Take a good look at the result of the parent loan for college.
That’s what my client’s situation looks like to me:
If college makes the life of the kids, it stands to ruin the lives of the parents.
What kind of educational system not only tolerates, but facilitates such madness?
This story gets worse, unfortunately. The kids have their own student loans for which they are liable. The kids have no legal liabilility for the parent loans. And probably little capacity to pay their loans and their parents’ loans.
But because one of the parents was unemployed when the loans were taken out, the lender required the guarantee of one parent’s sibling.
One of the hardest things about teaching, whether in an informal setting or in a classroom, is telling someone that they are . . . ahem, WRONG. Or at least not right. Or could use improvement. Or there is an opportunity to improve. Something like that. . . . Professor Alan Resnick, a beloved bankruptcy scholar and practitioner, had a gift of helping others improve their work. He would generously and gently offer suggestions, always making those around him feel hope that the could improve. Whenever one worked with Alan, they felt profound gratitude that the bankruptcy world had his intellect and commitment.
Read More from: Credit Slips
Regulators' recent warnings on emerging risks with commercial real estate indicate banks have reverted to CRE practices that got them in hot water once before.
Read More from: BankThink
Breaking News This Morning ...
Earnings: UBS reported profits fell 14%, but it still beat Street expectations. Wall Street Journal, Financial Times, New York Times Receiving Wide Coverage ...
Nobody's impressed: Credit Suisse posted surprisingly respectable earnings on Thursday, with a profit of about $171 million. Still, the troubled bank knows there's more work to do. "It's only a start," said Tidjane Thiam, the company's chief executive. Investors were unmoved – shares of the bank's stock fell 5%....
Read More from: BankThink
Mediators and mediating parties beware!
The mediation of a contentious commercial case concludes without an agreement. But the mediator keeps trying.
The mediator sends a post-mediation email to counsel for “Jonathan” conveying a proposal, which includes these statements from the other party:
–“Jonathan knows the extent of his wrongdoings and our client believes that Jonathan is in very serious trouble.”
–“It is clearly in everyone’s (and particularly Jonathan’s) interest to wrap this up speedily and quietly. . . . – the concern being that others will become aware of it.”
–“settlement will obviate the need of further steps such as committal proceedings.”
–“If Jonathan has misled HSF and sworn false evidence . . . Jonathan will face charges of perjury, perverting the course of justice and contempt of court and is likely to be imprisoned.”
–“In the above circumstances, Jonathan’s credibility and reputation will be destroyed.”
The case is pending in England.
Read More from: Mediatbankry
Although home foreclosures are on the decline in many areas throughout the United States, homeowners in New Jersey have not been so fortunate. According to data compiled by RealtyTrac, a major real estate information provider and online marketplace for foreclosed properties, New Jersey actually leads the nation when it comes to foreclosures.
Home Foreclosures Down in the US
The RealtyTrac data indicates that the total number of home foreclosures in several states has declined significantly in recent years. In fact, the recovery process from the economic recession in some states is seemingly complete. Across the nation, home foreclosures have reached their lowest number since 2006, with just one in every 249 housing units in the U.S. currently in foreclosure. Compared to 2015, foreclosures on houses are down approximately 17 percent.
Home Foreclosures Remain High in New Jersey
In contrast to the good news for property owners in many states, NJ homeowners are finding it harder and harder to keep up with their monthly mortgage payments. Right now there are nearly 35,000 foreclosed properties in New Jersey, which represents slightly less than one percent of all housing units in the Garden State. To put that number in perspective, consider that the national rate is just 0.4 percent.
Read More from: The Law Office of Joel R. Spivack
The scope of the Bankruptcy Code’s safe harbor for certain financial contracts has been tested again, this time in the United States Bankruptcy Court for the Western District of Louisiana. The question this time was whether an ipso facto provision continues to be safe harbored if enforcement of that provision is conditioned on other factors – in this case, the debtor’s failure to perform under the contract.
Consistent with prior case law, the court held that termination is only safe harbored if it is based solely on a condition specified in 365(e)(1), i.e., the financial condition of the debtor, bankruptcy, or the appointment of a trustee. Because the ipso facto provision in this case contained an additional condition to enforcement (the debtor’s breach), it no longer fell within the safe harbor. Thus, even if both conditions were satisfied (bankruptcy and breach), the automatic stay applied and the termination clause could not be exercised absent relief from the automatic stay.
Read More from: Business Finance & Restructuring News - Weil
A Power of Attorney for Healthcare designates someone to represent you when you are unable to make decisions or unable to communicate decisions about your healthcare. This healthcare “agent” will be someone you trust to make all necessary medical decisions on your behalf and respect your wishes regarding life support, religion, and personal choices.
A Power of Attorney for Healthcare covers situations that a living will does not. A living will takes affect if you are terminally ill, in a permanent vegetative state, or other similar condition defined by Wisconsin law. What happens if you are only temporarily in a coma or temporarily unable to communicate? This is where a Power of Attorney for Healthcare is used.
Read More from: Wynn at Law, LLC
Most are house poor. Lots of equity, little in liquid assets.
But unless you take a very expensive reverse mortgage, that equity may as well be under lock and key. You can’t pay the monthly expenses from value in real estate.
When expenses pile up, when seniors need to downsize or move to assisted living, California’s homestead law doesn’t protect them.
Sell the house, and your life savings in the house are exposed to your creditors if you don’t buy a new house with the proceeds.
And just how many seniors can qualify for a new mortgage?
Even assuming they want and can maintain another home.
Yet that’s the way current law works.
Rock, meet hard place.
Once you and your bankruptcy attorney go through your bankruptcy petition to make sure it is accurate and you both sign your names in all the appropriate places, the Petition is then filed electronically with the Court. The second your Bankruptcy petition is filed the Court appoints a bankruptcy trustee to administer your case.
