Posts Tagged ‘consumer’
Will Student Debt become dischargeable?
The saga of student debt continues into the new administration. Here’s to hoping that it will be treated like any other debt in bankruptcy in the future, treating Education Department backed debts like any other unsecured debt, and affording fresh starts to all.
Read MoreTitle VII Loophole Allowing Bank Discrimination May be Soon be Closed
As our country reconciles inequity in the law, The Fair Access to Financial Services Act, introduced last week, prohibits discrimination by banks, closing a gaping loophole. Title VII subjects only certain businesses to its prohibitions, such as movie theaters, restaurants and hotels, allowing banks to treat customers differently. While many states prohibit bank discrimination, the disparity necessitates…
Read MoreThe Right to Repair Movement embraces Mobile Health
On a consumer plug today, I am excited by the “right to repair” trend that has surfaced in a proposed bill to block manufacturer imposed limits on medical device repair. While advocates worry about the environment, an important fall-out is consumer inability to take ownership of product maintenance. Of course safety is key, and I…
Read MoreAn Individual Chapter 11 Plan must be funded by more than Business Income
In re Patel, a recent CA bankruptcy decision, held that chapter 11’s requirement for individual debtors to pay unsecured creditors from “disposable income,” encompasses income from all sources. Note that this would equally apply in Subchapter V. The Patel Chapter 11 plan listed only motel income which was insufficient to fund a payout to unsecured creditors. While…
Read MoreIs 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 MoreDemystifying Bankruptcy: More on tenant tips
Filing for bankruptcy can help a tenant break a long-term above-market lease, as bankruptcy law provides the tenant with a special cap on damages at three years rent. Planning ahead is key, and on the flip side, a landlord can head off a potential major loss by keeping tabs on its tenants’ financial portfolios as…
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 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 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…
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