Carolyn In The Media
Demystifying Bankruptcy: Avoid “fraudulent transfers”
A salary raise by a distressed business entity for no services, or transfer of funds to a new entity for no value are prime examples of fraudulent transfers, as reasonably equivalent value has not been exchanged. These deals are vulnerable to unwinding, but with advance planning, the outcome can be a win-win for all.
Read MoreDemystifying bankruptcy: Start your prep 3+ months ahead
Planning is key. Payment by an insolvent entity for old debt is known as a “preference,” and the creditor may have to disgorge in bankruptcy if it received a greater payout than it would in Chapter 7. As the key to bankruptcy is equitable distribution, the creditor will be paid only its pro rata share. To…
Read MoreDemystifying post-Bankruptcy Credit Opportunities
Credit scores can begin an uptick fairly quickly after the completion of a bankruptcy case. Borrowing can begin within a few months via secured credit cards or credit-builder loans, and VA or FHA mortgages can be obtained within two years. Moreover, increasing innovations in fintech should yield more non-traditional opportunities. In sum, while bankruptcy may remain on …
Read MoreDemystifying the Negative Mystique of “Bankruptcy”
Bankruptcy law is designed to give us all a fresh start. Most people don’t have to give up their basic possessions and can keep $25k plus of equity in their homes. They can choose between immediate discharge relief under Chapter 7, or instituting a repayment plan under Chapter 13, if their assets are beyond the…
Read MoreWill consumers recoup gift card claims in retail bankruptcies?
Gift card claims in bankruptcy are spotlighted in this article which highlights efforts by consumer advocates to put these claims at the head of the pay-out line, as well as provide support through an official court committee of consumer creditors. Note that retailers may shorten the deadline for collecting on the card.
Read MoreStudent Loan is discharged and Servicer required to pay loan in full
A creative move by a pro se debtor resulted in a successful discharge of its student loan via the Servicer’s default judgement, followed by a full pay-off of the loan by the Servicer to the Department of Education. In a recent bankruptcy court decision, the court sanctioned the Servicer for harassing the debtor post-bankruptcy, and required…
Read MoreAccredited Investor Definition set to expand soon
The SEC has recently published a proposed amendment to expand the “Accredited Investor” definition to go beyond financial net worth. Certain certified educational and insider knowledge will suffice, coming closer to the definition of “sophisticated” under Rule 506. In addition, LLC’s are now incorporated into the definition, among Indian tribe, government and other communities. Stay…
Read MoreThe scales are tipping as COVID-19 is increasingly found to be excluded from Business Interruption Insurance
As businesses struggle to survive COVID-19 closures, courts are continuing to find that Business Interruption policies do not cover pandemics. This is where the government needs to step in and help subsidize businesses per the model being followed in Canada. Otherwise, bankruptcy may be the only other option.
Read MorePrivate Student Loans continue to be discharged in bankruptcy
In yet another decision by a bankruptcy court, a private loan by Navient, a popular student loan lender, was discharged in Chapter 13. While government loans cannot be discharged, the recent COVID-19 legislation has now implemented the debt forgiveness previously promised to those working in the non-profit sector. This is a good sign for student…
Read MoreManaging COVID-19: Impact on Your Legal Business
Women Owned Law Virtual Speaker Series, March 27, 2020 Enjoyed discussing the CARES Act and its impact on the new Subchapter V of the Bankruptcy Code as a novel option in our new normal ecosystem. Please join WOL’s virtual speaker series on a monthly basis to get updated on the latest in the law! …
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