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As in lots of things, timing can be everything.  Timing is important in music, comedy, athletics, you name it. Timing can be very important in a bankruptcy case, too.  There can be multiple reasons for filing bankruptcy sooner as opposed to later.  There can be good reasons for delaying a bankruptcy, too.  The main point of this article is that, whether you file bankruptcy now or later, it does not hurt to talk to an experienced bankruptcy attorney sooner to find out if there are any timing issues in your situation. Why should I file now!  Apart from the typical reasons of urgency—house is being foreclosed next week; car is about to get repossessed, there are other timing issues that can be very important.  Some examples include the following:             Court Judgment In most states, if a creditor gets a court judgment, your wages can be garnished (my state does not have wage garnishment).  If your wages are garnished, it may make it harder for you to get your money together to file for bankruptcy protection.  If you know a lawsuit is coming, filing sooner rather than later may be the optimum thing to do. Another factor about court judgments is that once a judgment is entered in a county where you own real estate, it is a lien on your land.  For some people, this may not be such a big deal because judgment liens can be avoided in bankruptcy under certain circumstances. 

Read More from: Bankruptcy Law Network

2 weeks 12 hours ago
There are countless considerations banks face when joining another institution, but blending two distinct organizational philosophies into a healthy culture must be a top priority.

Read More from: BankThink

2 weeks 13 hours ago
A New Jersey abortion clinic has filed for bankruptcy after losing a legal battle with several former employees who said they were fired after becoming pregnant. Pilgrim Medical Center Inc. filed for chapter 11 protection after a judge awarded more than $1 million to three ex-workers who sued the clinic for discrimination. The legal award against Pilgrim Medical Center, which is based in Montclair and employs 22 people, is worth more than half of the $1.8 million in revenue the clinic took in last year, according to documents filed in U.S. Bankruptcy Court in Newark. The clinic is appealing the judgment. The former employees—two medical assistants and an administrative worker—sued in the fall of 2013, accusing supervising physician and clinic owner Nicholas Campanella of punishing them for taking or requesting maternity leave. The civil lawsuit accused Dr. Campanella of unfairly firing a pregnant worker in February of 2013, telling her there was a “lack of work” even though a job opening for her duties had been freshly posted online. The two other workers were fired in 2013 after taking maternity leave. One coworker explicitly told women in the office not to get pregnant “because [Dr. Campanella] does not like pregnant employees,” the lawsuit said. Dr. Campanella and his bankruptcy lawyer didn’t respond to requests for comment. In court papers, Dr. Campanella has denied wrongdoing.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 13 hours ago
Wall Street Journal "One Firm Getting What It Wants in Washington: BlackRock." That's the head on a piece in the Journal that looks at how the largest asset manager (by far) has worked the system to avoid the SIFI designation (for now). Venture funding for lending startups has dried up during the first quarter of 2016 ($298 million vs. $832 in the last quarter of 2015), and Silicon Valley is now putting its money behind firms that...

Read More from: BankThink

2 weeks 13 hours ago
[wsj-responsive-image P="//art.wsj.net/api/photos/37012992/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/37012992/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/37012992/smartcrop?height=853&width=1280" credit="Associated Press" placement="Inline" suppressEnlarge="false" ] New Gulf Resources LLC won approval of its chapter 11 plan, which will let it get rid of $590 million in debt. 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 Wall Street Journal reports on how solar-power company SunEdison Inc.’s failed deals could make for problems when it enters bankruptcy. Shareholders of Sete Brasil Participacoes SA approved a plan for the oil-rig company to file for bankruptcy, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 15 hours ago
“Scorched earth” is bad in buildings — and in bankruptcy litigation By Donald L. Swanson Every now and then something happens that becomes the model for how-not-to-do-this and a symbol of don’t-let-this-happen-to-you.  The Archdiocese of Milwaukee bankruptcy is one of those somethings. It’s the “longest-running and most contentious” of the 14 Catholic Church bankruptcies filed since 2004 to address sex abuse liabilities. So says The Milwaukee Journal Sentinel (on November 13, 2015) about the Archdiocese of Milwaukee bankruptcy. The Archdiocese of Milwaukee files its voluntary bankruptcy petition on January 4, 2011, in the Eastern District of Wisconsin (Milwaukee) at Case No. 11-20059. FIRST MEDIATION MOTION 575 people file sex abuse claims in the bankruptcy. Yet, on March 14, 2011, the Archdiocese files a motion (Doc. 166) for authority to mediate the claims of 2 abuse claimants [Editorial note:  Seriously?! –only 2?!].  These 2 had, apparently, not participated in a Mediation Program previously established by the Archdiocese. SECOND MEDIATION MOTION

Read More from: Mediatbankry

2 weeks 17 hours ago
When it comes to steering clear of serious debt issues, it is imperative that a person avoids falling prey to scams that can quickly deplete financial resources. Unfortunately, scammers have become more effective over the years at convincing some individuals to hand over their hard-earned cash. Although the long-held belief has been that elderly people are most likely to be fleeced by con artists, two new studies show that millennials actually represent the age group falling victim to phone scams and online scams more than any other group. Young People Victimized by Phone Scams Researchers with Truecaller, a phone identity software provider, found that approximately 38 percent of men between the ages of 18 and 34 lost significant amounts of money to phone scammers in 2015, while roughly 17 percent of women suffered the same fate. To put this in perspective, among all U.S. age groups, just 11 percent of people were victimized by phone scams last year. “Generation Y” and Online Fraud
2 weeks 1 day ago
Continued doubts over ending "too big to fail" should force managers to elevate underappreciated staff whose job is to attack oncoming risks.

