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Recently, I have successfully defended two defendants in debt collection cases involving old credit card bills.  In each case, my clients (the defendants) either did not remember ever creating the debt or being serviced with the suit papers. In both cases we reached favorable outcomes because we demanded strict proof that could not be provided by the Plaintiffs.  As a result, the attorney for the debt collectors and debt buyers had to drop their case and dismiss the claims. In a set of facts that is stranger than fiction, my client received notice of garnishment relating to a very old judgment filed against her.   She insisted to me that she never was served with the original lawsuit.  After I entered my appearance, I went to the Court and obtained a copy of the Notice of Service by the Private Process Server claiming that my client was served with the lawsuit way back in 2004.  My client denied ever getting this paperwork and something seemed a little strange about the Notice of Service. Out of curiosity, I googled the Process Server’s name to see if he was even still alive.  Much to my surprise, he had been a Police Officer who went to federal penitentiary for his involvement in a massive fraud scheme involving kickbacks from a towing service.

Read More from: Scholnick Law

4 years 11 months ago
Recientemente, yo he defendido con éxito a dos acusados en casos de cobro de deudas involucrando facturas de tarjetas de crédito viejas. En cada uno de los casos, mis clientes (los acusados), una de dos, o no recordaban haber generado la deuda o haber sido notificados con los papeles de la demanda. En ambos casos, nosotros obtuvimos resultados favorables porque exigimos prueba estricta que no fue provista por los Demandantes. Como resultado, el Abogado de los cobradores de deudas tuvo que retirar el caso y descartó las demandas. En una serie de hechos en donde la realidad supera a la ficción,  mi clienta recibió un aviso de embargo relacionado a una muy antigua sentencia solicitada en contra de ella. Ella me insistió que nunca había sido notificada de la demanda original. Después de que yo ingresé mi comparecencia, yo fui a la Corte y obtuve una copia del Aviso de Notificación de un Notificador Privado asegurando que mi clienta fue notificada con la demanda legal desde el 2004.  Mi clienta negó haber recibido este documento y algo parecía un poco extraño acerca del Aviso de Notificación. Por curiosidad, yo busqué en Google el nombre del Notificador del Aviso para ver si él aún estaba vivo. Para mi gran sorpresa, él había sido un Oficial de Policía que fue a una Penitenciaría Federal por su participación en un plan de fraude masivo que involucró soborno por parte de un servicio de grúas.

Read More from: Scholnick Law

4 years 11 months ago
All day I have been thinking that September 15 is a significant date, but I couldn't remember why.  And finally I remembered why.  On September 15, 2008, Lehman Brothers filed the largest bankruptcy in United States history.  And so, today is the 6 year anniversary....Per http://bankruptcy.einnews.com/article/223896208/9Gilzx68J31h45VH:Date 1... Secretary Jacob J. Lew today released the following statement on the sixth anniversary of the bankruptcy filing of Lehman Brothers, the largest in U.S.

Read More from: The COMI

4 years 11 months ago
  Recientemente, yo he defendido con éxito a dos acusados en casos de cobro de deudas involucrando facturas de tarjetas de crédito viejas. En cada uno de los casos, mis clientes (los acusados), una de dos, o no recordaban haber generado la deuda o haber sido notificados con los papeles de la demanda. En ambos casos, nosotros obtuvimos resultados favorables porque exigimos prueba estricta que no fue provista por los Demandantes. Como resultado, el Abogado de los cobradores de deudas tuvo que retirar el caso y descartó las demandas.    En el primer caso, yo representé a un acusado en un caso pro bono en nombre del Centro de Recursos Pro Bono de Maryland, Proyecto de Protección al Consumidor. Mi cliente estaba siendo demandado por una vieja deuda que fue adquirida por un comprador de deuda. Mi cliente me dijo que él no recordaba haber tenido una tarjeta de crédito con el Banco que después vendió la cuenta a un comprador de deuda. Antes de que me pidieran representarlo, mi cliente fue a corte y le dijo al Juez que él no recordaba haber tenido alguna vez esta cuenta. Él le preguntó al juez si podía pedirle al abogado del comprador de la deuda demostrar con los documentos originales, facturas u otro papel de trabajo que pudiera refrescar su memoria y comprobar que él no era víctima de un robo de identidad.

Read More from: Scholnick Law

4 years 11 months ago
Recently, I have successfully defended two defendants in debt collection cases involving old credit card bills.  In each case, my clients (the defendants) either did not remember ever creating the debt or being serviced with the suit papers. In both cases we reached favorable outcomes because we demanded strict proof that could not be provided by the Plaintiffs.  As a result, the attorney for the debt collectors and debt buyers had to drop their case and dismiss the claims. In the first case, I represented a defendant pro bono on behalf of the Pro Bono Resource Center of Maryland, Consumer Protection Project.  My client was being sued for an old debt that was bought by a debt buyer.  My client told me that he does not remember ever having a charge card with the Bank that later sold the account to a debt buyer.  Before I was asked to represent him, my client went to court and told the Judge that he did not remember ever having this account.  He asked the Judge if he could have the attorney for the debt buyer prove the original documentation, bills, or other paperwork that would jog his memory and prove that he was not the victim of identity theft.

