Bankruptcy Blogs

Lenders tighten underwriting standards; coronavirus death on Wall Street

03/30/20

Banks and fintechs are not taking undue risks in lending to new customers; Jefferies CFO Peg Broadbent succumbs to the disease at age 56.

[more]

Is mortgage industry equipped to implement Washington's forbearance plan?

03/29/20

Homeowners reeling from coronavirus-induced economic shock are already enduring extremely long wait times while trying to get relief. Legislation passed last week could worsen the logjams.

[more]

How to Treat Post-Petition Attorneys' Fees

03/29/20

This is a hyper-technical bankruptcy question that's been bothering me for a while: what happens with post-petition attorneys' fees for undersecured/unsecured creditors after the Supreme Court's 2007 decision in Travellers v. PG&E? Specifically, assuming that the post-petition attorneys' fees fees are allowed as an unsecured claim, are they credited against a collateral cushion before or after post-petition interest?  

[more]

PSLF in the time of Coronavirus

03/29/20

The rules for student loan borrowers hoping for Public Service Loan Forgiveness are changing rapidly, and information even on Education Department and CFPB web sites is confusing and rapidly outdated. The CARES Act, section 3513, signed into law on March 27, requires the Secretary of Education to “suspend all payments due” for federally-held student loans until September 30.

[more]

Required fine print notices

03/28/20

I’m required to give you three legal disclosures Now that most consultations are by phone and zoom, I’m posting these on my webpage.  The first disclosure This first disclosure tell you that you have four choices under the bankruptcy law. Chapter 12 is only for farmers, and fisherman. I’ve never done a farmer Chapter 11 […]

[more]

Overview Of The Paycheck Protection Program Under The Cares Act (Title I)

03/27/20

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted, an economic relief package in response to the COVID-19 pandemic. The CARES Act provides economic support at the federal level to the business sector, employees, individuals and families, and specific industries that have been impacted, including air transportation, healthcare, and education.

[more]

Congress to Expand Small Business Eligibility Limits to $7.5 Million

03/27/20
On March 25, 2020, the U.S. Senate passed the Coronavirus Aid, Relief and Economic Security Act” (CARES Act). The House is expected to pass the bill today. One provision of the bill increases the eligibility limits for small business debtors from $2.7 million to $7.5 million. The amendment will only apply to cases commenced after its effective date and will be subject to a sunset provision after one year.
[more]

CECL down, but not out

03/27/20

Lawmakers and regulators opted to delay compliance for banks that have implemented the credit loss standard, sparing them near-term capital hits.

[more]

Coronavirus response, ransomware, telecommuting trials: Top stories of the week

03/27/20

What banks need to know about the coronavirus stimulus package; tech vendor Finastra hit with ransomware attack; bank CIOs confront challenge of so many employees working at home; and more from this week's most-read stories.

[more]

Fed plowing ahead with stress tests. But should it?

03/27/20

Many argue the economic turmoil from the pandemic makes the Comprehensive Capital Analysis and Review irrelevant this year, while others say testing banks’ capital strength is crucial now more than ever.

[more]