The ABI has formed a commission to overhaul chapter 11. You can read the WSJ article here. “The Chapter 11 system is itself in distress, having been asked to do far more than it was designed to do and to operate in an entirely different environment,’ said bankruptcy attorney Richard Levin of Cravath, Swaine & Moore, who helped craft the 1978 Code as a congressional staffer.” “The meeting introduced the commission mission and its membership—declared a “who’s who of the insolvency world” by committee co-chair and Maine attorney Robert Keach—to the handful of people who showed up.”
All posts in Current Events
Warren Sapp Chapter 7 with $45,000 per Month of Current Income? – Stay Tuned
Here is a great article on the status of the Warren Sapp chapter 7 in Florida. The article says he gets $45,000 of income from a tv program and other sources but they are taking the position that the debts are not primarily consumer debts. He owes something near a million in domestic support obligations and nearly another million more or less in taxes. The taxes are apparently dischargeable. The meeting of creditors is May 8 so we won’t see a UST motion to dismiss for a while if its coming.
9th Circuit Annual Report Available
You can access the new 9th Circuit Annual Report for the fiscal year 2011 here. The 92 page report for the year ended Sept, 2011 has lots of pictures and statistics. For example, there were 826 requests during the year for en banc review of which 13 were granted. Every district in the 9th Circuit had fewer bankruptcy filings than the year before except the Central District of California. There were 1,011 appeals from bankruptcy court decisions, up 29% from the previous year. Of the total appeals, the BAP got 59% of them and the disctrict courts 41%. How’s this for an interesting fact: 11% of the appeals to the BAP resulted in reversal! It doesn’t say what the reversal rate was to the district courts. Of the BAP and district court appellate decisions, 178 were further appealed to the 9th Circuit.
Tax Rebates/Refunds Lead to Increased Filings
There were more bankruptcy filings in March than any other month in 2009, 2010, and 2011 and 2012 presumably will be the same. Why you ask? There is a great analysis here. Tax refunds. The article is actually about tax rebates but I assume it would apply to tax refunds as well. The costs of filing we know have soared since BAPCPA in 2005. The authors say “legal and administrative costs inhibit a significant number of households from filing for bankruptcy.” The tax refunds gives the filer the funds to pay the attorney or other paid preparer.
The article concludes, “Mian and Sufi (2011) report that the household debt to income ratio more than doubled from 0.9 in 1980 to 2.0 in 2009. Against the backdrop of this dramatic rise in household debt, raising the costs of filing is an ineffective strategy for curtailing consumer bankruptcy. The recession has caught many households in a rising tide of unemployment and foreclosure, and high bankruptcy fees prevent them from obtaining much-needed relief.
There are many reasons to be troubled by today’s high bankruptcy rates—more than 1.3 percent of all U.S. households filed in 2011. But we can only fix America’s bankruptcy problem by eliminating excessive consumer credit, not by adding insult to injury for households that are already broke.”
Dodgers Purchase Agreement
You can access the agreement between McCourt and Guggenheim Baseball Managent, L.P, all 75 pages here. This is the copy that was filed with the Bankruptcy Court a day or two ago. Dodger Purchase Agreement
Inaugural Leslie Cohen 5K Run/Walk on April 28, 2012 at 8 a.m.
Dear Colleagues and Friends,
Please join us for the inaugural Leslie Cohen Law 5K Run/Walk on April 28, 2012 at 8 a.m. to benefit Public Counsel’s Debtor Assistance Project and Samohi Cross Country Track Program.
We are honored to support our community in this event and would be thrilled if you can attend!
Runners and walkers will enjoy the stunning course route along the bluff overlooking the Pacific and up the world-famous tree-lined San Vicente Boulevard, and runners can also get the best supplements that they can find in this great article here to improve their physical performance.
The first 250 to register will receive a complimentary Nike tech race T-shirt commemorating the event. Post-race snacks will be provided and massages will be available courtesy of BodyWorks LA Massage & Fitness, and also muscle massages using an amazon vibrating foam roller for this. All participants will receive certificates from Real Food Daily, and the winners of the race will receive dinner for two. Be there for more prizes and surprises!
