Los Angeles Community Bankruptcy Seminar -  sponsored by the Vermont Slauson Economic Development Corporation.
(The program is private for invitees only. But any person in need of bankruptcy advice in Los Angeles is invited to call Mr. Wishman directly for bankruptcy help at 213-629-8801.)

Since 1981, VSEDC has stimulated economic development in South Los Angeles through commercial projects, affordable housing initiatives and business development.To support the needs of small businesses in Los Angeles, VSEDC operates the City of Los Angeles BusinessSource Center for the South region. BusinessSource is funded by the City of Los Angeles Community Development Department to provide training, counseling and access to capital services for small businesses. For more information, click here.

About the Speaker at the Los Angeles Community Bankruptcy Seminar.

Los Angeles Bankruptcy Blog
(posted 3 days 20 hours ago)

kitchen sinkNot every expenditure that benefits the debtor’s household or his family is a household expense.
And, if it’s not a household expense, it doesn’t get added to CMI in a single spouse bankruptcy filing.
That’s how the marital adjustment should work.
But it’s not so simple.
Household expense is not an expansive definition
After last week’s NACBA presentation on challenges where only one spouse files, I wondered why I hadn’t seen what my co panelist Billy Brewer made so clear.billy brewer
When only one spouse files bankruptcy, current monthly income includes only that part of the non filer’s income contributed to household expenses.

Bankruptcy Mastery
(posted 3 days 20 hours ago)

April 15th is the deadline to file 2013 tax returns with the IRS and your state taxing authority unless you’ve received an extension to file.  But you may notice we ask for several years of tax returns (if you were required to file) before we can file your bankruptcy. Why?
Well, let’s say you have regular income and want to do a Chapter 13 filing to make a payment plan for your debts over 3 years.  One of the requirements in the bankruptcy code says you have to file all tax returns for all taxable periods ending during the 4-year period ending on the date of the filing of the petition?  Huh?
Basically you have to have filed your last 4 years of tax returns before filing the bankruptcy.  What happens if you don’t?  Well, your Chapter 13 trustee can hold open the meeting of creditors to file those returns.  If they aren’t filed, the case can be dismissed and your bankruptcy will tank.  That would be bad.
The code also says all debtors have to provide certain tax returns to the trustee before the meeting of creditors.  If you don’t do that, the trustee can’t do their job and conduct the meeting.  Your case could be dismissed and you won’t get the benefit of the hard work, fees, and other documents you’ve already invested in the case.

Lake Law Blog
(posted 3 days 20 hours ago)

Does the creditor asserting a “subsequent new value” exception to preference liability have to be the creditor that provided the value directly to the debtor?  In In re LGI Energy Solutions, Inc., the Eighth Circuit became the first court of appeals to interpret section 547(c)(4) of the Bankruptcy Code under such facts.
Before its bankruptcy, the debtor provided bill payment services to its clients, large utility customers such as restaurant and fast food chains.  During the 90 days prior to bankruptcy, the debtor made transfers totaling approximately $259,000 to two utilities to pay outstanding invoices for services provided to the debtor’s clients.  The debtor’s chapter 7 trustee sought to recover the payments from the utilities as avoidable preferences under section 547(b) of the Bankruptcy Code.  In response, the utilities asserted the subsequent new value defense under section 547(c)(4).

(posted 3 days 20 hours ago)

The typical debts that are eliminated with Chapter 7 bankruptcy include credit cards, medical bills, personal loans and more.  The transcription and video below explain what is eliminated in greater detail. Jesse Barrientes:   What debts are typically eliminated with the Chapter 7? David Siegel: Well, a Chapter 7 is going to eliminate typical unsecured debt such+ Read MoreThe post What Debts Are Eliminated With Chapter 7 Bankruptcy? appeared first on David M. Siegel.

(posted 3 days 21 hours ago)

Under its aggressive quantitative easing program, the Fed is borrowing short-term and investing long-term, exposing itself to severe interest rate risk when short-term rates rise, writes former Fed economist Scott Hein.

BankThink
(posted 3 days 21 hours ago)
Mark Karpeles attends a news conference at the Tokyo District Court in Tokyo on Feb. 28.
Bloomberg

Mt. Gox Chief Executive Mark Karpelès said he would not come to the U.S. later this week to answer questions about the Japanese bitcoin exchange’s U.S. bankruptcy case, Mt. Gox lawyers told a federal judge on Monday. Read the Daily Bankruptcy Review article via The Wall Street Journal.
A federal judge Wednesday said a lawsuit filed by a former MF Global Holdings Ltd. futures customer against former Chief Executive Jon S. Corzine and other top officials could move forward but dismissed all claims against the failed brokerage’s independent directors and investment firm J.C. Flowers & Co. Read the DBR article in WSJ.

WSJ.com: Bankruptcy Beat
(posted 3 days 21 hours ago)

The Administrative Expense Multipliers and IRS’s National Standards for Allowable Living Expenses and Local Standards for Transportation and Housing and Utilities Expenses accessible through the “Means Testing Information” page have been updated. The revised multipliers and standards will apply to cases filed on or after May 1, 2014.

(posted 3 days 22 hours ago)

Editor's Note: Morning Scan will not publish on Friday, April 18 in observance of the Good Friday holiday. Receiving Wide Coverage ...

Big Investment Bank Earnings: Morgan Stanley's profits rose 18% year-over-year, thanks to a strong performance by its fixed-income division. Meanwhile, Goldman Sachs reported a drop in first-quarter profits, in part due to its fixed-income division. Goldman did, however, beat analyst expectations. ...

BankThink
(posted 3 days 22 hours ago)

The Investing in Student Success Act
A new measure proposed by Sen. Marco Rubio (R-Fla.) calls for employers to help fund higher education through so-called income share agreements.
Under these agreements, as discussed in The Investing in Student Success Act, the employer would fund someone’s education in exchange for a percentage of the employee’s income for a set period of time after graduation.
It all stems from an idea put forth by the economist Milton Friedman about 60 years ago – at a time when jobs were plentiful, industrial expansion was in full swing, and the world was a happy place. The idea was for investors to give students money for school in exchange for a percentage of their income for a set period of time after graduation.
Such income share agreements have long been used by employers who send their employees to graduate school in exchange for repayment through a defined period of post-degree employment. Friends of mine who work for some of the largest corporations in the nation count it as a perk of the job, and get their MBA on the company’s dime.
But for undergraduate work? I don’t see it happening for a few reasons.

(posted 4 days 2 hours ago)