Halcón Resources Corp. et al (NYSE: HK) and 21 affiliates have filed chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware (Lead Case No. 16-11724). The debtors are an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich assets in the United States, based in Houston, Texas. The debtors previously announced their intention to pursue an expedited pre-packaged chapter 11 plan and that they have entered into a Restructuring Support Agreement with their third-lien noteholders. The petition for Halcón Resources Corporation, including the consolidated list of top 30 creditors, is provided here. The dockets will be available through Epiq.
Read More from: Cole Schotz P.C. Bankruptcy & Restructuring Law Blog
In Omaha, Nebraska, where I live and practice, mediation plays a central role in civil litigation outside the Bankruptcy Court. And it’s playing an increasing role in Bankruptcy Court as well—but that’s a story for another day.
Mediation is a vital part of the civil litigation culture around here. And it’s been that way for quite a while. It seems that attorneys plan for mediation as part of their strategy in any given case.
Mediation rules in Nebraska’s Federal District Court encourage mediation. For example,
–Its “Mediation Plan” authorizes a federal judge to “refer a case to mediation” when the judge finds “a resolution of the case by mediation a practical possibility.”
–Its “Rule 26(f) Report” form requires competing attorneys to address mediation possibilities and timing at the beginning of a case.
And Nebraska’s Dispute Resolution Act for state courts begins with these findings:
Read More from: Mediatbankry
Student loan news all over the place this week, including
some new stuff on Student Loan Servicers.
Yes, election year. What about that Libertarian candidate?
That is one of Mr. Johnson’s proposals, though a few Republican
candidates have tossed that one out before.
He shares my views on student loans driving up the cost of college while driving down the value of a degree.
Johnson: It’s guaranteed government student loans. If guaranteed government student loans never existed, tuition today would be half of what it is, because colleges and universities would have to go out and attract you as a student. And they would have to be as effective and efficient as everything else in our lives. But because you are guaranteed a government student loan, you have no excuse to not go to college. Colleges’ and universities’ tuition keeps going up. They have absolutely no reality with regard to their pricing. If every college student tomorrow says, “I’m not going to go to college until the price of college, university education drops,” guess what? It would. It would happen. It would happen dramatically.
Read More from: Discharge Student Loan
Under Section 363(f) of the Bankruptcy Code, a debtor or trustee can sell estate assets “free and clear of any interest” in such assets. This short, simple string of six words represents one of the most powerful tools in the bankruptcy professional’s arsenal. In many situations, section 363(f) allows the bankruptcy estate to unlock the value of certain assets that might be wholly unmarketable, or otherwise severely diminished in value on account of unknown or unasserted claims against such assets or due to uncertainty regarding the amounts of, or relative priority among, secured claims against such assets. In some cases, access to section 363(f) is the primary driving force behind a bankruptcy filing.
Read More from: Business Finance & Restructuring News - Weil
This is the bankruptcy case study for Michael M., who resides in Aurora, DuPage County, Illinois. Michael is currently being garnished for a hospital bill and is seeking protection under the bankruptcy code. He is inquiring as to whether or not he can file a Chapter 7 to stop the garnishment and yet keep+ Read More
Read More from: David M. Siegel | Chicago Bankruptcy Law
What are the consequences of filing bankruptcy?
Is it better to live with the debt and keep making minimum payments?
That question sums up most people’s fears about shedding their debt through bankruptcy.
What will life be like, after bankruptcy?
Good questions. And I applaud people who realize that debt and debt relief each have future consequences. I’ve talked about it before.
Clients fear the ” bankruptcy unknown”, closing their eyes to the precariousness of their current situation as though doing nothing is a worthy choice.
But lets turn the question around: what will life be like if you continue on like you’re doing?
Servicing debt from the past cuts down your future options. Your paycheck is already committed before it hits the bank.
Whether it’s payday loans or credit cards for this month’s necessities, you’re locked in.
If you are just starting to consider filing a bankruptcy case, you’re probably wondering where to start. You’re asking yourself “What information and documents will I need to provide to my lawyer or to the court?” This blog post will lay out the basics you need to get started.
First, you’ll need your Driver’s License and Social Security Card. The Court will require you to present a government issued photo ID. If your License has been suspended or you don’t have one, then you’ll need to get a Non-Driver ID card. Your local State Trooper’s License Office can issue one and they’ll tell you what you need to get one. Also, if you’ve lost your Social Security Card, then you’ll need to go apply for a new one. You can apply at the Social Security office and it usually takes a few weeks to get your new card.
Leases: How About Those Attorneys’ Fees? In re FKA FC, LLC, 545 B.R. 567 (Bankr. W.D. Mich. 2016) – A chapter 11 debtor sought to assume and assign a lease. The debtor contended that the cost to cure defaults under … Continue reading
Read More from: Bankruptcy-RealEstate-Insights
Theoretically, a Russian debtor is able to reorganize. In practice, the law currently does not encourage voluntary restructuring of debt in a way designed to preserve the continued operation of business and jobs. The interests of debtors and creditors are not appropriately balanced at present to achieve the best results. Creditors currently have a strong incentive to aggressively pursue legal action against distressed businesses, to secure their vote at creditors’ meetings and the right to propose their own candidate to serve as an interim trustee.
An article outlining the main insolvency law in Russia, the Federal Law No. 127-FZ of October 26, 2002 “On Insolvency” (the “Law”) which deals with pre-insolvency re-organization and formal insolvency procedures including re-organization, has recently been published in Eurofenix, the official quarterly journal of INSOL Europe and examined this question. Click below to read the article.
Read More from: eSQUIRE Global Crossings