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I recently received a kind and thoughtful email from the father of a service member that I represented years ago.  The email read as follows: While cleaning out my desk I ran across your business card. You defended my son years ago when he got involved with the wrong people and stole some ammunition.  I attended his trial and remember meeting you. You got him off with what I thought was a light sentence  My son then went through the Gulf War, attended college and has a great job and has never been in any trouble since. Having been in the service myself I always said you got him a second chance in life.   Again I want to thank you and wish you a healthy and successful life. Protect Your Discharge I remember the father and son from years ago and it reminds me of what I tell all military members, even my own son, Tom, who is a 68W combat medic in the U.S. Army Reserves – “Protect your discharge!”  I say that so often that my son is sick of hearing it from me!

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

3 weeks 19 hours ago
.fusion-fullwidth-1 { padding-left: px !important; padding-right: px !important; }The 2016 Democratic Party’s draft platform has some major wins for those struggling with student loan debt. Whether you end up supporting the Democrats or Republicans in the 2016 presidential election, it’s useful to know where each side stands on the issues of concern to you. Here’s what the Democrats have to say:
Democrats will allow those who currently have student debt to refinance their loans at the lowest rates possible. We will simplify and expand access to income-based repayment so that no student loan borrowers ever have to pay more than they can afford. And we will significantly cut interest rates for future undergraduates, thereby preventing the federal government from making billions of dollars in profit from student loans. Democrats will also fight for a Student Borrower Bill of Rights to ensure borrowers get adequate information about options to avoid or get out of delinquency or default. We will hold lenders and loan servicers to high standards to help borrowers in default rehabilitate and repay their debts. Finally, Democrats will restore the prior standard in bankruptcy law to allow borrowers with student loans discharge their debts in bankruptcy as a measure of last resort.
In a nutshell, Democrats would allow student loan borrowers to:
3 weeks 2 days ago
Happy Independence Day Weekend ! Is credit card debt and medical debt weighing you down and preventing you from being able to pay debts that you need to keep such as a mortgage or your car or truck ? Contact us today and we can look at solutions to enable you to move on with your life and not have the stress and worry of collections and lawsuits. Bankruptcy is a time-honored and approved way to enable you to pay the debts that you need to pay. In fact, it’s provided for in the US Constitution that our founding fathers wrote and is defended to this day. Contact us today at John Rogers, Kentucky Bankruptcy Attorney
3 weeks 3 days ago
Flexibility is essential By: Donald L. Swanson On June 28, 2016, the United States Supreme Court grants certiorari, in the case of In re Jevic Holding Corp. from the Third Circuit Court of Appeals, to resolve this narrow issue: “Whether a pre-plan settlement in a Chapter 11 bankruptcy may provide for payment to general unsecured creditors when priority claims remain unpaid.” Circuit Split Standards for granting certiorari are identified in Rule 10 of the Rules of the Supreme Court of the United States.  The standard that appellant cites in the In re Jevic case is a split of authority: “a United States court of appeals has entered a decision in conflict with the decision of another United States court of appeals on the same important matter” [Rule 10(a)]. The Second and Third Circuits are on one side of the issue (the In re Jevic case is from the Third Circuit), and the Fifth Circuit is on the other side. A Narrow-But-Important Distinction

Read More from: Mediatbankry

3 weeks 3 days ago
Relativity Media LLC is expected to miss a $30 million payment to lenders, which increases doubts about the film studio’s ability to stay afloat after leaving bankruptcy. Read the Daily Bankruptcy Review article via The Wall Street Journal. (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.”) DBR reports in WSJ on the bankruptcy filing of China Fishery Group Ltd. in the U.S. As DBR reports in WSJ, Caesars Entertainment Corp. made a tentative labor deal with Atlantic City, N.J., union-represented casino workers. A strike is still a threat for some other boardwalk casinos.

