Bankruptcy Blogs

It is only natural that a business unit will not want to disturb an established, profitable relationship. But that is how risk enters a business, making the whole firm vulnerable to financial crimes or regulatory violations.

Liability insurance companies generally argue allowing banks to receive insurance coverage for overdraft litigation settlements violates public policy and rewards supposed wrongdoing, but there typically is no explicit exclusion in a policy that justifies this and other go-to positions.

Residential Capital LLC said in court papers it is changing the terms of its $1.45 billion bankruptcy loan to allow it to sell its “legacy” loan portfolio before unloading its mortgage-servicing portfolio, a move that would allow Berkshire Hathaway Inc. or a competing bidder to close on a deal for the legacy loans more quickly. Read the Daily Bankruptcy Review article here.

The feds will decide within six months whether those involved with New Stream Capital LLC will face criminal charges, but until then, founder David Bryson and other ex-employees will be taking the Fifth Amendment and refusing to answer questions about the “hedge fund” operation that dabbled in the life-settlement business, as well as T-shirts, jewelry operations and real estate, court papers say.

As I stated in my prior post, another way that you can deal with your debts is to let your creditors sue you.  Hunh?  Why on earth would anyone want to get sued?  A legitimate question and my answer is not one given lightly nor does it apply in all situations.