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
This morning I noticed on Yahoo’s front page that “Worst recession since 1930s hits end.” Let’s just say I’m still skeptical. Unemployment still hovers at 9.9% and that just doesn’t feel like a party. The actual article to which the link refers contains the more subdued headline “Economy growing but recovery could be at risk.” I thought so.
Look, the GDP has grown 3.5% this quarter. That’s good news. According to a New York Times article, this growth rate is on par with average annual growth rate that the U.S. has enjoyed for the last 80 years. Nice. But before we get too excited, this increase in consumer spending (a major component of the U.S. Gross Domestic Product) is driven by the exorbitant expenditure on government programs. And as soon as such programs as Clash for Clunkers end (and they will eventually), economists predict that this recovery may not last.
Basically, the economy grew by 3.5%… but in the long term, it may or may not matter. Does a current quarterly increase in consumer spending mean that consumer spending has actually increased for good? It’s just too early to say.
Categories: bailout · bank · bankruptcy · blogs · bubble · consumer · current-events · data · debt · economy
Millelliti Forrest filed a Chapter 13 bankruptcy petition on June 8, 2009 (No. 09 B 20874). Wanting to avoid a lien through the bankruptcy process, the petition indicated that Litton Loan Servicing’s “second lien is stripped from the property and will be paid as an unsecured creditor” due to the lack of equity in the debtor’s primary residence. Litton Loan Servicing objected.
In a memorandum opinion sustaining Litton Loan Servicing’s objection to the Chapter 13 plan, United States Bankruptcy Judge Jack B. Schmetterer ruled that the debtor may not strip off the junior mortgage because the Bankruptcy Code and Rules [Rule 7001(2)] and the Constitution require the debtor to file an adversary proceeding
Categories: ED · IL · ND · adversary · bankruptcy · case update · ch 13 · current-events · data · individual · judge · opinion · schmetterer
Tagged: lien
