#bankruptcy court

[dontmeantobepoliticalbut]

The Biden administration announced on Thursday updated guidelines that will make it easier for those struggling with their student debt to discharge it in bankruptcy.

The new bankruptcy policy comes from the U.S. Department of Justice and the U.S. Department of Education, and allows federal student loan borrowers to prove that they’re experiencing financial distress requiring a fresh start. Under the rules, the agencies may recommend that a bankruptcy judge discharge a borrower’s student debt if they find their case warrants it.

Currently, it’s difficult, if not impossible, for someone to walk away from their federal student debt in a normal bankruptcy proceeding.

“Today’s guidance outlines a better, fairer, more transparent process for student loan borrowers in bankruptcy,” said Vanita Gupta, associate attorney general of the U.S.

The announcement comes as the White House is battling to defend its sweeping student loan forgiveness plan in the courts. The Biden administration stopped accepting applications for its program, which would cancel up to $20,000 in student debt for tens of millions of Americans, last week after Judge Mark Pittman of the U.S. District Court for the Northern District of Texas called the policy “unconstitutional” and struck it down.

The DOJ has appealed.

Before the Education Department closed its forgiveness portal, roughly 26 million people applied for the relief. Outstanding student debt exceeds $1.7 trillion, and even before the pandemic, some 10 million borrowers were in delinquency or default.

STUDENT DEBT HAS A HIGH BAR FOR BANKRUPTCY DISCHARGE

Student loans are currently treated differently than other types of debt in bankruptcy courts, and legal experts and consumer advocates have long said that the bar for being able to discharge the loans is too high.

In the 1970s, lawmakers added a stipulation that student loan borrowers had to wait at least five years after they began repayment to file for bankruptcy; the move came in response to concerns raised by policy makes and pundits that students would rack up a bunch of loans and then try to discharge them after graduation. In 1990, that waiting period was upped to seven years.

The rules changed again almost a decade later, requiring that people with federal or private student loans prove that their debt poses an “undue hardship” to discharge it in bankruptcy. Congress, however, never spelled out what that term means, and lawyers and advocates say the uncertainty leads to unfairness in the courts.

Federal Reserve chairman Jerome Powell has said that he’s “at a loss to explain” why student loans are treated differently than other types of debt in the proceedings.

Around 250,000 student loan debtors file for bankruptcy each year, but fewer than 300 walk away from their education debt in the proceeding, according to research published in the Duke Law Journal in December 2020. That’s a success rate of just 0.1%.

[lexlawuk]

Amanda Staveley fails to Set Aside Victor Restis' £3.5 Million Statutory Demand

British financier labels demand an ‘abuse of process’ that should be settled through arbitration. A recent ruling of the High Court has left Amanda Staveley, the co-owner of Newcastle United football club, facing payment of her substantial debt of nearly £3.5 million following a legal dispute with the Greek shipping tycoon Victor Restis. Victor had issued a statutory demand against Staveley,…

[uncontesteddocuments]

In Wichita, for bankruptcy, can I self-file and represent myself? | YES. The general rule is the simpler your bankruptcy, the better your chances are of completing it on your own and receiving a bankruptcy discharge, the order erasing debt. Your case is likely simple enough to handle without an attorney if:

You pass the first portion of the Chapter 7 means test because your yearly household income is less than the state median.

You don't own much property and can protect your assets with exemptions.

You don't have any priority debts you can't discharge.

Creditors aren't alleging you committed fraud or threatening other action against you.

However, even straightforward Chapter 7 cases require work. Plan on filling out extensive paperwork, gathering financial documentation, researching bankruptcy and exemption laws, and following local rules and procedures. | Source of Information: NOLO

Bankruptcy Package Two Payments of $100 Excludes Filing Fee

Uncontested Documents 801 E. Douglas, 2nd Fl., Wichita (316) 312-4748 | Call or Text https://www.uncontesteddocuments.com uncontesteddocuments@gmail.com

Since 2011, Thank You Grateful To Be Of Service

[jay-weller]

Bankruptcy Attorney In Homosassa

Bankruptcy Attorney In Homosassa - #jayweller #bankruptcy, #Bankruptcyassistance, #Bankruptcyattorneys, #BankruptcyLawyer, #Chapter13, #Chapter7, #FilingForBankruptcy, #Homosassa, #Law, #Tips, #WellerLegalGroup - https://www.jayweller.com/bankruptcy-attorney-in-homosassa/

[davidaugust]

Johnson & Johnson is attempting again to offload its talc liability onto a new subsidiary company which will then declare bankruptcy. Their lawyers think Johnson & Johnson shouldn’t have to pay the multi-billion dollar settlement for cancer cases, citing the legal precedent of “I don’t wanna.”

