Municipal Bankruptcy

State Bankruptcy Debate Returns

ABI Bankruptcy Brief | November 6 2012
 
  

November 13, 2012

 
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STATE BANKRUPTCY DEBATE RETURNS

Nearly two years after a "fierce" debate that "fizzled as quickly as it started," University of Pennsylvania law professor David Skeel is arguing that the idea of giving states a way to file for bankruptcy remains relevant and necessary, the Wall Street Journal reported yesterday. In addition to corporations and consumers, the Bankruptcy Code allows municipalities to seek chapter 9 protection. But there is currently no chapter set aside for states that find themselves teetering on the brink of insolvency, nor have states needed one. Yet with major budget deficits, underfunded pensions and declining tax revenues, some say that states should have a legal framework within which to restructure. Skeel advocated the idea of state bankruptcy in The Weekly Standard, as well as in the pages of the Wall Street Journal between November 2010 and January 2011, and the view picked up steam once Newt Gingrich and Jeb Bush added their voices. "Creditors of states have a great deal [of difficulty] collecting from the state," Skeel said recently in resurrecting the idea of state bankruptcy. "It's really hard to get a state to pay you because of sovereign immunity." Read more. (Subscription required.)

REGULATOR FACES ANOTHER LAWSUIT OVER DODD-FRANK

The Obama administration's new rules for Wall Street suffered another setback this week as the financial industry leveled a lawsuit challenging a crucial piece of the regulatory overhaul, the New York Times DealBook blog reported on Friday. The CME Group, a giant Chicago exchange, sued its regulator last Thursday over a new rule that aims to shed light on the murky derivatives trading industry. The regulator, the Commodity Futures Trading Commission, drafted the rule in January under guidance from the Dodd-Frank Act. The case is part of the financial industry's broader legal assault on Dodd-Frank. As regulators hash out the final details of some 400 rules, Wall Street has shifted the fight from backroom lobbying to the courtroom. The trading commission has already been sued twice over Dodd-Frank rules, and Wall Street plans to turn up the heat on the Obama administration next year with a bevy of other legal challenges. Read more.

ANALYSIS: CHILD'S EDUCATION, PARENTS' CRUSHING LOANS

There are record numbers of student borrowers in financial distress, but millions of parents who have taken out loans to pay for their children's college education make up a less-visible generation in debt, the New York Times reported yesterday. For the most part, these parents did well enough through midlife to take on sizable loans, but some have since fallen on tough times because of the recession, health problems, job loss or lives that took a sudden hard turn. In the first three months of this year, the number of student loan borrowers aged 60 and older was 2.2 million, a figure that has tripled since 2005. That makes them the fastest-growing age group for college debt. All told, those borrowers owe $43 billion, up from $8 billion seven years ago, according to the Federal Reserve Bank of New York. Read more.

TWO MILLION COULD LOSE UNEMPLOYMENT BENEFITS UNLESS CONGRESS EXTENDS PROGRAM

More than 2 million Americans stand to lose their jobless benefits unless Congress reauthorizes federal emergency unemployment help before the end of the year, the Washington Post reported today. The people in danger of having their unemployment checks cut off are among those who have benefited least from the slowly improving job market: Americans who have been out of work longer than six months. These workers have exhausted their state unemployment insurance, leaving them reliant on the federal program. In addition to those at risk of abruptly losing their benefits in December, 1 million people would have their checks curtailed by April if the program is not renewed, according to lawmakers and advocates pushing for an extension. Read more.

ANALYSIS: DEEP DISCOUNTS ON FORECLOSED HOMES DISAPPEARING

A market analysis by Zillow found that the average national discount on a foreclosure in September has fallen to only about 8 percent below market value, the Washington Post reported today. That is a significant change from the 24 percent average markdown reported in 2009 during the depths of the housing bust, and another signal that the country's housing market is inching toward recovery. "There’s no such thing as a fire sale on a foreclosure right now," said Marc Joseph, a real estate agent in Fort Myers, Fla. "We’re getting back to that point where if something good hits the markets, we’re getting multiple offers again." According to Zillow, the deepest discounts can be found on foreclosures in the Pittsburgh area, at 27 percent. Cleveland, Cincinnati and Baltimore have average markdowns on foreclosures topping 20 percent. But in many hard-hit markets, particularly ones where home prices fell sharply and investors and buyers have swooped in to buy up foreclosures, discounts have all but vanished. Zillow found that in Las Vegas and Phoenix, there is "no discernible difference" between foreclosure and non-foreclosure sales. Read more.

