Bankruptcy Blogs

People are not corporations, and financial journalists are not ordinary people

12/13/11

It is getting really old, the exasperation of entitled financial journalists that ordinary folks are not walking away from their underwater homes as much as they supposedly should. The latest to sound this tired refrain is James Surowiecki in The New Yorker (Living By Default, Dec. 19, 2011), who also makes the clichéd comparison to corporate decisions to shed debt using chapter 11 bankruptcy. He calls on underwater homeowners to do "the smart thing" by walking away.

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NPR Reports that Debtors' Prisons Are Alive and Well

12/12/11

Although debtors' prisons are illegal across the country, you can apparently still end up in debt for an unpaid bill.

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American Airlines: Not Too Big to Fail

12/12/11

The last domino has fallen. American Airlines, the last of the previous generation of top airlines not to file for bankruptcy, caved in last week and filed for chapter 11 protection. Analysts cite a history of high costs, inefficient operation, and an overall lack of flexibility in a changing business environment. America’s third largest carrier now faces [...]

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California – Deed of Trust Assigned…. but Where’s the Note?

12/12/11

Dear Readers:  So many times clients will asking me about the “Missing Note” Defense to a foreclosure. If you are in CALIFORNIA, as of the time of this writing, there is NO MISSING NOTE defense available.  The foreclosure process is regulated by Civil Code, Section 2924 et seq. which sets forth the process by which [...]

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Rent Control: It’s Back!

12/12/11

New York is a world apart of the rest of the nation when it comes to rent control, or rent stabilization laws. The City, over the years, has manipulated—often capped—rent prices with surprising consistency. In 1948, FDR instituted the first rent control laws in the United States. As our boys came home from World War 2 and [...]

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Start-Ups Bring Needed Disruption to Banking

12/12/11

Nonbank start-ups are shaking things up by doing what banks don't, but partnerships with financial institutions are often necessary to deliver the broad range of new services to a national customer base.

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Retiring Debt May Now Be the Only Way to Raise Capital

12/12/11

Expect more debt exchanges and cash tender offers in the coming months. The strategy is rational and the alternatives for generating equity are limited at best.

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New Debate Published in the Texas Law Review

12/12/11

Dear Mr. Hayes: You may be interested in a new debate published today in the Texas Law Review and its online companion publication, See Also, concerning whether Chapter 13 is merely a "pretend solution" warranting wholesale reform. Professor Katherine Porter...

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New Debate Published in the Texas Law Review

12/12/11

Dear Mr. Hayes: You may be interested in a new debate published today in the Texas Law Review and its online companion publication, See Also, concerning whether Chapter 13 is merely a "pretend solution" warranting wholesale reform. Professor Katherine Porter...

[more]