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Bankers originally needed to shorten their hours in order to allow for the laborious paperwork involved in processing financial transactions. Now thereÂ's no such justification for closing shop.

Read More from: BankThink

4 years 6 months ago
In re Highway Techs., Inc., No. 13-11326 (KJC) (Bankr. D. Del. Jan. 30, 2015) In this Memorandum, the Honorable Kevin Carey determined whether to value an administrative expense claim at the full contract rate or the actual use of the goods and services provided to the debtor.  The Court held that the creditor, Wynne Systems (“Wynne”), is entitled to an administrative claim for only the debtor’s actual use.  In doing so, the Court also denied Wynne’s request for attorney’s fees as an administrative claim, holding that those fees are not an actual and necessary cost of preserving the estate as required by Bankruptcy Code section 503(b). Read More › Tags: Administrative Expense Claims

Read More from: Delaware Bankruptcy Insider

4 years 6 months ago
While Chapter 7 bankruptcy offers individuals a fresh start and discharge from many debts, it doesn't come without a price. Property of the debtor becomes property of the estate and is used to pay creditors. But not all of it. Section 522 of the Bankruptcy Code lists exemptions that debtors can use to exempt property - up to a certain dollar amount in value - from the estate. The purpose of exemptions is to ensure that the individual debtor is able to maintain a basic standard of living post-bankruptcy. But because there are very few assets available for creditor recovery beyond exempt property in many bankruptcy cases, the propriety of a debtor's claimed exemptions is an issue that is oft-litigated. Such was the case in an appeal to the U.S. Court of Appeals for the Sixth Circuit (the "Sixth Circuit") arising from a Chapter 7 bankruptcy case that was filed in the U.S. Bankruptcy Court for the Eastern District of Michigan. Read More › Tags: 6th Circuit Court of Appeals, Chapter 7

Read More from: Michigan Bankruptcy Blog

4 years 6 months ago
Imperial Holdings’ shareholders have sued the company and its board over a bylaw that the board adopted last November. The bylaw requires that a current or prior shareholder may not initiate a claim in a court of law against the company, its directors or officers, unless the shareholder obtains the written consents of at least 3% of the outstanding shares.  
4 years 6 months ago
The total number of bankruptcy filings dropped 14% from January to January of the prior year. In fact, the year over year filing totals have been declining for over four years, specifically for 50 consecutive months. You would think that by four years of decreased filings that things in the United States would be great.+ Read More The post Bankruptcy Filings Continue To Drop appeared first on David M. Siegel.
4 years 6 months ago
Melanie Cohen
RadioShack Corp.’s proposed bankruptcy financing cleared court Monday as the retailer continues the process of racing to sell out and shut down some 1,100 stores by the end of the month. The Wall Street Journal 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.”) The sale for Atlantic City, N.J.’s Revel casino is set to be canceled after it didn’t close by a midnight deadline, the Associated Press reports. Detroit’s mayor is giving his first State of the City address since the city left bankruptcy, according to the AP.

Read More from: WSJ.com: Bankruptcy Beat

4 years 6 months ago
Melanie Cohen
RadioShack Corp.’s proposed bankruptcy financing cleared court Monday as the retailer continues the process of racing to sell out and shut down some 1,100 stores by the end of the month. The Wall Street Journal 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.”) The sale for Atlantic City, N.J.’s Revel casino is set to be canceled after it didn’t close by a midnight deadline, the Associated Press reports. Detroit’s mayor is giving his first State of the City address since the city left bankruptcy, according to the AP.

Read More from: WSJ.com: Bankruptcy Beat

4 years 6 months ago
Melanie Cohen
RadioShack Corp.’s proposed bankruptcy financing cleared court Monday as the retailer continues the process of racing to sell out and shut down some 1,100 stores by the end of the month. The Wall Street Journal 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.”) The sale for Atlantic City, N.J.’s Revel casino is set to be canceled after it didn’t close by a midnight deadline, the Associated Press reports. Detroit’s mayor is giving his first State of the City address since the city left bankruptcy, according to the AP.

Read More from: WSJ.com: Bankruptcy Beat

4 years 6 months ago
A better way to deal with the "too big to fail" problem would be to impose higher capital requirements or to issue "rescue" bonds to bank investors.

Read More from: BankThink

4 years 6 months ago
Receiving Wide Coverage ... Pushback Against 'Audit the Fed': Federal Reserve Board Governor Jerome Powell took a stand on Monday against the "Audit the Fed" bill that's been gaining traction among some Republicans legislators. Powell himself is a member of the GOP, but he's no fan of the proposal to subject the central bank to policy audits by Congress. The plan could reverse "decades of deliberate effort by the Congress to insulate the Fed from political...

