Bankruptcy Blogs

Lehman Brothers and the Insolvency of Trees

02/09/12
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If a tree falls in the forest, it’s probably Lehman Brothers Holdings Inc.’s fault.

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The Servicing Settlement: Banks 1, Public 0

02/09/12

What are we to make of the servicing settlement announced today with much hoopla?  The short answer is not much.  The settlement is the large consumer fraud settlement ever, but it accomplishes remarkably little in terms of either alleviating the foreclosure crisis of holding to account those responsible for the housing bubble and subsequent foreclosure abuses.  As my Texas relatives say, it's “A

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Montana Small Business Bankruptcy: Who is Responsible for the Debt?

02/09/12

I get this question regularly (weekly) from  a lot from Montana small business owners who are considering small business or personal bankruptcy. The answer is: it depends. For many Montana small business owners the line between personal and business finances is often blurry. Montana business owners are especially hard working folks who put their blood, [...]

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Alternatives to Mortgage Foreclosure in Montana

02/09/12

“A full-fledged recovery in the housing sector will likely elude the U.S. in 2012.” — Frank Nothaft, chief economist for mortgage-finance company Freddie Mac A rising number of foreclosures and a stagnant economy add up to another difficult year for Montana homeowners. If you are one of the thousands of Montana homeowners in danger of [...]

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Bankruptcy Implications of AG Settlement

02/09/12

Even though I was up at 4am Pacific this morning, the AG and federal government mortgage settlement was nearly old news by then. But in case you haven't heard, here is your official Credit Slips announcement--there was a $26 billion settlement.While the details are still being released, I am already concerned about how the settlement will affect bankruptcy cases.

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Tax Refunds

02/09/12

As taxes are filed and refunds start coming in by mail and direct deposit, attorneys and consumers seeking bankruptcy protection need to lend a careful eye toward refund protection.  Many people have already spent the refund check in their mind with necessities such as car repair and receive a huge shock when the trustee demands [...]

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Congressmen raise new questions about FHFA resistance to principal reduction

02/09/12

The heat is cranking up on the seat of Edward DeMarco, acting head of the Federal Housing Finance Agency and a holdover from the last administration who has been standing in the way of a meaningful response to the mortgage crisis. FHFA is conservator of FannieMae and FreddieMac, owners or guarantors of a large percentage of US home mortgages, and thus in a position to direct the mortgage giants to take steps that would save taxpayers money, provide relief to struggling underwater homeowners, and revive the US economy.

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