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GE sells French mortgages: General Electric received a binding offer for its French prime mortgage portfolio from a newly established French entity backed by an Austrian bank. The deal increases GE Capital's asset sales to about $192 billion, close to its goal of selling $200 billion as part of its plan to disband its GE Capital unit. The deal is expected to close in the fourth quarter. ...

Read More from: BankThink

1 week 3 days ago

 

Attorney Ron SykstusEvery military service member should know about this law. Older military personnel will know this law by its previous name, Soldier’s and Sailor’s Civil Relief Act (SSCRA).

The new SCRA was made effective on December 19, 2003 and it is found at 50 USC 501 – 596, Public Law 108-189.  This law is a complete revision of the SSCRA.  It clarifies the language of the SSCRA and it incorporates and codifies decades of SSCRA case law.

Purpose of the SCRA

The purpose of the SCRA is to strengthen and expedite the national defense through protection extended by this Act to service members of the United States to enable such persons to devote their entire energy to the defense needs of the Nation; and to provide for the temporary suspension of judicial and administrative proceedings and transactions that may adversely affect the civil rights of service members during their military service.

These U.S. Supreme Court cases, decided during and after World War II, set forth the legal understanding of this law.

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

1 week 3 days ago

I've been meaning to post about this recent decision, by Judge Rakoff in the Southern District of New York, denying motions by Uber and its CEO Travis Kalanick to compel arbitration of a class action lawsuit. More coverage here (Bloomberg) and here (Law360). The lawsuit alleges that Uber suppresses price competition among drivers in violation of the antitrust laws. The court's opinion covers some arcane issues of arbitration law, such as the defendants' argument that the plaintiff had to arbitrate the question whether an arbitration agreement existed. (Answer: No.*) But mostly, the opinion is about contract law--or rather, about how not to design a system for forming contracts on-line.

Read More from: Credit Slips

1 week 4 days ago

PAH Litig. Trust v. Water Street Healthcare Partners, L.P. (In re Physiotherapy Holdings, Inc.), No. 15-51238 (KG), 2016 WL 3611831 (Bankr. D. Del. June 20, 2016)

In rendering this Opinion and permitting a post-confirmation trust to pursue state law constructive fraudulent transfer claims against two former shareholders of debtor Physiotherapy Holdings, Inc. (“Physiotherapy”), the Honorable Kevin Gross of the Delaware Bankruptcy Court eschewed the recent holding of the Court of Appeals for the Second Circuit that section 546(e) of the Bankruptcy Code preempts not only state law fraudulent transfer claims brought by trustees in bankruptcy, but also those brought by creditors. Read More ›

Read More from: Delaware Bankruptcy Insider

1 week 4 days ago

Are tuition payments for an adult child's education, while the parents are insolvent, constructively fraudulent? As the WSJ reported this week, Bankruptcy Judge Hoffman (D. Mass.) recently held that they are not. But other courts have disagreed. In fact, there seem to be courts on both sides of this (although apparently, no circuit decisions yet).

Read More from: Credit Slips

1 week 5 days ago

Upcoming Committee Formation Meeting:  Monday August 22, 2016, 10:00 AM

Case Name:  Last Call Guarantor, LLC
Case Number: 16-11844 (KG)

Location:  J. Caleb Boggs Federal Building, 844 King Street, Suite 2112, Wilmington, DE 19801

The petition and the docket are available through Epiq.

Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here.

More information about this filing can be found here.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.

1 week 6 days ago

On June 30, 2016, the United States Senate passed the “Puerto Rico Oversight, Management and Economic Stability Act” (“PROMESA”) and it was quickly signed into law by President Obama.[1] PROMESA enables the Commonwealth of Puerto Rico and its public corporations and other instrumentalities in financial distress to restructure their debt.[2] The goal of PROMESA is to “bring solvency to Puerto Rico, build a foundation for future growth and ensure the island regains access to capital markets”.[3] PROMESA, though, is not limited to restructuring and enforcement of debt obligations or securities.  If you lent money or extended other forms of credit, or provided goods or services, to Puerto Rico or any of its instrumentalities, PROMESA may affect you.

GENERAL FRAMEWORK

1 week 6 days ago

Online alternative financing can be an efficient source of capital for small businesses, but it can also be predatory, especially to unaware and inexperienced borrowers.

Read More from: BankThink

1 week 6 days ago

I Have Forgotten Something

What do you do when you discover a judgment lien long after you filed bankruptcy?

Your bankruptcy case is closed.

You’re recovering nicely.

Then you find there’s a judgment lien on your house that you didn’t know about.

And the law says that liens survive a bankruptcy case, unless the bankruptcy court orders otherwise.

Is there anything you can do to get rid of the lien?

Most likely, yes.

Can the lien be avoided

The debtor (that’s you, the person who filed the bankruptcy) can ask the bankruptcy court to void a lien on their property if

  • The debt existed when the bankruptcy case was first filed
  • The lien is a judgment lien
  • The property to which the lien attaches was claimed exempt
  • The property had too little value to pay any senior liens, the judgment lien, and your exemption

Let’s look at each requirement for an avoidable lien, found in Bankruptcy Code 522(f).

