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I’ve always assumed that California law excluded from income debt forgiven in bankruptcy, just as federal tax law does.

When a client asked me to confirm that the treatment was the same, I realized that this was one of those things I had just assumed.  As a lawyer, I ought to know the danger present in “assume”.

2 weeks 10 hours ago

Without investigations by the Los Angeles Times and city prosecutors, the Wells Fargo account scandal would never have come to light. Where were federal regulators?

Read More from: BankThink

2 weeks 11 hours ago

Gail DonaldsonAs I picked up the office mail, I noticed that the window to the building was in the mist of being repaired.  I asked the post office employee what happened and heard the saddest story of the day.  A homeless man threw a brick through the window and sat down and waited for the police to arrive—so he could have a meal in jail.  How and why does this happen in America?!

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

2 weeks 13 hours ago

wheels after bankruptcyWhat happens to your wheels when you file Chapter 7 bankruptcy?

Little is more essential to holding a job and really getting a fresh start than a car to get to work in.  How can you keep the car?

OK, let’s think.

If the car is worth less than you owe on it, the Chapter 7 trustee isn’t interested in it.

So, it’s you vs. the car lender.  What happens to the car after the bankruptcy case?

An underused section of the Bankruptcy Code  allows you to buy your car outright from the lender at its value today.

2 weeks 13 hours ago

To help ensure that women are included in digital banking's future, we must reach girls and young women at an earlier age than their college years to equip them with the IT tools they need to succeed in tomorrow's workforce.

Read More from: BankThink

2 weeks 13 hours ago

Upcoming Committee Formation Meeting: Wednesday, October 19, 2016, 10:00 a.m.

Case Name: IMX Acquisition Corp.
Case Number: 16-12238 (BLS)

Location: The Doubletree Hotel, 700 King Street Wilmington, DE 19801

The Debtors’ petition can be found here.  The docket is available through Kurtzman Carson Consultants.

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

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

2 weeks 14 hours ago

Receiving Wide Coverage ...

Stumpf leaves: Wells Fargo chairman and CEO John Stumpf announced Wednesday he is retiring immediately, as was widely expected following the bank's phony accounts scandal. "The toppling of Mr. Stumpf, 63 years old and just shy of his 10th year as CEO, marks a stunning comedown for a firm that largely passed through the financial crisis unscathed and which was seen as a reliable Main Street lender," the Wall Street Journal commented. ...

Read More from: BankThink

2 weeks 15 hours ago

Chief Justice Warren E. Burger

By: Donald L. Swanson

In days-gone-by, civil lawsuits commonly end in a judgment after trial or an appeal.

Today, civil lawsuits commonly end in a mediated settlement.

On February 12, 1984, Chief Justice Warren E. Burger explains some early history for such change, to a meeting of the American Bar Association.  His speech begins like this:

Read More from: Mediatbankry

2 weeks 17 hours ago

ceskoslovenskoOn September 9, 2016, Citibank’s London Branch filed a claim as collateral agent for the bondholders of New World Resources (NWR) with the High Court in Ostrava in the insolvency proceedings of OKD. OKD owns seven coal mines in the Czech Republic, employing over 13000 people. The low cost of coal and the refusal of the Czech Government to bail it out led to OKD filing for a Czech restructuring process in May 2016.

Read More from: eSQUIRE Global Crossings

2 weeks 18 hours ago

Mortgage arrearage is the amount you are behind in your mortgage payments.  Not behind like in the picture, Behind as in missed payments, plus late fees, plus, well, some other things. Mortgage Arrearage Interest accrues on the unpaid balance of a loan, so if you cannot make your mortgage payment, the balance goes up, not [...]

The post What Is Mortgage Arrearage? appeared first on Detroit Bankruptcy Lawyer Kurt O'Keefe.

Read More from: Stop Creditor

2 weeks 19 hours ago

curtis-redingFriends, our bar lost a pillar of our bankruptcy community over the past weekend.  On Sunday, October 9, 2016, Curtis “Cleve” Reding, Jr. passed away after a short battle with cancer.  Mr. Reding served as the Chapter 13 Standing Trustee for the Middle District of Alabama for over thirty years.  As consumer bankruptcy attorneys, Mr. Reding taught us all how to be better advocates for our bankruptcy clients and just better people in general.  He will be greatly missed by his family, his staff, his church, his golfing pals and the entire Alabama bankruptcy community.

