Well-intentioned policies are causing inadvertent redlining. Our proposed Dignity Mortgage would show there are few if any additional risks of lending to the large cohort of presently excluded prospective homebuyers.

(posted 1 year 47 weeks ago)

Rules for Bankruptcy Contested MattersMost contests have rules.  Charny wrote on medieval jousting; Hoyle on cards;  Queensberry on boxing.
Rule 9014 provides the rules of bankruptcy disputes.
9014 recognizes contested matters:  disputes in bankruptcy cases that  don’t require an adversary proceeding but do require the court to decide a disputed issue.
You can hardly be an effective player if you don’t know the rules.
What’s a contested matter?
Any time there are at least two sides to an issue  that needs to be made by a judge, you have a contested matter.

Bankruptcy Mastery
(posted 1 year 47 weeks ago)

With a $3 billion bid Ocwen Financial Corp. was named the winner Wednesday in a bankruptcy auction for the mortgage-servicing and origination assets of lender Residential Capital LLC. Read the article in Daily Bankruptcy Review.
(Daily Bankruptcy Review and DBR Small Cap are daily newsletters 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.”)
Hedge-fund manager Marathon Asset Management LP wants an independent examiner appointed in AMR Corp.’s bankruptcy case to look into the American Airlines parent’s assumption of $2.3 billion in aircraft debt three months before it filed for bankruptcy. Read the DBR article via The Wall Street Journal.
California’s pension fund and others are arguing that the city of San Bernardino isn’t eligible for bankruptcy, the Sun reports.

WSJ.com: Bankruptcy Beat
(posted 1 year 47 weeks ago)

Authored by Scott J. Kennelly of Rogers TowersThe central issue for a lender which seeks to obtain a monetary judgment following a foreclosure is the value of the property that was foreclosed.  A lender typically engages an appraiser to value the property as of the date of the foreclosure sale and to testify at a deficiency proceeding.  To counter the lender’s valuation, the borrower or a guarantor may engage their own appraiser, or they may attempt to testify themselves as to the value of the property.  Generally, an owner of property is permitted to testify as to its value.  This rule is based on an owner’s presumed familiarity with the characteristics of the property, acquaintance with its uses and purposes and experience dealing with it.
However, the fact of ownership does not, in itself, invariably qualify an owner to testify to the property’s value.  The court may exclude the testimony of the owner if (1) the owner lacks sufficient familiarity with the property to give a permissible opinion, or (2) the owner is attempting to testify as an “expert.”
The Owner Lacks Sufficient Familiarity with the Property

Florida Banking Law Blog
(posted 1 year 47 weeks ago)

With Fitch Ratings amending additional sections of its municipal ratings criteria and Moody’s Investors Service expecting further financial stress on California municipalities  and  additional credit downgrades, the risk of further municipal defaults is a major concern for many potentially affected parties.  The critical question for California legislators, residents and creditors is, how real is that risk? 

Recent information reported by The Federal Reserve Bank of New York indicates that while the municipal default rate is low, it is not nearly as low as previously reported. 

(posted 1 year 47 weeks ago)

In my most recent Wiley lecture, given in connection with the chair I hold, I argued that boards, particularly in financial institutions, should think outside the box with regard to new board appointments, if they really want to improve corporate governance.
So this morning we get the word that Barclays' big board purge might consist of appointing people from

  • Lloyd's
  • Standard Chartered
  • Morgan Stanley
  • Merrill Lynch


Credit Slips
(posted 1 year 47 weeks ago)

Photo Credit: Flickr/Tax Credits
Do you know when your mortgage or car payments are due?  If your answer is “the last day of the grace period on my loan” then you are on your way to bankruptcy.
I often ask my clients how many payments are they behind on their house or car.  I rarely get an exact answer, usually something like “2-3 payments…”  with a sheepish look.  Experienced bankruptcy lawyers know this means three and likely more payments are late right now.
It’s human nature – why pay until the last minute, right?  Leave more in your pocket for longer. Who pays bills early?
A “grace period” sounds good.  It sounds almost holy but it just means one thing — you are late but we aren’t charging you more …not just yet.   A “grace period” is really a trap designed to increase your effective interest rate — and gamble your house or car in the process.

Bankruptcy Law Network
(posted 1 year 47 weeks ago)

Grogan v. Harvest Capital Co. (In re Grogan), 476 B.R. 270 (Bankr. D. Or. 2012) – In Grogan, the debtors planted and harvested Christmas trees.  The bankruptcy court was called upon to determine whether the debtors could exercise their “strong arm” powers under Section 544(a) of the Bankruptcy Code to trump the liens of two [...]

(posted 1 year 47 weeks ago)

When individuals file for bankruptcy, they typically file for Chapter 7 bankruptcy, which is often referred to as a straight liquidation bankruptcy. In simple terms, Chapter 7 bankruptcies provide debtors with a means to start fresh financially by relieving them of the debt they have acquired as of the date of filing for bankruptcy. While some debts will be discharged, which means you no longer have to make payments on them, others – like education loans, child support or tax payments – can not legally be discharged. As part of the process of filing for bankruptcy, all of your property, income and assets will become your bankruptcy estate from which creditors can attempt to collect all or a portion of the monies owed to them. However, the law allows for some exemptions from the bankruptcy estate, which means that you can keep some of your property safe from creditors.

Oregon Bankruptcy Lawyer
(posted 1 year 47 weeks ago)

Is there anything scarier than walking out to your car only to find that it's gone? Sure it could happen any time somebody wants to steal your vehicle, but what about when it is taken by the repo man? He has the right and the means to take it, and there isn't a whole lot you can do about it; or is there?
Dude, Where's My Car?
Let's face it, repossession is scary. Even the word itself is ugly. But it is an unfortunate reality for anyone who falls behind on his car payments. And although the role of the repo man has been glamorized in movies and tv, in reality it's a lucrative but dangerous business for him, and a frustrating and costly business for those who have lost a vehicle to his services.
So your vehicle is gone. Now what do you do?

Arizona Bankruptcy Help
(posted 1 year 47 weeks ago)