If U.S. banks can decrease costs in routine transactions, they will be able to serve mass segments more profitably and invest disproportionately in high-margin services for the affluent.

(posted 1 year 49 weeks ago)

Five million homes lost to foreclosure by next month in the current foreclosure crisis.  Many bankruptcy cases have been filed to try to save homes, or, get out of mortgage debt still owed after the foreclosure process.
Filing bankruptcy does stop foreclosure.
So, five million, we must be about done, eh?  As we say in Michigan’s Upper Peninsula.  Michigan being one of the states that allows mortgage companies to chase homeowners for deficiencies on mortgage notes that are not satisfied in the foreclosure process.
Not so fast.  According to Dr. Housing Bubble, there are still another five million homes at risk of being foreclosed.
One of the foreclosure crisis consequences is the increased number of homes for sale, after being foreclosed.
More supply, price goes down.  Price goes down, more homes underwater, cannot be sold or re-financed, get foreclosed, and the vicious spiral continues.

Bankruptcy Law Network
(posted 1 year 49 weeks ago)

Bankruptcy may stop collection attempts from the Internal Revenue Service (IRS), but depending on taxes owed and the chapter you file, it may only be temporary.  The automatic stay in bankruptcy helps halt collection attempts from creditors including the IRS.  It also helps stop legal proceedings such as wage garnishment. The automatic stay prevents further [...]

(posted 1 year 49 weeks ago)

Tax incentives and penalties drive behavior regardless of whether or not they represent sound economic reality. And banks will be asked to provide lending and investment support accordingly.

(posted 1 year 49 weeks ago)

Texas is home to the Friday night lights of high school football, the Astrodome, the Alamo, and, of course, some interesting bankruptcy case law.  Last month, Judge Barbara Houser of the United States Bankruptcy Court for the Northern District of Texas in In re Superior Air Parts, Inc. held that a prepetition contract indemnity provision gave rise to a dischargeable claim.  The contract itself remained in effect post-confirmation, but the indemnity provision within the contract did not.

(posted 1 year 49 weeks ago)

Timing for bankruptcy caseTiming is everything.
Hitting a round ball with a cylindrical bat is a matter of timing.
Bankruptcy practice is no different.  Picking when to file a client’s case may be as important as the decision to file or the choice of chapter.
As we approach year’s end, taxes pop to mind as a reason not to file now, but next year, even January 2nd.
Because if your client expects to owe income taxes for the current year, by waiting until the year is over, the taxes are a prepetition debt.
Not so important in a Chapter 7 where you aren’t going to be paying any debts through the case, but of great interest if you are considering Chapter 13.
In my experience, the IRS is at best lukewarm and at worst absolutely hostile to including in a plan the taxes for the year of filing.
You finesse that fight altogether if you wait a few weeks til the tax year ends.  There is no question that once the tax year is concluded, any taxes owed are pre petition.
So, as if your fact gathering goals with your client were not already overwhelming, you need to add another question to your arsenal:

Bankruptcy Mastery
(posted 1 year 49 weeks ago)

A federal judge on Tuesday approved the sale of A123 Systems Inc., the government-backed battery maker that has yet to turn a profit, to China’s Wanxiang America Corp. for $256.6 million. Read the Daily Bankruptcy Review article here.
(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.”)
California’s public pension fund is trying to rewrite bankruptcy rules so it could get paid before most others, Bloomberg reports.
According to Reuters, the owners of two California dailies are looking into buying some of Tribune Co.’s papers.
The Wall Street Journal looks at the Los Angeles Dodgers’ spending habits.

WSJ.com: Bankruptcy Beat
(posted 1 year 49 weeks ago)

While some may suggest the practice is warranted so agency attorneys can address deficiencies hurting consumers, ultimately everyone loses when opportunities for frank discussion are lost.

(posted 1 year 49 weeks ago)

Receiving Wide Coverage ...

HSBC Settlement Redux: Wednesday was the tail end of the HSBC money laundering news cycle, with major papers scrutinizing the bank's $1.9 billion deferred prosecution agreement with the U.S. According to the 21 law enforcement officials, the bank's misconduct was egregious, sustained, and possibly willful. (Either that or nobody noticed when people started regularly showing up at Mexican HSBC branches with boxes of cash that fit precisely through the holes in the...

(posted 1 year 49 weeks ago)

When filing for bankruptcy, your bank accounts will be counted among the assets you hold, but that does not necessarily mean that you will be forced to surrender the monies held in that account. Nor does it mean that your bank accounts will be automatically closed. Nevertheless, your relationship with your bank at the time of filing for bankruptcy can play a role in what happens to your account and the money in it; specifically, if you owe your bank money, such as overdraft fees, mortgage payments or credit card debt, at the time of filing for bankruptcy, a bank may automatically take the money owed to it out of your account if the terms of its contract with you allow it to do so (as many financial institutions have contracts that do allow this). What’s possibly more scary is that these automatic withdrawals from your account may occur at any point during or after your bankruptcy if you have not payed the bank fees that it is owed.

Oregon Bankruptcy Lawyer
(posted 1 year 49 weeks ago)