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Homeownership is out of reach for too many Americans. The next president could change that with a few simple policies aimed at encouraging private capital to invest in residential mortgages.

Read More from: BankThink

3 weeks 6 hours ago
“Remember what we learned in school. Acquiescing to bullies only gives them more ammunition and makes it worse.” 
3 weeks 7 hours ago
Wall Street Journal Citigroup has made such good progress with Citi Holdings, its "bad bank," that the unit has reported four straight quarters of profit. That was nearly unthinkable for the unit when it was first created, as a way to separate Citi's unwanted and toxic assets from the good part of Citigroup. "We're out of the dark tunnel," says Francesco Vanni d'Archirafi, who runs the unit for Citi. ...

Read More from: BankThink

3 weeks 7 hours ago
Every client asks that question: how long will bankruptcy take? Probably, the real question is “when will this be over?” Like so many questions in the law, the answer is “it depends.” Filing to discharge In a Chapter 7, filing to discharge is about four months;  in Chapter 13 it’s three to five years. But, too often, the real gating issue is getting ready to file.   How long will it take you to get your attorney all the needed information. And that’s a timeline that the client controls. The source of delay It is getting the raw information to us that is the real slow-down in most cases. Cases lag when
  • the client fills out as much of our questionnaire as they find convenient;
  • provides most of the paystubs;
  • promises the tax return; and
  • has to search for information on the insurance policy.
We hustle to get the schedules done, and the client then doesn’t have all the necessary funds to finish paying us. Once filed, a Chapter 7 marches fairly predictably to discharge.  The debtor’s obligations after filing are few:  show up at the 341 meeting, and complete the post bankruptcy education class.
3 weeks 7 hours ago
Authored by Jon Sacks and Heather S. Nasonand Jon Sacks and Heather S. Nason of Rogers TowersDeficiency actions arising under a mortgage note secured by Florida real estate used for personal, family or household purposes are subject to many of the same consumer protection regulations as other consumer debt. Last April, in an unrecorded case, Baggett v. Law Offices of Consuegra, P.L. No.3:14-cv-1014-J-32PDB 2015 WL 1707479 (M.D. Fla. April 15, 2015), the Middle District of Florida ruled that a deficiency action after foreclosure constituted an effort to collect on a debt under the Fair Debt Collections Practices Act (“FDCPA”) and the Florida Consumer Collection Practices Act (“FCCPA”). In Baggett, the Court held that because the deficiency action is based on a consensual obligation to pay under the note and not the foreclosure, it is a process to collect “consumer debt” and is therefore subject to the rules under FDCPA and FCCPA.

Read More from: Florida Banking Law Blog

3 weeks 8 hours ago
Transportation Secretary Anthony Foxx testifies before Congress in March 2014. 
Associated Press
A bankruptcy trustee sued U.S. Secretary of Transportation Anthony Foxx to claw back more than $420,000 a defunct bus maker paid Mr. Foxx for work he allegedly never performed, the Daily Bankruptcy Review reports via WSJ. Grocery chain Great Atlantic & Pacific Tea Co. is seeking to modify parts of its collective-bargaining agreements with union workers, a likely precursor to a request for a bigger overhaul of the CBAs later this month, DBR reports. (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, visithttp://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”)

Read More from: WSJ.com: Bankruptcy Beat

3 weeks 8 hours ago
Much has been going on, although little has actually happened, in the litigation against Argentina. For instance, the court has allowed the plaintiffs to file an amended complaint seeking an injunction blocking payments on the recently-issued BONAR 2024s (USD-denominated, Argentine law bonds). That may prove important, for it's a step toward blocking Argentina from issuing any foreign currency debt, anywhere within the great orange blob known as "places-that-are-not-New-York." But no injunction yet; Argentina has not yet filed an answer to the complaint. 

Read More from: Credit Slips

3 weeks 8 hours ago
I've finally finished my paper on the new Russian personal bankruptcy law (comments welcome), which is slated to go into effect on October 1 of this year. One side story from that paper will give a real chuckle to lawyers from Texas, Florida, and the other states with unlimited homestead exemptions. It turns out that the Russian Constitutional Court has been battling for years with the legislature about the unlimited exemption in "residential premises"  that represent the debtor's single suitable place of permanent abode. The Court has held this unlimited exemption to be unconstitutional at least twice, in 2007 and then again in 2012, yet the legislature continues to ignore these rulings and leave the law as is.

Read More from: Credit Slips

3 weeks 22 hours ago
Two recent decisions from the District Court for the Southern District of New York have renewed interest in the Trust Indenture Act and the ability of minority bondholders to use it as a shield to protect their rights in an out-of-court nonconsensual restructuring:  Marblegate Asset Management, LLC v. Education Management Corp. and MeehanCombs Global Credit Opportunities Funds, LP v. Caesars Entm’t Corp.  Today, we focus on Education Management, under which the court concluded that the Trust Indenture Act, when read broadly, is intended to protect minority bondholders against out-of-court restructurings designed to impair their practical rights to payment of principal and interest  EDMC
3 weeks 23 hours ago
The U.S. Bankruptcy Court in Manhattan
Getty Images
A Texas bankruptcy judge recently caused a stir with comments on the tendency of major corporations to turn to the New York and Delaware bankruptcy courts in times of financial trouble. Courts in those states have long had an out-sized share of the corporate chapter 11 cases, drawing accusations that they’re chosen because they cater to big banks, big hedge funds and big law firms at the expense of employees and other small creditors. As Daily Bankruptcy Review recently reported, U.S. Bankruptcy Court Judge Russell Nelms, who sits in Fort Worth, Texas, said the practice of forum shopping (filing in a court remote from a business’s headquarters or major center of operations) takes a toll on the public perception of bankruptcy as a fair way to sort through competing claims to limited funds.

