Some of the recent decisions on Texas homesteads coming out of the courts have people wondering just what John Wayne fought and died for at the Alamo.   The sanctity of the homestead along with the prohibition against garnishment of wages are two of the pillars upon which this State was founded.  While the news for Texas debtors has generally been depressing, Texas Bankruptcy Judge Tony Davis rejected a creative argument from an aggressive trustee in the case of In re Parsons, No. 12-12649 (Bankr. W.D. Tex. 12/12/14), which can be found here. What Happened

(posted 4 hours 23 min ago)

The Judge usually gets his way.  So even if you are a billionaire (or a former billionaire), you shouldn’t sell a mexican resort after the Judge has told you not to, and then make it even worse by not accounting for the funds.  Forbes reported:
After Blixseth provided mostly secondhand reports from his former Mexican lawyer and accountant as to how the money was spent, U.S. District Judge Sam Haddon ordered him to jail for contempt. Blixseth made a deliberate effort to “thwart or delay compliance with a court order,”
The link to the Forbes article is here.

(posted 6 hours 44 min ago)

A.    Where We Left Off
As noted in Part I, movants seeking approval of a structured motion to dismiss must generally prove that: (1) the court has the power to enter an order approving a structured dismissal; (2) “cause” exists to approve the structured dismissal; and (3) the structured dismissal is in the best interest of the debtor’s creditors. Part I addressed courts’ authority to enter orders approving structured dismissals under section 105(a) of the Bankruptcy Code. This section will address how movants can prove that “cause” exists to dismiss a bankruptcy case.
B.    How it Works
The term “cause” is not defined in the Bankruptcy Code. Even so, section 1112 of the Bankruptcy Code provides a non-exhaustive list of examples of “cause” for conversion or dismissal. Among those examples of cause for dismissal are the debtor’s gross mismanagement of the bankruptcy estate, unauthorized use of cash collateral, and failure to comply with court orders. In the context of structured dismissals, however, movants more often set forth one of the two following grounds for cause to dismiss a case: (1) there is a substantial or continuing loss to or diminution of the estate and the absence of a reasonable likelihood of rehabilitation; and/or (2) the debtor has no possibility of proposing a feasible plan of reorganization.

Insolvency Insights
(posted 7 hours 15 min ago)

In Episode 15 of Accredited Investor Markets Radio, host Alicia Purdy, Managing Editor of AccreditedInvestorMarkets.com, chats with Jilliene Helman, CEO of Realty Mogul. Their discussion covers real estate crowdfunding; accessing equity and debt through non-traditional channels; the top three things investors should know before moving ahead with a real estate crowdfunding transaction; and what’s trending right now in the market.
 
You can find more here:
 
Twitter: @Realty_Mogul
 LinkedIn 
 
 About Jilliene Helman
 

(posted 8 hours 22 min ago)

In a Breaking News Alert  at CommercialBankruptcyInvestor.com, Chapter11Dockets.com discusses the creation of an ad hoc committee of creditors in Aereo, Inc.’s chapter 11 case. Find out the constituents here!

(posted 8 hours 23 min ago)

A recap of the informed opinions (and the discussions they generated) on BankThink this week.

BankThink
(posted 8 hours 27 min ago)

In a Radio Shack Bankruptcy Watch at CommercialBankruptcyInvestor.com, the Editorial Staff discusses the latest developments on Radio Shack’s financial difficulties, and the players that surround the company. Read more about it here!

(posted 8 hours 44 min ago)

In a Breaking News Alert  at CommercialBankruptcyInvestor.com, Chapter11Dockets.com notes that Deb Stores filed a motion seeking to approve certain lease and contract rejection procedures. Learn more about the requested rejection procedures!

(posted 8 hours 49 min ago)

In a Breaking News Alert  at CommercialBankruptcyInvestor.com, Chapter11Dockets.com discusses Optim Energy amends (again) its DIP financing deadlines or milestones. Read more about it here!

(posted 8 hours 52 min ago)

John Rogers:Great post by my fellow Kentucky bankruptcy blogger Gregory Adam Napier
Originally posted on Kentucky Bankruptcy Law:

(posted 10 hours 39 min ago)