1 week 6 days ago

The Bankruptcy Court for the District of Delaware recently faced a question of first impression:  whether an allowed postpetition administrative expense claim can be used to set off preference liability.  In concluding that it can, the court took a closer look at the nature of a preference claim. 

Facts and Arguments

Two months after Quantum Foods, LLC (“Quantum”) filed its chapter 11 petition, Tyson Fresh Meats, Inc. and Tyson Foods, Inc. (collectively, “Tyson”) supplied meat products to Quantum.  Tyson filed an administrative claim seeking payment for the postpetition deliveries, which the Bankruptcy Court allowed in an amount of approximately $2.6 million.

1 week 6 days ago

In 2008, the smartphone revolution had begun but there were no mobile-first banks and brick-and-mortar institutions were still watching whether mobile banking would actually catch on with consumers.

Read More from: BankThink

1 week 6 days ago

lawsuit

A prospective bankruptcy client often arrives in my office because a creditor is hot on their heels.

A collection lawsuit has been filed and they’re panicked.

Almost invariably, the client has leapt to two incorrect assumptions: one is that the world as they know it is coming to an end; and two, they don’t have to do anything until the date set for the case management conference, months down the road.

Judgments take time

The filing of a lawsuit is a step toward a judgment in favor of the creditor. A judgment is a determination that the debtor owes the amount of the debt and usually the creditor’s expenses to get the judgment.

1 week 6 days ago

Beal Bank USA and CLMG Corp. have filed an involuntary petition under chapter 11 of the Bankruptcy Code against Bennu Titan LLC (f/k/a ATP Titan LLC) before the United States Bankruptcy Court for the District of Delaware (Case No. 16-11870).  The case has been assigned to the Honorable Laurie Selber Silverstein.  The debtor appears to be an affiliate of Bennu Oil & Gas, a Houston-based deep water oil exploration firm.  Beal Bank USA asserts a claim of $180,415,444.79 against the debtor.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.

1 week 6 days ago

Wall Street Journal

Another mortgage bill comes due: More homeowners are missing payments on the home equity lines of credit they took out 10 years ago as the lines reset to include principal payments, not just interest. That can lead to a huge payment shock totaling hundreds of dollars a month for which many homeowners find they aren't prepared. The 30-day delinquency rate on Heloc balances that were originated in early 2006 jumped to 4.4% from...

Read More from: BankThink

1 week 6 days ago

By: Donald L. Swanson

The time is here. We need a new mediation tool!

image
A new tool is needed.

We need to include mediation — explicitly and by name — in the Federal Rules of Bankruptcy Procedure.

Mediation is already included in the Federal Rules of Civil Procedure for U.S. District Courts. And mediation has become a important tool for resolving civil lawsuits in U.S. District Courts throughout the land.

–Why should the Federal Rules of Bankruptcy Procedure be different?

U.S. District Court Rules

Mediation appears in Fed.R.Civ.P. 16(c)(2), for example, which provides:

–“At any pretrial conference, the court may consider and take appropriate action on . . . (I) settling the case and using special procedures to assist in resolving the dispute when authorized by statute or local rule.”

Read More from: Mediatbankry

2 weeks 4 hours ago

A Conference celebrating the 25th year of International Association FO Consumer law will be held July 16 to 19, in Porto Alegre (UFRGS), Brazil. The The purpose of the Conference is to provide a forum where leading international scholars, practitioners, representatives of the consumer organization, public authorities and business representatives can join to present and discuss together the fundaments, the challenges and the future of consumer protection worldwide.

For additional information, please visit the conference website at: http://www.ufrgs.br/direitodoconsumidor/iacl2017/

CALL FOR PAPERS: Conference sponsors kindly invite participants from all around the world to submit an abstract (max. 500 words, until November 15th, 2016) of a paper they would like to present during the conference addressing one of its three themes:

Read More from: Credit Slips

2 weeks 9 hours ago

Michael
Schaedle

Bankruptcy 2016: Views from the Bench

Friday, October 7, 2016

Georgetown University Law Center, Washington, D.C.

Read More from: Bankruptcy Law Watch

2 weeks 11 hours ago

Carrie Dolan steps down as CFO of Lending Club. All eyes are on Marissa Mayer's next move as the Yahoo-Verizon deal plays out Â-- and speaking of women righting ships: Mary Hines talks about reviving Citi's loyalty program.

Read More from: BankThink

2 weeks 14 hours ago

Those wanting to break up banks act as though policymakers had no regulatory response to the crisis, but hereÂ's an illustration of how actual reforms would have prevented a large failure.

Read More from: BankThink

2 weeks 15 hours ago

Mary, Gail, and Ms ReeseThis time of year, the added expenses of back to school expenses can really hurt our clients.  The supply lists seem to get longer and longer with paper products in addition to the notebooks, pencils and paper we expect every year.  This year, as a community outreach, our office “adopted” a second grade class at Highland Avenue Elementary School.  When we told Ms. Reese-Holley that we selected her class to purchase the supplies for all twenty-eight kids in her class this year, she was in complete shock.   She told us that in all her years of teaching, no one had ever done anything like that for her or her class.  We were so happy to help her and her students this year get off to a great start! We hope lots of learning and happy memories are created in her class.

If back to school has you in a bind, please contact one of our Bond & Botes offices to see if we can help you.

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

2 weeks 16 hours ago

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