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Creditors often think that an involuntary bankruptcy petition is a great bargaining chip when faced with a recalcitrant debtor. However, the actual filing of an involuntary bankruptcy petition (when that petition is filed in “bad faith”) confers a considerable risk to the petitioning creditors.  Recently, the United States Court of Appeals for the Third Circuit issued an opinion that re-emphasizes just how risky bad faith involuntary petitions can be for creditors.

In that non-precedential opinion authored by Circuit Judge Rendell, the Third Circuit weighed in on whether a creditor can set off damages imposed against it due to a bad faith involuntary bankruptcy petition against its claims against the debtor.  U.S. Bank, N.A. v. Maury Rosenberg, No. 18-1249, 2018 WL 3640987 (3d Cir. July 31, 2018).

2 days 6 hours ago

Creditors often think that an involuntary bankruptcy petition is a great bargaining chip when faced with a recalcitrant debtor. However, the actual filing of an involuntary bankruptcy petition (when that petition is filed in “bad faith”) confers a considerable risk to the petitioning creditors.  Recently, the United States Court of Appeals for the Third Circuit issued an opinion that re-emphasizes just how risky bad faith involuntary petitions can be for creditors.

In that non-precedential opinion authored by Circuit Judge Rendell, the Third Circuit weighed in on whether a creditor can set off damages imposed against it due to a bad faith involuntary bankruptcy petition against its claims against the debtor.  U.S. Bank, N.A. v. Maury Rosenberg, No. 18-1249, 2018 WL 3640987 (3d Cir. July 31, 2018).

2 days 6 hours ago

Thirty Morris James attorneys in thirty-two practice areas were selected by their peers for inclusion in The Best Lawyers in America© 2019 edition. Additionally, three of those attorneys were named “Lawyer of the Year” for their respective practices, including David H. Williams for Education Law, Employment Law – Management, and Litigation – Labor and Employment, Richard Galperin for Healthcare Law, Medical Malpractice - Defendants, and Personal Injury Litigation – Defendants, and John M. Bloxom, IV for Real Estate. Congratulations to Kenneth L. Dorsney, Shannon S. Frazier, Kevin G. Healy, Eric J. Monzo, John H. Newcomer, Jr., K. Tyler O’Connell and Jill Spevack Di Sciullo for being recognized for the first time. More ›

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2 days 7 hours ago

Harker v. PNC Mtg. Co. (In re Oakes), 581 B.R. 500 (6th Cir. B.A.P. 2018) – A chapter 7 trustee sought to avoid a recorded mortgage with a defective acknowledgment using his strong arm powers. The bankruptcy court ruled in favor … Continue reading

2 days 9 hours ago

Lending to problematic or serial evictors can cause people to be pushed out of their homes in the name of profits. Banks must adopt standards against this practice.

Read More from: BankThink

2 days 18 hours ago

Paul Manafort turned to Jared Kushner for help in an attempt to secure a Trump administration job for a Chicago banker at the center of Manafort’s fraud trial.

Read More from: BankThink

2 days 18 hours ago

Keith Mestrich, who runs the union-founded bank, plans to use a more liquid stock to pursue acquisitions in cities such as Boston, Seattle and Los Angeles.

Read More from: BankThink

2 days 18 hours ago

The card issuer Synchrony will continue to manage three cards for the national hardware chain. The timing is good as Synchrony recently lost a deal issuing cards for Walmart.

Read More from: BankThink

2 days 18 hours ago

Organizers of Piermont Bank said in their application with the FDIC that they want to raise $100 million and eventually operate in several urban coastal communities.

Read More from: BankThink

2 days 18 hours ago

The companies had been unable to secure regulatory approval for the deal, which was announced a year ago.

Read More from: BankThink

2 days 18 hours ago

The regulator of the government-sponsored enterprises has substantial authority to intervene as a legislative stalemate continues.

Read More from: BankThink

2 days 18 hours ago

The number of consumers being pursued by debt-collection agencies fell dramatically in the past year, but it's as much technicality as achievement, and bankers need to keep that in mind when reviewing the credit scores of millions of Americans.