OPEN PUBLIC HEARING ON CHAPTER 11 REFORM AT ABI'S WINTER LEADERSHIP CONFERENCE

ABI's Commission to Study the Reform of Chapter 11 will hold a public hearing on Friday, Nov. 30, at 11:15 a.m. (MT) during the Winter Leadership Conference in Tucson, Ariz., at the JW Marriott Starr Pass Resort. Members are welcome to provide testimony on their suggestions for ways to improve the operation of chapter 11. The hearing is the fifth in a series of public field hearings. Statements and video from all the recent hearings can be found at the Commission website at http://commission.abi.org.

Interested members should contact Sam Gerdano at [email protected] for more details about in-person testimony. Those interested may also file written statements of any length for consideration by the Commission. All materials will be part of the Commission's record to be transmitted to Congress following the two-year investigation and report. Please consider this great opportunity to become part of the legal reform of the Bankruptcy Code.

The next public hearing will be Thursday, Nov. 15, at the CFA Annual Convention in Phoenix. For future Commission hearings, please click here: http://commission.abi.org/.

ABI IN-DEPTH

LATEST CASE SUMMARY ON VOLO: OVERSTREET V. JOINT FACILITIES MANAGEMENT, LLC (IN RE CRESCENT RESOURCE LLC; 5TH CIR.)

Summarized by Eric Lockridge of Kean Miller LLP

The Fifth Circuit ruled that an untimely Rule 59(e) motion to alter or amend a district court's judgment affirming a bankruptcy court's dismissal order does not extend the 30-day deadline to file a notice of appeal of the district court's judgment.

There are nearly 700 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: DEWEY LEBOEUF AVOIDS LITIGATION MORASS OF MOST LAW FIRM BANKRUPTCY CASES

The Bankruptcy Blog Exchange is a free ABI service that tracks 35 bankruptcy-related blogs. A recent post examines how the settlement in the Dewey LeBoeuf case has helped the firm avoid the failures that typically produce lengthy and litigious bankruptcy cases. For more on issues related to large firm bankruptcies, listen to a recent ABI podcast here.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

Despite the "free and clear" language of Sect. 363(f), purchasers of assets in 363 sales may still be liable for injuries to unidentifiable future claimants. (In re Grumman Olson Indus, S.D.N.Y.).

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

HAVE YOU TUNED IN TO BLOOMBERG LAW'S VIDEO PODCASTS?

Bloomberg Law's video podcasts feature top experts speaking about current bankruptcy topics. The podcasts are available via Bloomberg Law's YouTube channel so that you can access the programs from your computer or device of your choice! Click here to view the Bloomberg Law video podcasts.

INSOL INTERNATIONAL

INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 37 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

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  CALENDAR OF EVENTS
 

November
- Winter Leadership Conference
     November 29 - December 1, 2012 | Tucson, Ariz.

December
- Forty-Hour Bankruptcy Mediation Training
     December 4-8, 2012 | New York, N.Y.

2013

January
- Western Consumer Bankruptcy Conference
     January 21, 2013 | Las Vegas, Nev.
- Rocky Mountain Bankruptcy Conference
     January 24-25, 2013 | Denver, Colo.


  

 

February
- Caribbean Insolvency Symposium
     February 7-9, 2013 | Miami, Fla.
- Kansas City Advanced Consumer Bankruptcy Practice Institute
     February 17-19, 2013 | Kansas City, Mo.
- VALCON 2013
     February 20-22, 2013 | Las Vegas, Nev.


