Bankruptcy Blogs

Morning Scan: Supreme Court Sides with B of A; Can Bank Reports Rebuild Trust?

06/02/15

Receiving Wide Coverage ... Stuck with Second Mortgages: The Supreme Court sided with banks Monday by ruling homeowners cannot void second mortgages in bankruptcy even if their homes are underwater. The unanimous decision in favor of Bank of America leaves struggling homeowners with even fewer options, according to New York Times columnist Stephen Lubben. But he suggests banks may eventually have to provide relief to underwater borrowers "if they ever want to move on. After all,Â...

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Energy Future Wins More Time to Get Chapter 11 Plan Support

06/02/15

A U.S. bankruptcy judge on Monday granted Energy Future Holdings Corp. more time to round up support for its chapter 11 plan, as creditors and potential bidders circle its valuable transmissions unit, Oncor. The Wall Street Journal has the Daily Bankruptcy Review article here.

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U.S. Supreme Court Rejects Chapter 7 Debtor’s Stripping of Junior Liens

06/02/15

Holding: A debtor in a Chapter 7 bankruptcy proceeding may not void a junior mortgage lien under § 506(d) when the debt owed on a senior mortgage lien exceeds the current value of the collateral if the creditor’s claim is both secured by a lien and allowed under § 502 of the Bankruptcy Code.

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Supreme Court Holds that Bankruptcy Courts can Adjudicate Stern Claims

06/01/15

In a 6-3 ruling, the U.S. Supreme Court held that bankruptcy courts have the authority to adjudicate Stern claims so long as the litigant parties provide “knowing and voluntary consent.”  This decision in Wellness International Network, et. al. v. Richard Sharif  provides much needed guidance as to the breadth and applicability of the Supreme Court’s 2011 decision in Stern v. Marshall.

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Nortel: The CBI Case of the Century (So Far)

06/01/15

There can be little doubt Nortel wins the title for the cross-border insolvency case of the young century. Not only is it a huge case (US$7B or so), but as I noted in my last post it has established several milestones, including a joint televised trial in Toronto and New York and a common result in the two courts.

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Why CDFIs Stand Out from the Pack

06/01/15

Most banks are interchangeable in the eyes of the average consumer. But a recent survey finds that mission-oriented banks distinguish themselves with greater employee diversity and a stronger commitment to lending in low- and moderate-income communities.

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Where Banks' Cost-Cutting Calculations Go Wrong

06/01/15

Banks need to keep a lid on personnel-related expenses. But many of them are missing out on opportunities to dig deeper into the data and determine the appropriate hours and staffing for their retail locations.

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Caulkett: SCOTUS Hands BoA a Victory

06/01/15

The Supreme Court ruled unanimously in favor of Bank of America in Caulkett v. Bank of America. Basically the Court found itself bound by its previous decision in Dewsnup and didn't think that any of the distinctions presented (by yours truly among others) between Dewsnup and Caulkett were compelling.

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Rent-to-Own Hair Weaves

06/01/15

Apparently there is a business of rent-to-own hair weaves.  As a bald man, this is of particular interest. Below is a description of some of the program:

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Indiana Toll Road Leaves Bankruptcy

06/01/15

A toll road that runs across northern Indiana exited bankruptcy protection and will now be operated by Australia’s IFM Investors. The Wall Street Journal has the Daily Bankruptcy Review article here.

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