Bankruptcy Blogs

SEC Off-Channel Communications Sweep

05/25/23

Over the last several years, the Securities and Exchange Commission (the “SEC”) and the Commodities Futures Trading Commission (“CFTC”) have been laser-focused on the use of so called “off-channel communications” in the financial services industry. On the theory that employees’ use of personal devices to communicate about business matters violates the “books and records” rules as these communications are not saved in company systems, regulators have conducted intrusive and extensive investigations requiring employees to turn over their personal devices for review.

[more]

Debunking Debt Ceiling Myths

05/21/23

The commentary on the debt ceiling standoff has featured a bunch of mistaken conceptions from across the political spectrum. Let's address them. 

Myth #1:  The 14th Amendment Prohibits a Default

A variety of commentators claim that the 14th Amendment prohibits the United States from defaulting. It does nothing of the sort. Read the text of the Public Debt Clause: 

[more]

Inflation Adjustment for Family of Two Goes the Wrong Way

05/15/23

Bankruptcy Means Test Inflation Adjustment for Family of Two Goes the Wrong Way Budgeting food and clothes in the bankruptcy court for a family of two just got harder. According to the Justice Department (who gets them from the IRS, who gets them from the Bureau of Labor Statistics), the average cost of food, clothing […]

[more]

Community Financial Services of America v. CFPB Amicus Brief

05/15/23

This fall the Supreme Court will be hear a case captioned Community Financial Services of America v. Consumer Financial Protection Bureau, dealing with the constitutionality of the CFPB's funding mechanism. I'm pleased to announce that Patricia McCoy and I filed an amicus brief today in support of the CFPB.

[more]

14-4: Any Questions?

05/10/23

Anna, Adam, and myself have a piece up on Alphaville about section four of the 14th Amendment, which is all the rage these days.

[more]

Bankruptcy Trustee Hearings Will Soon Be on Zoom

04/30/23

Bankruptcy Court Trustee Hearings Will Soon Be On Zoom Bankruptcy Trustee hearings are now telephonic. That started for the pandemic, effective April 9, 2020. They are moving to Zoom, soon. Associate Attorney General Vanita Gupta made that announcement Friday at the annual convention of the National Association of Consumer Bankruptcy Attorneys.  Colorado, Wyoming, and Utah […]

[more]

Proposed “Made Available to Trade” Determination for SOFR and SONIA Swaps

04/26/23

On April 12, 2023, Tradeweb’s Swap Execution Facility, TW SEF LLC, filed a self-certification[1] for certain overnight index swaps (OIS)[2] referencing USD Secured Overnight Financing Rate (“SOFR”) or GBP Sterling Overnight Index Average (“SONIA”) to be “made available to trade” (“MAT”) on exchange.

[more]

Calculation of Secured Claims

04/25/23

When I was a law student the rule I learned about secured claims was that they accrue post-petition interest and attorneys' fees (if provided for by contract or statute) up to the amount of the value of the collateral that exceeds their claims, but then nothing further once they are fully secured.  That was an easy enough rule to apply.

[more]

Paying Your Mortgage with Money Order is a Bad Idea

04/19/23

Paying Your Mortgage with Money Orders is a Bad Idea Handing somebody a money order to buy a car or something–that’s sometimes safer than cash.  But mailing a money order to pay your mortgage–that’s almost always a bad idea. Let me tell you about Norman.  Norman filed Chapter 13 bankruptcy with different lawyer.  He later […]

[more]