News
The Bank Behind the Fintech Revolution Stumbles After Customer Funds Go Missing
American Bankruptcy Anstitute (“ABI”) 12/27/24 e-newsletter reports as much as 96 million dollars may have gone missing from customer accounts at Evolve Bank, a bank holding customer funds of many “fintech” firms: The Bank Behind the Fintech Revolution Stumbles After Customer Funds Go Missing Scot Lenoir turned a sleepy farming bank in Arkansas, Evolve bank, into one of Silicon Valley’s top financial partners. Now it is in crisis mode, and some clients have started pulling funds after a business partner failed and thousands of customers couldn’t access their money, the Wall Street Journal reported. Evolve Bank at its peak managed…
Soaring Costs for Home Insurance and Property Taxes
American Bankruptcy Institute (“ABI”) 12/26/24 e-newletter reports that soaring costs for home insurance and property taxes are busting homeowners’ budgets, according to a Wall Street Journal analysis. Insurers have pushed big rate increases because of losses from natural disasters and rising costs to repair homes. Surging home values in recent years, meanwhile, have lifted property taxes for many homeowners. These ballooning expenses are rewriting the math of homeownership. In September, 32% of the average single-family mortgage payment went to property taxes and home insurance, the highest rate ever for data going back to 2014, according to Intercontinental Exchange. The analysis…
The American Bankruptcy Institute e-newsletter of 10/24/24 reports that the so Called “Sandwich Generation” Is Stressed Out, Low on Money and Short on Time:
More Americans shoulder a double load of caring for their children and at least one adult, often a parent. The “sandwich generation” has grown to at least 11 million in the U.S., according to one estimate, and shifts in demographics, costs and work are making it a longer and tougher slog, the Wall Street Journal reported. People are having children later, and they are living longer, often with care-intensive conditions such as dementia. That means many are taking care of elderly parents when their own kids are still young and require more intensive parenting — and for longer stretches of…
France Is Experiencing an Unprecedented Budgetary Crisis
Credit and Collection 10/14/24 e-newsletter reports that the Country of France has such serious financial problems that France may have to file bankruptcy, which would push the whole European Union of countries into financial turmoil: France is experiencing an unprecedented budgetary crisis. The deficit is at risk of exceeding 6% in 2024. France now risks bankruptcy, which would drag the entire eurozone into the abyss. The French government is facing a troubling financial situation. The deficit could exceed 6% in 2024, forcing the executive to plan a budgetary effort of 60 billion euros for 2025. Despite this drastic measure, public…
Credit Card Debt in the U.S. Hits an All-Time High
The Credit & Collection e-Newsletter of 9/9/24 reports that Credit Card Debt in the U.S. hits an all-time high of $930 Billion. Banks and other credit card issuers will fail, if a substantial part of that $930 billion in credit card debt defaults on paying that credit card debt.
American Bankruptcy Institute (“ABI”) 5/23/24 e-newsletter reports that Borrowers, especially the young, struggle with credit card debt in potentially bad sign for economy
NEW YORK (AP) — Consumers are increasingly struggling to pay their credit card bills, raising concerns about severe delinquencies spiraling and sapping consumer spending. The share of credit card debt that’s more than 90 days overdue rose to 10.7% during the first quarter, a 14-year high, according to the Federal Reserve Bank of New York’s report on first-quarter household debt. A year ago severe delinquencies totaled only 8.2% of credit card debt. The first-quarter jump in severe delinquencies was the biggest since 2011. Meanwhile total credit card debt rose to $1.12 trillion from just under $1 trillion a year ago.…
American Bankruptcy Institute (“ABI”) Task Force on Subchapter V Chapter 11 cases, issues its Final Report on 4/23/24
Following is a summary of the Report: Overall The Task Force undertook an in-depth study of Subchapter V statutes and case law, analyzed empirical data, and heard from major bankruptcy constituents. Overall, the Task Force finds that: Subchapter V is working as Congress intended, allowing smaller companies to reorganize and pay creditors; and Subchapter V statutes and practices could benefit from refinement or statutory amendment. Background Smaller businesses are the core of the U.S. economy: U.S. has 33.2 million small businesses, employing over 61 million people and 46% of all private sector employees; but 50% of small businesses fail in…
Americans Are Falling Behind On Their Payments
[reports Credit & Collection 4/25/24 e-newletter, repeating what CNN said] America’s relentless spending has kept the economy motoring. But it’s starting to worry some observers. Chicago Federal Reserve President Austan Goolsbee said Friday that while consumer debt levels aren’t yet “especially” high, the Fed is concerned about the rate of consumer delinquencies, or missed or late payments on expenses such as auto loans, credit card bills and rent. “If the delinquency rate of consumer loans starts rising, that is often a leading indicator for, ‘things are about to get worse,’” he said at a moderated panel hosted by the Society…
RE: CHAPTER 13 FEES Case RARA (“no look”) fees for attorneys representing debtors in Chapter 13 cases Increase effective 5/1/24
RE: CHAPTER 13 FEES Case RARA (“no look”) fees for attorneys representing debtors in Chapter 13 cases Increase effective 5/1/24 The US Bankruptcy Court for the Central District of California has approved increases, effective 5/1/24, in the amounts attorneys for chapter 13 debtors may charge if they execute and file a Rights and Responsibilities Agreement Between Chapter 13 Debtors and Their Attorneys, LBR Form 3015-1.RARA (RARA). For chapter 13 cases filed on or after May 1, 2024, the maximum no-look RARA fees have increased from $6,000 to $8,500 for cases involving a business. For chapter 13 cases involving non-business debtors,…
American Bankruptcy Institute (“ABI”) on 4/11/24 reports Credit Card Delinquency Rates Were Worst on Record in Fed Study
A Federal Reserve Bank of Philadelphia report found that U.S. credit card delinquency rates were the highest on record in the fourth quarter, Reuters reported. Almost 3.5% of card balances were at least 30 days past due as of the end of December, the Philadelphia Fed said. That’s the highest figure in the data series going back to 2012, and up by about 30 basis points from the previous quarter. The share of debts that are 60 and 90 days late also climbed. “Stress among cardholders was further underscored in payment behavior, as the share of accounts making minimum payments…