Read More from: WSJ.com: Bankruptcy Beat

3 weeks 23 hours ago
The U.S. Bankruptcy Court in Manhattan
Getty Images
A Texas bankruptcy judge recently caused a stir with comments on the tendency of major corporations to turn to the New York and Delaware bankruptcy courts in times of financial trouble. Courts in those states have long had an out-sized share of the corporate chapter 11 cases, drawing accusations that they’re chosen because they cater to big banks, big hedge funds and big law firms at the expense of employees and other small creditors. As Daily Bankruptcy Review recently reported, U.S. Bankruptcy Court Judge Russell Nelms, who sits in Fort Worth, Texas, said the practice of forum shopping (filing in a court remote from a business’s headquarters or major center of operations) takes a toll on the public perception of bankruptcy as a fair way to sort through competing claims to limited funds.

Read More from: WSJ.com: Bankruptcy Beat

3 weeks 23 hours ago
Shannon Stapleton/Reuters
In criminal trials, prosecutors often want juries to sympathize with the victims. But in the ongoing trial against three former Dewey & LeBoeuf LLP leaders, it’s been hard to tell at times who, exactly, is being labeled as the victim. As the Manhattan district attorney’s office pointed out in its 2014 indictment against three ex-law firm leaders, Dewey’s collapse “forced thousands of people out of jobs and left creditors holding the bag on hundreds of millions of dollars owed to them.” The firm’s May 2012 bankruptcy hurt Dewey’s former employees and lawyers, including retirees who were suddenly faced with declining prospects for their future income. Dewey’s partners were asked to contribute large sums of money through the bankruptcy to pay creditors, even though many felt the firm actually owed them money.

Read More from: WSJ.com: Bankruptcy Beat

3 weeks 1 day ago
Shannon Stapleton/Reuters
In criminal trials, prosecutors often want juries to sympathize with the victims. But in the ongoing trial against three former Dewey & LeBoeuf LLP leaders, it’s been hard to tell at times who, exactly, is being labeled as the victim. As the Manhattan district attorney’s office pointed out in its 2014 indictment against three ex-law firm leaders, Dewey’s collapse “forced thousands of people out of jobs and left creditors holding the bag on hundreds of millions of dollars owed to them.” The firm’s May 2012 bankruptcy hurt Dewey’s former employees and lawyers, including retirees who were suddenly faced with declining prospects for their future income. Dewey’s partners were asked to contribute large sums of money through the bankruptcy to pay creditors, even though many felt the firm actually owed them money.

Read More from: WSJ.com: Bankruptcy Beat

3 weeks 1 day ago
If return on investment is your primary reason for angel investing, then you should assess a company’s long-term growth potential before buying its shares. Invest only in companies with high growth potential, among other positive characteristics such as strong management teams and revenue forecasts. Read more here.
3 weeks 1 day ago
Marshall Saunders is a real estate veteran with two decades of experience and the co-founder and managing partner of SaundersDailey, an online investment marketplace connecting investors to exclusive real estate opportunities, with low minimum investments, in select markets throughout the Midwest. Read more here.
3 weeks 1 day ago
Some community banks stick with rigid or outdated policies out of habit. That winds up hurting them when customers take their business to financial institutions that use technology to make transactions more convenient.

Read More from: BankThink

3 weeks 1 day ago
The popular belief is that small hedge funds are able to outperform larger funds because typically they are more nimble and able to react quickly to market volatility, but according to a new analysis, their performance has declined. The dominance of small hedge funds, based on average annual returns, actually ended in 2009, and it has been inconsistent since. Read more here.
3 weeks 1 day ago
The old saw about Oakland, California is that there is no “there” there. I suggest it’s the same about being “in foreclosure”:  foreclosure is not a place, it’s a path. Nothing legally meaningful changes until you get to a foreclosure sale.  Everything before that is prelude. Yet several clients have asked whether they can remove personal property from their home while it’s “in foreclosure”. Another client wanted to know what the rights of the foreclosing creditor were to come into her home before any sale was held. Another thought he needed to vacate the house before the sale. Rules of California foreclosure Be clear:  it’s your property until there is a foreclosure sale. Your rights to the property are unchanged by any default on the mortgage payment. Likewise, the lender is still an outsider unless and until it obtains title to the property by being the highest bidder at the foreclosure sale. So, certainly you can remove personal property from your home, and, no, neither the lender nor anyone else can come on your property without your permission. Debt changes your thought process I’m fascinated by the concept of being “in foreclosure”.  It seems to be akin to being  “in collections”. Neither are real places, or even changes in your legal rights.
3 weeks 1 day ago
The longer the CFPB waits to implement tighter regulations for the payday lending industry, the more Americans will find themselves trapped in a cycle of unaffordable debt.

Read More from: BankThink

3 weeks 1 day ago
Receiving Wide Coverage ... The Incredible Shrinking GE: General Electric is shedding financing units at a rapid pace. In its latest move, the company has sold its health-care lending business to Capital One for roughly $9 billion. GE's goal is to unload $100 billion of GE Capital assets by the end of 2015 as it seeks to concentrate on its industrial business, and it's on track to do so with about $78 billion sold thus far. ...

Read More from: BankThink

3 weeks 1 day ago

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