Class Action Suit Against Wells Fargo for Freezing Accounts in Every Case
On January 21, 2011 Christopher P. Burke, Esq. and Scott C. Borison, Esq. attorneys for Eric Mwangi and Pauline Mwicharo [Plaintiffs] filed case no. 11-01022-bam in U.S. Bankruptcy Court for the District Court of Nevada this Adversary, a class action.
Thanks to Christine Wilton for this news. I will check the docket and update shortly.
Well, I’ve checked the docket. Pretty interesting. The case was before Judge Bruce Markell. The complaint asked for $5 billion (with a “b”) in damages. WFB filed two Motions to Dismiss, the second of which was granted with prejudice in September, 2011. The debtors appealed to the BAP. WFB transferred to district court (shocker there) since the BAP ruled that Wells violated stay. The parties are waiting for the district court to rule. Email for counsel for the debtor is atty@cburke.lvcoxmail.com.
Details on the Settlement with “Major Banks”
There is a great website at www.nationalmortgagesettlement.com where you can find the original complaint filed by the feds and most of the states against a bunch of large banks and servicing companies. The website also has an executive summary of the settlements and copies of the actual settlement agreements. The complaint sure pulls no punches accusing banks of doing all sorts of fraudulent things and accusing them of doing these things on purpose. I hope there is not a whole new round of people who stop paying their mortgages so they can qualify for these new programs.
Protecting Tenants at Foreclosure Act – Tenants’ Rights: When to Hire a Lawyer
Many issues tenants face are minor and can be easily resolved by common sense and checking reputable resources on landlord-tenant law, such as a local tenants’ rights group. The more you know the law and your legal rights, the better. The Tenant Rights section of the U.S. Department of Housing and Urban Development (HUD) website provides a wide variety of state and local resources, including links to fair housing groups, rent control boards, tenant unions, and legal aid organizations for each state; even if you don’t qualify for legal aid services, you will find useful information on tenant rights on many legal aid websites. The Nolo website includes many useful articles and books on tenant rights, from breaking a lease to mold in rentals, as well as small claims court (should your dispute involve a security deposit).
Some issues, however, are not easily resolved and can seriously threaten your enjoyment of your rental — or worse, your ability to stay in the rental at all. In these situations, getting a lawyer’s help may be the most effective, albeit costly, way to protect your rights.
Below is a guide to determining whether you need a tenant lawyer or not. If you find yourself in one of the following situations, consider hiring a lawyer.
Your Landlord is Evicting You
If your landlord serves you with a termination notice that you intend to fight, hiring a lawyer can increase your chance of success. Choose a lawyer that is knowledgeable about landlord-tenant law and has significant experience fighting evictions. Such a lawyer can come up with effective strategies or creative solutions that you might not be aware of — for example, the lawyer could argue that your landlord’s eviction was retaliatory (and therefore illegal) if the circumstances support such a defense. Get a free legal advice online
Your Landlord is Evicting You Without Proper Court Procedures
Landlords must follow eviction procedures set forth by state and local law. If your landlord tries to evict you by taking matters into his own hands — for example, by locking you out, canceling your utilities, or even removing your doors, windows, or possessions — consider hiring a lawyer. These types of “self-help” remedies are illegal. No matter how strong a landlord’s case may be for ending a tenancy, a landlord doesn’t have the right to take, or even threaten, any self-help actions against you.
Your Landlord Discriminates Against You
If you believe your landlord is discriminating against you, you may need a lawyer to stop the illegal actions and help you recover damages for any harm you suffered. One option is to hire a lawyer to sue the landlord in court.
Another option is to file a complaint with the Department of Housing and Urban Development (HUD), or a state or local agency in HUD’s Fair Housing Assistance Program (FHAP).
HUD and state and local agencies in FHAP receive over 10,000 discrimination complaints a year. If HUD investigates your complaint and determines there’s reasonable cause to believe your landlord has been discriminating, you’ll get the benefit of having a HUD lawyer representing you in front of an administrative law judge at no cost. The judge can award you compensation and attorneys’ fees, impose penalties against your landlord, and order other relief.
