05 Feb
Posted by Mark Wood as Credit Card Offers
Introduction
In January, Jeoffrey L. Burtch, the Chapter 7 Trustee (the “Trustee”) in the ManagedStorage bankruptcy proceeding, commenced adversary proceedings in the Delaware Bankruptcy Court against various defendants. As alleged in the complaints, the Trustee claims that the defendants received “preferential” payments from ManagedStorage (dba “Incentrix Solutions” or “Incentrix”) and that the payments are subject to avoidance and recovery under the United States Bankruptcy Code (the “Bankruptcy Code”). This post will look at the Incentrix bankruptcy, why the company filed for bankruptcy as well as some of the issues that arise in preference litigation.
The Bankruptcy Proceeding
Incentrix filed Chapter 11 petitions for bankruptcy in February of 2009. At the time the company filed for bankruptcy, it was based in Denver, Colorado and operated offices in Illinois, Washington, California, New Jersey, Pennsylvania, New York, Oregon, Texas, Colorado and the United Kingdom.
18 Jan
Posted by Mark Wood as Credit Card Offers
Republic Bank and Trust Company of Louisville, Kentucky is the final bank in the country to be forced to eliminate their super high interest tax refund loans that prey on the financially strapped. The bank, in conjunction with Jackson Hewitt tax service, have conspired for years to convince needy tax filers to pay up to 149% interest for these outlandish loans that enable tax payers to receive their tax refund money a few days early. (The IRS will now direct deposit your tax refund moneys very quickly in a bank account of your choosing)
The New York Times has an excellent story on how federal regulators have finally eliminated this tactic that Republic Bank has gotten by with for years.
Following is an excerpt from the story, and here is the link to the full story:
“Recent action by federal regulators means that just one bank, the Republic Bank & Trust Company of Louisville, Ky., is offering the loans this tax season.
A recent analysis from the National Bankruptcy Research Center shows that personal bankruptcies decreased in 2011. Last year, 1.35 million people in the U.S. filed for personal bankruptcya 12 percent decrease from the 1.5 million personal bankruptcies filed in 2010.
Based on this information, approximately 1 in every 175 Americans filed for Chapter 7 or Chapter 13 bankruptcy in 2011. 17 percent fewer Chapter 7 bankruptcies and 25 percent fewer Chapter 13 bankruptcies were filed in the U.S. last year.
Chapter 7 bankruptcy and Chapter 13 bankruptcy are the most frequently filed types of bankruptcy. Under Chapter 7 bankruptcy, individuals liquidate some of their assets to pay off their debts, and under Chapter 13 bankruptcy, filers create a repayment plan to repay creditors over a certain time period.
29 Dec
Posted by Mark Wood as Credit Card Offers
Summary
In a 24 page decision signed July 8, 2011, Judge Walrath of the Delaware Bankruptcy Court granted a motion to for summary judgment, holding a non-debtor defendant liable with the Debtor as a single employer for alleged WARN Act violations. Judge Walrath’s opinion is available here (the “Opinion”).
Background
Tweeter Opco, LLC (the “Debtor”), filed for bankruptcy on November 6, 2008, the same day that the class action plaintiffs (the “Plaintiffs”) filed the class action adversary complaint that gave rise to the Opinion. The Plaintiffs alleged in their complaint, that the Debtor and Schultze Asset Management, LLC (“SAM”) constitute a single employer, such that both are liable for violations of the WARN Act, 29 U.S.C. § 2102(a). Under the WARN Act, an employer with 100 or more full time employees cannot conduct mass layoffs of fifty or more employees without providing each employee, or the employees’ representative, sixty days notice.
15 Dec
Posted by Mark Wood as Credit Card Offers
Everyday account holders and consumers suffer from the dilemmas that they encounter in making their credit worthiness standing much better. These difficulties created a stigma that dictates that effective genuine repair in worthiness rankings can only be achieved by hiring professional help from companies that offer such services. There is a simple truth to this problem, repair companies can only do as much as account holders and consumers can make in improving their worthiness rankings. Credit repair in the most honest sense can be purely done through do- it- yourself steps and simple self disciplined actions.
Account holders and consumers as mandated by laws such as the Fair Credit Reporting Act allows have the right for free annual reports from the three major reporting and evaluating companies. These companies are Equifax, Experian and Trans Union. There is only one step that anyone who wishes to improve their worthiness ranking must take- verify information in his or her credit history.