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The Jevic Holding Corp. bankruptcy case is proving to be precedent setting.  In a prior post, we examined how the court had greatly increased the evidentiary burden on a party seeking to hold one company liable for the debts of another company under a “single employer” theory.  That ruling was seen as a boon for private equity firms who were oftentimes the target of Chapter 11 creditor committee claims seeking to make them liable for the debts of their portfolio companies. Now, the U.S. Supreme Court is poised to rule on yet another issue arising from the Jevic case.  On June 28, 2016, the Supreme Court granted a petition for certiorari to decide whether a bankruptcy court may “dismiss a case through an agreement that gives payment to lower-ranking creditors ahead of more senior-ranked creditors.”  This technique is sometimes referred to as a “structured dismissal.” In Jevic, the bankruptcy court approved a settlement among the debtor, the creditors’ committee, the private equity firm and the lead pre-petition lender.  The settlement provided for cash payments and other concessions from secured creditors in return for dismissal of various avoidance actions brought by the unsecured creditors committee.

Read More from: eSQUIRE Global Crossings

1 week 4 days ago
N.J. forces mom to pay son’s student loans: Murder ‘does not meet threshold for loan forgiveness’ for guaranteed student loans. Marcia DeOliveira-Longinetti’s son was murdered last year.  After working through the aftermath of this horrific event – arranging a funeral, dealing with the police and closing out her son’s life she turned to the co-signed student loans.  The federal student loans were written off.  But not the New Jersey student loans Marcia co-signed, thus making them guaranteed student loans. “Please accept our condolences on your loss,” a letter from that agency, the Higher Education Student Assistance Authority, said. “After careful consideration of the information you provided, the authority has determined that your request does not meet the threshold for loan forgiveness. Monthly bill statements will continue to be sent to you.”
1 week 5 days ago
Has your client filed for bankruptcy? Contact Bernstein-Burkley’s experienced team of attorneys to learn how you can maximize your recovery! 412-456-8100 The vast majority of suppliers, vendors, lessors and lenders have experienced the difficult task of navigating a bankruptcy case.  Certain customers file for bankruptcy due to a significant drop in business that impairs their ability to pay their debts as they come due; others may file to stave off aggressive collection actions.  Whatever the cause, the commencement of a bankruptcy case sets in motion a process designed to afford financial relief to the debtor while ensuring that its creditors have an opportunity to receive fair treatment.  Creditors must understand and take certain critical steps in the bankruptcy to guarantee the best possible treatment of their claims. 1.     Recognize the Red Flags.

Read More from: Bernstein-Burkley, P.C.

1 week 6 days ago
Payday loan industry has successfully avoided regulation by shifting from type of loan service to another. What is a payday loan?  The payday lender industry includes payday loans, title loans, short-term loans or quick money loans.  Each of these services have had the same result – lending to very low income, charging outrageous fees and interest with the goal to keep the poor borrower on the financial hook as long as possible or until bankruptcy is filed. An example: in 2010 Arizona voters banned traditional payday lending.  Before the ink was try on the new law payday loan stores converted into auto title loan stores.  The end result was the same – extremely high interest rates (some as high as 500 to 700%).  Some of the payday loan stores moved to Indian reservations, to the Internet or to other countries, all with the intent of avoiding regulation.
2 weeks 2 hours ago
The United States Supreme Court recently struck a blow against unethical and abusive creditors by allowing a class action lawsuit against a debt collector to go forward. The class action suit was initially filed by Saliha Madden, a NY borrower who was joined in the lawsuit by other debtors who objected to Encore Capital Group’s annual interest rate of 27 percent on debts. Madden owed approximately $5,000 in credit card debt that she had accumulated with Bank of America several years earlier. After Encore Capital Group purchased the debt from Bank of America, the debt collection company sought to impose the exorbitant interest rate on Madden. Madden and the other debtors in the class action lawsuit claimed that Encore Capital had violated the federal Fair Debt Collection Practices Act by charging the excessive interest rates on their debts.
2 weeks 8 hours ago
Essar Steel Minnesota LLC and its parent, ESML Holdings Inc., which operate an open-pit mine and greenfield pellet plant in Minnesota, have commenced cases (Case Nos. 16-11627 and 16-11626, respectively) under Chapter 11 of the Bankruptcy Code by filing petitions with the U.S. Bankruptcy Court for the District of Delaware.  The Honorable Brendan Linehan Shannon will preside over the cases.  More documents are available from the Court’s website. Contact Norman L. Pernick, Nicholas J. Brannick, or David W. Giattino for more information.
2 weeks 8 hours ago

Turmoil in marketplace lending has less to do with loan quality and more to do with how lenders price loans to meet supply and demand.

