In April 2014, Detroit’s emergency manager stated that he hoped the city would emerge from bankruptcy later this year. Detroit Bankruptcy In July 2013, the City of Detroit filed for bankruptcy protection under Chapter 9; it was the largest such filing in the country’s history. Although emergency manager Kevin Orr had hoped that the process...Read More

In April 2014, a lawsuit was unsealed that accuses OneWest Bank, formerly known as IndyMac Bancorp, of abusing the 2009 Home Affordable Modification Program (U.S. ex rel Fisher v. OneWest Bank FSB, U.S. District Court, Southern District of New York, No. 12-09352). The program gives mortgage lenders financial incentives to perform loan modifications to qualified homeowners....Read More

Recent scheduled meetings of the Bankruptcy Rules Committee were cancelled, apparently due to lack of interest. There had been two meetings scheduled in January 2014, one in Chicago and one in Washington, D.C. According to federal law, meetings may be cancelled if there is a lack of public interest, the Standing Committee sees a need...Read More

Distressed homeowners in the Northern District of Florida now have an additional option to try and keep their home. The court’s Mortgage Modification Mediation service allows homeowners, and lenders, access to experienced Chapter 13 mediators at a reduced cost. Although the parties are not required to reach an agreement, courts are generally much more inclined...Read More

In a boon for debtors, a federal court recently interpreted Section 523(a)(6) very narrowly. Facts In Communitywide Federal Credit Union v. Laughlin, Mr. Laughlin purchased a new car, with an $18,000 loan from CFCU. Ms. Laughlin was awarded the car in their divorce. A short time thereafter, Ms. Laughlin returned the car to Mr. Laughlin,...Read More

New Jersey recently passed Florida as the state with the highest number of home mortgages at-risk for foreclosure. Although there are more mortgages in the Sunshine State that are delinquent overall, 11.7 percent of these loans are “seriously delinquent,” compared to 11.8 percent in New Jersey. New York is third with 9.1 percent. All three...Read More

Household debt rose $241 billion in the third quarter of 2013. Analysts at the New York Fed say the 2.1 percent increase was the largest jump since 2007. The debt was primarily mortgage debt and new car loans, which is seen as a sign that consumers are gaining confidence in an improving economy. However, student-loan...Read More

Florida has more long-term unemployed workers than almost any other state in the country. A recent report gave more identity to the long-term unemployed, or those who have been jobless for more than 26 weeks. In Florida, Alaska, California, Illinois, North Carolina, New York, Connecticut and Rhode Island, between 46% and 60% of the jobless...Read More

Assume that you and your neighbor disagree over the ownership of a house, and you file a lawsuit to quiet title. Before the case is heard, the house burns down. What happens at the court date? Most courts have refused to enter a decision in this situation, explaining that the point is now moot because...Read More

A major mortgage lender is returning to the subprime market. Since the mortgage collapse in 2008, skittish banks have only loaned money to the most credit-worthy consumers. Now, faced with a major revenue loss as mortgage lending volume declines overall, Wells Fargo may be loaning money to consumers with credit scores as low as 600....Read More