 
 
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Judge Proposes Fast Pace in Detroit Bankruptcy Case

ABI Bankruptcy Brief | July 30, 2013
 
  

July 30, 2013

 
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  NEWS AND ANALYSIS   

DETROIT

JUDGE PROPOSES FAST PACE IN DETROIT BANKRUPTCY CASE

Bankruptcy Judge Steven Rhodes today set key dates in Detroit's bankruptcy case that indicate his intention to accelerate the process, the Detroit Free Press reported today. Judge Rhodes proposed an Aug. 19 deadline for all motions arguing against Detroit's eligibility for chapter 9 bankruptcy and that a trial on that question will begin Oct. 23rd. Detroit Emergency Manager Kevyn Orr asked the judge to set a one-month deadline for objections to the city's right to file for bankruptcy. The eligibility question has taken more than a year to resolve in some of the municipal bankruptcies of the last five years. Attorneys for the city have argued in court filings that they negotiated "in good faith" with the city's creditors before filing for bankruptcy. The city also argued that it is insolvent, one key criteria allowing municipalities to file for bankruptcy. Several creditors, including labor groups, have signaled they plan to challenge the city's eligibility to file for bankruptcy. The city's pension boards have accused Orr's team of failing to negotiate in good faith over changes to retiree pensions. Judge Rhodes also proposed March 1 as a deadline for the city to file a plan of adjustment. Judge Rhodes plans to consider any questions or concerns about his proposed schedule on Friday during a court hearing in Detroit. Read more.

Looking for this court document or the referenced state statutes in the Detroit bankruptcy case? The latest news stories and analysis? Audio and video of experts examining the issues of the case? ABI has all those items and more on ABI's Detroit Bankruptcy Resources webpage. As new developments break and filings are registered with the court throughout the proceeding, ABI's Detroit webpage will keep you up-to-date on the proceeding. Make sure to bookmark and regularly visit http://news.abi.org/detroit.

ANALYSIS: DETROIT BANKRUPTCY UNDERSCORES RIFT BETWEEN CITY, SUBURBS

A generations-long divide between Detroit, where the per-capita income is $15,261, and its suburbs, such as Birmingham, Mich., where it's $67,580, is raising questions about how affluence can co-exist alongside poverty, and whether urban areas with declining populations can thrive, according to a Bloomberg News analysis yesterday. Detroit became the fourth-largest U.S. city by 1950 with the growth of the auto industry, when the companies that are now General Motors Co., Ford Motor Co. and Chrysler Group LLC churned out cars. Since then, 1 million residents have left for places such as Oakland County, where the population more than tripled to 1.2 million. That county is the state's wealthiest, according to the U.S. Bureau of Economic Analysis statistics. Cities such Birmingham and Bloomfield Hills, where auto executives and former Republican presidential candidate Mitt Romney lived, are about 20 miles from Detroit. The disparity between rich and poor increased over the past decade as Detroit "got hammered" during the longest recession since the 1930s, said Kurt Metzger, director of Data Driven Detroit, a nonprofit organization that tracks social, economic and environmental indicators. Read more.

U.S. REGULATORS MOVING CAUTIOUSLY ON MORTGAGE REFORMS

U.S. bank regulators, wary of upsetting the fragile housing market, are moving cautiously in fashioning dozens of new rules to prevent reckless underwriting and other mortgage market abuses, Reuters reported yesterday. In implementing the 2010 Dodd-Frank financial reform law, regulators have said that they are sensitive to arguments from a rare alliance of both lenders and consumer groups that too-tough rules could hamper credit availability. A cooperative relationship has developed between banks and the newly created Consumer Financial Protection Bureau (CFPB), which has broad authority to regulate mortgage lending. Consumer groups and lenders said that the CFPB struck a balance with its first major mortgage rules, including a requirement released in January that lenders be able to verify that borrowers could repay loans. Since then, bank lobbyists say bureau officials remain attuned to their concerns about complying with the many new rules. In some cases, the bureau has even revisited final rules and amended technical aspects in response to banks' comments. Read more.