Read More from: BankThink

2 weeks 10 hours ago
We’ve all seen and heard the upbeat commercials where people are smiling and happy and talk about how much a title loan helped them, but it’s like the old saying, “if it sounds too good to be true, it probably isn’t true!” When you find yourself in a financial bind, however, the bright and flashy signs advertising instant cash is very tempting. One in Five Title Loan Borrowers Lose Their Car Anyway The Consumer Financial Protection Bureau (CFPB) recently issued a report finding that one in five people who take out a single payment auto title loan end up losing their automobile to the title loan lender for non-payment. Title loans carry a high interest rate and a short repayment period, usually 30 days. Most borrowers cannot afford to pay the title loan back in a lump sum. If not addressed, the title loan lender will repossess the automobile. This is extremely hard for most borrowers as it limits them from getting to work. If the borrower can’t get to work, it can then lead to problems and issues with other creditors. A title loan debt can be a vicious, recurrent cycle. Four of Five Borrowers Fail to Repay Loan in Single Payment

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

2 weeks 12 hours ago

Banks must come to grips with the fact that adapting to the industry's transformational changes means having new faces in the corporate suite.

Read More from: BankThink

2 weeks 13 hours ago

Receiving Wide Coverage ...

A new wrinkle: Reuters reports that a Swiss banking association is seeking to build a post-Brexit coalition with Britain, Hong Kong and Singapore to form a so-called "F4 alliance" that would look to set international standards and possibly strike a deal with the European Union. The Financial Times notes, "The Swiss bankers' association first suggested launching a 'F4' financial centres group in 2012." Wall Street Journal ...

Read More from: BankThink

2 weeks 13 hours ago
Upcoming Committee Formation Meeting: Thursday July 14, 2016, 1:30 PM Case Name:  SynCardia Systems, Inc. Case Number:  16-11599 (MFW) Location:  J. Caleb Boggs Federal Building, 844 King Street, Suite 2112, Wilmington, DE 19801 Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here. The petition (including the list of top 30 creditors), the first day declaration and the docket are available through Omni Management. More information about this filing can be found here. Contact Norman L. Pernick, Nicholas J. Brannick, or David W. Giattino for more information.
2 weeks 14 hours ago
Have you wondered what is meant by the term “mortgage arrearage?” As Bankruptcy Law Network member Jonathan Ginsberg explains, a mortgage arrearage simply refers to any missed mortgage payments. If, for example, you did not pay your mortgage in January and February, those two months would be in arrearage. As bankruptcy lawyers, we frequently represent clients who have mortgage arrearages. Chapter 13 bankruptcy allows us to cure your arrearage by including your missed payments plus any fees and lender attorney’s fees into your Chapter 13 plan. Since Chapter 13 plans can last up to 5 years, we may have up to 5 years to cure your arrearage. If you fall behind in mortgage payments that come due after we file Chapter 13, we would have to deal with your post-petition arrearage.  In Atlanta, where I practice, Chapter 13 debtors pay their post petition mortgage payments directly to the lender.  If one of my clients falls behind in his post-petition mortgage payments, the judge will give us several months to cure that post petition arrearage.

Read More from: Bankruptcy Law Network

2 weeks 1 day ago

Female CEOs are uncommon, so how rare do you think female CEO-CFO teams are? At publicly traded banks, there are only 13, and that is still way better than a few other industries. InVenture founder Shivani Siroya talks about her past in banking and the future of her fintech startup. An Australian bank is going to test gender blind recruitment practices. Also, rewriting Silicon Valley's history and the Spice Girls' girl power legacy.