Read More from: Scholnick Law

4 years 11 months ago
Make-whole provisions have come up in bankruptcy court again, this time before Judge Drain in the Momentive Performance Materials case.  Per Weil's Bankruptcy Blog: on SEPTEMBER 12, 2014 ·Posted in CHAPTER 11 PLANS,MAKE WHOLE/PREPAYMENT PREMIUMS,RELEASES AND EXCULPATIONSThis is the last entry in our four-part series analyzing Judge Drain’s widely read bench ruling issued on August 26, 2014 in connection with the confirmation hearing of Momentive Performance Materials and its affiliated debtors. In Parts I and II, we discussed Judge Drain’s conclusions regarding the appropriate calculation of cramdown interest rates for secured creditors. In Part III, we turned to his analysis of certain subordination provisions found in the indentures governing the Debtors’ senior subordinated notes.

Read More from: The COMI

4 years 11 months ago
Per www.globalinsolvency.com:Mon., September 15, 2014The “good” bank created after the bailout of the Portuguese lender Banco Espírito Santo last month was dealt a setback on Saturday when the three-person management team selected to turn around its business abruptly resigned, theInternational New York Times DealBook blog reported. In a joint statement on Saturday, the chief executive of Novo Banco, Vítor Bento, and his two top lieutenants, José Honório and João Moreira Rato, said they were resigning because their mandate to run the bank had “significantly changed” since they were appointed to run its predecessor, Banco Espírito Santo, in July. Portuguese regulators were forced to engineer a rescue of Banco Espírito Santo in August after the bank was undone by its exposure to its struggling corporate parent. The bank, one of Portugal’s largest financial institutions, was shut down and its healthy businesses were transferred to Novo Banco. The bank had been run for decades by the Espírito Santo family as part of complex web of family-controlled companies, but regulators raised questions this year about “irregularities” in its corporate parent’s finances. Several businesses controlled by the family have since sought creditor protection.

Read More from: The COMI

4 years 11 months ago
Interesting op-ed on digital wallets by Edward Castronova and Joshua Fairfield in the NYT. I'm a little more skeptical. Thoughts follow the break. (1) We already live in a world of digital currency. Thanks to fractional reserve banking and electronic records, most currency and transactions are electronic now, not cash. Most money is already digital; there is a right of paper convertibility, but we're in a digital currency world without involving Satoshis and Ripples (¿or is that ripplakh?).  (2) Government Acceptance of a Currency Matters...A LOT. 

Read More from: Credit Slips

4 years 11 months ago
NORTH OF THE BORDER UPDATE This article has been contributed to the blog by Patrick Riesterer and Mary Angela Rowe. Patrick Riesterer is an associate in the Insolvency and Restructuring group of Osler, Hoskin & Harcourt LLP and Mary Angela Rowe is an articling student at Osler, Hoskin & Harcourt LLP. In the recent case of Indcondo v. Sloan, the Ontario Superior Court appeared to strike a blow for creditors’ rights when it voided several property conveyances as fraudulent – although they had occurred more than a decade earlier, and the creditor’s first action in this respect had been dismissed. The plaintiff Indcondo was able to achieve a judgment on the merits by stepping into the shoes of its debtor’s former trustee in bankruptcy. FACTS
4 years 11 months ago
Marcia L. Goldstein, Co-Chair of the Firm’s Business Finance & Restructuring Department, along with Lori R. Fife, Debra A. Dandeneau, Jacqueline Marcus and Ronit J. Berkovich, all partners in Weil’s Business Finance & Restructuring Department, co-authored an opinion piece published by The Wall Street Journal’s “Bankruptcy Beat” titled “Weil Partners: Restructuring Doesn’t Have to Stay a Male-Dominated Field.” The authors wrote the piece in response to a recent “Examiners” blog post that was published last week. The original post was a response to the question “What factors can make restructuring a difficult field in which to balance work and family obligations, and what should professional firms be doing to help employees?” and it argued why the restructuring field would likely remain male-dominated. In response to this, Weil’s piece explains why restructuring doesn’t have to remain male-dominated, citing the authors as five of many examples of successful female bankruptcy professionals who are also mothers. Some of the authors’ key arguments include that women should not self-select out of certain careers for fear of not being able to sustain a work-life balance in the future, and that work-life balance is not solely a woman’s issue, but rather an issue for both males and females in a wide range of professions.
4 years 11 months ago
The Texas Agricultural Code requires milk processors to hold funds in trust for the benefit of milk producers, including dairies and cooperatives.  A trust fund is a powerful tool that will allow a milk producer to be paid ahead of other creditors in the event that a milk processor files bankruptcy.  To learn more about trust fund claims in general and the protection provided to milk producers in particular, click on the link below to an article written by Jason Binford and John Kane published in the September issue of the Texas Dairy & Ag Review. http://www.texasdairy.com/#!power-of-a-trust-fund/c1x3y

