price of oil between July 2007 and February 2008, SemGroup posted large margin deposits, incurred significant borrowings, and ultimately defaulted under its credit facility (it does not appear that the default declared by the lenders was based upon the trading strategy).  Shortly thereafter, SemGroup commenced a case under chapter 11 of the Bankruptcy Code.  SemGroup’s chapter 11 plan was confirmed on November 20, 2009, pursuant to which a litigation trust, vested with the claims held by the SemGroup estate, was created.
1 week 3 days ago
Last month, Judge Laura Grandy, a bankruptcy judge in the Southern District of Illinois, entered confirmation opinion in STC, Inc.’s Chapter 11 case. The opinion is noteworthy for 2 reasons. First, it amounts to an excellent treatise on the Section 1129 confirmation requirements. Second, I’m honored that Judge Grandy cited in her opinion the American Bankruptcy Institute Journal article that I co-wrote with Richard Gaudet of HDH Advisors: “Zero Times Something is Still Zero: Adapting Till to Unsecured Creditors.” We’ll hit the high points, but we recommend that you read the opinion for yourself. Background

Read More from: Plan Proponent

1 week 3 days ago
The speculation is that Maria Vullo, who is waiting to be confirmed as New York's new banking superintendent, is less interested in being on the 6 o'clock news than Ben Lawsky was. A study shows that companies sap women of ambition to advance within two years, an effect that doesn't happen with men in part because they tend to get more encouragement. But is it any wonder women feel that way when Â-- even now, it appears Â-- they might get fired for refusing to wear high heels at work? Also, Sallie Krawcheck, Sheila Bair and Elizabeth Warren.

Read More from: BankThink

1 week 3 days ago
On Wednesday, Google posted a blog on its Public Policy Blog entitled “An Update to Our AdWords Policy on Lending Products.” According to that post and effective July 13, 2016, Google will ban ads for payday loans and some related products from their ad systems. Google defines these loans as those where payment is due within sixty (60) days of issue. In the United States, the ban will also apply to loans with an APR of 36% or higher. The ban will not apply to companies offering mortgage loans, car loans, student loans, commercial loans, or revolving lines of credit such as credit cards. Google Protecting Users from “Harmful Financial Products”

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

1 week 4 days ago
The Office of the Comptroller of the Currency's recent white paper is a great first step in promoting innovative collaboration between banks and fintech, but companies need clearer guidelines on what regulators expect of them.

Read More from: BankThink

1 week 4 days ago
On Monday, Pacific Sunwear of California Inc. will look to move a step closer to exiting bankruptcy protection when it asks a judge for approval to send out its reorganization plan to creditors for a vote. The retailer filed its so-called disclosure statement, or plain-language outline of its bankruptcy plan, when it sought chapter 11 protection in April. Unsecured creditors and certain term-loan lenders will be allowed to vote on the plan. Pacific Sunwear has roughly $60 million in unsecured debt, including claims for unpaid rent and leases, court papers show. The teen retailer will also seek approval from Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court in Wilmington, Del., to use the rest of a $100 million bankruptcy loan. The day after filing for bankruptcy, Pacific Sunwear won approval to use up to $62.5 million of the loan, which is provided by a group of existing lenders led by Wells Fargo NA. The retailer said in court papers it plans to use the loan to pay back an existing loan in full, professional fees related to the case and to keep stores open through the bankruptcy process. Earlier this month, Pacific Sunwear won approval to move forward with plans to test its restructuring proposal at auction. The retailer has a June 15 deadline to receive bids, and if needed, will hold an auction on June 22.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
The pervasiveness of consumers' credit problems highlights why the Consumer Financial Protection Bureau's upcoming short-term lending rules should avoid unintended consequences.

Read More from: BankThink

1 week 4 days ago
My blog is more of a heart-felt reflection about the struggles of owing medical bills rather than a scholarly review of a bankruptcy topic.  I personally know several people juggling huge amounts of medical bills and how much they struggle and worry about paying for their or their dependent’s needed medical care.  I meet with clients daily who have these same struggles.  It puts a further toll on their health and significantly impacts their relationships with spouses, family, friends and their work life. Medical Insurance Woes The struggle is just as real for those who have medical insurance as those who do not.  The amount of the money owed may be more if you do not have insurance but none the less, the out-of-pocket amount needed when you do have insurance can be just as daunting.  Most of the time with medical insurance you have to meet your deductible and then once it is paid; you have a percentage of the bill you still must pay.  Although there is a cap in most cases, that cap can be rather large.  A common amount I hear is a $10,000.00 out-of-pocket maximum for a family.  Most people I talk to do not have an extra $10,000.00 just sitting around in their rainy day fund; or if they do, it would wipe them out completely.

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

1 week 4 days ago
Receiving Wide Coverage ... Swift Attack: Swift has reported a second attack involving its messaging system, this time targeting an unidentified commercial bank. Details emerged as investigators continue trying to solve the $81 million cyberheist involving the New York Fed and the Bangladesh central bank. This second attack suggests those behind it were sophisticated in their strategy and did not depend on weaknesses in the Swift system. In both incidents the thieves had at least oneÂ...

Read More from: BankThink

1 week 4 days ago
[wsj-responsive-image P="//art.wsj.net/api/photos/37700261/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/37700261/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/37700261/smartcrop?height=853&width=1280" caption="A 20-megawatt photovoltaic solar power generation facility owned by SunEdison is shown in Hemet, Calif. " credit="Reuters" placement="Inline" suppressEnlarge="false" ] Bondholders of TerraForm Global Inc., a publicly traded spinoff of bankrupt solar-energy company SunEdison Inc., issued a default warning. 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.”) Education company Education Management Corp. wants a reversal of a ruling protecting minority bondholders, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Authored by Josh FBy:  Edward L. Kelly and Karl R. Gruss Many settlement agreements contain mutual releases by the parties of claims against each other.  For institutional lenders, workouts of defaulted loans often result in the execution of such agreements by the parties.  When drafting any release language, lenders would be wise to include language restricting the effect of the release to the subject matter at issue.  Failure to do so may result in unintended consequences, potentially discharging a borrower not only from its obligations relating to the loan transaction in question, but from all debts and obligations of the borrower to the lender.  As discussed in Wells Fargo Bank v. Gonzalez, but for a procedural error by two homeowners, one lender nearly learned a hard lesson by executing a general release.

Read More from: Florida Banking Law Blog

1 week 4 days ago
Today we’ll begin with a two-part question: When do you suppose you could (i) hold a debtor’s property hostage without running afoul of the automatic stay and (ii) also collect on an administrative expense for postpetition rent for leased space used to store such property? If you don’t already know the answers to the above questions, perhaps an overview of a recent decision from the Bankruptcy Court for the District of New Jersey will provide some insight. Before the court in In re Sussex SkyDive, LLC were a motion for payment of postpetition rent by the debtor’s landlord, When Pigs Fly, LLC (what a name!), and an objection and counterclaim of the debtor for damages for the landlord’s violation of the automatic stay.
1 week 4 days ago

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