How Changing Bankruptcy Laws For Student Loans Could Revitalize The Economy
Rhodes is to hold a trial Oct. 23 on the objections. Sole said outside court that he was concerned that the committee might begin negotiating pension cuts even though a separate legal issue whether Michigans constitutional protections prevent cuts hasnt been decided. Sole said he and dozens of others protested outside the courthouse Monday, chanting, Not a dollar, not a dime; touching pensions is a crime. These are small amounts of money, just enough to live on and to hang on to our homes, said Sole, whose wife, Joyce Sole, is a retired city bus driver. The citys in trouble, lets be honest here. But the banks should be held responsible. They went into the neighborhoods and targeted homeowners with subprime loans and they trapped the city into interest rate swaps even though they knew rates would go down. Keith MacWilliams, 58, of Metamora, a retired water and sewer supervisor, said he applied to be on the committee in hopes his voice would be heard. I can only hope that its a fair system, he said outside court. MacWilliams said his 91-year-old mother is also a retired water department employee with a modest pension, and I dont know how she lives on it now. Ed Hannan, a former budget director under Mayor Dennis Archer, also applied to be on the committee, saying he hoped his deep experience with city finances and its borrowing http://the-bankruptcydirectory.com/ practices would be of benefit to fellow retirees.
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Mediation session scheduled in Detroit bankruptcy
Posted: 08/19/2013 3:57 pm Follow Subscribe Detroit's financial woes have placed the issue of bankruptcy in the national spotlight. Yet, for many Americans, who are still struggling to get back on their feet amid high unemployment and expensive medical bills, bankruptcy is all too familiar. Though bankruptcy filing rates have fallen 14 percent in the last year or so , experts say this isn't necessarily a sign that the economy is improving -- this sustained decline may be due to decreased consumer borrowing after the 2007 housing market collapse. But one troubling study released last year shows that racial bias may also play a factor in how bankruptcies are filed. It suggested that blacks were more likely to be steered by lawyers toward a more costly and complicated form of consumer bankruptcy, even when they had identical financial situations as white filers. Bias persisted even when adjusting for things like income and education.
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Federal Judge Gerald Rosen told all sides to appear in private on Sept. 17. Each party is required to submit by Aug. 28 a confidential statement outlining their positions. The participants include Detroit's pension funds, a half-dozen unions, U.S. Bank National Association and several municipal bond insurers. Emergency manager Kevyn Orr took Detroit into bankruptcy last month as he tries to restructure at least $18 billion in liabilities. U.S. Bankruptcy Judge Steven Rhodes appointed Rosen earlier this month as a mediator in the case.
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Excel Paid $3.4M to Chairman Who Steered Company Into Bankruptcy
Excel filed for bankruptcy last month with a plan to hand itself over to a syndicate of top secured lenders led by Oaktree Capital Management, which will then sell a portion of the company to the controlling stockholders, which happen to be members of the Panayotides family. That proposal has riled a group of convertible bondholders who stand to recover just 3 cents on the dollar of what theyre owed. They want to file a rival plan to bring the company out of bankruptcy. A lawyer for the committee representing the bondholders couldnt be reached for comment. Representatives for Excel declined to comment. You can view the whole disclosure here , starting at Exhibit 3C on page 29. Write to Patrick Fitgerald at patrick.fitzgerald@wsj.com .
For the original version including any supplementary images or video, visit http://blogs.wsj.com/bankruptcy/2013/08/19/excel-paid-3-4m-to-chairman-who-steered-company-into-bankruptcy/
Vince Colosimo bankruptcy proceedings launched by law firm
Colosimo is also no stranger to offscreen courtroom drama. He battled former partner Jane Hall in the Victorian Supreme Court in 2008 after their 11-year relationship ended, with Colosimo seeking a 90 per cent share of the sale of their $890,000 home in Northcote. The pair's bickering has since mellowed. Hall, a Mix FM radio host, said last year she had briefly moved back into the Northcote home while she was moving houses. Dandanis & Associates issued Colosimo a bankruptcy notice on May 22 this year.
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When Is Bankruptcy the Answer?
A new report from the Center for American Progress (CAP) argues that bankruptcy should allow borrowers to get out from under loans that have unreasonable repayment terms or were borrowed to attend schools whose graduates struggle to find work. Student debt cannot be discharged that is, voided by a judge and removed from the borrowers legal obligations under current bankruptcy laws except in rare, extreme circumstances. Those laws date to 1976, when Congress decided that allowing student debt to be dischargeable would encourage graduates to declare bankruptcy without ever trying to repay their loans. In the decades since, bankruptcy rules for student loans have grown so strict that the debt may follow borrowers to the grave, as it did with Jermaine Jones in 2009 and Freddy Reynoso in 2008. Gambling and credit card debts are treated more favorably in bankruptcy than are student debts. In Tuesdays report, CAP higher education experts Joe Valenti and David Bergeron argue for a new system. Rather than simply repeal the laws that make student debt inescapable, they propose that only loans that are sustainable for students be protected from bankruptcy. If a loan offers reasonable repayment conditions such as low interest rates and access to favorable forbearance, deferment, and income-based repayment options, and the school where the loaned money was spent has a good track record on the employment rate of its graduates, then it wouldnt be dischargeable.
For the original version including any supplementary images or video, visit http://thinkprogress.org/economy/2013/08/20/2498231/how-changing-bankruptcy-laws-for-student-loans-could-revitalize-the-economy/
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