A long long time ago in this same galaxy, I wrote what may be Credit Slips' most popular post: What do bankruptcy mortgage servicing and phone sex in common? Today, I bring you a new comparison: bankruptcy mortgage servicing and ebola. At the outset, let me be very clear that ebola is a tragic health care crisis. I do not mean to minimize those deaths and illnesses with a comparison to mortgage servicing--although to be sure, poor mortgage servicing has tragic financial consequences.

Credit Slips
(posted 6 days 14 hours ago)
Marc Dreier
Associated Press

Imprisoned ex-lawyer Marc Dreier is back to writing legal pleas, this time on his own behalf.
Mr. Dreier, who is serving a 20-year prison sentence after pleading guilty to cheating investors out of hundreds of millions of dollars, faces a demand to testify in person in connection with a bankruptcy trial involving one of his former investors and his eponymous law firm.
But the one-time owner of multiple homes, an Aston Martin and 123-foot yacht doesn’t want to leave the confines of the low-security federal prison in Minnesota where he’s doing time to testify in the New York-based trial.

WSJ.com: Bankruptcy Beat
(posted 6 days 14 hours ago)

Acquisition-hungry banks and mortgage companies need to apply the same level of scrutiny to cultural fit as they do to a firm's financial statements and balance sheets.

(posted 6 days 15 hours ago)

"Post hoc ergo propter hoc" - Latin for the fallacy of reasoning of "after this, therefore because of this."  This episode from West Wing assumes that at least one of the 27 lawyers in the room would know what it means.  Even Sheldon in Big Bang  show is familiar with this logical fallacy and so is all logical Spock.

(posted 6 days 15 hours ago)

"Post hoc ergo propter hoc" - Latin for the fallacy of reasoning of "after this, therefore because of this."  This episode from West Wing assumes that at least one of the 27 lawyers in the room would know what it means.

Miami Bankruptcy Law Blog
(posted 6 days 15 hours ago)

The Weil Bankruptcy Blog team is excited to bring you our Inaugural Review, highlighting important cases, topics, and themes in the restructuring world that we have addressed on the Weil Bankruptcy Blog in the past few months. In this first edition, we look back at interesting entries during the first half of the year. Going forward, we will be circulating a quarterly review and an annual review.
We launched the Weil Bankruptcy Blog on September 29, 2010, with the ambitious target of posting a substantive bankruptcy and restructuring related article every weekday. We’re proud to say that, nearly four years later, we’ve published more than 1,000 blog posts, showcasing both the strength and depth of the talent in Weil’s Business Finance & Restructuring Department. Our blog posts are regularly republished in major legal publications, and the number of readers of our blog posts has vastly surpassed our expectations.
If you have a topic that interests you, please reach out to us to let us know. Lastly, if you’ve been enjoying the blog, please keep reading!
View the Weil Bankruptcy Blog 2014 Mid-Year Review here.
To receive a hardcopy of the Review please request one here.

(posted 6 days 15 hours ago)

When the bankruptcy laws were changed on October 17, 2005, there was an effort to curb abusive filings. To do so, a means test was authored utilizing IRS standards for acceptable expenses. In addition to the means test, there were requirements such as having completed a credit counseling session before a case can be filed+ Read More
The post Interesting Development in Some Chapter 13 Bankruptcy Cases appeared first on David M. Siegel.

(posted 6 days 16 hours ago)

The ABI Commission on bankruptcy reform has posted a short video that "identifies some key findings of the Commission to date." The purpose of the video, I suppose, is to try to begin to justify in advance the reforms the commission has been crafting since it was self-appointed in 2012, which are likely to be designed to transfer value from secured creditors, and lengthen the time and increase the cost of chapter 11 proceedings, and shift those to the secured creditors. The video should appear below, although my embedding skills are rudimentary at best: If for any reason there is no video above, it is currently on the commission home page, http://commission.abi.org/ .

The "findings" mentioned in the video are not factually supported, but are just false premises created to rationalize the anti-secured-claim agenda that the professionals who dominate the commission (there are virtually no clients, debtor or creditor, on the commission) have been sponsoring since the commission's earliest days.

Necessary and Proper
(posted 6 days 16 hours ago)

Tax deductions may be hiding in your Chapter 13.
Did you file for an extension of time to file your income tax return?
Well, time to get the return done is running out:  returns are due October 15th.
If you are in a Chapter 13 bankruptcy case, you may have deductions you haven’t considered found in the payments the Chapter 13 trustee has made in your case.
If your plan provides for

  • curing mortgage arrears,
  • paying taxes,
  • spousal support or
  • business expenses,

consider claiming amounts paid to those creditors through your plan.
The Chapter 13 trustee is paying those claims with your money.  I see no reason that the trustee’s expenditures aren’t deductible to you.  Check with your tax professional.
And if you are several years into a Chapter 13, consider whether you can amend prior years to claim the trustee’s distributions for earlier years.

(posted 6 days 16 hours ago)

Post hoc ergo propter hoc (Latin: "after this, therefore because of this") is a 

(posted 6 days 17 hours ago)