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Associated Press
General Motors Co. is in court Tuesday to try to preserve its bankruptcy shield against legal claims regarding low resale values and ignition-switch defects, The Wall Street Journal reports. Energy Future Holdings Corp. has asked court permission to start paying down some of its debt as it moves ahead in discussions with creditors to formulate a Chapter 11 exit plan. 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.”) Cayman Islands bank Caledonian Bank Ltd. Filed for bankruptcy after its U.S. assets were frozen, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
Associated Press
General Motors Co. is in court Tuesday to try to preserve its bankruptcy shield against legal claims regarding low resale values and ignition-switch defects, The Wall Street Journal reports. Energy Future Holdings Corp. has asked court permission to start paying down some of its debt as it moves ahead in discussions with creditors to formulate a Chapter 11 exit plan. 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.”) Cayman Islands bank Caledonian Bank Ltd. Filed for bankruptcy after its U.S. assets were frozen, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
Associated Press
General Motors Co. is in court Tuesday to try to preserve its bankruptcy shield against legal claims regarding low resale values and ignition-switch defects, The Wall Street Journal reports. Energy Future Holdings Corp. has asked court permission to start paying down some of its debt as it moves ahead in discussions with creditors to formulate a Chapter 11 exit plan. 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.”) Cayman Islands bank Caledonian Bank Ltd. Filed for bankruptcy after its U.S. assets were frozen, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
Receiving Wide Coverage ... The Russian Hacker Mob: Russian-speaking gangs of hackers have stolen millions of dollars since 2013 from banks in the U.S., Eastern Europe and Russia and according to the Russian computer-security firm Kaspersky Lab, the Wall Street Journal reported. The Financial Times' report on the same study said the thieves' total haul may be closer to $1 billion. Most alarming is the lab's claim the cyberattack is still active. The Kaspersky Lab issued...

Read More from: BankThink

3 years 7 months ago
The Securities and Exchange Commission announced in October, 2014 that it brought a record of 755 enforcement actions, a 10 percent leap from 2013’s 686. With the use of a reward system for whistleblowers and technology-like data analytic tools, the SEC has been able to spot anomalies and streamline investigative efforts to enforce penalities against wrongdoers who harm investors and threaten financial markets. Patterned after former New York City Mayor Rudolph Giuliani’s “broken window” strategy, the SEC has focused on the smallest of violations to deter more serious crime. Read more here.
3 years 7 months ago
If the debtor-tenant seeks to terminate and surrender the lease, that is “reject it”, the landlord may be entitled to a “rejection damage” claim.  A landlord is not entitled to the full amount of unpaid obligations for the balance of the lease.  Instead, Section 502(b)(6) limits the recovery a landlord may receive for “rejection damages.” Under Section 502(b)(6) of the Bankruptcy Code, the landlord is entitled to rent due under the rejected lease for the greater of (i.) one year’s rent, or (ii.)  fifteen percent (15%) of the rent due under the lease, not to exceed three years’ rent.  Unlike the administrative rent claim, a rejection damage claim is a general non-priority unsecured claim paid only after all other claims. The landlord’s rejection damage claim is capped under Section 502(2)(b)(6), but the landlord is entitled to include all amounts that constitute “rent” under the lease.  Items that may include “rent” include utility fees, common area maintenance charges and taxes.
3 years 7 months ago
How is it that I never find the time to blog? My answer would be that I simply do not have the time. But of course I have the same hours in a day as my co-bloggers. I could argue that I have more demands on my time, but I know very well that we are all busy. Scarcity, a book by Sendhil Mullainathan and Eldar Shafir, has many lessons for busy people, including those of us who are busy thinking about the difficulties faced by people who have a scarcity of income or disposable income after debt.  The book looks at scarcity in varied contexts such as time, money, food, friendship. It argues that there is a common logic to situations of scarcity: a mindset that captures our attention and changes how we think. At an optimal level, scarcity can create positive focus. But the same capture of the mind can preoccupy us and make us vulnerable to poor thinking and impulse control. The authors find, for example, that being poor reduces a person's cognitive capacity more than going one full night without sleep.

