Bankruptcy Blogs

Chapter 11 Once Again Safe for Undersecured Lenders - Supreme Court Affirms Right to Credit Bid in RadLax

05/29/12

 

The U.S. Supreme Court today in Radlax Gateway Hotel, LLC, et al. v. Amalgamated Bank unanimously upheld the right of secured creditors to credit bid their debt upon a sale of their collateral pursuant to a nonconsensual chapter 11 plan of reorganization.  As described in numerous prior posts on this site, the ruling resolves a split between circuits and removes a cloud of ambiguity from chapter 11 cases. 

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Lesson from JPMorgan: Risk Management Needs to Run Deep

05/29/12

It isn't sufficient to establish a chief risk officer position that reports to the CEO or board. The CRO has to be empowered to oversee all aspects of risk in an integrated fashion.

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Is filing bankruptcy bad? Can it be good?

05/29/12

Each bankruptcy case is different: Don’t throw the baby out with the bathwater You’ll hear a lot of people conclusively say: “bankruptcy is bad.” Why? Why is the general consensus that filing for bankruptcy is a bad thing? While it is true that filing for bankruptcy is evidence of trouble with personal finances, that’s not [...]

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Can(n)onading Radlax

05/29/12

As Stephen noted, the Supreme Court has decided the RadLAX case. Although I suspect I won't be the only Credit Slips blogger to comment on the case, I had a few thoughts on the interpretive methods instead of the result. In a short opinion, the Court reached the correct results in what was an easy case.

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As Expected

05/29/12

The Supreme Court has affirmed the 7th Circuit in RadLAX. I'm sure Adam, I, and others will have more comments to follow. The 8-0 decision certainly makes me feel a bit more comfortable about those old posts arguing that the 3d Cir. was aggressively wrong.

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Means Test Calculations Not Helped By Borrowing From Debtor's Own 401 K

05/29/12

The means test allows debtors an deduction and income offset for secured debt payments. The greater amount of monthly secured debt payments the more likely a debtor is to pass the means test. One of my bankruptcy clients  suggested increasing his secured debt payments by taking out a loan from his 401k retirement account. He would use the money to pay down his home mortgage.

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The Daily Docket: Dewey Enters Bankruptcy

05/29/12
Reuters

Law firm Dewey & LeBoeuf LLP has filed for bankruptcy protection, The Wall Street Journal report

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Mortgage Foreclosure and Discharge of Indebtedness Income

05/29/12

A mortgage foreclosure may also have federal income tax consequences. One issue is "discharge of indebtedness income." This can be understood as the IRS's attempt to tax you on money you were loaned but are not going to repay. The mortgage lender may be required to report the amount of the cancelled debt to you and the IRS on a Form 1099-C, Cancellation of Debt. Fortunately though there are various exceptions to this rule and even a recently added exception.

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Chapter 7 Bankruptcy in Texas: What You Need to Know

05/28/12

Filing chapter 7 bankruptcy in Texas: different from the rest of the country? The state of Texas takes pride in doing things differently than the rest of the country. However, when it comes to bankruptcy, Texans will find some similarity in the process regardless of which region they file in. The bankruptcy code is federal [...]

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