Filing a bankruptcy petition is not for everyone. But if you are facing foreclosure, are being threatened with having your wages garnished or receiving harassing phone calls from creditors you should seriously consider bankruptcy.
Most experienced consumer bankruptcy attorneys will be able to review your situation and explain your options to you. Take the time to learn about Chapter 7 and Chapter 13 bankruptcy. If you are a family farmer, look into Chapter 12.
Once you file for any of the bankruptcy chapters, an automatic stay is immediately imposed on your creditors, preventing them from doing anything to collect from you. They must immediately stop any action they have already started. If a foreclosure has started or they are garnishing your wages, they must stop. If they have frozen your bank accounts, they must release them. They cannot call you. They cannot write to you in an attempt to collect a debt. They cannot even send you a bill.

Bankruptcy Law Network
(posted 1 year 48 weeks ago)

Our Kelley Drye & Warren LLP colleagues, Timothy R. Lavender and Myra C. Mormile, have published a client advisory entitled “FINRA Members, Get Those Offering Documents Ready to File.”  Starting Monday, December 3, 2012, FINRA member firms that sell issuers’ securities in a private placement will have to file a copy of any private placement memorandum, term sheet, or other offering document with FINRA, and any materially amended versions of documents originally filed, through FINRA’s Firm Gateway, within 15 calendar days from the date of sale (for sales on or after December 3rd) or tell FINRA it used no such offering documents. The client advisory addresses the bevy of exemptions for sales made to certain accounts/investors and for specific offerings.

(posted 1 year 48 weeks ago)


Raxak Mahat co-authored this post.
I.  SEC MATTERS

(posted 1 year 48 weeks ago)

Struggling to pay the mortgage on its dorms, Lon Morris College in Texas never tried to dip into its $11 million pool of endowment money that supported the 158-year-old United Methodist-affiliated school.
But in the hunt for money after the school’s collapse, its bankruptcy attorneys want the charitable funds to pay its final bills—an unlikely wish for those who donated to the endowments in their wills and family trusts.
The Texas Methodist Foundation, which holds the money, has filed a lawsuit to protect some of the college’s endowment money, arguing that spending it on creditors and the professionals who are now preparing to auction off the college piece-by-piece “is not consistent with the charitable intent” of the endowments, according to papers filed with the U.S. Bankruptcy Court in Tyler, Texas.
The college’s request for endowment money touched a nerve within the nonprofit community, which has struggled as much as any industry in recent years. The hardship comes as tax benefits for charitable organizations erode and as judges are less willing to grant special exceptions because of their mission, said San Diego bankruptcy attorney Paul Dostart, who has researched how bankruptcy courts treat tax-exempt organizations.

WSJ.com: Bankruptcy Beat
(posted 1 year 48 weeks ago)

Change is my Bankruptcy Alphabet word. I don’t mean the change you have in your pocket, but rather the need to change your approach to money. Otherwise bankruptcy is just an exercise in starting over again every eight years. And as the movie Groundhog Day showed, that gets tedious.
 

(posted 1 year 48 weeks ago)

The U.S. Education Department has enacted a new reform that will effectively forgive student loan debt for those who have severe, long-term disabilities, and it will accept certain findings from the Social Security Department in place of conducting its own duplicative investigation. Along with streamlining the disability assessment process, the new student loan reform will also make it easier for lawyers and family members to act on behalf of disabled borrowers in an effort to get student loan debts forgiven.
This revolutionary overhaul of the Education Department’s system, which is to come into effect as of July 1, 2013, is the result of a 2011 investigation conducted by ProPublica and the Chronicle of Higher Education (which itself was spurred by advocacy groups and lawmakers urging the Department to make some serious reforms).
During the 2011 investigation, the U.S. Education Department’s system for assessing disabilities was found to be largely dysfunctional and unpredictable; this resulted in many disabled borrowers being financially crippled, as the cumbersome evaluation process prevented them from being able to have their student loan debts forgiven in a more timely manner. Although the Education Department has previously stated that it would work on improving its system for evaluating disabilities, it had – until recently – rejected the idea of accepting the findings of the Social Security Department; this had forced disabled borrowers to undergo two separate evaluations as to the nature and extent of their disabilities.

Oregon Bankruptcy Lawyer
(posted 1 year 48 weeks ago)

Among the more entertaining opinions we’ve read over the last few weeks is H. Kenneth Lefoldt, Liquidating Agent for Prevalence Health, LLC v. Michael L. Anthony (In re Prevalence Health, LLC), Case No. 11-00068-ee (Bankr. S.D. Miss. Nov. 7, 2012) (ECF 42), in which the defendant, an insider in a preference action to recover payments on loans made during the year prepetition, argued the debtor was not insolvent at the time of the subject transfers because “operating in the red was ordinary for the debtor.”  While the debtor might have been operating “in the red,” this fact wasn’t enough to convince a bankruptcy court in the Southern District of Mississippi that the debtor was solvent at the time of the transfer within the meaning of section 547(b)(3) of the Bankruptcy Code.
Background

(posted 1 year 48 weeks ago)

Doug Mintz spoke at the 19th annual Distressed Investing Conference on November 26th. He helped moderate a panel regarding Municipal Debt Restructuring, drawing on his experience in the Jefferson County, Stockton and San Bernardino bankruptcies and other out of court matters. Continue reading →

Restructuring Review Blog
(posted 1 year 48 weeks ago)

Bankers should be a resource for their communities beyond making loans and sponsoring little league teams. Here are a few fresh ways to get involved.

BankThink
(posted 1 year 48 weeks ago)

It is well settled that a debtor is required to list all of his assets on his bankruptcy schedules, and if he fails to list a claim against a third party, he will be barred by the doctrine of judicial estoppel from later asserting that claim. In the case of In the Matter of Oparaji, the Fifth Circuit addressed whether a creditor is barred by the doctrine of judicial estoppel from asserting a claim which could have been, but was not, asserted in a prior case filed by the debtor.
In its decision in Wells Fargo Bank, N.A. v. Oparaji (In the Matter of Oparaji), 698 F.3d 231 (5th Circ. 2012), the Fifth Circuit held that judicial estoppel does not preclude a creditor from asserting claims in a subsequent bankruptcy by its debtor which could have been, but were not, asserted in a prior bankruptcy case.

Creditors' Rights
(posted 1 year 48 weeks ago)