Yesterday the U.S. Supreme Court granted Bank of America, N.A.'s writ of certiorari which will allow it to address the issue of lien stripping in chapter 7 cases. The numerous recent appellate decisions out of the 11th Circuit have been practically begging for en banc or Supreme Court review. The 11th Circuit Courts were forced by the "prior precedent rule" to apply its Foledore decision, which allowed lien stripping in chapter 7.  Under the "prior precedent rule", the 11th Circuit held that the Supreme Court's landmark decision in Dewsnup was not explicit enough to overrule Folendore. 

(posted 3 days 11 hours ago)

Authored by Armando Nozzolillo and Michael S. Waskiewiczand Armando Nozzolillo and Michael S. Waskiewicz of Rogers TowersGarnishments are one of the most effective tools at a creditor’s disposal for collection purposes.  The rules and requirements for initiating a garnishment action are laid out in Chapter 77, Florida Statutes.  Garnishment actions are generally ancillary to the main action brought by a creditor to establish a debt.  However, Garnishment proceedings are still treated as separate and distinct from the main action, and thus, garnishees are not treated as agents of debtors.
This point played a significant role in the outcome of a recent case out of the 4th D.C.A.  In Watson v. Stewart Tilghman Fox & Bianchi, P.A., a judgment creditor initiated a garnishment action against a judgment debtor’s bank accounts, which were in the possession of a garnishee bank (the “Bank”).  The judgment creditor served the motion for writ of garnishment and the writ itself on the Bank by certified mail.  The Bank filed a timely answer notifying the judgment creditor that it possessed roughly $11,000 in debtor’s name.

Florida Banking Law Blog
(posted 3 days 12 hours ago)

A new legal settlement will bring in nearly $500 million for Bernard Madoff ’s cheated investors, putting their total recovery to date above $10 billion. Read Jacqueline Palank’s Daily Bankruptcy Review story in The Wall Street Journal.
(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.”)
Dynamic Oil Trading Singapore Pte. Ltd. filed for liquidation on Tuesday, making it the second Singapore subsidiary of bankrupt Danish fuel supplier OW Bunker A/S to go bust, WSJ reports.
The country’s top court Monday agreed to hear arguments on whether homeowners can cancel their second mortgages in bankruptcy when their properties aren’t even worth the value of the first mortgage, DBR’s Katy Stech reports in the Journal

WSJ.com: Bankruptcy Beat
(posted 3 days 12 hours ago)

Receiving Wide Coverage ... Housing Rebound?: The Wall Street Journal and Washington Post both have articles noting the significance of the Federal Housing Administration returning to the black for the first time since 2011. The FHA served as a backstop for the housing market during the financial crisis, when other lending sources dried up. But that resulted in a sharp increase in the FHA's default rate. Now the agency has recovered, at least in one sense.Â...

BankThink
(posted 3 days 12 hours ago)

The crisis experts this week were tasked with parsing the statements made by Apple Inc. related to its court fight with GT Advanced Technologies Inc.

WSJ.com: Bankruptcy Beat
(posted 3 days 13 hours ago)

Kellner v First Ohio Banc & Lending, Inc. (In re Geraci), 507 B.R. 224 (Bankr. S.D. Ohio 2014) – A Chapter 13 trustee and the debtor sought to use the strong arm powers of a hypothetical bona fide purchaser of real … Continue reading →

(posted 3 days 14 hours ago)

Weil partners, Debra Dandeneau and Jeffrey Osterman will be participating in the upcoming PLI program, IP Issues in Business Transactions 2015, scheduled for January 12th and 13th at the New York Conference Center.
Where: PLI New York Center, 1177 Avenue of the Americas, (2nd floor), entrance on 45th Street, New York, New York 10036.
For more information about the program and to register, please visit PLI’s website.
 

(posted 3 days 16 hours ago)

The amount you are required to pay back to your general unsecured creditors in a Chapter 13 Bankruptcy Case depends on various factors.  It can range from only a few pennies on the dollar to a 100% of the debt.

Miami Bankruptcy Law Blog
(posted 3 days 22 hours ago)

The amount you are required to pay back to your general unsecured creditors in a Chapter 13 Bankruptcy Case depends on various factors.  It can range from only a few pennies on the dollar to a 100% of the debt.

(posted 3 days 22 hours ago)

Unitek Global Services, Inc. (“Unitek” or the “Debtor”) filed for bankruptcy under Chapter 11 of the Bankruptcy Code on November 3, 2014 in the United States District Court for the District of Delaware.
According to the Declaration of Andrew J. Herning, Chief Financial Officer and Treasurer of the Debtor, in Support of the Debtors’ Chapter 11 Petitions and First Day Motions (the “Herning Declaration”), the Debtors are a “full service provider of technical services to customers in the wireless telecommunications, public safety, satellite television and broadband cable industries in the United States and Canada.”  While Unitek may not be a common household name, their customers are.  They include, among others, DIRECTV, AT&T, Comcast, Sprint, T-Mobile, and Time Warner Cable.
Events Leading to Bankruptcy
The Debtor is a in an extremely competitive market in which there are a small number of large customers.  This means that Unitek and its competitors are engaged in intense competition for the business.  While Unitek was operating successfully, it discovered in April, 2013, that certain employees had engaged in fraudulent activities, which impacted its revenue recognition.  Not only did this cost Unitek roughly $9 million to resolve, but it necessitated restating several years of financial statements and constituted events of default with some of Unitek’s creditors.  Unitek has suffered continual losses since that time.
Objectives in Bankruptcy

(posted 3 days 23 hours ago)