Bankruptcy Blogs

Does Chapter 13 Bankruptcy Preclude Mortgagee Filing Unsecured Deficiency Claims?

05/15/13

A potential bankruptcy client wanted to avoid a deficiency judgment from a partially first mortgage on his home. The client’s income made him ineligible to file Chapter 7 bankruptcy which would have discharged the deficiency liability in full. The client had heard that filing Chapter 13 bankruptcy could also eliminate the deficiency claim completely.

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ABI’s Nonprofit Pushes for Unclaimed Chapter 11 Funds

05/15/13

Top bankruptcy attorneys have found a new place for the scraps of leftover money from corporations that collapsed under Chapter 11 protection: their own charity.

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The Daily Docket: Ally Reaches Deal to Settle Claims With ResCap

05/15/13

Ally Financial Inc. said Tuesday it reached an agreement with its mortgage subsidiary Residential Capital LLC that could help accelerate its efforts to get out from government ownership. Read the Daily Bankruptcy Review article here.

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When Dinosaurs Roamed the JPMorgan Boardroom; More Job Cuts at HSBC

05/15/13

Receiving Wide Coverage ... Sick of JPMorgan Yet? The Times' "Deal Professor," Steven Davidoff, calls the fight over the upcoming JPMorgan shareholder vote "silly." Though severing the chairman and CEO roles has improved governance at many companies, he writes, "not all companies are alike," and he finds the benefits of the independent-chair model for a large, complex bank dubious. "No study to my knowledge has ever found that companies that do such a split are better…

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The Best Chance for a Stable Mortgage Market

05/15/13

A modified version of Ed DeMarco’s securities-based model for housing finance reform could promote an active market for risk-sharing arrangements and further reduce systemic risk by distributing credit risk broadly.

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Supreme Court Sets Defalcation Bar at Gross Recklessness under Section 523(a)(4)

05/14/13
In the only bankruptcy case pending before it this term, a unanimous Supreme Court has ruled that the archaic term "defalcation" used in 11 U.S.C. Sec. 523(a)(4) requires 
knowledge of, or gross recklessness in respect to, the improper nature of the relevant fiduciary behavior
complained of.    Bullock v. BankChampaign, No.
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Coda’s Electric Car Steers Into Trouble

05/14/13
Reuters
A General Electric car charging station for one of the first all-electric CODA EV cars in the parking structure at the Westfield Century City Mall in Los Angeles on March
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Common Sense Brings 'Fuzzy Science' of Ops Risk into Focus

05/14/13

Accept the limitations of quantification exercises. Management should focus on identifying and mitigating risks that alone or in combination could cause a bank to fail.

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It Ain’t No Lie: Pearlman Bankruptcy Nearly Over

05/14/13

Get ready to say ‘bye, ‘bye, ‘bye to the bankruptcy case of imprisoned boy-band manager Lou Pearlman.

Six years after the creator of ‘N Sync and the Backstreet Boys was forced into bankruptcy (and later prison), a creditor-payment plan is expected to be ready for court approval as soon as this summer.

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