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In this third and final instalment of our review of key issues concerning schemes of arrangements, we contrast schemes with US Chapter 11 proceedings.  The shape of a restructuring is often influenced by a number of key factors; we highlight those that are most likely to be relevant. Continue reading >>
9 hours 44 min ago
You can set your mind at ease, because the short answer to this question is yes: it is entirely possible to purchase a home after filing for Chapter 13 or Chapter 7 bankruptcy.  Having a bankruptcy in your past is not an insurmountable barrier to home-ownership, nor does a former bankruptcy preclude the possibility of renting an apartment.  Countless people have gone on to successfully buy homes after receiving a discharge.  That being said, there are some considerations which debtors should be mindful of.  In this article, our bankruptcy lawyers will explain some of the factors you should think about if you’re planning on filing for bankruptcy and want to buy a house. Focus on Rebuilding Good Credit The entire purpose of bankruptcy is to give the debtor a clean financial slate by eliminating most if not all of the petitioner’s debts.  This includes debt related to medical bills, credit card bills, personal loans, business debts, social security over-payments, past due rent, civil court judgments (excluding fraud), collection agency accounts, and many other types of debt.  Bankruptcy is meant to unburden debtors, not act as a permanent financial punishment, and it is absolutely possible for most debtors to rebuild good, healthy credit after getting a discharge.

Read More from: Young, Klein & Associates

11 hours 14 min ago
The most powerful women in New York include two from JPMorgan, one from Goldman Sachs, and none (thatÂ's right, none) from Citigroup. Plus, JPMorgan alum Blythe Masters is making waves, as is actress Meryl Streep.

Read More from: BankThink

12 hours 10 min ago
Allowing real estate investment trusts to bridge the capital need for affordable housing could help de-escalate a rising public funding crisis.

Read More from: BankThink

12 hours 16 min ago
In a recent case called Madden v. Marine Midland Funding, the Second Circuit ruled that a loan owned by a debt collector violated New York's usury statute.  The loan had been originally made by a national bank and was subsequently sold to the debt collector when it was in default.  There's no question that the state usury law was preempted when the loan was held by the national bank.  The Supreme Court's (awful) Marquette National Bank v. First of Omaha Service Corp. decision from 1978 makes that very clear.  (The Court suddenly discovered in 1978 that over a century of legal understanding of the 1864 National Bank Act was somehow wrong and that banks had been leaving lots of money on the table.)  

Read More from: Credit Slips

12 hours 16 min ago
I hope everyone enjoys their time with family and friends this Independence Day weekend !  As you enjoy this time, and give thanks for our Founding Fathers that made the enjoyment of our Freedoms possible, remember that these same Founding Fathers also made it possible for your to be free of suffocating debt. Our Founding Fathers placed the following bankruptcy clause in our Constitution: To establish … uniform Laws on the subject of Bankruptcies throughout the United States; By doing so, they have enabled you, and future generations of Americans to enjoy the safety net and protection from harassing creditors that it allows. So remember, that along with your right to Free Speech and Freedom of Religion, you are also guaranteed the Right to Independence from Debt !
12 hours 42 min ago
Basis Points’ resident haiku master, the B-I-C, recently learned of a weekly haiku contest run by the Financial Times Executive Appointments section. He couldn’t resist entering. This week’s topic was “being fired,” and fortunately or unfortunately, the B-I-C was a winner with the following entry: My wife hugs me the shock recedes it returns By Evan Flaschen This is fine praise. The judges for this weekly contest include FT editors who narrow down the submissions, with the final selection being made by a judge affiliated with the British Haiku Society, World Haiku Association, Haiku Foundation, or Poet in the City. More information on the FT’s haiku contest can be found here.

Read More from: Basis Points

13 hours 27 min ago
The SEC is seeking public comment through a concept release (Possible Revisions to Audit Committee Disclosures) that it issued yesterday on whether the disclosure of the role of the audit committee should be expanded.  
13 hours 30 min ago
The Federal Housing Finance Agency wants to exclude mortgage real estate investment trusts from membership in the Federal Home Loan Banks. That would be a major setback for the entry-level borrowers who depend on mortgage REITs for sustainable home-financing options.

