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when to file bankruptcyShould I wait until all of my savings are gone to file bankruptcy?, the caller asked.

And he didn’t mean, until my net worth is greatly reduced; he meant, until my bank balance is zero.

One has to admire the resolve of those who propose to pay on debts that they can never repay up to the point where they literally have nothing.

My advice, of course, is “no”.

There is no point in making further payments when you can see you’re heading for bankruptcy.

Bankruptcy exemptions allow you to keep a collection of assets necessary for a fresh start.  In California, we have exemptions that will even shelter meaningful cash in the bank.

In Chapter 13, you can keep everything you own.

There is not even a requirement  that you be destitute or even insolvent to file bankruptcy.  You simply need to be willing to play by the rules of the bankruptcy chapter you choose.

15 hours 2 min ago

We have written on other occasions on Civic Partners Sioux City, LLC.  When we last wrote in 2015, the debtor had lost the last of many interlocutory appeals following the Bankruptcy Court for the Northern District of Iowa’s denial of confirmation of the debtor’s plan of reorganization – a plan founded on a prior, contested ruling of the bankruptcy court that an amended lease of the debtor’s property to Main Street Theaters, Inc.

15 hours 17 min ago

economy-stock-marketThe bankruptcy courts have a long history of being willing to use their judicial power under the Bankruptcy Code to prevent perceived efforts by debtors to inappropriately shield their assets from creditors. This is true even when the debtors employ structures and devices that are complex and crafted in seeming compliance with applicable law. A recent example of this judicial scrutiny is reflected in Bankruptcy Judge Barbara Houser’s June 29, 2016 decision regarding the claimed exemption of offshore annuities by Samuel Evans Wyly.

Wyly commenced his bankruptcy case after a $123 million judgment was rendered against him in a securities fraud action brought by the SEC. The alleged securities fraud involved transactions undertaken by a variety of offshore trusts and offshore corporations controlled by Mr. Wyly and his brother (since deceased).

Read More from: eSQUIRE Global Crossings

16 hours 16 min ago

Attorney Ron SykstusI have written extensively regarding binding mandatory arbitration.  It is a contractual mechanism used to limit judge and jury trial rights which are fundamental in our country.

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

17 hours 32 min ago

Attorney Joshua LawhornIn May, the Consumer Financial Protection Bureau filed suit against Mississippi based All American Check Cashing for engaging in deceptive practices. While the suit is still ongoing, progress has been made.

All American Check Cashing Closing Stores

Last week, the company stated in a press release that they would be closing all four stores in Alabama and five out of six stores in Louisiana. All Mississippi stores will remain open. All American will also forgive the loans from those closed stores. The estimated amount forgiven, according to the lender, is $800.000.

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

17 hours 47 min ago

In re Intervention Energy Holdings, LLC, No. 16-11247 (KJC), 2016 WL 3185576 (Bankr. D. Del. June 3, 2016)

In this Opinion, Judge Kevin J. Carey denies a secured creditor and common member’s motion to dismiss the Chapter 11 cases of two Delaware limited liability companies for lack of corporate authority, siding with other federal courts that have “consistently refused to enforce waivers of federal bankruptcy rights.” *10.  In doing so, the Court declines “the parties’ invitation to decide what may well be a question of first impression of state law (i.e., determining the scope of LLC members’ freedom to contract under applicable state law provisions) when an alternate ground for decision is present.”  Id. at *6. Read More ›

Tags: Dismissal

Read More from: Delaware Bankruptcy Insider

1 day 14 hours ago

Doug Jacobs’ post answering the question “do I have to file on all of my debts”, pushes my semantics button.

Doug was, in all innocence, paraphrasing clients, who imagine that bankruptcy represents a choice by the debtor of which debts he wants to discharge.


The popular usage of “filing bankruptcy on” certain debts suggests that debtors get to pick and choose which debts are listed in their cases. Not!

People file bankruptcy; people don’t file “on debts“. A person who is a debtor in a bankruptcy proceeding is expected to list all of their debts, under penalty of perjury.

At the beginning of the case, the debtor does not get to pick and choose which creditors are included in the filing.

Afterwards, the debtor can elect to reaffirm debts that they want to repay and are willing to be legally liable for. Better, from my perspective, a debtor can voluntarily repay debts they feel morally obligated to repay, without a reaffirmation.

Words are important to lawyers; words shape and reflect how we think about the world.

Make my nerdy day by getting this terminology right.

1 day 16 hours ago

FIFTH THIRD BANK TO PAY $18 million to African-American and Hispanic auto borrowers for lending discrimination and $3 million to credit card customers for deceptive marketing practices.

Ripped off by Fifth Third Bank?Consumer Financial Protection Bureau “CFPB” and Department of Justice (DOJ) entered into an agreement with Fifth Third Bank requiring that the bank change its pricing and compensation structure in order to reduce the risks of discrimination, and to pay $18 million to harmed African-American and Hispanic borrowers. The CFPB’s action against Fifth Third’s deceptive marketing of credit card add-on products requires the bank to provide an estimated $3 million in relief to eligible harmed consumers and pay a $500,000 penalty.

It appears that Fifth Third may have let their employees or contract auto dealers run amuck because CFPB Director Richard Cordray said “Fifth Third’s move to a new pricing and compensation system represents a significant step toward protecting consumers from discrimination.”

2 days 6 hours ago

image1Bankruptcy and Beach: the perfect combo?