COMMENTARY: NOT TOO BIG TO FAIL

New rules on bank capital, recently proposed by the Federal Deposit Insurance Corp. and other bank regulators, are a welcome step toward a safer and sounder financial system, according to an editorial in yesterday's New York Times. Big banks will likely argue that the new rules will impede their ability to thrive and, in the process, harm the economy. But their profits are soaring, even as the economy is slowing down, a situation that makes their shopworn anti-regulatory argument all the more threadbare, according to the editorial. It is not the banks that need protection from regulation, but rather it is the public that needs protection from banks that are regarded as too big to fail. The new rules would require the nation's biggest banks to hold significantly more capital than is required under international agreements. Higher capital requirements are a start, according to the editorial, but tighter regulations reducing complexity and risks are also necessary, including an iron-clad Volcker Rule prohibiting excessive speculation. Read the full editorial.

CITIES BEGIN HIRING AGAIN

Cities across the U.S. are starting to hire new teachers, firefighters and police officers, as a prolonged slide in local-government employment appears to have bottomed out, four years after the recession ended, the Wall Street Journal reported today. Municipal police academies in Massachusetts are running at capacity as communities train new officers, while Minneapolis recently added nearly two dozen firefighters, ending a five-year hiring freeze. The school district for Clark County, Nev., which includes Las Vegas, is hiring 700 new teachers this year, the first sizable boost in its workforce in five years. Monthly jobs data from the Labor Department show that local governments, which make up about 65 percent of the overall government workforce, added workers in seven of the past eight months, the longest such streak in five years. So far this year, 46,000 new jobs have been created on a seasonally adjusted basis. Local-government employment through June stood at 14.08 million, the highest level in more than a year and a half, though still well below a peak of 14.61 million in mid-2008. Read more. (Subscription required.)

IN CASE YOU MISSED IT - abiLIVE WEBINAR DISCUSSING § 1111(b) ELECTION, PLAN FEASIBILITY AND CRAMDOWN ISSUES RECORDING IS NOW AVAILABLE!

If you were not able to join Monday's well-attended abiLIVE webinar examining § 1111(b), a recording of the program is now available for downloading! Utilizing a case study, ABI's panel of experts explored the issues surrounding a lender's decision on whether or not to make an election under § 1111(b), plan feasibility and voting. The abiLIVE panel also walked attendees through the necessary mathematical analyses used to examine these issues. The 90-minute recording is available for the special price of $75 and can be purchased here.

ABILIVE WEBINAR ON SEPT. 24 TO EXAMINE THE COMPLEX REQUIREMENTS AND ETHICAL DUTIES OF REPRESENTING CONSUMER DEBTORS

The abiLIVE webinar on Sept. 24 will feature a panel of experts discussing the ethical and compensation issues that can arise while representing chapter 7 and 13 debtors as well as individual chapter 11 debtors. Topics covered include client fraud and an attorney's duty to verify client information, attorney fee structures, and complex issues in individual chapter 11 cases. The panel includes perspectives from the attorneys and trustees, as well as the academic reporter for the ABI Ethics Task Force. Click here to register.

ABI GOLF TOUR UNDERWAY; NEXT STOP IS THE MID-ATLANTIC BANKRUPTCY WORKSHOP NEXT WEEK

The 5th stop for the ABI Golf Tour is the Hershey Country Club, in conjunction with next week's Mid-Atlantic Bankruptcy Workshop. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores at seven scheduled ABI events, so play as many as you can before the tour wraps up at the Winter Leadership Conference in December. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event last week at Amelia Island, Fla.! There's no charge to register or participate in the Tour.

ABI IN-DEPTH

ASSOCIATES: ABI'S NUTS & BOLTS ONLINE PROGRAMS HELP YOU HONE YOUR SKILLS WHILE SAVING ON CLE!

Associates looking to sharpen their bankruptcy knowledge should take advantage of ABI's special offer of combining general, business or consumer Nuts & Bolts online programs. Each program features an outstanding faculty of judges and practitioners explaining the fundamentals of bankruptcy, offering procedures and strategies tailored for both consumer and business attorneys. Click here to get the CLE you need at a great low price!

NEW CASE SUMMARY ON VOLO: WILLMS V. SANDERSON (9TH CIR.)