- written by me, as seen in This Week This Week on Thursday

[dawnsiren]

Hello 911 I’ve witnessed a murder

[follow-up-news]

The Supreme Court on Thursday blew up the massive bankruptcy reorganization of opioid maker Purdue Pharma, finding that the settlement inappropriately included legal protections for the Sackler family, meaning that billions of dollars secured for victims is now threatened. The court on a 5-4 vote on nonideological lines ruled that the bankruptcy court did not have the authority to release the Sackler family members from legal claims made by opioid victims. As part of the deal, the family, which controlled the company, had agreed to pay $6 billion that could be used to settle opioid-related claims, but only in return for a complete release from any liability in future cases. Justice Neil Gorsuch, writing for the majority, said the Sacklers could have declared bankruptcy but instead sought to piggyback on the company's own bankruptcy proceedings in an effort to resolve pending legal claims. "They obtained all this without securing the consent of those affected or placing anything approaching their total assets on the table for their creditors," Gorsuch wrote. "Nothing in present law authorizes the Sackler discharge," he added.

[nodynasty4us]

The cases listed in this February 26, 2024 roundup cover:

Donald Trump ballot eligibility

Whether Jan. 6 rioters (and Trump) can be charged with obstruction

Guns for suspected domestic abusers

Bump stock ban

Abortion medication restrictions

Emergency room abortions

Limits on social media posts

Blocking critics on social media

White House asking social media companies to remove misinformation

Power of federal agencies

Consumer Financial Protection Bureau

SEC tribunals

Opioid lawsuit settlement

Voting maps

Employment discrimination

Homeless encampments in public spaces

Trump tax cuts

Downwind industrial pollution

[dwtpsychward]

can someone break it down what's up with xqc and his ex

well adept has sued him multiple times and was spreading lies about him just to try and take his money 😭 they were in a legal battle for more than a year at some point (which xqc won) but she keeps trying to take his things

[jbfly46]

[dontmeantobepoliticalbut]

Three years after receiving a $700 million pandemic-era lifeline from the federal government, the struggling freight trucking company Yellow is filing for bankruptcy.

After monthslong negotiations between Yellow’s management and the Teamsters union broke down, the company shut its operations late last month, and said on Sunday that it was seeking bankruptcy protection so it could wind down its business in an “orderly” way.

“It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business,” the company’s chief executive, Darren Hawkins, said in a statement. Yellow filed a so-called Chapter 11 petition in U.S. Bankruptcy Court in Delaware.

The downfall of the 99-year-old company will lead to the loss of about 30,000 jobs and could have ripple effects across the nation’s supply chains. It also underscores the risks associated with government bailouts that are awarded during moments of economic panic.

Yellow, which formerly went by the name YRC Worldwide, received the $700 million loan during the summer of 2020 as the pandemic was paralyzing the U.S. economy. The loan was awarded as part of the $2.2 trillion pandemic-relief legislation that Congress passed that year, and Yellow received it on the grounds that its business was critical to national security because it shipped supplies to military bases. Government watchdogs have scrutinized the loan because of the company’s financial turmoil and close ties to the Trump administration, which awarded the loan.

Since then, Yellow changed its name and embarked on a restructuring plan to help revive its flagging business by consolidating its regional networks of trucking services under one brand. As of the end of March, Yellow’s outstanding debt was $1.5 billion, including about $730 million that it owed to the federal government. Yellow has paid approximately $66 million in interest on the loan, but it has repaid just $230 of the principal owed on the loan, which comes due next year.

The fate of the loan is not yet clear. The federal government assumed a 30% equity stake in Yellow in exchange for the loan. It could end up assuming or trying to sell off much of the company’s fleet of trucks and terminals. Yellow aims to sell “all or substantially all” of its assets, according to court documents. Mr. Hawkins said the company intended to pay back the government loan “in full.”

The White House declined to comment.

Yellow estimated that it has more than 100,000 creditors and more than $1 billion in liabilities, per court documents. Some of its largest unsecured creditors include Amazon, with a claim of more than $2 million, and Home Depot, which is owed nearly $1.7 million.

Yellow is the third-largest small-freight trucking company in a part of the industry known as “less than truckload” shipping. The industry has been under pressure over the last year from rising interest rates and higher fuel costs, while customers have been reluctant to accept higher prices.

Those forces collided with an ugly labor fight this year between Yellow and the Teamsters union over wages and other benefits. Those talks collapsed last month and union officials soon after warned workers that the company was shutting down.

After its bankruptcy filing, company officials placed much of the blame on the union, saying its members caused “irreparable harm” by halting its restructuring plan. Yellow employed about 23,000 union employees.

“We faced nine months of union intransigence, bullying and deliberately destructive tactics,” Mr. Hawkins said. The Teamsters union “was able to halt our business plan, literally driving our company out of business, despite every effort to work with them,” he added.

In late June, the company filed a lawsuit against the union, asserting it had caused more than $137 million in damages by blocking the restructuring plan.

The Teamsters union said that Yellow’s executives unjustly blamed the union for the demise of the company, which had been “plagued with financial trouble for nearly two decades,” officials said in a statement.

“Teamster families sacrificed billions of dollars in wages, benefits and retirement security to rescue Yellow,” said Sean O’Brien, the union’s general president. “The company blew through a $700 million government bailout.” Calling Yellow’s top executives “dysfunctional” and “greedy,” he blamed them for failing to “take responsibility for squandering all that cash.”