Read More from: WSJ.com: Bankruptcy Beat

3 weeks 3 days ago
As the country recovers from the shock outcome of last Thursday’s Referendum, the question which Restructuring professionals must now consider is “what does Brexit mean for me?”. The truth is that nobody really knows. The Referendum decision is not legally binding on the UK Government and the process of the UK leaving the EU will only start once the UK has served formal notice on the EU pursuant to Article 50 of the Treaty on the European Union. This will start a two year negotiation period to effect Brexit. In the meantime, the UK remains a member of the EU and EU law continues to apply. So, in some respects it is very much business as usual for now, but on the basis that David Cameron’s successor will give notice to leave the EU, we recommend that clients start considering the consequences of Brexit now. Preparation for those consequences may include looking at the following: Contract Reviews – Many contracts refer to an array of EU laws, regulators and territories which should be reviewed to determine how Brexit may/will impact. Can the contract be varied to mitigate the impact of Brexit? What is the potential impact on the contract price being linked to Sterling, the Euro or the Dollar? Does the governing law clause need amending? Will Brexit result in a breach of contract? Whilst unlikely, can force majeure or material adverse effect clauses be relied upon? How can the contract be future-proofed?

Read More from: eSQUIRE Global Crossings

3 weeks 3 days ago
We at the Weil Bankruptcy Blog wish all of our readers and their families a safe and enjoyable holiday weekend.
3 weeks 4 days ago
Key Employee Retention Plans (KERPs) and Key Employee Incentive Plans (KEIPs) often are the subject of intense interest, either because a distressed company’s management is focused on developing such programs to retain valuable talent during a time of great uncertainty within its organization or because certain creditor constituencies or parties in interest take issue with the payments a debtor intends to make under the programs.  The debtor’s experience in In re American Eagle Energy Corporation was no different.  There, the U.S. Trustee and a secured creditor objected to the debtor’s proposed KEIP, arguing it was a disguised, prohibited KERP.  The Bankruptcy Court for the District of Colorado, however, found otherwise and approved the plan. 
3 weeks 4 days ago
The Department of Labor has finalized new overtime laws. The new federal law, which includes Wisconsin, will take effect on December 1, 2016. The Fair Labor Standards Act (FLSA), 29 U.S.C. §§ 201-219, requires employers to pay workers an overtime rate for hours worked in excess of 40 hours per week. With so many Americans working longer hours and not being fairly compensated for that time, the new employment law will benefit many individuals. If you are in an executive or managerial position, you may be jumping up and down about the new revisions. The good news is that the wage threshold for salaried workers has changed. This means more salaried employees will be eligible for overtime pay. Previously, the salary threshold was set at $23,600 a year or $455 a week, low numbers that employers were using to take advantage of employees. The new revision increases the salary threshold to $47,476 a year or $913 a week to qualify for an executive, administrative, or computer employee exemption. The new salary threshold aims to reduce the number of salaried employees who are not receiving overtime pay for additional hours worked.

Read More from: Wynn at Law, LLC

3 weeks 4 days ago
Posted by Kathy Bazoian Phelps    Below is a summary of the activity reported for June 2016. The reported stories reflect: 4 guilty pleas or convictions in pending cases; over 39 years of newly imposed sentences for people involved in Ponzi schemes; at least 14 new Ponzi schemes worldwide; and an average age of approximately 59 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. And please remember that I am just relaying what’s in the news, not writing or verifying it.    Charles E. Bennett, 57, was disbarred from the Bar of the State of New York. Matter of Bennett, 2016 N.Y. App. Div. LEXIS 4176 (Sup. NY, June 2, 2016). Bennett is a former corporate lawyer at Skadden, Arps, Slate, Meagher & Flom, who was sentenced to 5 years in prison for running a $5 million Ponzi scheme. Bennett had left a suicide note before trying to kill himself which revealed the scheme that defrauded 30 friends and family members. Bennett survived the suicide attempt.    Andrew Caspersen, 39, was indicted on allegations that he ran a $40 million Ponzi scheme over an 18 month period. Caspersen pleaded not guilty to the charges, claiming that he had uncontrollable gambling addiction. Caspersen told the judge that he had been treated for “compulsive gambling and mental health illness.” He is expected to plead guilty next month.    Thomas J.

