Under the category of “how long can it last?” there is this news from the financial world: Bank of America reports that its second quarter profit rose 18% based on credit card fees and retail banking earnings. BoA bought MBNA in January for 34.2 billion and now BoA is the United States’ largest [...]

If you are surprised at the amount of credit card offers that you receive each day in your mail box … don’t be! Credit card companies are sending out record numbers of offers. The credit card companies are desperate for new customers. In 2005 companies sent out 6.06 billion solicitations, yes billion. [...]

A recent First Circuit Court of Appeals decision applying Massachusetts law held that a trustee could not pursue action against a debtor’s accounting firm because the corporate debtor had participated in the fraud and so was equally at fault with KPMG.

A litigation trustee (established under a confirmed plan of liquidation) sued the corporate Debtor’s ex-accountants, [...]

Here is an article and a case summary, both on the subject of debt collection. First, the article points out that the number of complaints to the FTC about unfair tactics used by debt collectors has risen 14%.

Here is the link to the article, please note that this brief article itself [...]

The Federal Reserve announced that consumer borrowing has risen in May for the seventh consecutive month. Consumer credit rose by $4.4 billion, or 2.5 percent at an annual rate, to $2.174 trillion. With interest rates climbing and the value of homes dropping it appears that Consumers are using their credit cards to finance [...]

The Federal Reserve recently published a report regarding credit card usage. Consumer groups have criticized the report claiming it turns a blind eye to the real problems that customers are facing with too much debt and that it fails to criticize the mass marketing of cards by credit card companies, frequently [...]

A recent case issued by the United States Bankruptcy Court in Delaware held that a case by a chapter 7 trustee can proceed against a corporate debtor’s insiders/directors for breach of fiduciary duty where the insiders established entities to purchase corporate assets of a wholly-owned subsidiary for less that its value. After the sales [...]

The 4th Circuit Court of Appeals has joined the majority of other circuits in holding that a bankruptcy court has the authority to recharacterize a debt as an equity contribution.

Dornier Aviation (North America) (”DANA”) was an affiliated company of Fairchild Dornier GMBH (”GMBH”), a German aircraft manufacturer. On April 24, 2002, several former employees [...]

Enron and Merrill Lynch reached a deal to settle their litigation in the Enron bankruptcy case. Under the terms of the agreement, Enron will receive $29.5 million from Merrill Lynch. Merrill Lynch will also give up its claims of $73.7 million against Enron. Further, Enron has agreed not to object to any [...]

As we know, the new amendments to the Bankruptcy Code made many changes to the bankruptcy process, mainly concerning individuals. However, one significant change was made to the law of preference defense. This is a good change for our clients, making it easier to prove the ordinary course of business defense. Recall that in a [...]