The bankruptcy could create temporary disruptions for companies that relied on Yellow and might prompt more consolidation in the industry. It could also lead to temporarily higher prices as businesses find new carriers for their freight.

“Those inflationary prices will certainly hurt the shippers and hurt the consumer to a certain extent,” said Tom Nightingale, chief executive of AFS Logistics, who suggested that prices would probably normalize within a few months.

In late July, Yellow began permanently laying off workers and ceased most of its operations in the United States and Canada, according to court documents. Yellow has retained a “core group” of about 1,650 employees to maintain limited operations and provide administrative work as it winds down. Yellow said it expected to pay about $3.4 million per week in employee wages to operate during bankruptcy, which “may decrease over time.” None of the remaining employees are union members, the company said.

The company also sought the authority to pay an estimated $22 million in compensation and benefit costs for current and former employees, including roughly $8.7 million in unpaid wages as of the date of filing.

Yellow had readily accessible funds of about $39 million when it filed for bankruptcy, which it said would be insufficient to cover its wind-down efforts, and it expected to receive special financing to help support the sale process and payment of wages.

Jack Atkins, a transportation analyst at the financial services firm Stephens, said that Yellow’s troubles had been mounting for years. In the wake of the financial crisis, Yellow engaged in a spree of acquisitions that it failed to successfully integrate, Mr. Atkins said. The demands of repaying that debt made it difficult for Yellow to reinvest in the company, allowing rivals to become more profitable.

“Yellow was struggling to keep its head above water and survive,” Mr. Atkins said. “It was harder and harder to be profitable enough to support the wage increases they needed.”

David P. Leibowitz, a Chicago bankruptcy lawyer who represents several trucking companies, said Yellow had found itself in a “perfect storm, and they have not managed that perfect storm very well.”

The company’s financial problems fueled concerns. It lost more than $100 million in 2019 and was being sued by the Justice Department over claims that it defrauded the federal government during a seven-year period. Last year it agreed to pay $6.85 million to settle the lawsuit.

Congressional oversight committees have scrutinized the company’s relationships with the Trump administration. President Donald J. Trump tapped Mr. Hawkins to serve on a coronavirus economic task force, and Yellow had financial backing from Apollo Global Management, a private equity firm with close ties to Trump administration officials.

Democrats on the House Select Subcommittee on the Coronavirus Crisis wrote in a report last year that top Trump administration officials had awarded Yellow the money over the objections of career officials at the Defense Department. The report noted that Yellow had been in close touch with Trump administration officials throughout the loan process and had discussed how the company employed Teamsters as its drivers.

In December 2020, Steven T. Mnuchin, then the Treasury secretary, defended the loan, arguing that had the company been shuttered, thousands of jobs would have been at risk and the military’s supply chain could have been disrupted. He predicted that the federal government would eventually turn a profit from the deal.

“Yellow had longstanding financial problems before the pandemic, was not essential to national security and thus should never have received a $700 million taxpayer bailout from the Treasury Department,” Representative French Hill, Republican of Arkansas and a member of the Congressional Oversight Commission, said in a statement. “Years of poor financial management at Yellow has resulted in hard-working people losing their jobs.”

[lexlawuk]

Understanding and Responding to Statutory Demands

A Statutory Demand serves as a formal request for payment of an outstanding debt within a specified timeframe. It is crucial to respond promptly to avoid potential legal actions such as bankruptcy petitions or winding up petitions. This article provides insights into identifying valid statutory demands and outlining effective response strategies. Facing a statutory demand can be daunting, but…

[uncontesteddocuments]

Yes, filing bankruptcy can stop wage garnishment. Source: findlaw

Bankruptcy Two Payments of $100 Excludes Filing Fee

Uncontested Documents 801 E. Douglas, 2nd Fl., Wichita (316) 312-4748 | Call or Text https://www.uncontesteddocuments.com uncontesteddocuments@gmail.com

Since 2011, Thank You Grateful To Be Of Service

[jay-weller]

A Short History Of Bankruptcy

A Short History Of Bankruptcy - #jayweller #bankruptcy, #Bankruptcyassistance, #Bankruptcyattorney, #BankruptcyLawyer, #Chapter13, #Chapter7, #FilingForBankruptcy, #History, #Law, #Tampa, #WellerLegalGroup - https://www.jayweller.com/a-short-history-of-bankruptcy/

[fifihunterbakariafrocentric]

Donald j Trump senior - sista Ruth

Donald j Trump senior monies -, , daughter Teresa terahertz bush

[nationallawreview]

Temporary Injunctive Relief for Nondebtors in Bankruptcy Court Post-Purdue Pharma

In June, in Harrington v. Purdue Pharma L.P., 144 S. Ct. 2071 (2024), the Supreme Court held that the Bankruptcy Code does not, as part of a bankruptcy plan, allow nondebtors to receive permanent injunctive relief through nonconsensual releases. Less than a month later, two U.S. bankruptcy courts addressed whether Purdue Pharma bars bankruptcy courts from issuing temporary injunctive relief for…