Read More from: BankThink

15 hours 11 min ago
Editor's note: Morning Scan will not publish on Friday, July 3 in observance of the Independence Day holiday. We'll be back on Monday, July 6. Receiving Wide Coverage ... Better Check the Math: Executives may soon have more skin in the game when it comes to accurate financial reporting. The Securities and Exchange Commission voted 3-2 to back a new plan that would require public companies to rescind executive officers' bonuses if accounting errors are discovered ...

Read More from: BankThink

16 hours 22 min ago
At an open meeting yesterday, the Commission voted to propose broad rules directing the national exchanges and associations to establish listing standards requiring companies to develop and implement clawback policies.  We will issue a client memo on the proposal shortly.  The key provisions are complex and are set forth below, based on the fact sheet released by the SEC.
16 hours 34 min ago
Authored by J. Ellsworth Summers, Jr. and Janet C. Owensand J. Ellsworth Summers, Jr. and Janet C. Owens of Rogers TowersAs we have previously discussed, the Supreme Court held in Stern v. Marshall that Congress did not have the authority under the Constitution to empower bankruptcy judges to decide legal claims that are based entirely on state law – even if such claims were specifically enumerated in the Bankruptcy Code as “core.” In Executive Benefits Ins. Agency v. Arkinson, the Supreme Court clarified Stern and held that when a bankruptcy court is presented with a Stern claim, the proper course of action is to treat the claim as “non-core” and to issue proposed findings of fact and conclusions of law for de novo review by the appropriate federal district court. Now, in Wellness International Network, Ltd. v. Sharif, the Supreme Court has answered a question remaining after Arkinson about the ability of bankruptcy judges to adjudicate Stern claims upon consent of the parties.

Read More from: Florida Banking Law Blog

17 hours 7 min ago
Construction of the Baha Mar resort on the beach on New Providence island, Bahamas, July 2014. BAHAMAR Published Credit: Baha Mar Published Credit: Baha Mar
Baha Mar
Baha Mar Ltd., the developer of a yet-to-open $3.5 billion Bahamian resort, received approval Wednesday to begin tapping $80 million in fresh financing that keeps the resort on track to eventually open its doors to guests. Read the Daily Bankruptcy Review article via The Wall Street Journal. (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.”) The parent of Puerto Rico’s failed Doral Bank wants more time to have exclusive control over its bankruptcy case, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

18 hours 1 min ago
Thanks to the term “declaring bankruptcy,” many people incorrectly assume that a debtor can simply say they are bankrupt and instantly wipe away their debts.  Unfortunately, the process isn’t quite that simple, as our bankruptcy lawyers will explain in this article.  If you’re thinking about filing for Chapter 13 or Chapter 7 in New Jersey or Pennsylvania, it’s important to understand the different ways your case could potentially conclude – and what to do if you don’t agree with the court’s findings. Dismissal vs. Discharge in Chapter 7 and Chapter 13 As long as you have not filed for bankruptcy in the recent past, you are free to file a petition for Chapter 7 or Chapter 13 bankruptcy at any time.  (If you have filed recently, you may need to wait for several years to pass before you can file for bankruptcy again.) However, in order for the bankruptcy to be finalized so that you can be officially released from your debts, your case needs to be discharged by the bankruptcy court – and not all cases end in discharge.  Some cases are dismissed instead.

