Ally Financial Inc. said Tuesday it reached an agreement with its mortgage subsidiary Residential Capital LLC that could help accelerate its efforts to get out from government ownership. Read the Daily Bankruptcy Review article here.
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According to The Wall Street Journal, two unions made a deal to represent 30,000 workers at American Airlines parent AMR Corp. and US Airways Group Inc. , which will soon merge.
According to Reuters, officials with Jefferson County, Ala., reached a deal with J.P. Morgan Chase & Co. and Bayerische Landesbank on $105 million in defaulted debt.

A modified version of Ed DeMarco’s securities-based model for housing finance reform could promote an active market for risk-sharing arrangements and further reduce systemic risk by distributing credit risk broadly.

In bankruptcy, you’re faced with a laundry list of duties. Ignore them at your peril.
Making the decision to file for bankruptcy isn’t easy.
You’re poring over options, looking to solve your problem in the best way for you.
You’ve probably talked with a bunch of lawyers to find someone who knows the ropes and with whom you feel the most comfortable. Finally, you decide that Chapter 7 is the way to go.
Now dig in – you’ve got things to do.

Before Your Case Is Filed
A bankruptcy filing consists of a full-blown inventory of everything you own, everything you owe, and a fairly comprehensive detail of your finances over the past months and years.  We’ve talked about the documents you need to get your bankruptcy filing in order, so consider that as part of your responsibilities.

In the only bankruptcy case pending before it this term, a unanimous Supreme Court has ruled that the archaic term "defalcation" used in 11 U.S.C. Sec. 523(a)(4) requires  knowledge of, or gross recklessness in respect to, the improper nature of the relevant fiduciary behaviorcomplained of.    Bullock v. BankChampaign, No. 11-1518 (5/13/13), Slip Op., p.1, which can be found here.  While the case represents a setback for the creditor in the specific case, the judicial hairsplitting engaged in by the Court ensures that trial courts will continue to struggle with the meaning of "defalcation."
What Happened
In 1978, a father established a trust for the benefit of his five children and named his son Randy as trustee.    The trust allowed the trustee to borrow money against the asset of the trust, which was an insurance policy.    On three occasions, Randy borrowed against the policy to make loans to himself and his mother.   The first loan was made at the father's request.   All of the loans were repaid with interest.