Read More from: BankThink

2 days 18 hours ago

Legacy tech vendors have traditionally offered decadelong contracts. But given constant change in the industry, small banks today should push for three-year deals, a bank CEO says.

Read More from: BankThink

2 days 18 hours ago

The New York Times reported that on August 8th, the New York City Council voted to issue a cap on licenses available for for–hire vehicles for one year, which went into effect on August 14th.  The City Council vote was 39 to 6 in favor of the cap. According to the article, New York City became the first major American city on Wednesday to halt new vehicle licenses for ride-hail services, dealing a significant setback to Uber in its largest market in the United States.

However, according to the article, the law allows the Taxi & Limousine Commission to add more licenses if there is a clear need for more vehicles in some neighborhoods.

The City Council also passed a separate law setting a minimum payments for for–hire vehicle drivers.

Read More from: Shenwick & Associates

3 days 29 min ago

Upcoming Committee Formation Meeting: Thursday, August 23 2018 10:00 AM

Case Name: 18-11814 (BLS)

Location: Office of the US Trustee, 844 King Street, Room 3209, Wilmington ,DE 19801

Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here. See the petition for relief.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

3 days 1 hour ago

Upcoming Committee Formation Meeting: Thursday, August 23 2018 10:00 AM

Case Name: 18-11814 (BLS)

Location: Office of the US Trustee, 844 King Street, Room 3209, Wilmington ,DE 19801

Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here. See the petition for relief.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

3 days 1 hour ago

As the brick and mortar retail industry continues to decline, landlords are likely to engage in an increasing number of lease disputes with delinquent tenants. As we have seen over the past five years, those disputes often end up in bankruptcy court and may drag on for months before a landlord is able to shake its non-performing tenant.  But what if the landlord terminated the lease before the tenant filed for bankruptcy relief?  Can the tenant revive and assume the lease?  In some instances, yes.  This Insolvency Insights blog post provides an overview of the effects of a lease termination prior to bankruptcy, how courts analyze termination, and pitfalls to avoid when terminating a financially distressed tenant’s lease.

Assuming a Lease

Under the Title 11 of the United States Code (the “Bankruptcy Code”), property of a debtor’s bankruptcy estate includes all property owned by a debtor as of the date on which the debtor files for bankruptcy relief (the “Petition Date”). A debtor’s valid leasehold interest is property of the estate.  Section 365 of the Bankruptcy Code enables a debtor to assume a valid lease even despite its bankruptcy filing so long as (i) any defaults under the lease are promptly cured and (ii) the debtor is capable of proving its ability to perform under the terms of the lease.

Read More from: Insolvency Insights

3 days 4 hours ago

OK, maybe longer than a week to get back to this topic. Myth #6 From Barry Paperno in USA Today: “You can’t get a credit card or loan after bankruptcy.” One of the most asked questions by prospective clients. First, there is NO reason to...

The post Bankruptcy Myths appeared first on Detroit Bankruptcy Lawyer Kurt O'Keefe.

Read More from: Stop Creditor

3 days 4 hours ago

  The 5th Circuit had an opportunity to interpret the 'without deduction for costs of sale or marketing' language of §506(a) with respect to the valuation of a lien on a mobile home in In the Matter of: KAYLA GLENN, Debtor 21ST MORTGAGE CORPORATION, Appellant, v. KAYLA GLENN, Appellee., No. 17-60533, 2018 WL 3846202, (5th Cir. Aug. 13, 2018).  The case involved a chapter 13 debtor valuing a purchase money lien on a mobile home in a chapter 13 case.  The creditor filed a claim for $27,714.  Debtor's plan provided for amortization of the value over the life of the plan at a 5% interest rate.  The creditor objected to confirmation, primarily over whether the $4,000 alleged cost of necessary delivery and setup services for the mobile home should be included.  Since the mobile home was delivered and setup prepetition, these expenses will not be incurred again for debtor.    The bankruptcy court excluded these fees, finding that to include them in a home that was already delivered would be inconsistent with the statutory mandate to consider the 'proposed disposition or use' of the property.  The district court agreed in light of Associates Commercial Corp. v. Rash, 520 U.S.

Read More from: Tampa Bankruptcy

3 days 4 hours ago

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