Your Landlord Won’t Make Necessary Repairs
If your landlord isn’t fulfilling important obligations under your lease and the law, it can lead to major problems. For example, think of the landlord who keeps putting off needed heating system repairs until winter is well under way, or the landlord who ignores a ground-floor tenant’s requests to replace a broken window until a burglary occurs.
In these cases, you may decide to implement one of your state’s tenant remedies on your own (such as rent withholding or “repair and deduct”), but you may need some coaching on how to do it right. Consulting a lawyer may be your best move. In addition, a lawyer can attempt to communicate with the landlord for you, explore the possibility of a quick settlement, and take the landlord to court, if needed.
Your Landlord Isn’t Fulfilling His Promises
Sometimes, landlords make promises to encourage hesitant applicants to rent from them. For example, if an applicant is concerned about the neighborhood crime rate, a landlord might promise to install a more effective intercom system or an electronic, gated parking lot. If the landlord later refuses to honor the promise, you may need to hire a lawyer to write a stern letter to your landlord, threatening a lawsuit unless the landlord follows through.
You’ve Been Injured or Made Ill
Accidents can happen, even at a well-run rental property. However, if an accident is the result of the landlord’s carelessness, you may have a legal case against your landlord. For example, you might break your leg after slipping on an icy patch on the front steps of your building. (Perhaps the landlord should have arranged for regular de-icing, which would have removed the danger.) Or, you may discover an outbreak of mold in your rental — only after it has made you and your family very ill.
In this case you’ll want a personal injury lawyer with experience in premises liability.
Even if your landlord didn’t personally or intentionally create the problem, there are many legal theories available to convince a court or insurance adjustor that the landlord should be held responsible. Lawyers are skilled at identifying which theories may apply and crafting arguments using them.
Your Property Has Been Damaged
Sometimes, a landlord’s failure to maintain the rental property causes damage to your personal property. For example, a landlord’s faulty wiring repair job could spark an electrical fire in your living room, damaging your furniture and other belongings.
If you have renter’s insurance, your insurance company will cover the loss and its lawyers will then seek reimbursement from your landlord. If you don’t have insurance or have inadequate coverage and the damage to your property is substantial, consider hiring a lawyer to help you obtain reimbursement from your landlord. In the alternative, you could consult with a lawyer for an hour or two to get advice on how to proceed and what arguments to make to get reimbursed.
How to Get a Lawyer’s Help
If you are in need of a lawyer, choose one with expertise in landlord-tenant matters. For help in getting a lawyer, read the article “How to Find an Excellent Lawyer” or go straight to Nolo’s Lawyer Directory.
Hiring a lawyer as “coach.” Hiring a lawyer doesn’t have to break the bank. Depending on your needs, your budget, and your confidence in your ability to handle a matter on your own, you might find a lawyer who will agree to meet with you for an hour here and there as a coach. Even limited legal help can make the difference and prove to be all you need to steer your way toward a favorable outcome.
Check for an attorney’s fees clause in your rental agreement. Many landlords include an “attorney’s fees” clause in their lease or rental agreement to prevent frivolous lawsuits. If your lease or rental agreement includes this clause, you may be entitled to get reimbursed for your reasonable attorney’s fees and court costs if you win a lawsuit against your landlord. (Even if your clause appears to provide recovery only to a victorious landlord, courts in many states will rule the clause works both ways.)
As a practical matter, if you have an attorney’s fees clause in your lease or rental agreement, you will have an easier time finding a lawyer to represent you. Since the landlord pays the lawyer’s bill if you win, a lawyer needn’t worry as much about getting paid by you. Be aware that the clause applies only to disputes arising out of the lease or rental agreement (such as evictions, rents, and security deposit issues) — not to disputes involving personal injury, discrimination, or other such matters.
Bank of America will Reduce Principal to 200,000 Underwater Homeowners
Bank of America said on Friday, March 9, 2012, that it would reduce by about $100,000 the amount owed by as many as 200,000 underwater homeowners as part of the recently announced government foreclosure settlement with top mortgage servicers. The details are set forth in the LA Times article here.
M. Jonathan Hayes Books
Publisher
Senior Contributor
Contributors