Read More from: BankThink

2 weeks 1 day ago
Let our clients tell you why: “From my very first visit, Mr. Rogers made me feel better about myself and what I had to do. All the staff and Mr. Rogers were the best.” -Annette “The staff was very friendly and easy to talk to. John Rogers was also very friendly and easy to talk to.” -Julie “Thank You for all you have done. I feel much better than I have since my husband’s passing. The stress has lifted immensely. ” -Vivian “Always there when we needed you and it didn’t take long to wait for things to get done.” -Gene and Gloria “Thanks for helping when no one else would !” -Shelia “I thank God for all of you. Thank you for being so good to me. Keep God in your services.” -Geneva “You all made me feel comfortable going through this Bankruptcy. Not at anytime did you make me feel belittled getting into this situation.” -Richard “They accepted my handicap, I couldn’t make steps, and came downstairs.”    -anonymous “Everyone was very nice. No one wants to file bankruptcy. We never felt like anyone was judging us. It was a great relief. We are very grateful for your services.” -Roy and Keatina “Open and willingness to help in time of distress, and handicapped convience” -Octava “Thanks for helping us begin again after our business failed” -Jason and Bridgett “Professional, discreet, and helpful”  -anonymous
2 weeks 1 day ago
Do you serve on your condominium’s board as a fun way to meet your neighbors and test out your governance skills? What seems like a low-commitment diversion can balloon into a stressful time suck – or worse.  You may be held personally liable for breaching fiduciary duties to your condo.  And if you fall into really bad luck and end up in bankruptcy, you may not even be able to discharge debts for such liability, as a recent Fifth Circuit decision reminds us.   James Robert Whitaker, the subject of the recent Fifth Circuit Court of Appeals’ decision In re Whitaker, was the president and director of his Home Owners’ Association, Moroney Farms subdivision in Richardson, Texas.  When a homeowner requested association documents, Whitaker refused and spent almost $30,000 of the HOA’s money to hire a lawyer and oppose the request.
2 weeks 1 day ago
To tackle alternatives to payday lending, regulators and the industry should consider these three ideas for pilot programs instead of the Consumer Financial Protection Bureau trying to fix what it cannot.

Read More from: BankThink

2 weeks 1 day ago
It’s not a bad economy, poor budgeting skills, or credit card interest that keep you from getting out of debt. It’s emotions, not reasons, keep people from filing bankruptcy and starting fresh. Even if Reason says that you’ll never pay your debts off in the usual way. Reason also says that paying old debt steals from essential current and future needs. But emotions stand between you and a rational decision that repayment isn’t possible and that bankruptcy is the solution. It’s not as sexy as the seven deadly sins, but the  Emotions Trio keep my clients mired in debt long after logic says “start over”. Meet Fear, Stubbornness, and Pride.   They stand between you and freedom from old debt. Fear Fear of the unknown probably kept our primitive ancestors alive.  If you didn’t understand it, it made sense to fear it. In the age of the internet when nothing remains unknown, it’s ironic that fear continues to keep people from filing bankruptcy.
  • People fear life in a consumer society without credit.
  • They fear being branded as a failure.
  • They fear the judgment of others about how they got in this mess.
2 weeks 1 day ago
Receiving Wide Coverage ... GoldmanÂ's Revenue Tumble: It was a tough first quarter for Goldman Sachs, as the companyÂ's net income dropped 56% to $1.2 billion on major declines in investment banking and its bond-trading unit. Perhaps the bankÂ's only solace may be knowing that itÂ's not alone. JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo reported total revenues of $98 billion for the quarter. ThatÂ's 9% lower than last year,Â...

Read More from: BankThink

2 weeks 1 day ago
Upcoming Committee Formation Meeting:  April 26, 2016, 11:00 a.m. Case Name: Vestis Retail Group, LLC, et al. Case Number:  16-10971 (CSS) Location: The Double Tree Hotel, 700 King Street, Wilmington, DE 19801 Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here. The petitions (including the consolidated list of top 40 creditors), the first day declaration and the docket are available through Kurtzman Carson Consultants.  Vestis Retail Group, LLC has issued a press release regarding these reorganization proceedings. Contact Norman L. Pernick, Nicholas J. Brannick, or David W. Giattino for more information.
2 weeks 1 day ago
Due to the introduction of new tax legislation on 6th April 2016, distributions made to shareholders of companies undergoing Members’ Voluntary Liquidation (MVL) are now treated as income (rather than capital) and are taxed accordingly. The result is that the tax rate on MVL proceeds has shot up to a staggering 28%, as detailed in our previous article. For distributions to avoid being taxed at this rate, they must have been made before the 6th April 2016. Has the rush to take advantage of the lower level of tax available under the previous tax regime left directors and IPs with a ticking time bomb? To put a company into MVL, uniquely amongst corporate formal insolvency processes, directors swear a statutory declaration of solvency – a statement that the company will be able to pay all its debts in full with interest in a period not exceeding 12 months. From the outset, an IP appointed as liquidator is reliant upon this declaration and the accuracy of the company’s accounts,  to list all the assets and liabilities of the company to ensure that all the creditors of the company will be fully paid from the proceeds of the liquidation – the primary aim of an MVL. Once creditors have been paid in full, the remaining balance is distributed amongst the shareholders and the liquidator will dissolve the company.