Read More from: The Ponzi Blog

3 weeks 4 days ago
A recent US Supreme Court ruling will likely have a major impact on some individuals who file for bankruptcy in the future. The key issue that the Court had to determine in Husky International Electronics, Inc. v. Ritz was what exactly Congress meant when it referred to “actual fraud” in the Bankruptcy Code. In a 7-1 decision, the Supreme Court held that the term “actual fraud” in Section 523(a)(2)(A) of the Bankruptcy Code encompasses conveyance schemes, even when those schemes do not involve a false representation. In other words: the case represented a major victory for creditors because it expanded the scope of what is meant by “actual fraud.” Creditors and lenders will now be able to more effectively go after someone who improperly transfers their assets during a bankruptcy filing. What Husky v. Ritz Was About Husky International sold electronic device boards to Chrysalis Manufacturing Corp. Over a period of four years, Chrysalis made many purchases and racked up a debt of $164,000. While Chrysalis was accumulating this debt, the company was also transferring money and other assets to other entities, essentially shielding those assets from future debt collection efforts. This became a major issue when Husky attempted to collect on the debt and Chrysalis subsequently filed for bankruptcy.
3 weeks 4 days ago
If your car was recently repossessed by the finance company, you have the ability under Chapter 13 bankruptcy law to recover that vehicle. You do so by filing a Chapter 13 bankruptcy case and proposing a plan to reorganize or repay that auto debt over time. You can reduce the interest rate owed to the+ Read More The post Recover Your Car Under Chapter 13 Or Obtain A New Car Under Chapter 7 appeared first on David M. Siegel.
3 weeks 4 days ago
In a recent decision, the U.S. Bankruptcy Court for the District of Delaware refused to enforce a provision in the debtor’s LLC operating agreement requiring a unanimous vote of the debtor’s members to authorize the debtor to file for bankruptcy.  In re Intervention Energy Holdings, LLC, et al., 2016 Bankr. LEXIS 2241 (Bankr. D. Del. June 3, 2016).  The provision at issue required the consent of all the debtor’s LLC members to file for bankruptcy, including the consent of a member that was a secured creditor holding one unit of ownership in the debtor’s LLC which it bargained for and received pursuant to a forbearance agreement.  In refusing to dismiss the debtor’s bankruptcy case, the Court concluded that such an arrangement giving the secured lender a so-called “golden share” was “tantamount to an absolute waiver” of the debtor’s right to seek bankruptcy protection and therefore void as a matter of federal public policy.
3 weeks 4 days ago
Attendees at the recent White House fintech summit shined a spotlight on shared innovation challenges. To overcome them and help the U.S. make progress in financial services, we need to embrace these three regulatory reforms.

Read More from: BankThink

3 weeks 4 days ago
Receiving Wide Coverage ... Everybody breathe: That could have gone a whole lot worse. The Federal Reserve unveiled the results of the second part of its annual stress tests on Wednesday and just two banks failed – the U.S. units of Deutsche Bank and Banco Santander had their capital plans rejected. Both are repeat offenders that have had trouble with the exams in the past. ...

