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This is the first in a blog series on student loan debt and other money matters faced by college graduates. Check out the second blog article in this series, “Recent College Graduates Need to Avoid Racking up Credit Card Debt.” It’s college graduation season, a time when many young people are celebrating their hard work by attending commencement ceremonies and formally receiving their diplomas. One of the things that graduates typically hear at these ceremonies is that they should be excited about what the future holds for them as they leave school and enter the “real world,” get jobs and start to earn a living. What graduates are not always told is just how difficult it can be to make this transition from the insulated college campus to the real world – especially when graduates haven’t yet learned what it’s like to deal with serious financial responsibilities. One thing that college graduates may want to consider as they leave school and begin to personally manage their own finances for the first time in their lives is that interest on loans can lead to a mountain of crippling debt.
3 days 12 hours ago
Banks and nonbanks should accept that more fintech regulation is inevitable, but how far regulators go will depend in part on how well companies demonstrate they are managing risk.

Read More from: BankThink

3 days 15 hours ago
Co-authored by Miranda Schiller and Agustina Berro. Last week, the Second Circuit heard oral arguments in the widely followed Marblegate Asset Management LLC v. Education Management Corp. case. When the appeal is resolved, it is expected to provide a useful guidepost for financially distressed companies that wish to engage in consensual, out-of-court restructurings of their bond debt. At issue is whether Section 316(b) of the Trust Indenture Act provides an independent cause of action for noteholders where there has been no breach of any indenture covenant but the practical effect of a restructuring transaction supported by the majority of the noteholders is to insure that the holdout noteholders will not recover principal or interest. In this alert, we report on the parties’ arguments to the Second Circuit and the questions which the panel appeared to be focused on. View this alert.
3 days 15 hours ago
On Thursday in Richmond, Va., a bankruptcy judge will hold a preliminary hearing on Alpha Natural Resources Inc.’s multibillion-dollar debt-repayment plan. Alpha, which sought chapter 11 protection in August, will ask Judge Kevin R. Huennekens to approve a plain-language version of the plan intended to help creditors decide whether to vote for or against the proposal. The plan outlines how much those creditors can expect to recover and is funded by the sale of some of the company’s coal mines and other assets. Alpha’s natural-gas business is now slated to be sold off to Vantage Energy, which beat out Rice Energy to win the bidding at an auction Monday. Bankruptcy filings show Vantage bid $339.5 million for the unit, which explores for gas in the Marcellus Shale, driving up Rice’s initial offer of $200 million to $335 million but ultimately prevailing.

Read More from: WSJ.com: Bankruptcy Beat

3 days 16 hours ago
Madison, Mississippi based All American Check Cashing is under fire again after the U.S. Consumer Financial Protection Bureau (CFPB) filed suit against the company for allegedly engaging in deceptive practices. All American is also the subject of an enforcement action by the Mississippi Department of Banking and Consumer Finance. Deceiving Customers The CFPB lawsuit alleges that All American and its employees deceived customers in regard to the extent of their fees. In fact, the company is accused of having a policy to conceal the amount of their fees. In training, new employees were allegedly instructed to never tell the customer the fee charged to cash the check and instead to say they did not know what the fee would be. If a customer tried to back out of the transaction, CFPB alleges that employees would falsely state that it was too late to reverse the transaction or intentionally make it impossible to do so by stamping “For Deposit Only: All American Check Cashing Inc” on the back of the check. All American is also facing shutdown by the Mississippi Department of Banking and Consumer Finance due to its alleged violation of the state’s law against “rollover” loans. This law is supposed to prevent “collecting fees on loans while issuing a new loan to pay off the old one.”

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

3 days 17 hours ago
Regulators have abused their role of implementing law to actually make financial policy, usurping the role of Congress in a tripartite system.

Read More from: BankThink

3 days 17 hours ago
Wall Street Journal As Columbia Law School professor Robert Jackson noted in an op-ed on Thursday, there needs to be a source of real competition for the credit-card pushers, namely online marketplace lenders, so consumers with below-average credit scores can have access to credit at somewhat reasonable rates. Because there's clearly demand. Credit card balances in the U.S. could hit $1 trillion this year. That would be near the $1.02 trillion peak posted in July 2008. The...