You can tell the quality of the man by the people he chooses to work with and Mr. Reding was the embodiment of this sentiment.  My good friend, Sabrina McKinney, has trained under and worked alongside Mr. Reding as a staff attorney for the Office of the Chapter 13 Standing Trustee for the Middle District of Alabama for many years.   The professionalism and warmth exhibited by Sabrina and all the staff members at the Trustee’s office is an admirable reflection on the aptitude of Mr. Reding as a lawyer, administrator and friend.

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

2 weeks 1 day ago

About two-thirds of banks that close branches will lose deposit share in their impacted markets in time. Here's how to prevent customers from leaving your bank.

Read More from: BankThink

2 weeks 1 day ago

Institutions should define data "liabilities" and "assets" and represent them in a way that both touts data successes and is transparent about data gaps.

Read More from: BankThink

2 weeks 1 day ago

Receiving Wide Coverage ... CFPB loses appeal: A federal appeals court ruled Tuesday that the CFPB's structure, in which an unusual amount of power and autonomy is invested in a single director, is unconstitutional and ordered its powers be curbed. "If it stands, the decision from the U.S. Court of Appeals for the District of Columbia would reduce the agency's independence, empowering the White House to supervise the agency and remove its director, in contrast toÂ...

Read More from: BankThink

2 weeks 1 day ago

Murray v. Revenue Mgmt. Corp. (In re Murray), 552 B.R. 1 (Bankr. D. Mass. 2016) – A chapter 13 debtor sued a debt collector based on a letter sent to the debtor alleging violations of the Fair Debt Collection Practices … Continue reading

2 weeks 1 day ago

NJ Home Sales PricesWhen people start considering which NJ neighborhoods to live in, they often consider things like how highly ranked the area schools are, how easy it is to access public transportation, and how long it will take to commute to New York City. Of course, another major factor in home-buying decisions is the cost of purchasing a house in a particular area.

The reality is that the quality of a district’s schools is driving more and more families to move into different neighborhoods in New Jersey, with many of these families looking to live in the NJ suburbs. The problem is that those looking to sell homes know this, especially as the demand for homes in these areas has begun to outstrip supply. As a result, the prices of homes located in the highest-performing school districts in New Jersey are rising.

2 weeks 2 days ago

Prepetition, Millennium Lab Holdings II, LLC, Millennium Health, LLC, and RxAnte, LLC (the Debtors) reached a settlement with various government entities (the USA Settling Parties) relating to, among other things, claims against the Debtors for violations of the Stark law, Anti-Kickback Statute and False Claims Act (FCA). The Debtors also negotiated a restructuring support agreement with an ad hoc group of lenders (the Ad Hoc Group) holding debt under a 2014 existing credit agreement in the original principal amount of $1.825 billion (the Credit Agreement). In re Millennium Lab Holdings II, LLC, 543 B.R. 703, 705 (Bankr. D. Del. 2016).

The terms of the settlements included: 1) a $325 million payment from the equity holders to the Debtors; 2) conversion of the Credit Agreement into a $600 million new term loan; 3) transfer of the Debtors’ equity interests to the lenders under the Credit Agreement (the Lenders); 4) creation of two trusts; 5) a $206 million payment to the USA Settling Parties; 6) full recovery for all creditors except the Lenders; and 7) non-debtor third-party releases (the Releases) of the Debtors’ equity holders and their officers and directors. Id. at 706.

2 weeks 2 days ago

The headlines look pretty bad:  the DC Circuit Court of Appeals held the CFPB's structure to be unconstitutional in a case call PHH v. CFPB, which deals with kickbacks in captive private mortgage reinsurance arrangements allegedly in violation of the Real Estate Settlement Procedures Act.  In fact, however, the ruling is a blessing in disguise for the CFPB. While the 110 page decision is filled with inflammatory rhetoric, it gives the CFPB's detractors very little succor in the end.  The CFPB lost on the decision's rhetoric, but won on the practical implications.  Although the CFPB’s current structure was declared unconstitutional, the court also immediately remedied the flaw by declaring that the CFPB Director is now removable by the President at will, rather than only "for cause" as provided for by the Dodd-Frank Act.  There are four critical implications from this ruling:   

Read More from: Credit Slips

2 weeks 2 days ago