Read More from: eSQUIRE Global Crossings

2 weeks 1 day ago
[wsj-responsive-image P="//art.wsj.net/api/photos/37890782/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/37890782/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/37890782/smartcrop?height=853&width=1280" caption="Phone-book publisher Dex Media is planning its third chapter 11 filing in seven years." credit="Associated Press/Robert F. Bukaty" placement="Inline" suppressEnlarge="false" ] Phone-book publisher Dex Media Inc. is planning to file for chapter 11 protection for the third time in seven years next month, The Wall Street Journal reports. Oil giant BP PLC is paying Cal Dive International Inc. more than $3.5 million to settle damages tied to the Deepwater Horizon spill, and the underwater repair business is urging a judge to approve the deal. WSJ has 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.”)

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 1 day ago
In Re Kachina Village, LLC, 538 B.R. 124 (Bankr. D. N.M. 2015) – A creditor sought to have its collateral designated as “single asset real estate” in order to trigger certain special protections relating to the automatic stay. The court’s … Continue reading →
2 weeks 1 day ago
From Shriner v. Friedman Law Offices Opinion By: Donald L. Swanson Here’s something you don’t see every day: an appellate opinion on mediation confidentiality.  It allows a mediator to testify about what happened in the mediation. The opinion is a week old — dated April 12, 2016 — and is published here.  The case is Shriner v. Friedman Law Offices, 23 Neb. App. 869, ___ N.W.2d ___ (2016).  It involves a mediation settlement of a personal injury claim.  The plaintiff then sues her lawyer for malpractice in wrongfully advising and pressuring her to accept the settlement. In the malpractice case, Defendant takes the mediator’s deposition about what happened in the mediation. Both Plaintiff and Defendant then file motions for summary judgment in the malpractice case.  Defendant offers the mediator’s deposition testimony as evidence.  Plaintiff opposes such evidence as privileged under Nebraska’s Uniform Mediation Act (Neb. Rev. Stat. § 25-2930 et seq). The court then grants Defendant’s motion for summary judgment and overrules Plaintiff’s.  The court references the mediator’s testimony in its written opinion but does not directly address Plaintiff’s objection to such evidence.  Plaintiff appeals.

Read More from: Mediatbankry

2 weeks 1 day ago
The following post comes to us from Professor Rasmussen at USC: Nortel Bankruptcy Sets a Dangerous Precedent For the Future of Lending Lenders are no fools. They care deeply about the promises they receive in return for the money they hand over to the borrower.  And if a 2015 ruling in the long-running Nortel Networks bankruptcy case is allowed to stand, it could lead to more restrictive lending to borrowers in the future. For decades, our commercial law has allowed enterprises to divvy up promises as they see fit. Companies often conduct business through multiple, related entities. This allows lenders to extend credit knowing they’ll receive repayment for their loans from particularly asset-rich subsidiaries, that are not on the hook for all of the debts of the business. This adroit use of the corporate structure allows borrowers to get funds at a lower cost and, in the extreme, can mean securing a loan or not — which can be the difference in a business being able to operate. Until recently, a lender taking a promise from a subsidiary of a business could rest assured that its only other competition to the subsidiary’s assets would be the other creditors. A recent case, however, threatens to overturn this accepted wisdom and bring uncertainty to financing of large enterprises.

Read More from: Credit Slips

2 weeks 2 days ago
On April 13, 2016, Hydrocarb Energy Corporation and certain of its affiliates (collectively, “Hydrocarb” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. According to Hydrocarb’s Cash Collateral Motion (the “Motion”), Hydrocarb’s operations are focused on the acquisition, development, and production of oil and gas  properties in the United States and onshore in Namibia, Africa.  The Debtors own a 93% working interest in four fields in the shallow waters of Galveston Bay, Texas and a 90% working interest in a concession located in Namibia. See Motion at 5-6. Hydrocarb’s liabilities total approximately $6.2 million including (i) $4.5 pursuant to a 2014 Credit Agreement with Shadow Tree Capital Management LLC as agent; and (ii) $1.7 million under a Secured Convertible Promissory Note to Typenex Co-Insurance Investment LLC. See Motion at 12. The Debtors’ bankruptcy cases are being jointly administered in lead case captioned In re Hydrocarb Energy Corp., et al., Case No. 16-31922. A copy of the Motion can be accessed here: Download Hydrocarb Cash Collateral Motion. For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney. 
2 weeks 2 days ago

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