We’re attending ABI’s Southeast Bankruptcy Workshop, where, as one fellow attorney joked on the elevator, we are “going to class.” In one of the sessions, we heard about a case decided by the Eleventh Circuit on “equitable mootness” (h/t to Lori Vaughan for the reference). Curious, we looked it up and found a short but useful and interesting opinion on what to do to guarantee that your case will be dismissed as equitably moot. (In other words–what to never do as an attorney).

Read More from: Plan Proponent

2 days 7 hours ago

Zombie debt buyers – Encore Capital Group (Midland Funding, Asset Acceptance) and Portfolio Recovery Associates – ordered to stop using illegal actions to collect debts.

The Consumer Financial Protection Bureau (CFPB) found that Encore Capital Group (subsidiaries also named are Midland Funding LLC, Midland Credit Management, and Asset Acceptance Capital Corp) and Portfolio Recovery Associates bought debts that were or should be noncollectable and used abusive and illegal actions to collect.  The companies knew many of these debts were uncollectable, lied to the consumer in attempt to collect debts, sold debts they knew to be noncollectable to other debt buyers and churned out lawsuits using robo-signed court documents (with little or no backup documentation).

2 days 8 hours ago

Private Student Loans and Bankruptcy – an evolving tug of war.

Private student loansJust because a school calls a loan a “private student loan” does not mean it is a student loan for bankruptcy purposes.  There are specifics requirements for a loan to qualify as a student loan under the Bankruptcy Code.  If a loan is not a student loan then it is most likely discharged (forgiven) like medical bills and creditors cards.

So, what are the requirements of the U.S. Bankruptcy Code?

3 days 10 hours ago

Chapter 13 bankruptcy cases are difficult for the debtor as well as the attorney. The debtor has to fulfill a series of requirements prior to filing as well as additional requirements subsequent to filing. The attorney does the bulk of his work upfront and fights to get paid as the case progresses. In recent weeks,+ Read More

The post It’s Getting Harder And Harder To Get Paid In A Chapter 13 Bankruptcy Case appeared first on David M. Siegel.

3 days 11 hours ago

Directors and senior executives have a duty to inculcate risk culture into banks so that everyone works as a team to contain cyber and other risks, including the human vulnerabilities within.

Read More from: BankThink

3 days 13 hours ago

The Consumer Financial Protection Bureau's plan to rein in payday and other lenders has some noticeable benefits for consumers, but much of the proposal should be revised.

Read More from: BankThink

3 days 15 hours ago

Receiving Wide Coverage ... Strategic hiring: What's a few jobs among friends? JPMorgan Chase is expected to settle a probe in coming months over alleged efforts to hire the children of powerful Chinese officials and executives in state-owned firms to drum up new business. The bank is expected to pay as much as $200 million and may admit wrongdoing, though it is unlikely to be criminally charged. Wall Street Journal, Bloomberg Â...

Read More from: BankThink

3 days 16 hours ago

By: Donald L. Swanson


I’m scanning a news article earlier this week.
The term “militant open-mindedness” catches my eye. My immediate reaction is excitement:

–“Oh great!  This will provide a lesson and analogy for mediation!”

–After all, “open-mindedness” is “a receptiveness to new ideas” and a belief that “others should be free to express their views.”

–“Open-mindedness” is, obviously, a good quality in mediation; so “militant open-mindedness” must be an even-better mediation quality.  Right?”

I focus-in on that phrase in the article. And here is what I read:

“people here pride themselves on a kind of militant open-mindedness.  It is the kind of place that will severely punish any deviations from accepted schools of thought.”

So . . .

Read More from: Mediatbankry

3 days 20 hours ago


Consumer Financial Protection BureauWant to know what you mortgage payment will be before looking for a house or signing all the loan documents? Consumer Financial Protection Bureau (CFPB) has online tools as part of its Know Before You Owe initiative aimed at helping consumers navigate the mortgage process and avoid a mortgage payment surprise. The tools provide an interactive, step-by-step overview of the mortgage process, help home buyers decide how much they can afford to spend, and help consumers explore and use the new Know Before You Owe mortgage forms. Creditors will have to begin providing the new forms on Oct. 3, 2015, making it easier for consumers to understand mortgage options and comparison shop between multiple loan offers.

4 days 6 hours ago

Kirsten Erichsen and Andrew J. Wilkinson examine sovereign debt restructuring in an article published in Butterworths Journal of International Banking and Financial Law. This article considers what lessons can be learned from Greece, Argentina and Ukraine’s sovereign restructurings.

4 days 9 hours ago

Santander Bank fined $10 million for illegal overdraft service practices.

Santander BankThe Consumer Financial Protection Bureau (CFPB) ordered Santander Bank, N.A. to pay a $10 million fine for illegal marketing of overdraft services and using a telemarketing firm that signed some bank customers for the overdraft service without their consent.

Consumer Financial Protection BureauAccording to CFPB Director Richard Cordray “Santander tricked consumers into signing up for an overdraft service they didn’t want and charged them fees.  Santander’s telemarketer used deceptive sales pitches to mislead customers into enrolling in overdraft service. We will put a stop to any such unlawful practices that harm consumers.

4 days 11 hours ago

The movie "Equity" about women on Wall Street (backed by Barbara Byrne and other industry women) is coming soon. The internet reacts to the 'Bro Talk' op-ed about Wall Street's objectification of women. The CFSI is pushing for a more holistic financial health metric. Jill Castilla is big on Pokemon Go and tweeting about it to lure people into the branch. Also, Sheryl Sandberg is rethinking parts of her "Lean In" philosophy.

Read More from: BankThink

4 days 12 hours ago