Read More from: BankThink

3 days 17 hours ago
A female executive sues Bank of America, accusing the company of being a "bros club" and paying her less than male colleagues; Democrats call on the overwhelmingly "white and male" Fed to prioritize diversity; Goldman, which lags when it comes to female leadership, names a new CEO for its bank unit, coincidentally swapping in a man for a woman. Also, Ruth Porat, chief culture officers, and the stubborn gender pay gap.

Read More from: BankThink

3 days 18 hours ago
[wsj-responsive-image P="//art.wsj.net/api/photos/36433807/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/36433807/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/36433807/smartcrop?height=853&width=1280" credit="Agence France-Presse/Getty Images" placement="Inline" suppressEnlarge="false" ] Breitburn Energy Partners LP, which filed for bankruptcy Sunday, won approval to spend $75 million of up to $150 million to stay in business while it restructures in bankruptcy. Read 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.”) The Port Authority of New York and New  Jersey reached a deal to pay to end a dispute with bankrupt construction company Collavino Construction Co., which worked on the One World Trade Center tower in Manhattan, DBR reports in The Wall Street Journal.

Read More from: WSJ.com: Bankruptcy Beat

3 days 19 hours ago
Here at Kentucky Bankruptcy Attorney John Rogers we offer this opportunity. The physical and mental stress you are suffering is not necessary. Give us one hour, at not cost to you, and we can show you how you can end the constant stress. A bright future lies ahead for you and many others. Click here to hear the relief in the voices of those we have helped.  
4 days 10 hours ago
Early this week, a California Bankruptcy Court schooled counsel on abiding by local rules, avoiding gamesmanship, and maintaining a level of civility in litigation proceedings.  These lessons arose in the context of an adversary proceeding in which counsel filed an emergency motion for a continuance of the deadline to respond to a complaint following retention of new counsel.  Lesson #1: Check for Typos The court began by discussing counsel’s typographical error regarding the date it was retained noting a lack of consistency of the date throughout the pleadings.  Indeed, one date cited by counsel as the date on which it was retained was a date four weeks into the future!  The court ultimately discerned the correct retention date, but it was not a good start for counsel. Lesson #2: Comply With Local Rules
4 days 11 hours ago
[wsj-responsive-image P="//art.wsj.net/api/photos/37403914/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/37403914/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/37403914/smartcrop?height=853&width=1280" caption="In this Oct. 26, 2015, file photo, Curtis '50 Cent' Jackson arrives at Media's Tribute to African-American Achievements in Television in Beverly Hills, Calif. The rapper got an initial nod form a judge on his bankruptcy plan." credit="Associated Press" placement="Inline" suppressEnlarge="false" ] 50 Cent could be close to getting out of bankruptcy after a judge gave an initial nod to the rapper’s plan to put up to $23.4 million of his future earnings, including profits from the sale of his Connecticut mansion, toward paying off his debts. From her Hartford, Conn., courtroom, Judge Ann Nevins set a July 6 hearing to see whether the plan from the 40-year-old entertainer, whose real name is Curtis James Jackson III, is popular with the people and businesses who are owed money and can vote to accept it. Mr. Jackson filed for chapter 11 protection on July 13 after losing a privacy lawsuit filed by a woman, Lastonia Leviston, who accused him of releasing her sex tape. Ms. Leviston once dated rapper Rick Ross, who has sparred publicly with Mr. Jackson as part of a long-running rap war.

Read More from: WSJ.com: Bankruptcy Beat

4 days 11 hours ago
I have many friends who are watching their kid’s graduate high school this year.   Our turn will be next year and the thought of sending our daughter away from us to attend college is exciting but sad.  I remember when I moved away from home and the temptations of being my own “boss” was liberating and yet frightening.  We pray we give our children the tools to not only be successful in the classroom but remain true to who they are as a person. As a consumer bankruptcy attorney, I see that many of the financial problems my clients have as adults started in this transition period from “teen to adult”.  With that in mind, I created a list of financial tips for teens entering college: Know Where Your Money is Going Whether you will work in college or have the luxury of parents footing the bills, you need to know where your money goes for everything.  Create a list of expenses that will be required every month whether you live on or off campus.  Live within those limitations.  Keep in mind that the little things like having that morning coffee or espresso every day will add up quickly! Learn to Save

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

4 days 13 hours ago
Banks need to be self-critical in evaluating a growth strategyÂ's chance of success while realizing that itÂ's hard to rebound from a growth failure.

