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chapter 13 case

Has your Chapter 13 bankruptcy case been turned upside down by coronavirus?

You are not alone.

And attorneys, trustees and judges are all working on adaptations and adjustments that will save pending cases.

Practices and procedures in Chapter 13 vary widely around the country.  What follows is what I see here in the Bay Area and hear from around the country.

Congress takes Chapter 13 action

The CARES Act, passed by Congress on March 27, extends the allowable length of confirmed Chapter 13 plans to seven years. Currently, plans cannot run more than five years.

Read More from: The Soap Box

3 days 20 hours ago

Like his longtime boss and mentor, Bob Wilmers, Jones is deeply committed to investing in communities, controlling expenses and delivering value for investors. But he also has novel ideas for modernizing M&T, like doing away with its "permission culture," improving the customer journey and positioning it as a go-to bank for tech talent.

Read More from: BankThink

3 days 20 hours ago

The agencies will give the industry another month to submit feedback on the so-called covered fund portion of the rule "in light of potential disruptions resulting from the coronavirus.”

Read More from: BankThink

3 days 22 hours ago

Cryptocurrency conceptA major problem to the analysis of the crypto asset and the related blockchain industry has been and still is the lack of clear guidelines and legal definitions. This blog considers how German law approaches crypto assets and how those type of assets are dealt with in an insolvency.

Apparently, the change from paper-based securities to electronic registries of securities maintained by central clearing depositories since the 1970s has led to a substantial shift from direct to indirect holding of objects, with significant implications for the underlying property law. Interestingly, the meaning of “ownership” differs fundamentally across major jurisdictions and with regard to how property law treats immaterial digital objects like crypto assets. Various legal systems are currently struggling with the property status of crypto assets. The qualification of a crypto asset as property (i.e., as an object of property rights, including the right of ownership) constitutes a fundamental legal, rather than “regulatory”, consideration. Legal systems take divergent approaches to the concept of property. Three broad approaches can be named in the world’s major legal systems:

Read More from: eSQUIRE Global Crossings

3 days 22 hours ago

The U.K. company has recruited Bruce Wallace, formerly of Silicon Valley Bank, and Ronald Oliveira, who was with AvidBank, to lead its expansion here.

Read More from: BankThink

3 days 22 hours ago

European Union flag against European ParliamentThe European Union (EU) recognized the unprecedented situation, which has arisen as a result of the Coronavirus/COVID-19 outbreak and is currently activating measures to help the economic consequences of the COVID-19 crisis.  Click

Read More from: eSQUIRE Global Crossings

3 days 22 hours ago

This updated note sets out directors’ duties in the context of managing the practicalities that Covid-19 places on business operations.

 

Read More from: eSQUIRE Global Crossings

3 days 22 hours ago

Lenders can offer deferred payments and capitalize on digital banking to help small businesses and consumers get back on their feet.

Read More from: BankThink

3 days 23 hours ago

The change — effective immediately — will reduce capital demands by about 2% overall, the Fed estimated, and will be open for a 45-day comment period.

Read More from: BankThink

4 days 7 min ago

The one-year relief is intended to free up lending to consumers and businesses; the online small business lender not making loans, shrinks credit lines, staff.

Read More from: BankThink

4 days 2 hours ago

About 1,000 interns were notified of the change this week. They will still receive the pay and housing funds outlined in their original offer letters.

Read More from: BankThink

4 days 2 hours ago

If Capitol Hill plans another round of stimulus, Democrats could have more leverage to demand steps such as suspending overdraft fees or placing a temporary cap on consumer lending rates.

Read More from: BankThink

4 days 13 hours ago
Here, the Court grapples with an inheritance—the latest chapter of a litigation odyssey that began over a decade ago in a different domain.
Adv. No. 18-1091, Kansas City Southern Railway Company vs. Luz Chavez vs. Rosenthal & Watson, P.C. (Bankr. W.D. Tex. 1/31/20), p.1.  The opinion can be found here.
4 days 15 hours ago

First, do no harm.  The shutdown of businesses by government order was sudden.  Most companies were unprepared.  Decisions made quickly that are not carefully thought through can create liability down the road that make it harder to turn the company around once businesses start operating again.  For instance, the Workers Adjustment and Retraining Notification Act (the “Warn Act”) requires employers with 100 or more employees to provide 60 days written notice before laying off 50 or more employees during any 30-day period.  Some states have more stringent Warn Acts.  For instance, the New York Warn Act applies more strictly to companies with 50 or more employees who lay off 25 or more employees in any 30-day period.

Cash is Everything.  It’s important to make a plan to conserve cash and cut expenses.  Cancel orders that can be canceled and consider terminating burdensome contracts.  Much inventory will be outdated by the time business turns back on; consider returning inventory or selling it wholesalers to recoup cash.

While you are getting your arms around your outflows, you need to understand your inflows.  Scour the books for accounts receivables that can be collected.  Focus on the larger accounts and do what you can to get those obligations paid.

4 days 16 hours ago

First, do no harm.  The shutdown of businesses by government order was sudden.  Most companies were unprepared.  Decisions made quickly that are not carefully thought through can create liability down the road that make it harder to turn the company around once businesses start operating again.  For instance, the Workers Adjustment and Retraining Notification Act (the “Warn Act”) requires employers with 100 or more employees to provide 60 days written notice before laying off 50 or more employees during any 30-day period.  Some states have more stringent Warn Acts.  For instance, the New York Warn Act applies more strictly to companies with 50 or more employees who lay off 25 or more employees in any 30-day period.

Cash is Everything.  It’s important to make a plan to conserve cash and cut expenses.  Cancel orders that can be canceled and consider terminating burdensome contracts.  Much inventory will be outdated by the time business turns back on; consider returning inventory or selling it wholesalers to recoup cash.

While you are getting your arms around your outflows, you need to understand your inflows.  Scour the books for accounts receivables that can be collected.  Focus on the larger accounts and do what you can to get those obligations paid.

4 days 16 hours ago

Amid the coronavirus emergency, the central bank may have to decide at what point the imperatives of an economic crisis outweigh the requirements of its most severe enforcement action in recent memory.

Read More from: BankThink

4 days 17 hours ago

The agency said lenders should avoid reporting delinquent payments to credit bureaus for consumers who have sought payment relief due to the pandemic.

Read More from: BankThink

4 days 18 hours ago

The Coronavirus Aid, Relief, and Economic Security Act known as the CARES Act has officially been signed into law and includes a Paycheck Protection Program. Within the next several days, small businesses will be able to begin applying for financial aid that they – and their valued employees – need and deserve in these difficult times.      The Paycheck Protection Program is set forth in Title I, Keeping American Workers Paid and Employed Act.  Under the program, your company may be eligible to receive funds equal to 2.5 times your average monthly payroll up to $10 million , as a result of business interruption from COVID-19. Although this aid is in the form of an unsecured, no-fee loan, the loan may be forgiven if your business uses the loan proceeds to fund payroll, mortgage obligations, rent, utilities or other eligible expenses, and if the borrower maintains payroll during the crisis period or restores their payrolls afterward, as required by the law.   For more than 50 years , Bernstein-Burkley, P.C., has zealously represented clients and helped them achieve their financial and business objectives. Our experienced attorneys have studied and understand the CARES Act, and stand ready to help you navigate this new legislation and application process from beginning to end.

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

4 days 18 hours ago

Bank of America said it has agreed to allow 50,000 mortgage customers to defer payments for three months because they've lost income as a result of the pandemic.

Read More from: BankThink

4 days 18 hours ago

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