Read More from: BankThink

3 weeks 4 days ago
Triangle USA Petroleum Corporation and five of its affiliates, including its Ranger Fabrication business, have filed chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware (Lead Case No. 16-11566).  The debtors are an independent energy company with a strategic focus on the Bakken Shale and Three Forks formations in the Williston Basin, with their headquarters in Denver, Colorado.  The filings do not include Tringle Petroleum Corporation (NYSE: TPLM) or the debtors’ RockPile Energy, Elmsworth Energy, Caliber Midstream or Optic Infrastructure Development affiliates.  The Ranger Fabrication business is being wound down.  The debtors have entered into a Plan Support Agreement with the holders of 73% of their senior unsecured notes to reorganize the Triangle USA business.  The petitions (including the consolidated list of top 20 creditors), the first day declaration and the docket are available through Prime Clerk.  The debtors have issued a press release regarding their reorganization.
3 weeks 4 days ago
Many of our clients schedule an appointment with our office because they are struggling to save their home from foreclosure proceedings.  A bankruptcy filing stops foreclosures as long as they are filed PRIOR to the foreclosure date.  What then?  Many times, the reason the foreclosure is set is because the monthly payment requirement is more than a client can afford as a result of reduced income due to layoffs or loss of job altogether.  What options are available?  One option is the HAMP program. What is HAMP? HAMP stands for Home Affordable Modification Program.  This program was started to help borrowers and investors.  It is a component of making homes affordable initiative.  The uniform modification characteristics are to reduce payment up to 31% of gross monthly income for HAMP Tier 1 and by any amount for HAMP Tier 2.  HAMP Tier 1 looks at two parts to calculate an affordable modified payment and then to see if the modification is in the best interest of the owners of the loan.  HAMP Tier 2 is offered to people who fail or are not eligible for standard HAMP modifications.

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

3 weeks 4 days ago
[wsj-responsive-image P="//art.wsj.net/api/photos/27217755/smartcrop?height=499&width=749" J="//art.wsj.net/api/photos/27217755/smartcrop?height=639&width=959" M="//art.wsj.net/api/photos/27217755/smartcrop?height=853&width=1280" caption="Residents of the Morro da Mineira favela play in the newly installed soccer pitch powered by player's footsteps, in Rio de Janeiro, Brazil, on Sept. 10, 2014. The project, sponsored by British oil giant Shell, has around 200 energy-capturing tiles installed along the width and breadth of the field and covered by a layer of AstroTurf." credit="Associated Press" placement="Inline" suppressEnlarge="false" ] Synthetic grass maker AstroTurf LLC filed for bankruptcy protection. Read the Daily Bankruptcy Review article via The Wall Street Journal. (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.”) A Brazil court accepted telecom company Oi SA’s request for bankruptcy, WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

3 weeks 4 days ago
  A year and a day ago, we published our first of a number of posts on Baker Botts  v. ASARCO, wherein the Supreme Court held that bankruptcy professionals may not recover fee-defense costs incurred in “defending” their fee applications. So, what better way to mark the one year anniversary of our coverage of Baker Botts than more coverage of Baker Botts. And, we figured we’d make-up for a lost June (this is our first and last post in June!) by plugging some of our non-blog coverage that came out in June. That counts, right?

Read More from: Plan Proponent

3 weeks 4 days ago
By: Donald L Swanson Unsecured Claim + Bankruptcy = You Lose. I came up with this formula back in 1983, while preparing for a seminar presentation on basic bankruptcy law.  I was trying to come up with something creative to say.  And . . . I must confess . . . I thought it was pretty clever at the time. And now . . . I’m more-than-a-little pleased and proud [or as people say these days, “humbled”] that the formula proves to be accurate in the vast majority of all bankruptcy cases. But what’s true in the vast majority of all bankruptcy cases has little to do with the Nortel Networks bankruptcy. And so it is with my little formula — it has nothing to do with the Nortel Networks bankruptcy case.  Nothing. Get this! Back in July of 2015 (when total professional fees expended in the battle are only $1.3 billion), the Bankruptcy Court makes this finding: –“A pro rata distribution would result in all Creditors receiving an approximate 71% return on their Claims.” Say what?!  A 71% return?! All this fighting has now cost $2 billion in professional fees.  And it’s over the last 29% of recovery?! . . . Oh, my. Unsecured creditors in nearly all bankruptcy cases would exult over a 71% return. But no.  Not for Nortel Networks creditors.  “A 71% return” are fighting words. “Don’t be settling these disputes in mediation,” seems to have been the battle cry.

Read More from: Mediatbankry

3 weeks 4 days ago

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