Read More from: Credit Slips

3 years 7 months ago
The Supreme Court has an opportunity to clarify the constitutionality of the allocation of power between federal district courts and bankruptcy courts. On July 1, 2014, the Supreme Court granted certiorari in Wellness International Network, Ltd. v. Sharif[1] to address the following: (1) Whether the presence of a subsidiary state property law issue in an 11 U.S.C. § 541 action brought against a debtor to determine whether property in the debtor’s possession is property of the bankruptcy estate means that such action does not “stem[] from the bankruptcy itself” and therefore, that a bankruptcy court does not have the constitutional authority to enter a final order deciding that action; and (2) Whether Article III permits the exercise of the judicial powers of the U.S. by the bankruptcy courts on the basis of litigant consent, and if so, whether implied consent based on a litigant’s conduct is sufficient to satisfy Article III. Background

Read More from: Insolvency Insights

3 years 7 months ago
In this episode, Bernstein-Burkley, P.C. Partner, Nicholas D. Krawec, discusses […] The post 5 Minute Legal Master Series: Preparing for Trial in a Commercial Collections Case appeared first on Bernstein-Burkley, P.C..

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

3 years 7 months ago
Last Wednesday, David Cassidy, star of the 1970s “The Partridge Family,” filed an individual Chapter 11 bankruptcy petition in the Southern District of Florida. Perhaps it’s wishful thinking to wonder whether Mr. Cassidy will help resolve the most controversial plan confirmation issue in individual Chapter 11 cases: the “absolute priority rule” (APR). After all, who could have imagined that Anna Nicole Smith (Vickie Lynn Marshall if you’re a scholar) would turn the very serious issue of bankruptcy court jurisdiction upside down (and give grown adults so much to giggle about at bankruptcy conferences). The APR in individual cases is also a serious issue because, arguably, it gets at the right of an individual to reorganize under Chapter 11. Maybe Mr. Cassidy is just the right “test case.” (For now, he’s providing shameless clickbait.)

Read More from: Plan Proponent

3 years 7 months ago
For any business considering a sale or acquisition, the importance of management cannot be overstated. In particular, sellers of middle market businesses should take a hard look at their management depth to assess gaps and evaluate the strength of the team. The perspective of management can make or break a deal or, at minimum, influence the ideal acquirer, terms and overall succession planning for a business. In this article, we will explore some of the reasons management is so critical and the steps owners and acquirers can take to provide strong incentives to ensure that key talent remains after the deal. Putting aside potential M&A transactions, it is not surprising that management talent is the most valuable asset for any business. Even companies with great business models can fail dramatically with poor execution, and management is the core group responsible for execution of a plan. There are a host of ways businesses can provide managers incentives to align their interests in growing the business, including phantom stock, stock options, and sweat equity to name the most common. Each of these has their respective pros and cons, but the important point is that a team who is invested in the future of the business generally feels more ownership of results through a direct benefit.
3 years 7 months ago
Baltimore attorney Jeff Scholnick discusses the most prevalent myths regarding Social Security disability. Not having the correct information on Social Security disability benefits can mean the difference between winning your benefits and going without. Several misconceptions in particular often cause issues in pursuing benefits. Read the following list to better understand the process and what is and is not true about Social Security disability.
  1. A statement from a physician automatically approves you for Social Security disability. A thorough, detailed statement from a doctor who is knowledgeable about a claimant’s medical problems can make a difference. However, it is not a guarantee of success. This document, titled a “medical source statement,” can help at the second level of appeal in most states. Judges recognize the fact that they are not medical professionals and are not directly involved in a claimant’s medical treatment. Judges are required to accept a treating doctor’s medical source statement as true and accurate unless they have a valid reason to reject it.
The statement must explain why the patient has certain limitations and must also provide medical evidence regarding those limitations. There is a form that accomplishes these goals, known as a Residual Functional Capacity Form (RFC).

