Bankruptcy Blogs

Banks Should Heed Bernanke's Warning on Interest Rate Risk

06/07/13

Rising rates can expose lurking dangers across the industry.

[more]

Video Of Testimony Before ABI Commission To Study Reform Of Chapter 11

06/07/13

As mentioned in a recent blog post, the American Bankruptcy Institute has established a Commission to Study the Reform of Chapter 11. A video of testimony before the Commission’s June 4, 2013 field hearing in New York is available below.

[more]

Years Later, U.S., U.K. Eye Criminal Libor Charges; Uncertainty in Bond Market; France Widens UBS Tax Probe

06/07/13

Receiving Wide Coverage ...

Libor Update: Some big Libor news this Friday morning, courtesy of the Wall Street Journal — U.K. and U.S. authorities are preparing to file criminal charges against former Barclays employees for their alleged roles in the London interbank offered rate-rigging scandal. Sources familiar with the matter tell the paper charges are "likely to be filed this summer," but that "the plans aren't finalized and could be delayed or modified." The sources don't...

[more]

The Daily Docket: Exide Readies for Possible Bankruptcy

06/07/13

Car- and machine-battery maker Exide Technologies Inc. is prepping for a possible bankruptcy filing, The Wall Street Journal reports.

[more]

Duties of Counsel for a Debtor-in-Possession

06/07/13

What are the duties of the lawyer represent the debtor-in-possession? We know the DIP has fiduciary duties to the estate. Does this mean that the DIP’s attorney is actually counsel for the “estate”? This is not a question on a law school exam, but a very real and vexing practical issue that arises in situations when the DIP acts in ways that appear to compromise its fiduciary duties to the estate.

[more]

Homestead Exemption Lost By Leasing Land To Mobile Home

06/07/13

There are several bankruptcy court decisions which considered the debtor’s homestead exemption when the debtor used part of the homestead property to produce income. The general rule is that commercial uses on a homestead property situated within a municipality will disqualify all or part of homestead exemption, but income producing activity does not disqualify homesteads located in the county.

[more]

Negotiate Great Deals on Electronics and Other Secured Debts While in Bankruptcy

06/06/13

Did you know that your time in Chapter 7 is an ideal time to negotiate extremely favorable buy outs or payment terms for secured debts?  Because you have the option to surrender secured collateral that may have lost significant value, secured creditors are usually willing to accept pennies on the dollar.

[more]

Where Are the Economies of Scale We Were Promised?

06/06/13

Lowering overhead (relative to assets) would be a powerful motivator for a bank to get big, fast. But the savings just aren't there.

[more]

Time to Reverse Course on Reverse Mortgages

06/06/13

As the government banishes home loan products deemed unsuitable for most borrowers, why does it continue to backstop one that’s pitched to aging seniors – mainly by nonbank lenders?

[more]