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Archive for the ‘Bankruptcy Articles’ Category

Decision in Sierra Concrete Design, Inc. Provides a Thorough Explanation of the Principles Behind Bankruptcy’s Preference Laws

Posted by Nancy Prew on January 22nd, 2012

Summary

In an opinion issued January 4, 2012, Judge Sontchi of the Delaware Bankruptcy Court provided an easy to follow primer in preference law in the course of granting in part and denying in part a preference defendant’s motion for summary judgment. Judge Sontchi’s opinion is available here (the “Opinion”).  The Opinion provides an excellent framework for all preference defendants to understand why preference laws are in place and the reasoning behind their existence. The first half of the Opinion would make a fantastic introduction to any discussion of two of the most common preference defenses, the “ordinary course of business” and “new value” defenses. Please bear in mind, however, that the Opinion was issued in response to a motion for summary judgment, which applies different standards than an opinion written following a complete trial. The below blog posts address other opinions written in response to motions for summary judgment:

SemCrude Decision Delineates the Process for Analyzing Motions for Continuance vs. Motions for Summ

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Tags: Preference, Principles Bankruptcys
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Unemployment Claims Jump After Holiday Respite

Posted by Nancy Prew on January 15th, 2012

Claims for unemployment benefits took a significant jump early this month, as experts believe the temporary lull over the holidays was a just a blip in the overall pattern of high unemployment.

And, as more people appear to be jobless to start the new year, bankruptcy filings may grow as well, as consumers look to shed debts they accrued over the holiday season.

The statistics paint a picture of an economy that continues to sputter along, with a few signs of fragile improvement.

According to a recent report in USA Today, the unemployment figures for the first few weeks of January are not particularly heartening:

  • Jump in applications. Last week, the number of applications for federal unemployment benefits jumped by 24,000, to a seasonally adjusted figure of 399,000 applications, which is the highest such number in three weeks, according to the Labor Department.
  • No more decline. This jump in applications was a bit unsettling because they had fallen steadily for three months, bringing the total number of people receiving unemployment benefits to the lowest amount in three years.
  • Magic number.

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Tags: Holiday, Jump Holiday
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What are current account mortgages?

Posted by admin on January 9th, 2012

Current account mortgages or CAM as they are commonly abbreviated as are essentially those wherein the borrower consolidates the loans or the mortgages or traditional current accounts and sometimes even the savings account all into one single account. When compared to traditional mortgages, this system has an advantage for the customer as the average balance which is outstanding on the consolidated amount will be reducing on a periodic basis as most customers will be using the same account to deposit their monthly salary.

This type of linkage between the various accounts of the customer into a single consolidated account is a specific case of an offset mortgage scheme wherein periodic deposits reduce the overall outstanding credit balance in all of the various mortgages and personal loans. The current account offers the customer the same privileges as those of any normal bank account. The customers can also transfer their credit cards to the same account too and one of the best things about this system is that the customer enjoys the same interest across the entire spectrum. Read full post…

Tags: offset mortgage
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Bankruptcy Laws Are Different in Each State: Understand Them in Arizona

Posted by Nancy Prew on January 5th, 2012

What laws govern when you file an Arizona bankruptcy?

Because it’s common for people to move from state to state, it is also common for people filing bankruptcy in Arizona to have property, both personal property and real estate, in other states.  Because of this, there are three common questions that my clients will ask me: When can I file bankruptcy in Arizona? What state laws control the outcome of my bankruptcy?  What state laws protect me outside of bankruptcy?

When can I file bankruptcy in Arizona?

Anyone who has lived in Arizona for at least 91 consecutive days prior to filing may file bankruptcy in Arizona (Please keep in mind that even if you have not lived in AZ for 91 days you may still be able to file in Arizona. In

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Tags: Arizona
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Can Creditor Hold Debtor In Civil Contempt For Failing To Transport And Assemble In Florida The Debtor’s Out-Of -State Assets?

