Bankruptcy Blogs

In a key decision in the Northern District of Georgia, Judge Hagenau has ruled that a secured creditor is only entitled to a secured claim, pursuant to § 506(b), to the extent of its actual and reasonable fees rather than contractual and statutory fees after a foreclosure sale where the property has not been abandoned.  Most Promissory Notes and Security Deeds call for contractual attorneys fees and expenses upon default.  The contractual and statutory attorneys fees are up to 15% of the loan amount and may or may no

I have been asked more than once whether filing bankruptcy can adversely impact the debtor’s security clearance with a private business or government agency. Most creditor lawyers state that a bankruptcy actually improves security clearance. The typical employer wants to make sure that financial problems do not lead to more serious personal problems affecting employment such as drug use, alcohol, or high interest borrowing. Bankruptcies solve financial problems, relieve stress, and usually improve concentration and performance at work.

Megabanks may be able to fight off regulatory forces demanding their corporate downsizing, but a voluntary break up may be the only way to sway public opinion their way.

A judge on Wednesday said Lehman Brothers Holdings Inc. creditors can subpoena Bruno Iksil in its lawsuit against J.P. Morgan Chase & Co., ensuring the phrase “London Whale” will stay in the lexicon for at least a bit longer. Read the Daily Bankruptcy Review article here.