Read More from: BankThink

2 weeks 1 day ago
A Chapter 13 debtor filed for bankruptcy on September 11, 2014. Within the Chapter 13 case, he planned on repaying approximately $4,700 worth of parking tickets owed to the city of Chicago. The proposed plan was going to pay back approximately 10% to 20% of those parking tickets over a 3 to 5 year term.+ Read More The post Parking Tickets Incurred After Filing Chapter 13: What Can Be Done? appeared first on David M. Siegel.
2 weeks 1 day ago
Death Row Records Files For Bankruptcy Death Row Records’ saga of financial issues that has plagued the label since the early 2000’s might finally be coming to an end this year. Reports claim that the current owner of the label, WIDEawake Entertainment Group Inc., is filing for bankruptcy and wants to sell Death Row Records in order to save the company. What exactly is bankruptcy? Bankruptcy is a legal term. When a person or business entity accumulates a large amount of debt that they cannot pay back, they may file for bankruptcy. Typically a debtor will hire a lawyer to help add up the total amount of assets the filer has and how much accumulated debt they owe. If it is clear that the debtor cannot pay back the debt, then they can proceed with filing for bankruptcy. If successful, all debts the debtor owes will cease. Bankruptcies typically stick to your credit for ten years and make it difficult to get loans, credit cards, a house, car, etc. So only proceed with filing for bankruptcy if you are prepared to deal with the not so glamorous side of it. The history of one of the biggest record labels of the 1990’s

Read More from: My AZ Lawyers

2 weeks 1 day ago
As we have noted on the blog before, student loan debt is a huge problem among consumers.  Most of the time, student loan debts cannot be discharged in bankruptcy.  However, if you can prove an undue hardship, the student loan debt can be discharged.  Note that it is rare for a court to find that a debtor meets this burden. Undue Hardship The section of the Bankruptcy Code that deals with student loans and the discharge is 11 U.S.C. § 523(a)(8).  Congress enacted this section of the Bankruptcy Code to prevent students from abusing the fresh start principle of bankruptcy by filing for bankruptcy and attempting to discharge their student loans after graduation.  Section 523(a)(8) states that a bankruptcy discharge does not discharge a debtor from a student loan debt “unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents.” The Brunner Test

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

2 weeks 1 day ago
Triangle USA Petroleum Corporation Files For Chapter 11 Bankruptcy Protection | June 30, 2016 Triangle USA Petroleum Corporation, a direct and wholly owned subsidiary of Triangle Petroleum Corporation (“TPC”), and affiliates filed for protection under Chapter 11of the United States Bankruptcy Code on June 30, 2016 in the United States Bankruptcy Court for the District of Delaware under Case No. 16-11566. The Debtors in these cases, along with the last four digits of each Debtor’s federal tax identification number, are Triangle USA Petroleum Corporation (0717); Foxtrot Resources LLC (6690); Leaf Minerals, LLC (9522); Ranger Fabrication, LLC (6889); Ranger Fabrication Management, LLC (1015); and Ranger Fabrication Management Holdings, LLC (0750). The address of the Debtors’ corporate headquarters is 1200 17th Street, Suite 2500, Denver, Colorado 80202. John R. Castellano is the managing director of AP Services, LLC, the Company’s financial advisor since April 2016, was appointed as the Chief Restructuring Officer of Triangle USA Petroleum Corporation (“TUSA”) on June 28, 2016, and now discusses the filing: Overview of Chapter 11 Filings “On the date hereof (the “Petition Date”), each of the Debtors commenced a case by filing a petition for relief under chapter 11 of the Bankruptcy Code.

Read More from: Richard G. Grant, P.C.

2 weeks 1 day ago
  The obligations of a co signor is the single most common misunderstanding about the law I see. Put bluntly, a co signor is just as liable for the debt as the primary borrower. Co sign someone else’s debt and you put yourself in the creditor’s cross hairs. It should make the hair on the back of your neck stand up. Cosigner not just a reserve player Too many people who sit in my law office think that their role as a cosigner kicks into action only if the creditor can’t manage to collect from the original borrower. Not so. There is no ranking of the legal obligation:  the co signer is equally liable for the debt.   And the creditor doesn’t have to try to collect against the other party before looking to you to pay. Why a cosigner is needed When you’re asked to cosign for someone, think about the creditor’s motivation. The lender is worried that the original borrower won’t pay as promised.  It’s a troubled loan from the very beginning. You’re being asked to guarantee the loan so the creditor has you on the hook as well.  You’ve become the creditor’s insurance. For all the best intentions of the person who asked you to help with the transactions, life happens.  If the original borrower loses a job, gets sick, files bankruptcy, or even dies, the debt is yours.
2 weeks 1 day ago

Fewer transactions are taking places in branches but banksÂ' brick-and-mortar locations are more important than ever.

Read More from: BankThink

2 weeks 1 day ago

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