Even in Dundee, Scotland, people turn to bankruptcy for a financial fresh start. Scottish debtors have the option of liquidation or a repayment trust, the equivalent of a Chapter 7 and Chapter 13 bankruptcy. As of April 2014 78 people, including noted soccer player Craig Beattie, have declared bankruptcy in Dundee. The debtors cover a […]
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 […]
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. […]
The bankruptcy laws have changed several times in the last forty years, most notably in 1978 and again in 2005. Both times, the changes were mostly pro-creditor. Bankruptcy Reform Will the law be changed again anytime soon? 1978 For its first one hundred years, the United States basically had no federal bankruptcy law. Individual jurisdictions […]
It is very common, especially in the case of a delinquent credit card debt, for the original creditor or a subsequent debt-buyer to obtain a default judgment against the debtor. Most of the time, the address the creditor had on file was old and outdated, so many times the debtor has no idea that there […]
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 […]
The Middle District of Florida recently ruled that the automatic stay is a blanket protection that applies to multiple creditor claims, even if there is not a perfect symmetry of parties. The creditor is also known as the lender and the debtor as the borrower. Facts In Peterson et al v. Avantair et al, Avaintair […]
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 […]
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, […]
A group of former NFL players recently filed a lawsuit against the league, claiming that it exposed them to probable brain damage. National Football League players aren’t the only footballers who struggle with life after retirement and file bankruptcy. According to a charity set up for former English League soccer players, 33% of players are […]