Read More from: BankThink

4 years 6 months ago
On February 6, 2015, Charles A. Stanziale, Jr., as the Chapter 7 Trustee (the “Trustee”) of CPI, Corp., et al. (“CPI” or the “Debtors”), filed approximately 44 preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, to disallow claims pursuant to Section 502(d), for attorneys’ fees, and prejudgment interest. Background By way of background, CPI filed petitions for bankruptcy in the District of Delaware on May 1, 2013 under Chapter 7 of the Bankruptcy Code.  CPI was an operator of more than 2,000 U.S. portrait studios in locations such as Wal-Mart and Sears stores.  CPI was forced to liquidate its assets after receiving a fourth forbearance agreement from its lenders. McCarter & English, LLP represent the Trustee in these various preference cases.  The pretrial conference has not been scheduled.  These adversary actions, as well as the Debtors’ bankruptcy proceeding, are before the Honorable Brendan Shannon. Defenses to a Preference Action
4 years 6 months ago
Southside, LLC v SunTrust Bank (In re Southside, LLC), 520 B.R. 914 (Bankr. N.D. Ga. 2014) – A debtor objected to attorney fees included in the proof of claim filed by a mortgagee, and the mortgagee moved for relief from the … Continue reading →
4 years 6 months ago
Website flipping and website building have a number of similarities to buying and selling tangible, traditionally defined real estate – and you can make money at it. Read more here.
4 years 6 months ago
A key to getting good results in a bankruptcy case is to make sure that each and every creditor receives notice of the bankruptcy filing. Failure to notify a creditor may lead to disastrous results, including the debt not being discharged or the bankruptcy case itself being dismissed for intentional withholding of information. About the first question your bankruptcy attorney will ask this: How much do you owe? It sounds like a simple question, but the common answer is “I don’t know–I don’t even want to know.”  There comes a point in the debt cycle that a person stops opening the mail, answering the phone and no longer bothers to figure out who or how much they owe. How do you figure out what you owe when all the paperwork–the bills, the collection letters, the court summons–is gone?  How can you even determine if you should file bankruptcy if you don’t have a list of what you owe?
4 years 6 months ago
You applied to a loan or a line of credit and, based on your credit score and past payment history, the lender took a chance on you. Since then, your financial world has collapsed. Perhaps you lost your job or got into a car accident and now have mounting medical bills. It doesn’t matter why […]
4 years 6 months ago
NORTH OF THE BORDER UPDATE In 8527504 Canada Inc. v. Liquibrands Inc. (2014), 2014 CarswellOnt 17188, 2014 ONSC 7015 (Ont. S.C.J. [Commercial List]) (“Liquibrands”), the Ontario Superior Court of Justice (the “Court”) provided guidance on the interpretation of the stay provisions in a receivership order. The Court also addressed the request from a second ranking creditor to have proceeds from assets paid into court rather than being paid to the first ranking creditor, pending resolution of a claim by the second ranking creditor against the first. Background Liquibrands Inc. (“Liquibrands”) was a secured creditor of, and was the sole shareholder of, Sun Pac Foods Limited (“Sun Pac”), a manufacturer of branded beverage products, among other things. Liquibrands ranked second in priority with respect to Sun Pac, behind 8527504 Canada Inc. (“852 Canada Inc.”), a related company to Bridging Canada Inc. (“Bridging”). Bridging provides alternative solutions to borrowers who are not able to otherwise secure traditional financing.
4 years 6 months ago
In its final report and recommendations, adopted on Dec. 1, 2014, the ABI Commission to Study the Reform of Chapter 11 refused to recommend any changes to the venue rules for chapter 11 bankruptcy cases.
Judge Steven Rhodes
John Meiu/Associated Press
Actually, the report states that the commissioners “were unable to reach a consensus regarding whether reform of the venue statute was necessary or what potential reform might best serve the diverse interests in chapter 11 cases.” This is, of course, a polite way of saying that a majority of the commission voted to reject all venue reform proposals and to maintain the status quo. Unfortunately, the report, adopted in December, provides no justification for this determination. Instead, the report states, “the Commission concluded that it could contribute most meaningfully to the ongoing dialogue concerning chapter 11 venue by providing this summary of its research and deliberations.”

Read More from: WSJ.com: Bankruptcy Beat

4 years 6 months ago
In its final report and recommendations, adopted on Dec. 1, 2014, the ABI Commission to Study the Reform of Chapter 11 refused to recommend any changes to the venue rules for chapter 11 bankruptcy cases.
Judge Steven Rhodes
John Meiu/Associated Press
Actually, the report states that the commissioners “were unable to reach a consensus regarding whether reform of the venue statute was necessary or what potential reform might best serve the diverse interests in chapter 11 cases.” This is, of course, a polite way of saying that a majority of the commission voted to reject all venue reform proposals and to maintain the status quo. Unfortunately, the report, adopted in December, provides no justification for this determination. Instead, the report states, “the Commission concluded that it could contribute most meaningfully to the ongoing dialogue concerning chapter 11 venue by providing this summary of its research and deliberations.”

Read More from: WSJ.com: Bankruptcy Beat

4 years 6 months ago
In its final report and recommendations, adopted on Dec. 1, 2014, the ABI Commission to Study the Reform of Chapter 11 refused to recommend any changes to the venue rules for chapter 11 bankruptcy cases.
Judge Steven Rhodes
John Meiu/Associated Press
Actually, the report states that the commissioners “were unable to reach a consensus regarding whether reform of the venue statute was necessary or what potential reform might best serve the diverse interests in chapter 11 cases.” This is, of course, a polite way of saying that a majority of the commission voted to reject all venue reform proposals and to maintain the status quo. Unfortunately, the report, adopted in December, provides no justification for this determination. Instead, the report states, “the Commission concluded that it could contribute most meaningfully to the ongoing dialogue concerning chapter 11 venue by providing this summary of its research and deliberations.”

Read More from: WSJ.com: Bankruptcy Beat

4 years 6 months ago
About 10 to 20 years ago, I would see the same typical creditors in a bankruptcy case. I would likely see credit card debt, outstanding medical bills, parking tickets, tax debt, and an occasional unsecured, personal loan. These are the majority of creditors that made up bankruptcy cases 10 to 20 years ago. My how+ Read More The post It’s Difficult To Borrow Your Way Out Of Debt appeared first on David M. Siegel.
4 years 6 months ago