Posted by Nancy Prew on December 31st, 2011

I am frequently  asked whether a creditor can get a court to hold a debtor in contempt of court for not paying a civil judgment. This past week one of my clients explained that he had recently moved to Florida but maintained a car, bank accounts, and collectibles in his former residence. He asked me whether his creditors could obtain a Florida court order commanding him to transport the car and collectibles to Florida and move his money to a Florida bank, and if they could, whether he could be held in contempt and put in jail if he did not comply with the court order.

I am not been involved in any case where a court has threatened to hold my client in contempt if he did not move his own assets from another state into Florida where a creditor could more conveniently levy upon the assets. Essentially, a court would be ordering a debtor to collect his own assets to pay his creditor and threatening to put the debtor in jail for non-compliance.

 

Courts can order the conveyance of property to remedy a fraudulent transfer or conversion, and courts can hold people in contempt for failure to pay alimony and domestic support obligations. H

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Tags: Contempt, Contempt Failing
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Fourth Circuit Rules Trustee May Appeal Order Denying Attempt to Dismiss Bankruptcy – McDow v. Dudley

Posted by Nancy Prew on December 16th, 2011

In bankruptcy, a trustee stands in for the people who filed for bankruptcy, assuming financial responsibilities that most people handle for themselves. Depending on the situation, the trustee may not serve the best interests of the debtors; he or she has obligations to creditors as well. So our Riverside consumer bankruptcy lawyers were interested to see a recent bankruptcy appeals ruling that pitted debtors against their trustee. In McDow v. Dudley, David and Anne Dudley of Virginia filed for Chapter 13 bankruptcy in 2008, but converted to a Chapter 7 case. Their bankruptcy trustee, W. Clarkson McDow, Jr., then moved to dismiss the case as abusive, but the bankruptcy court denied it. On appeal, the district court ruled that the order was not appealable and dismissed it. The Fourth Circuit reversed, finding that a motion to dismiss for abuse is appealable.

McDow originally moved in bankruptcy court to convert to a Chapter 7 case or dismiss, so the Dudleys moved themselves to convert to a Chapter 7 case. After this was granted, McDow moved to dismiss for abuse.

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Tags: Bankruptcy, Trustee May
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SemCrude Decision Delineates the Process for Analyzing Motions for Continuance vs. Motions for Summary Judgment

Posted by Nancy Prew on December 10th, 2011

Summary

In an 24 page decision signed June 20, 2011, Judge Shannon of the Delaware Bankruptcy Court partially granted several parties’ motions for a continuance opposing several motions for summary judgment, holding that a motion for continuance must be analyzed before even considering a motion for summary judgment. Judge Shannon’s opinion is available here (the “Opinion”).   To those who follow this blog, I apologize that this entry is a bit out of order, but the Court occasionally publishes an opinion out of order and I haven’t quite perfected time travel.

Background

On July 22, 2008, SemCrude and certain of its affiliates (the “Debtors”) filed for bankruptcy under chapter 11. Shortly prior to the Debtors’ bankruptcy filing, a large number of oil producers, including Samson Resources Company, Titan Energy, Inc., Winstar Energy I, L.P. and Loren Gas, Inc. (the “Producers”) sold and delivered millions of dollars worth of oil and gas to the Debtors. The Debtors then transferred some of that oil and gas to J. Aron & Company, BP Oi

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Tags: Summary, Vs Motions
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Insolvency Advice Online

Posted by admin on December 2nd, 2011

For any business High debt level is not advantageous, though high debt level take place mostly in all business. And for facing such type of situation, it is important that you look for an insolvency advice from the experts and from the best place to find such type of insolvency service online. in internet there are many website having financial experts and who offers such business insolvency advice online. It is important to find a most trustworthy website and use their services to get away from the financial crisis and for moving business smoothly.

Business insolvency:

Business insolvency show that the company money at that individual time is not enough for paying all the debts that has been collected even it is bankrupted. And it doesn’t have any new way for producing fresh funds from the capital market. Mostly fresh funds are produced by publishing bonds or common stock. A Read full post…

Tags: Insolvency Advice Online
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