Read More from: BankThink

4 days 15 hours ago
Authored by Heather S. NasonA purchaser of real property may be subject to liability for taxes, including sales taxes, owed by the Seller to the Florida Department of Revenue (“DOR”). Title insurance does not protect against this liability. Under F.S. 213.758, a transferee of more than 50% of the assets of a business (including real property) is liable for unpaid tax owed by the transferor arising from the operation of that business. Two exceptions to this rule exist when the transfer is either (1) an involuntary transfer (i.e. bankruptcy, foreclosure etc.) or (2) the transferee is not an insider and the asset is either (i) a 1-4 family residential real property; (ii) unimproved real property; or (iii) owner occupied commercial real property and, in each case, is not accompanied by a transfer of other assets of the business.

Read More from: Florida Banking Law Blog

4 days 15 hours ago
Chapter 13 bankruptcy allows debtors to confirm plans that provide for the payment of their debts through future earnings while, at the same time, retaining their assets. If a creditor wishes to receive payments pursuant to a debtor’s plan, the creditor must file a proof of claim. And it must do so timely. Read More › Tags: 6th Circuit Court of Appeals, Chapter 13

Read More from: Michigan Bankruptcy Blog

4 days 16 hours ago
Bankruptcy alternatives often suck. The story of one customer of a debt settlement company sticks with me. Using the “services” of this company, the poster now has six judgments of record and two garnishments in process. The debt settlement company, however, has its full fee. One man I represented went to a debt management company before he found me.  The “plan” to get him out of debt was that he send the company 50% of his gross income (that’s before taxes and any other deductions) every month. I have never seen a client who could keep body and soul together in the Bay Area on 50% of their gross income.  When his “plan” collapsed, he was meeting with a bankruptcy lawyer.  The debt management company was counting its fees. Getting fat on fear Such stories, and there are lots of them, are emblematic of the profit that debt settlement firms and credit management outfits make on the consumer’s fear of bankruptcy. Most folks will do anything to avoid bankruptcy, either out of ignorance of how bankruptcy works or a values-driven preference for paying their debts. Feed that fear and you profit. Appeal to the inherent desire to do right by creditors, and you get your money before it’s obvious the debt is simply too large to pay off. When is bankruptcy the best choice
4 days 17 hours ago
The financial services sector would benefit from companies Â-- banks included Â-- submitting dedicated disclosures on the impact of climate change.

Read More from: BankThink

4 days 17 hours ago
After taking a look at titles III and VI of the new draft, some quick observations:
  • After some waffling between drafts, it is now clear that title III cases will be heard by district court judges.  The judge for a case involving a territory (as opposed to a sub-entity) will be chosen by the Chief Justice. Venue will either be in the territory, or in another place where the oversight board has an office. As I've previously noted, that clearly opens up the possibility of New York.
  • One draft of the bill had incorporated sections 327 et al. regarding professional retention and compensation. I noted that was inconsistent with chapter 9, and incorporation of those sections disappeared in the next draft. Now the new draft has its own professional compensation provision in proposed section 316 (see also section 317).
  • Title VI continues to be a provision that is rather obviously stapled onto the larger bill:  see, for example, section 601, which redefines "Oversight Board" as "Administrative Supervisor" for purposes of Title VI alone.  I have a suggestion:  there is a "find and replace" function in Word ...
  • I continue to worry that title VI's process for splitting bondholders up into various "pools" is a morass waiting to happen, especially given the possibility of competing workout proposals under title VI.

Read More from: Credit Slips

4 days 17 hours ago
Wall Street Journal Google last week said it planned to ban advertising from payday lenders, in a bid to offer protection to its consumers from predatory loans. Oh by the way, Google is an investor in the payday lender LendUp. Google has been involved in every equity round that LendUp has staged, via its parent company's venture capital arm. LendUp has raised a total of $150 million in debt and equity, making it one of Silicon...

Read More from: BankThink

4 days 17 hours ago

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