Summarized by Tom Phinney of Parkinson Phinney

The Ninth Circuit held that the 60-day time limit provided in Bankruptcy Rule 4007(c) for filing a nondischargeability complaint under § 523 was improperly extended sua sponte by the bankruptcy court where (1) the creditor's motion for extension referenced §§ 727 and 707, and did not reference § 523; and (2) no cause for the extension was shown. The Ninth Circuit ordered the nondischargeability complaint dismissed with prejudice as having been untimely filed.

There are more than 900 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: WHAT HAPPENS TO A CORPORATION'S ATTORNEY/CLIENT PRIVILEGE IN BANKRUPTCY?

The Bankruptcy Blog Exchange is a free ABI service that tracks 35 bankruptcy-related blogs. A recent blog post examines what happens to a corporation's attorney/client privilege when the corporation files for bankruptcy.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

A class of claims should not be considered impaired for purposes of § 1129(a)(10) if the impairment results from the plan proponents' exercise of discretion (i.e., artificial impairment) and not driven by economic need. (In re Village at Camp Bowie I LP).

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL

INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 37 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

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  CALENDAR OF EVENTS
 

2013

August
- Mid-Atlantic Bankruptcy Workshop
    August 8-10, 2013 | Hershey, Pa.
- abiLIVE Webinar: How Will the New U.S. Trustee Fee Guidelines Impact You?
     August 20, 2013
- Southwest Bankruptcy Conference
    August 22-24, 2013 | Incline Village, Nev.

September
- ABI Endowment Golf & Tennis Outing
    Sept. 10, 2013 | Maplewood, N.J.
- ABI Endowment Baseball Game
    Sept. 12, 2013 | Baltimore, Md.
- Lawrence P. King and Charles Seligson Workshop on Bankruptcy & Business Reorganization
    Sept. 18-19, 2013 | New York
- abiLIVE Webinar: Complex Requirements and Ethical Duties of Representing Consumer Debtors
     Sept. 24, 2013
- Bankruptcy 2013: Views from the Bench
    Sept. 27, 2013 | Washington, D.C.

October
- Midwestern Bankruptcy Institute Program and Midwestern Consumer Forum
    Oct. 4, 2013 | Kansas City, Mo.
- Professional Development Program
    Oct. 11, 2013 | New York, N.Y.


  


- Chicago Consumer Bankruptcy Conference
    Oct. 14, 2013 | Chicago, Ill.
- International Insolvency & Restructuring Symposium
    Oct. 25, 2013 | Berlin, Germany

November
- Complex Financial Restructuring Program
   Nov. 7, 2013 | Philadelphia, Pa.
- Corporate Restructuring Competition
   Nov. 7-8, 2013 | Philadelphia, Pa.
- Austin Advanced Consumer Bankruptcy Practice Institute
   Nov. 10-12, 2013 | Austin, Texas
- Detroit Consumer Bankruptcy Conference
   Nov. 11, 2013 | Detroit, Mich.

December
- ABI/St. John’s Bankruptcy Mediation Training
    Dec. 8-12, 2013 | New York


 
 
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Justice Department Probe Turns Up Heat on Banks

ABI Bankruptcy Brief | August 6, 2013
 
  

August 8, 2013

 
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  NEWS AND ANALYSIS   

JUSTICE DEPARTMENT PROBE TURNS UP HEAT ON BANKS

The Justice Department is targeting banks that service a broad range of what it considers questionable financial ventures, including online payday lenders, the Wall Street Journal reported today. The Justice Department is targeting banks that service a broad range of what it considers questionable financial ventures, including online payday lending, that officials worry may harm consumers. The government has issued subpoenas to banks and other companies that handle payments for an array of financial offerings, ramping up an investigation that has been under way for several months, according to Justice Department officials. It's a shift in strategy: Rather than just targeting individual firms, the government is now going after the infrastructure that enables companies to withdraw money from people's bank accounts. The volume of online payday lending -- a term for smaller, short-term loans at high interest rates -- grew to $18.6 billion in 2012, up 10 percent from the previous year, accounting for nearly 40 percent of industrywide payday-loan volume, according to investment bank Stephens Inc. Regulators are also trying tamp down phone and online offers in which marketers try to get people to pay for services that they don't intend to deliver. These can include offerings to erase debt or offerings of work-from-home programs that don't lead to jobs, officials say. Read more. (Subscription required.)

