Bankruptcy Blogs

Systemic Risk Is About Bad Assets, Not Size

08/21/11

Since U.S. legislators and regulators failed to learn how banks' shared delusions generate systemic risk, it's not surprising that European banking regulators also missed the point

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Trustee in Meridian Automotive Systems Files Preference Complaints

08/21/11

On August 7,  2009, Meridian Automotive Systems ("Meridian") filed a voluntary petition for relief under chapter 7 of the United States Bankruptcy Code.  Soon after Meridian filed its petition for bankruptcy, the Office of the United States Trustee appointed George L.

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Trustee in Meridian Automotive Systems Files Preference Complaints

08/21/11

On August 7,  2009, Meridian Automotive Systems ("Meridian") filed a voluntary petition for relief under chapter 7 of the United States Bankruptcy Code.  Soon after Meridian filed its petition for bankruptcy, the Office of the United States Trustee appointed George L.

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Plan Could Slow Down Florida Foreclosures

08/21/11

NACBA (National Association of Consumer Bankruptcy Attorneys) responded this weekend to the government’s latest approach to the foreclosure crisis with what many people are calling the Principal Paydown Plan. Rather than turn the United States into a nation of renters under the recent suggestion that Freddie and Fannie rent their foreclosed properties or sell them as rentals, NACBA [...]

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In re Penrod, 611 F.3d 1158 (9th Cir. 2010) An Opportunity for California Bankruptcy Attorneys — But Maybe Not For Long

08/21/11

The 9th Circuit has ruled that to the extent that an automobile lender rolls the negative equity from a trade-in into a new acquisition loan that part of the loan is not a purchase money security interest.  In re Penrod, 611 F.3d 1158 (9th Cir. 2010).   The ruling in Penrod is in apparent contrast to [...]

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Bankruptcy Tweets for July 2011 - Part III

08/21/11

Catching up on things.  Lots of tweets, but no blog posts.

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Bankruptcy Tweets for July 2011 - Part III

08/21/11

Catching up on things.  Lots of tweets, but no blog posts.

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Ransom Footnote 8: Judge Laura Grandy Resolves the Unresolved Issue

08/20/11

     A Chapter 13 bankruptcy debtor may deduct the full IRS Standards vehicle allowance even though the actual payment may be less,  per a decision by Bankruptcy Judge Laura Grandy in the Southern District of Illinois case of In re Scott, 10-32582 (August 8, 2011).      When the Supreme Court ruled in Ransom v. FIA [...]

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Court Finds Recharacterization of "Loans" Depends on State Law

08/20/11
The Fifth Circuit has upheld a Texas bankruptcy court's order recharacterizing the ostensible debt of a non-insider as equity. Matter of Lothian Oil Incorporated, No. 10-50683 (5th Cir. 8/9/11). Unlike other circuits to consider the issue, the Fifth Circuit relied on Sec. 502(b) and Texas state law rather than the Court's equitable powers under Sec. 105. You can find the opinion here.
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Court Finds Recharacterization of "Loans" Depends on State Law

08/20/11
The Fifth Circuit has upheld a Texas bankruptcy court's order recharacterizing the ostensible debt of a non-insider as equity. Matter of Lothian Oil Incorporated, No. 10-50683 (5th Cir. 8/9/11). Unlike other circuits to consider the issue, the Fifth Circuit relied on Sec. 502(b) and Texas state law rather than the Court's equitable powers under Sec. 105. You can find the opinion here.
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