Read More from: Scholnick Law

3 years 7 months ago
Since filing for bankruptcy protection may shave more than 200 points off your credit score (more if your house was foreclosed on!), it stands to reason that you may not be the picture of a good risk when applying for a mortgage. However, that doesn’t mean you can’t get a loan approved; a good letter […]
3 years 7 months ago
Most compliance problems can be alleviated if brokerage firms act in the best interests of their clients, says FINRA. Wait – aren’t they already supposed to be acting in the best interest of their clients? Not in the way you may think. Read more here.
3 years 7 months ago
The data breach stories just don't seem to stop. (And why would they?). The latest (I think) is about a massive and sophisticated multi-million dollar hacking of several banks.  If you read down through the story, one of the things the hackers did was manipulate the balances of real accounts.  They'd change a real $1,000 balance to $10,000 and then have $9,000 wired to an account at another institution.   But why take out only $9,000?  The hackers were being nice, I suppose, in that they didn't steal any actual depositor's funds (as far as we know). And that was also probably smart, because if they zeroed out an account, there might be a bounced transaction that would alert the consumer and then the bank to the theft.  But I don't know that we can count on future hackers being so polite, considerate, or careful. Indeed, they might actually want to create havoc by messing with account balances.  

Read More from: Credit Slips

3 years 7 months ago
Credit Slips contributor Pamela Foohey has just posted her most recent work in her series of articles on churches in bankruptcy. I have been a big fan of this research project since Pamela was a fellow at the University of Illinois. She tells us not only about bankruptcy but also about the ways in which these churches look like most any small business. Most impressively, the work builds on existing literature on how people come to law to solve their problems and expands that literature into a new and nonobvious setting, suggesting this literature may have deep explanatory power to help us understand more about how people perceive and use law. It is exactly what we need more of in the law reviews -- scholarship using rigorous social science to help us understand what actually happens in the legal system.

Read More from: Credit Slips

3 years 7 months ago
A recap of the informed opinions (and the discussions they generated) on BankThink this week.

Read More from: BankThink

3 years 7 months ago
It may only be Galentine’s Day as we post this, but given that V-Day is imminent, The Bachelor is in full-swing, and Fifty Shades of Gray just came out on the big screen, we decided to find some reasonable nexus between bankruptcy, romance, and love. In this year’s edition, we learn that all bets are off when former lovers end up in court. In Morales v. Giddens (In re Giddens), the plaintiff, Marta Morales, brought a complaint against her ex-husband, Christopher Giddens, seeking a finding that Giddens’ various debts to her were nondischargeable pursuant to various subsections of section 523 of the Bankruptcy Code. The bankruptcy court’s decision includes a full recitation of the sordid details of the dissolution of Giddens’ and Morales’ relationship. In brief, in connection with their divorce, Giddens agreed to turn over to Morales a series of shared items, including cars, flat screen televisions, furniture, and cash. After Giddens continued to fail to satisfy his obligations under the Judgment of Dissolution of Marriage, he met a loan officer named Agnieszka Materna. Materna and Giddens dated for some time, and Materna eventually agreed to invest $20,000 with Giddens for property that Giddens intended to “flip” for a profit. The $20,000 was never repaid.
3 years 7 months ago
There is no bigger shopping season than the time between Thanksgiving and New Year’s Eve. The Main Street marketing firms are getting you to purchase as early as Thanksgiving, all the way through Christmas and even after Christmas until the first of the year. Many Americans make those purchases on credit. Usually the first credit+ Read More The post Has Your Overspending At Christmas Come Back To Bite You? appeared first on David M. Siegel.
3 years 7 months ago
In Episode 23 of Accredited Investor Markets Radio, host Chris Cahill is joined by Jeffrey Lampe, Principal at Hopewell Ventures, for an in-depth discussion of early stage investing and venture capital rounds. Join them to learn about what backing a VC venture entails, what ‘items’ might be on a venture capitalist’s wish list (e.g. guaranteed Board seats), what to watch out for, when it may be a better investment strategy for a VC to borrow and what risks may still be present after the VC rounds have been completed.   You can find out more about Hopewell Ventures and Jeffrey Lampe here.   Or you can find him here: LinkedIn   About Jeffrey Lampe    
3 years 7 months ago