What’s New in the Law?
Student 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 MoreEmployees Entitled to Bankruptcy Heads Up & Job Security
Employees in California are newly entitled to a 15-day heads up of a utility’s bankruptcy filing, as well as job security for at least 6 months after the filing. PG&E Corp. was prompted to disclose its intent to file for chapter 11 by a new California law that includes this novel provision requiring a 15 day warning to employees…
Read MoreTips for Client Management of Financial Distress Issues: How can you help your business and individual clients who find themselves at risk?
Women Owned Law, December 7, 2018
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 MoreThe Small Business Reorganization Act of 2018 features Affordable Price Points & Expedited Process
The Small Business Reorganization Act of 2018 features affordable price points and expedited process for small businesses with a debt load of $2.5 million or less. The goal is to encourage and facilitate the rebuilding and retooling of small businesses in our turbulent yet very entrepreneurial economy. The proposed law provides incentives for owners who…
Read MoreITT Tech Student Loans Settle in Bankruptcy versus other Government Loans
ITT Tech student loans settle in bankruptcy and will be paid out assuming that ITT’s bankruptcy estate has sufficient funds. The settlement that will erase nearly $600 million that 750,000 students owed ITT Technical Institute. The agreement will also refund $3 million that students paid the for-profit chain. The students asserted a $1.5 billion claim…
Read MoreUpdate: Attention Brides! David’s Bridal has filed for Chapter 11 Bankruptcy
A Chapter 11 bankruptcy case has been filed in Delaware by Conshohocken PA based wedding gown retailer David’s Bridal Inc. A Chapter 11 plan was filed with its Chapter 11 petition, so that this “pre-packaged bankruptcy case” should go through a speedier approval process than a regular bankruptcy case, as all major creditors have already agreed…
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