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Court rejects the "sufficiently rooted" test and holds bankruptcy estate does not include portion of bonus earned from prepetition employment

In In re Brown, Case No. 18-81242 (Bankr. C.D. Ill. May 9, 2019), Judge Perkins of the Central District of Illinois, concluded that property of the estate did not include that portion of a debtor’s annual bonus payable after the petition date… Read More
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First Circuit adopts strict reading of numerosity requirement for involuntary petitions.

In In re Edgar A. Reyes-Colon, Nos. 17-1971, 17-1972, (1st Cir. April 24, 2019), the First Circuit rejected the contention advanced by the two creditors that filed an involuntary petition against a debtor with more than twelve creditors, that there… Read More
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Money inherited more than 180 days after Petition Date belongs to Chapter 13 bankruptcy estate

In In re Moore, the bankruptcy court for the Eastern District of Tennessee joined a majority of courts and held that money inherited outside of the 180 day window set forth in § 541 was still property of the chapter 13 estate.  In the Moore case,… Read More
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Senate bill would bar Confessions of Judgments, including for Merchant Cash Advances (MCA)

In what may be a response to the Bloomberg article that discussed Merchant Cash Advances or MCAs, Sens. Rubio and Brown introduced federal legislation on December 6, 2018, to prevent confessions of judgments and related instruments. The text of the… Read More
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Article from ABF Journal Explains how Courts have Treated Merchant Cash Advances (MCA)

In the November/December issue of the ABF Journal, attorney Jefferey Wurst explains the different types of MCAs and how Courts have ruled regarding the vehicle. (See  http://www.abfjournal.com/%3Fpost_type%3Darticles%26p%3D78264?utm_source=AB… Read More
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According to a Recent Businessweek Article - Merchant Cash Advances are Wreaking Havoc on Small Businesses

In an earlier blog post FactorLaw discussed Merchant Cash Advances, which is a form of financing that appears to be marketed to certain types of small businesses, according to an article dated November 20, 2018 published in Businessweek (https://www.… Read More
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Ariane Holtschlag testifies before House Judiciary Committee

FactorLaw is proud to announce that our Partner, Ariane Holtschlag, testified on September 27, 2018, before the House Judiciary Committee.  Ariane testified as a member of the American Bankruptcy Institute’s Commission on Consumer Bankruptcy a… Read More
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5 Mortifying Reasons Mortgage Applications End Up in the 'Reject' Pile

Just read an interesting article in Realtor.com explaining why mortgage applications are sometimes denied (See realtor.com).  According to the article a recent Federal Reserve study concluded that one out of every eight home loan applications (12%)… Read More
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Experts predicting increased ilIiquidity and link it to the climate that led to the 2008 crisis

According to a recent report by Morgan Stanley (See www.businessinsider.com/equity-credit-asset-market-moves-illiquid-2018-7) “[m]arket liquidity across assets is in decline” and  “low liquidity were the fundamental triggers of th… Read More
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America is heading for a level of income inequality that hasn't been seen since 1928

Economists have noted that the level of income inequality between the top 1% and the rest of the country is approaching levels last seen in 1928, which, of course, was just before the tragic financial meltdown that pre-dated, or even caused, massive… Read More
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