Read More from: Young, Klein & Associates

19 hours 54 min ago
Benjamin Franklin is quoted as having said “in this world nothing can be said to be certain, except death and taxes.”  No offense to Mr. Franklin, but we had always thought that there was at least one other certainty in this world—in a bankruptcy case, creditors get paid pursuant to the priority scheme under section 507(a) of the Bankruptcy Code.  It turns out, however, that Mr. Franklin was correct.  In In re Jevic Holding Corp., the United States Court of Appeals for the Third Circuit found that in rare instances, a case arising under chapter 11 may be resolved through a structured dismissal that deviates from the Bankruptcy Code’s priority scheme.  An overview of structured dismissals and a discussion of the Third Circuit’s analysis in this case as to whether such dismissals are generally permissible under the Bankruptcy Code is provided in Part I here.  In this Part II, we discuss whether bankruptcy courts have the power to approve settlements, in the context of structured dismissals, which deviate from the priority scheme of the Bankruptcy Code.  Background
1 day 9 hours ago
Manu Fernandez/Associated Press
A volunteer fire department in rural Pennsylvania filed for bankruptcy to protect its main pipeline of revenue: not firefighting, but Friday night bingo games. Officials who put the nonprofit Madera Volunteer Fire Co. into bankruptcy on Tuesday urged a judge to let them spend restricted cash needed for “[hosting] bingo games, fuel, propane, telephone services, insurance and other normal and necessary costs of business,” according to documents filed in U.S. Bankruptcy in Johnstown, Pa. The fire department has contracts to provide fire protection to Bigler Township (population: 1,289) and Knox Township (population: 1,042), but most of its $280,000 in revenue last year came from bingo and other fundraisers like poker runs, an annual gun raffle and community dinners. The profit from social events, however, wasn’t enough to keep them out of recent financial trouble. Earlier fire department leaders overspent on renovations to the fire hall located at 2720 Main St., said bankruptcy lawyer Kevin Petak. To make the improvements, the fire department took out a loan through a U.S. Department of Agriculture rural development program in 2007. It still owes about $2.1 million.

Read More from: WSJ.com: Bankruptcy Beat

1 day 10 hours ago
John Rogers:
The 5% Chapter 13 Telecom Rule in The Bankruptcy Court of the Western District of Kentucky, Judge Joan Lloyd
Originally posted on Kentuckiana Bankruptcy Opinions: (Bankr. W.D. Ky. June 29, 2015) Judge Lloyd confirms the Chapter 13 plan at 100% on condition that the debtors remit all tax refunds during the plan term to the Chapter 13 trustee for distribution to creditors. The court requires this because the debtors refused to justify the telecom expense of more than 5% of the debtors monthly net income ($400 per month). Opinion below. 2015-06-29 – in re birdwell Author: Matt Lindblom View original
1 day 13 hours ago
Banks looking to improve their sales should follow a simple rule of thumb: the more friendly, casual chats staffers have with current and potential customers, the more business they create.

Read More from: BankThink

1 day 13 hours ago
Supreme Court of the United States
Getty Images
The U.S. Supreme Court just put its stamp of approval on the Obama administration’s health-care reform, and a Boston law professor thinks he knows what will happen next. In his 2014 study, Northeastern University law professor Daniel Austin dug into personal bankruptcy filings to figure out what happened after Massachusetts lawmakers made health insurance mandatory in 2005. His findings? Massachusetts residents who file for bankruptcy protection these days have way less medical debt compared to the rest of the country. The typical Massachusetts person or couple who filed in 2013 had $3,041 in medical debt, while people everywhere else had an average of $8,594 in medical debt. In fact, he found that Massachusetts is the only state where medical debt isn’t the leading cause of personal bankruptcy. (A loss of income is the No. 1 reason, he found.)

Read More from: WSJ.com: Bankruptcy Beat

1 day 14 hours ago
An aerial view of the Morongo Band of Mission Indians’s casino and resort, which sit on tribal land. The Morongo are riding to the defense of embattled gun maker Colt Defense.
Morongo Band of Mission Indians
A business-savvy tribe of Native Americans, the Morongo Band of Mission Indians, is riding to the rescue of Colt Defense LLC, the embattled gun maker caught up in a contentious bankruptcy case. Private-equity owner Sciens Capital Management has been clashing with bondholders over control of Colt. Sciens had the upper hand, but bondholders then moved into the lead, offering to finance a turnaround via the chapter 11 proceeding that began June 14. At this point, the fate of the Connecticut company, which has roots that run back to the 19th century, is unknown. After the initial dustups in the bankruptcy brawl, the Morongo tribe had its lawyers on the phone to everyone concerned, offering to open talks with the maker of the “gun that won the West.” “We are the West,” said Drew Ryce, attorney for the Morongo tribe, which is based in Southern California near Palm Springs. “All we know is that the company failed and we don’t want that to happen. It’s an iconic American company. It shouldn’t fail. It shouldn’t go away.”

Read More from: WSJ.com: Bankruptcy Beat

1 day 14 hours ago

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