Read More from: Insolvency Insights

4 years 11 months ago
The Texas Agricultural Code requires milk processors to hold funds in trust for the benefit of milk producers, including dairies and cooperatives.  A trust fund is a powerful tool that will allow a milk producer to be paid ahead of other creditors in the event that a milk processor files bankruptcy.  To learn more about trust fund claims in general and the protection provided to milk producers in particular, click on the link below to an article written by Jason Binford and John Kane published in the September issue of the Texas Dairy & Ag Review. http://www.texasdairy.com/#!power-of-a-trust-fund/c1x3y

Read More from: Insolvency Insights

4 years 11 months ago
Rehearing en banc of the conflict minerals case is not warranted because there is no conflict with other court decisions, argues the National Association of Manufacturers, Chamber of Commerce and the Business Roundtable (collectively referred to as “NAM”) in a joint response to the petitions for rehearing en banc submitted by the SEC and Amnesty International (which we previously discussed here.
4 years 11 months ago
Bitcoin as Payment in Small Law Firms- Part One | Solo, Small Firm and General Practice DivisionThe post Bitcoin as Payment in Small Law Firms appeared first on Lindenwood Associates.
4 years 11 months ago
Per www.globalinsolvency.com:Argentina Passes New Debt Bill With Eye On Next PaymentFri., September 12, 2014Argentina's Congress on Thursday passed a new bill designed to enable the government to resume debt payments to bondholders in defiance of a U.S. court ruling which tipped the country back into default, Reuters reported. President Cristina Fernandez's leftist government is in a race against the clock to make a $200 million coupon payment due on Sept. 30 to prevent the default spreading across bond series, which could raise the risk of investors calling for immediate payment on the principal value of their bonds. But she needs to route the funds through channels beyond the reach of the U.S. judge who ruled that Argentina must settle a legal fight with a group of New York hedge funds over unpaid debt from a massive 2002 default before servicing its performing debt. After an overnight debate, the legislature's lower house passed the bill under which the government could make payments on an estimated $29 billion in foreign-held bonds either in Argentina or elsewhere out of U.S. jurisdiction. It also encourages investors to move their Argentine debt from the United States and other foreign jurisdictions to either Argentina or France via an exchange of debt.

Read More from: The COMI

4 years 11 months ago
In re Visteon Corp., Nos. 12-3352, 12-3353, 2014 WL 4244022 (3d Cir. Aug. 28, 2014) In this Opinion, filed on August 28, 2014, the Third Circuit reaffirmed a general legal principle:  with limited exception, in order to reap the benefit of a favorable appeal, you must first file one.  Additionally, the Third Circuit reiterated the principle that “changes in the law after settlement do not affect the validity of the agreement and do not provide a legitimate basis for rescinding the settlement.” Read More › Tags: Appeals

Read More from: Delaware Bankruptcy Insider

4 years 11 months ago
Part of the Real Estate Dumbed Down Webinar Series, Due Diligence in Real Estate Deals is now available on demand. This webinar is a must-attend for anyone who will be representing a client in any type of real estate transaction.  Learn the proper guidelines that must be met to prove diligence.  Our expert panel will discuss what you must avoid in order steer clear of pitfalls that could destroy your reputation and career. Click here to register now.
4 years 11 months ago
Basics of Real Estate Syndication is now available on demand! This webinar will offer an inside look at how real estate investors can profit through real estate syndication. Our expert panel will discuss the legal aspects of syndication and provide practical insight into the process. This webinar is a must attend if you think you will ever be representing or acting as a real estate investor. Click here to register for this webinar.
4 years 11 months ago
The trial on the City of Detroit's restructuring takes a hiatus while insurer Syncora and others try to finalize a settlement. The deal seems to be a hybrid of enhanced treatment for Syncora's class of claims in Detroit's plan (class 9) and other value for Syncora alone, such as rights in Detroit property, and possibly a release from insurance obligations on interest rate swaps. The deal does not resolve class 9 objections as a whole. Indeed, it may give others in the class, e.g., insurer FGIC, more to grumble about. Signals are flashing that the judges (intentionally plural) overseeing Detroit's bankruptcy want a full class 9 settlement and want it now. At the end of Wednesday's bankruptcy court hearing, Judge Rhodes requested an off-the-record conference with representatives from FGIC and the City.

Read More from: Credit Slips

4 years 11 months ago
In re The Free Lance-Star Publ’g Co. of Fredericksburg, VA, 512 B.R. 798 (Bankr. E.D. Va. 2014) – After the debtors obtained court approval of bidding procedures to auction substantially all of their assets, a secured creditor sought a court … Continue reading →
4 years 11 months ago