The Bankruptcy Law Firm, Prof. Corp.
Biden Administration Will Provide Debt-Relief Measures
American Bankruptcy Institute (ABI) reports that the Biden administration will provide debt-relief measures for more than 12,000 financially distressed farmers, Bloomberg News reported. The U.S. Department of Agriculture will temporarily suspend past-due debt collections and foreclosures for farmers borrowing under two major loan programs administered by the Farm Service Agency, administration officials said. The measure is designed to help farmers hit by the coronavirus pandemic and economy’s slump with about 10% of borrowers qualifying. “USDA and the Biden Administration are committed to bringing relief and support to farmers, ranchers and producers of all backgrounds and financial status, including by ensuring…
Unemployment Benefits During the Pandemic
American Bankruptcy Institute on 1/28/21 reports that: Almost 70 million Americans, or about 40% of the labor force, have filed for unemployment benefits during the pandemic. The number of Americans filing for state unemployment benefits edged lower but remained elevated last week, as the labor market struggles to recover from a surge in COVID-19 infections nationwide amid new restrictions to help curb the spread of the virus, FoxBusiness.com reported. Figures released today by the Labor Department showed that 847,000 Americans filed first-time jobless claims in the week ended Jan. 23, slightly lower than the 875,000 forecast by Refinitiv economists. The…
Deutsche Bank Nat’l Tr. Co. as Tr. for Holders of BCAP LLC Tr. 2007-AA1 . v. Madeira Canyon Homeowners Ass’n
Deutsche Bank Nat’l Tr. Co. as Tr. for Holders of BCAP LLC Tr. 2007-AA1 . v. Madeira Canyon Homeowners Ass’n, 819 F. App’x 565, 566 (9th Cir. 2020): United States Court of Appeals for the Ninth Circuit reiterated the precept that creditors lack standing to challenge violations of the automatic stay in the Ninth Circuit. FACTS: Plaintiff, Deutsche Bank National Trust Co. (“Deutsche Bank”), sued Defendant, Madeira Canyon Homeowners Association (“Madeira”), in the United States District Court for the District of Nevada, in order to set aside a foreclosure sale, contending that the sale violated the automatic stay in an…
Supreme Court Holds that Merely Holding Property Isn’t a Stay Violation
On 1/14/21, in City of Chicago v. Fulton___S.Ct___ case 19-357 (US Sup. Ct. 2021), the US Supreme Court ruled NO STAY VIOLATION by a creditor continuing to hold onto debtor’s property, after debtor files bankruptcy, which the creditor got possession of lawfully, before the debtor filed bankruptcy. Here is the ABI discussion of the case: Justices rule that affirmative action is required before withholding property amounts to controlling estate property and results in an automatic stay violation. Reversing the Seventh Circuit and resolving a split among the circuits, the Supreme Court ruled unanimously today “that mere retention of property does…
In re Claar Cellars LLC, ___BR___ (Bankr. E.D. Wash. Jan. 14, 2021), case No. 20-00044
Bky Ct Washington decision refused to confirm a debtor’s proposed chapter 11 plan that promised to pay creditors 100% in 5 years, but lacked specifics to prove that was going to happen. In addition, debtor’s proposed plan had the problem of providing for “de facto” third party release, has discussion of Blixeth 9th Cir decision limited circumstances where a plan can release a non-debtor third party, without consent of creditors. Detail as reported by ABI (American Bankruptcy Institute): Debtor’s ch11 plan Promising Payment in Full to Everyone Doesn’t Warrant Confirmation by Itself, and there was a competing creditor proposed ch…
Famous People Who Have Filed Bankruptcy
Credit & collection newsletter of 1/13/21 reports on famous people who have filed bankruptcy. Here is one report: Movie director Francis Ford Coppola filed for his second bankruptcy case in 1992, with assets listed at $52 million and liabilities at $98 million, according to the New York Times. He blamed the majority of his debt on the failure of the movie “One From The Heart,” which cost $27 million to film but earned only $4 million.
Rodriguez v. Mukamal, ___BR___ (US District Court, SD Fla Oct. 1, 2020), case number 20-50583
US District Court affirmed US Bankruptcy Court decision, to hold that the bankruptcy debtors (who voluntarily converted their chapter 13 bankruptcy case to chapter 7) could not claim a homestead exemption in a home they did not own on the date they filed their Chapter 13 bankruptcy case, even though they did own the home (which they inherited) on the date they converted their Chapter 13 case to Chapter 7. Detail: US District Court, SD Florida, held Chapter 13 debtors lost an exemption they claimed in a home they inherited, when they converted their Chapter 13 case to Chapter 7,…
America Bankruptcy Institute (“ABI”) summarizes New Bankruptcy Relief Provisions, that are contained in the 2021 Federal Appropriations Act
The new Consolidated Appropriations Act of 2021 (the “Act”), which was signed into law on Dec. 27, 2020 (H.R. 133), includes within its 5,593 pages a number of new bankruptcy relief provisions for businesses as part of what the legislation calls the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act. Additional bankruptcy relief provisions are found in a miscellaneous section of the Act. A summary of the relief provisions (including PPP loans becoming available to certain debtors, treatment of commercial real estate leases and preference amendments). Here is a summary of the relief provisions that will affect businesses,…
More Than Half of Emergency Small-Business Funds Went to Larger Businesses, New Data Shows
More than half of the money from the Treasury Department’s coronavirus emergency fund for small businesses went to just 5 percent of the recipients, according to data on more than 5 million loans that was released by the government yesterday evening in response to a Freedom of Information Act request and lawsuit, the Washington Post, on 12/2/20, reported.
On 12/17/20, the American Bankruptcy Institute (“ABI”) reports that US Congress and White House Race to Finish $900 Billion Covid-19 Aid Package
US House and Senate, and the White House face a rapidly approaching deadline to wrap up negotiations on another coronavirus relief bill, racing today to complete the details of the roughly $900 billion package and pass it through Congress before the end of the week, the Wall Street Journal reported. Top Republicans and Democrats are closing in on a relief package that would send another direct check to many Americans, enhance unemployment benefits, provide aid to small businesses and fund the distribution of the Covid-19 vaccine, among other measures. Because they are planning to approve a relief bill alongside a…