DETROIT RATTLES MUNI MARKET

A fight over bankrupt Detroit's sewer system threatens to reshape the nation's $3.7 trillion municipal-bond market, the Wall Street Journal reported today. The battle pits Detroit Emergency Manager Kevyn Orr against the fund companies, insurers and individuals that hold more than $5 billion of Detroit water and sewer bonds, over a plan to restructure the debt. Orr wants bondholders to sign off on a plan to tear up some outstanding bonds and replace them with new ones that could have different terms. The switch could free up millions of dollars in city revenue, potentially reducing losses for other creditors in the city's more than $18 billion bankruptcy case. Some bondholders say that they don't want that deal, even though Orr says they wouldn't suffer losses on the debt switch. They say tearing up the bonds could set a dangerous precedent that may shock buyers of supposedly safe municipal debt and impair financing for other U.S. states and cities. Read more. (Subscription required.)

For the latest information and analysis about the Detroit case, be sure to visit ABI's dedicated website, http://news.abi.org/Detroit.

COMMENTARY: PENSION REFORM COULD DISRUPT INVESTMENT FUNDS

Detroit's financial woes, exacerbated by underfunded pension liabilities, have brought renewed scrutiny to public pension plans, according to a commentary yesterday on the New York Times DealBook blog. Senator Orrin Hatch (R-Utah) and others have suggested overhauling these plans to shift more responsibility to the private sector. Private insurance companies would assume responsibility for these defined benefit plans, offering annuities to beneficiaries in exchange for employer-paid premiums. Proponents argue that privatization could reduce the risk of municipal bankruptcy and federal bailouts. One downside, according to the commentary, is the possible increase in fees associated with external management of retirement savings; it creates another way for Wall Street to extract wealth from Main Street. Phasing out public pension funds could also cut off an important source of financing for venture capital and private equity. Pension funds like the California Public Employees' Retirement System, or CalPERS, and the Teachers Retirement System of Texas are among the largest and most powerful institutional investors in venture capital and private equity. Read the full commentary.

CONSUMERS FIND INVESTORS EAGER TO MAKE "PEER-TO-PEER" LOANS

There has been a growing shift among lenders with many individual investors jumping to fund unsecured, high-interest-rate loans to bring in high yields, the Wall Street Journal reported yesterday. Even some investment funds are getting into the game, snapping up entire loans before individual investors can act. Prosper Loans Marketplace Inc., and a bigger competitor, Lending Club Corp., dominate an obscure corner of the financial-services sector called "peer-to-peer" lending, in which consumers bypass banks altogether to borrow money from other individuals. It is part of a shadow-lending system that has thrived since the 2008 financial crisis caused many banks to tighten their credit standards. With more money chasing the loans, lenders such as Prosper are working hard to come up with enough borrowers to meet the demand. Each month, Prosper mails more than a million preapproved loan applications. In June, the company arranged $27.5 million in loans, a bit short of its goal. In July, it originated $30.3 million. Prosper and Lending Club together originated about $871 million in loans last year, more than double the prior year's total and up tenfold since 2008. Lending Club says it is on track to lend $2 billion this year. Read more. (Subscription required.)

IN CASE YOU MISSED IT - abiLIVE WEBINAR DISCUSSING § 1111(b) ELECTION, PLAN FEASIBILITY AND CRAMDOWN ISSUES RECORDING IS NOW AVAILABLE!

If you were not able to attend ABI's recent abiLIVE webinar examining § 1111(b), a recording of the program is now available for downloading! Utilizing a case study, ABI's panel of experts explored the issues surrounding a lender's decision on whether or not to make an election under § 1111(b), plan feasibility and voting. The abiLIVE panel also walked attendees through the necessary mathematical analyses used to examine these issues. The 90-minute recording is available for the special price of $75 and can be purchased here.

abiLIVE WEBINAR ON AUGUST 20: HOW WILL THE NEW U.S. TRUSTEE FEE GUIDELINES IMPACT YOU?

