General
Is a PA Gaming License property that can be clawed back in bankruptcy?
The Commonwealth of PA was recently permitted to sustain revocation of a debtor’s gaming license and keep the $50M paid per state forfeiture laws, as a license is considered a privilege versus reclaimable property. This is yet another example of the intricacies of pre-bankruptcy planning, as lawyers and debtors collaborate to re-tool with minimal friction.
Read MoreStudent Loans are inching toward normalization with other dischargeable debt in Bankruptcy
The Student Borrower Bankruptcy Relief Act has been initiated by the House to eliminate the Bankruptcy Code’s ambiguous barrier to student loan discharge, which has been read to require a showing of severe financial hardship if the debtor is forced to re-pay. This complements the judicial trend to discharge private student debt to effect the policy of…
Read MoreDemystifying Bankruptcy: Filing for bankruptcy can never cause a contract default
For example, a typical clause in leases states that a tenant’s filing for bankruptcy causes a default, allowing the collection of remedies. This is merely a scare-tactic and is known as an ipso facto clause that has zero legal effect. In fact, a bankrupt tenant can even make the unilateral decision to continue the lease.
Read MoreDemystifying 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 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 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 MoreNew Student Loan Consumer Group is Taking Initiative
A new student loan consumer watchdog group is taking initiative to help and protect student borrowers in the absence of government action. This non-profit consumer group is led by people who quit the Trump administration Consumer Financial Protection Bureau and hope to serve as a check on the student loan industry. Known as the Student Borrower Protection…
Read MoreWBLA’s Inaugural Trek to NY Law Firms!
I am so excited to help launch the Wharton Business Law Association’s first trek to visit New York law firms! Thanks and kudos to my sister network Women Owned Law hostess attorneys — Wendy Schwartz of Binder & Schwartz, Nancy Mertzel of Mertzel Law PLLC and Helene Pangalos of The Law Office of Helene Pangalos —…
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