Bankruptcy Blogs

None of my clients want to file for bankruptcy. Apart from everything else, they are conditioned by people who have a vested interest in preventing bankruptcy to think that this is a bad thing for the economy. It’s not. In fact, it is a very good thing for the economy.

Bankers, analysts and investors can no longer simply consider past performance to gauge if banks have enough capital. The what-if forecasting of regulators' stress tests is critical to the exercise.

By: Erin Rieu-Sicart

St. John’s Law Student

Debtors living in homes with upside down mortgages can strip their second mortgages off their homestead in a Chapter 13 bankruptcy when their home is worth less than the first mortgage balance. What if the debtor does not have a second mortgage but owes his HOA dues and assessments incurred prior to bankruptcy, and the HOA has recorded a lien to secure repayment.

Wall Street Journal

Fourth time's a charm? The paper reports "deficit hawks" Alan Simpson and Erskine Bowles plan to offer up a deficit fix to Washington sometime later today. According to the duo, this new plan "would reduce the federal budget deficit by $2.4 trillion over 10 years" primarily through reductions to Medicare and Medicaid, curbing or axing certain tax breaks, lowering caps on discretionary spending and adjusting how cost-of-living increases are calculated for Social Security...