Money down the drainNo – not again!!  You thought the foreclosure crises was behind us.  Right?  It turns out that many of the government programs intended to modify home loans have only delayed the inevitable because some of the programs as set to expire in 2015.   One of these programs, Home Affordable Modification Program (HAMP) was designed to provide homeowners with temporary interest rate relief.  That relief expires after five years at which time the interest begins to creep up.  When the program was designed the assumption was our economy would be back to “normal” by 2015.  Oops!!
Couple the expiration of the government programs with fact that many home equity lines of credit are scheduled to increase interest payments to the next level in 2015.   TransUnion, the credit rating firm, estimates that between $50 and $79 billion in home-equity lines of credit may default because of the increased payments.

(posted 13 hours 32 min ago)

student loan
The Bankruptcy Code makes it illegal for government agencies to refuse student loans to those who have filed bankruptcy. 11 USC 525(c).
So if you have filed bankruptcy, you are still eligible to receive student loans that are backed by the government (Title IV loans) such as the Stafford Loan.
If you get a student loan from a private lender, that’s a different matter entirely. The Bankruptcy Code prohibits discrimination only from government agencies, not private lenders.
Private lenders, such as banks, are under NO obligation to give you a student loan if you have filed bankruptcy or have other credit problems.
This doesn’t mean that you won’t be able to obtain a student loan from a private lender or bank if you have filed bankruptcy. It just means that private lenders are allowed to consider your credit history including bankruptcy filings in evaluating your student loan application.

(posted 18 hours 18 min ago)
U.S. Bankruptcy Court Judge Steven Rhodes in March 2012
John Meiu/Associated Press

Detroit’s bankruptcy judge said he’s considering sanctions for law firm Kirkland & Ellis’s “highly personal attack” on two mediators in the city’s bankruptcy case.
In a 22-page opinion, Judge Steven Rhodes said that Kirkland lawyers, who represent bond insurer Syncora Guarantee Inc., called into question the “moral character” of U.S. District Judge Gerald Rosen and attorney Eugene Driker in court papers they filed earlier this month. And he made it clear that he wasn’t happy about it.

WSJ.com: Bankruptcy Beat
(posted 19 hours 6 min ago)

As the unofficial last day of summer approaches, we imagine many of you are heading out of your offices early to enjoy one last long weekend of swimming, barbequing, and just plain ol’ relaxing.  In honor of the Labor Day weekend, we at the Weil Bankruptcy Blog are taking a well-deserved day off today.  We’ll be back on Tuesday with some exciting news. So be sure to check back with us then. In the meantime, have a great weekend!

(posted 21 hours 9 min ago)

Bank of America has taken a significant reputational hit as a result of its 2008 acquisition of Countrywide Financial. Could it have mitigated some of the damage with a different branding strategy?

BankThink
(posted 21 hours 10 min ago)

Here’s the latest news and events from DailyDAC, LLC. Don’t forget to check out the newest listings on the Opportunistic Deal Database and the Mature Deal Database.
Click here to read the full newsletter.

(posted 21 hours 27 min ago)
Patrick Semansky/Associated Press

Kentucky miners who were digging for coal late last year hit an unwelcome surprise: Someone else beat them to it.
U.S. Coal Corp. workers who began scraping off the surface of some eastern Kentucky land quickly realized that the earth below had already been carved out, probably sometime in the 1930s or 1940s. The miners would be extracting far less coal than they thought.
U.S. Coal Chief Executive John Collins said that the discovery was “one more thing” that added to the company’s financial headache as the coal-mining industry struggles to sell their resource while natural gas remains so cheap.
The company is now in bankruptcy and trying to find a way to repay about $75 million in debt.
Frustrating discoveries like this aren’t unheard of in eastern Kentucky and West Virginia where people have mined underground for more than a hundred years—well before state officials began keeping good records, said Bob Ferriter, a senior mine safety specialist at the Colorado School of Mines.

WSJ.com: Bankruptcy Beat
(posted 21 hours 55 min ago)

A Massachusetts mutual's failure to gain depositor approval for a conversion suggests a way for small towns to push back against the loss of their local banks, according to lawyer Kevin Handly.

BankThink
(posted 23 hours 10 min ago)

Lehman Brothers Holdings Inc. said Thursday that it may seek to sell off some of a multibillion-dollar bankruptcy claim that the failed investment bank holds against its U.S. brokerage arm. The Wall Street Journal has the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)
Detroit is going to borrow $275 million in exit financing so it can emerge from Chapter 9 protection, WSJ reports.
WSJ has more on Saab’s Chinese-backed owner’s bankruptcy filing.
Detroit’s bankruptcy judge said bond insurer Syncora might face sanctions for accusing the city’s bankruptcy mediators of bias, the Detroit Free Press reports.

WSJ.com: Bankruptcy Beat
(posted 1 day 5 min ago)