Authored by Karl Gruss and Edward L. Kellyand Karl Gruss and Edward L. Kelly of Rogers TowersFlorida’s homestead exemption protects a married couple’s primary residence from forced sale to satisfy a judgment lien, but what happens when spouses retain two properties as their individual primary residences, claiming homestead protection on each?  The answer comes down to whether the spouses are “legitimately” separated, and creditors should take note of a recent decision out of the 4th DCA addressing Florida’s homestead tax exemption, Brklacic v. Parrish, that sheds light on what factors a court may consider in analyzing a couple’s separation and dual homestead protection claim.
When would a couple claim legitimate separation?

Florida Banking Law Blog
(posted 1 day 18 hours ago)

It is tempting to believe we can avoid another crisis by giving regulators additional controls over the financial markets. A more effective approach would be to acknowledge regulators' limits.

(posted 1 day 19 hours ago)

As lawyers, words are our stock in trade.
If we want to describe, explain, or persuade, we need to use the right word.
The difference between the almost right word and the right word is really a large matter – ’tis the difference between the lightning-bug and the lightning.  MARK TWAIN
I was blown away by the casual simplicity and clarity of Ed Boltz’s explanation of the difference between preemption and preclusion in an exchange  that just flew by on the NACBA list serve.  (You are a member of NACBA, aren’t you?)
BoltzEd Boltz, NC Bankruptcy Lawyer
Ed has kindly permitted me to share here his charge to use the right word.

Bankruptcy Mastery
(posted 1 day 19 hours ago)

There are several ways to stop a wage garnishment. One of the ways that I deal with on a daily basis is by filing chapter 7 or chapter 13 bankruptcy for individuals and families struggling with debt. Chapter 7 bankruptcy filing involves the creation of an automatic stay. The automatic stay prohibits collection activities after+ Read More
The post How To Stop A Wage Garnishment? appeared first on David M. Siegel.

(posted 1 day 19 hours ago)

ISS released the results of its policy survey. The responses, from 105 individual institutional investors and 255 members of the corporate issuer community (including advisers), may inform new policies or change existing policies. Investor and issuer views diverged in some cases. Draft policies are expected to be released in October for public comment.  

(posted 1 day 19 hours ago)
Associated Press

Billionaire Carl Icahn says he’d consider pumping $100 million into Trump Entertainment’s Taj Mahal if the casino’s union workers agree to another round of cuts. Read 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.”)
As DBR reports via The Wall Street Journal, A federal judge dismissed some of Thornburg Mortgage Inc.’s lawsuit against J.P. Morgan Chase  & Co. and other big Wall Street banks over margin calls that the subprime lender says pushed it into bankruptcy five years ago. Bankruptcy Beat
(posted 1 day 19 hours ago)

Breaking News This Morning ...

eBay and PayPal to Split: The online marketplace said this morning it would spin off its payments unit, a move activist investor Carl Icahn had been pushing. Wall Street Journal, New York Times Receiving Wide Coverage ...

AIG and the Meaning of 'Many': A lawsuit that accuses the U.S. government of unfairly penalizing AIG shareholders in the terms of its 2008 bailout of the insurer got underway Monday. David Boies, a lawyer for...

(posted 1 day 20 hours ago)

The CFPB entered into a Consent Order with Flagstar Bank regarding its default mortgage servicing practices. This order is really important. It's the first enforcement action of the CFPB's new servicing rules, and its "benching" remedy that prevents Flagstar from most default servicing until it demonstrates compliance shows that the Bureau is serious about cleaning out the Augean stables of servicing. (The Ocwen order had a much larger dollar figure attached, but was about pre-2014 conduct).
The details given in the consent order tell an all-too-common picture about mortgage servicing.  

In 2011, Flagstar had 13,000 active loss mitigation applications but only assigned 25 full-time employees and a third-party vendor in India to review them. For a time, it took the staff up to nine months to review a single application. In Flagstar’s loss mitigation call center, the average call wait time was 25 minutes and the average call abandonment rate was almost 50 percent. And Flagstar’s loss mitigation application backlog numbered well over a thousand. 

And we wonder why loss mitigation hasn't been more effective?

Credit Slips
(posted 1 day 20 hours ago)

If you fail to make timely payments on your car, the lender may try to recoup their financial loss by physically taking the vehicle in a process known as repossession.  While repossession is often an involuntary procedure, there is also an alternative called voluntary repossession, or voluntary surrender.  How does voluntary repossession work?  And could it damage your credit?  Our bankruptcy attorneys weigh in.

Repossession Car Keys
What is Voluntary Repossession?
There is no way to hide an inability to pay off your loans, and in fact, dodging your creditors can make the situation worse.  If you think you are at risk of repossession, you should notify your lender immediately and try to explain your financial situation.  Some creditors will be understanding and will work with you to negotiate a late payment — but unfortunately, not all are so flexible.

Young, Klein & Associates
(posted 1 day 21 hours ago)

Branch Banking & Trust Co. v Construction Supervision Services, Inc. (In re Construction Supervision Services, Inc.), 753 F.3d 124 (4th Cir. 2014) – After a general contractor filed bankruptcy, several of its subcontractors requested clarification from the court about whether … Continue reading →

(posted 1 day 23 hours ago)