Brother Can You Spare $331 Million?
We would have accepted either C-I-T or A-D-V-A-N-T-A as a correct answer
As reported all over the Web, including this story by CNN, credit card overlord and perennial heavy-handed creditor Advanta filed for Chapter 11 bankruptcy protection a few days ago – just one week after CIT Group, a top secured lender to small business, did the same. Both lenders experienced (ha!) a sharp rise in defaults. Welcome to the world of the consumer. Personally I hope that their creditors show them no mercy. If the Bankruptcy System is to work then it must be an equal handicap for large and small. If Advanta or CIT are reconstituted through Chapter 11 I can only hope that this time the intention is to help small business and business owners – not to hound them to death as both creditors are famous for.
Categories: Middle class · article · assets · bailout · bankruptcy · business · business filings · ch 11 · consumer · credit · credit cards · current-events · disposable · income · individual · liability · means test · median income · secured
Tagged: Advanta, CIT, Irony, Small Business, Visa
In an article that would only make sense to an economist, Bloomberg reported that fewer people this November have mortgages that exceed the value of their homes – that is, fewer people are “underwater” this year than last. That faint flicker of hope is supposed to mean that overall the housing market is stabilizing.
In related news, I came in 288th in the Chicago Marathon this year – better than I did last year so … I guess that means I’m a winner? Sure, let’s go with that.
Categories: Middle class · article · assets · bailout · bubble · consumer · current-events · data · debt · depreciation · flipping · foreclosure · income · individual · investments · means test · mortgage · property · real property · short sale
Q: I am a limited partner. I suspect that the general partner converted funds belonging to the limited partnership. How do I sue on behalf of other limited partners?
A: A general partner is a fiduciary to limited partners, much as a director is to shareholders in a corporation. This means that the gp account for his actions to the limited partners and at all times conduct itself with the utmost good faith. If those rules were not observed then the proper remedy is a derivative suit – so named because the complaining party must sue in the name of the limited partnership. Before filing suit however certain questions must be answered and you may need to hire a forensic accountant to fully investigate. Finally, keep in mind that if the limited partnership or the general partner need(s) to file bankruptcy then a post-filing adversary complaint is your route.
Categories: 523 · Q&A · adversary · business · business filings · conversion · creditor · fraud · fraudulent transfers · limited partnership · partnership
In re Griffin Trading Company, Inc., 98 B 41742
Leroy G. Inskeep, Trustee v. Farrel and Roger Griffin, 01 A 00007
Opinion: In an Adversary case stemming from the Chapter 7 bankruptcy of a futures broker, judgement for Trustee is reversed due to lack of sufficient causation following remand from the District Court.
Opinion Issued October 30, 2009
By the Honorable Bruce W. Black
View and download the opinion in PDF format here
Categories: ED · IL · Inskeep · ND · adversary · assets · black · business filings · case update · ch 7 · cir 7 · current-events · judge · property · research · trustee