The new U.S. Trustee Fee Guidelines will affect all attorneys and firms who work on larger chapter 11 cases filed on or after Nov. 1. ABI's Ethics & Professional Compensation Committee will present a panel of experts, including Clifford J. White, the director of the U.S. Trustee Program, to discuss some of the ways the new guidelines could change day-to-day operations in firms, issues relating to the new market rate benchmarks, and how these changes might alter insolvency practice. Register today to hear government, attorney and academic perspectives speak on this important and timely topic.

ABI GOLF TOUR UNDERWAY; NEXT STOP IS THE SOUTHWEST BANKRUPTCY CONFERENCE ON AUG. 22

The 6th stop for the ABI Golf Tour is on Aug. 22 at the Incline Village Champion course, held in conjunction with ABI's Southwest Bankruptcy Conference. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores at seven scheduled ABI events, so play as many as you can before the tour wraps up at the Winter Leadership Conference in December. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event at July's Southeast Conference. There's no charge to register or participate in the Tour.

ABI IN-DEPTH

ASSOCIATES: ABI'S NUTS & BOLTS ONLINE PROGRAMS HELP YOU HONE YOUR SKILLS WHILE SAVING ON CLE!

Associates looking to sharpen their bankruptcy knowledge should take advantage of ABI's special offer of combining general, business or consumer Nuts & Bolts online programs. Each program features an outstanding faculty of judges and practitioners explaining the fundamentals of bankruptcy, offering procedures and strategies tailored for both consumer and business attorneys. Click here to get the CLE you need at a great low price!

NEW CASE SUMMARY ON VOLO: WASHINGTON GROUP INTERNATIONAL INC. V. THE UNITED STATES OF AMERICA (IN RE WASHINGTON GROUP INTERNATIONAL INC., ET AL.; 9TH CIR.)

Summarized by Joel Newell of Lane & Nach P.C.

In the unpublished ruling, the Ninth Circuit BAP affirmed Bankruptcy Judge Gregg W. Zive's application of the 9th Circuit precedent as set forth in In re Cal. Dep't of Health Svcs. V. Jensen (In re Jensen), 995 F.2d 925 (9th Cir. 1993), denying debtor's motion to enjoin the subsequent litigation.

There are more than 900 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: DEBTOR'S BANKRUPTCY APPEAL TOSSED FOR DELAY BY ELEVENTH CIRCUIT

The Bankruptcy Blog Exchange is a free ABI service that tracks 35 bankruptcy-related blogs. A recent blog post looks at a case out of the Eleventh Circuit in which a pro se debtor filed for chapter 7 bankruptcy in 2009 and disclosed that he had nearly $40,000 in student loan obligations. The debtor filed an adversary complaint against the lender and sought a determination that his student loan obligations were dischargeable. The lender served a set of interrogatories on the debtor, which the debtor steadfastly refused to answer (even after being compelled to do so by the court). Ultimately, the court dismissed the debtor's case. On appeal to the district court, the debtor failed to file or serve his initial appellate brief, never requested an extension of time, and had not otherwise appeared in the case. More than five months after the debtor filed his notice of appeal, the district court sua sponte dismissed the appeal for failure to prosecute.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

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  CALENDAR OF EVENTS
 

2013

August
- abiLIVE Webinar: How Will the New U.S. Trustee Fee Guidelines Impact You?
     August 20, 2013
- Southwest Bankruptcy Conference
    August 22-24, 2013 | Incline Village, Nev.

September
- ABI Endowment Golf & Tennis Outing
    Sept. 10, 2013 | Maplewood, N.J.
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    Sept. 12, 2013 | Baltimore, Md.
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    Sept. 18-19, 2013 | New York
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     Sept. 24, 2013
- Bankruptcy 2013: Views from the Bench
    Sept. 27, 2013 | Washington, D.C.

October
- Midwestern Bankruptcy Institute Program and Midwestern Consumer Forum
    Oct. 4, 2013 | Kansas City, Mo.
- Professional Development Program
    Oct. 11, 2013 | New York, N.Y.


  


- Chicago Consumer Bankruptcy Conference
    Oct. 14, 2013 | Chicago, Ill.
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November
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   Nov. 7, 2013 | Philadelphia, Pa.
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   Nov. 11, 2013 | Detroit, Mich.

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