Articles Tagged with Supreme Court

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Bankruptcy Lawyer Bryan W. Stone answers the question: “What is Chapter 11 Bankruptcy?”

The current Supreme Court, according to many critics, strongly leans in favor of big business, often at the expense of the little guy. Though the Court may have a well-established reputation as being friendly to corporations, a recent ruling proves that this isn’t always the case. In a recent ruling, Czyzewski et al., v. Jevic Holding Corp., the Court voted 6-2 in favor of individuals, rejecting claims by a New Jersey trucking company. To learn more about the bankruptcy case, keep reading.

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Bankruptcy Lawyer Bryan W. Stone answers the question: “What are the pros and cons of bankruptcy?”

Though many people may not be aware of it, the debt collection industry has exploded in recent years. In the past five to 10 years, creditors have begun selling all their old debt to debt buying firms, usually for two or three cents on the dollar. These firms then use aggressive tactics to pry money from debtors, even in cases where the debts are expired and legal claims can no longer be made to recover the money. The industry has grown to more than $13 billion in size, representing many thousands of claims against many thousands of debtors.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Do I need an attorney to file bankruptcy?”

Bankruptcy attorneys and experts are cheering a recent decision by the United States Supreme Court that clarifies the authority of bankruptcy courts to entertain non-bankruptcy claims that arise in the context of a debtor’s bankruptcy.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is Chapter 13 bankruptcy?”

The United States Supreme Court recently heard oral arguments in two bankruptcy cases. While the decisions in the cases—expected later this summer—are not expected to be earth-shaking, the results may affect the manner in which debtors proceed in converting existing Chapter 13 bankruptcies into Chapter 7 actions and in considering the issue of appellate rights when submitting a Chapter 13 reorganization plan.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Will I lose my property if I file for bankruptcy ?”

 

Bankruptcy observers say if United States Bankruptcy Judge Robert C. Drain’s August ruling in the Chapter 11 bankruptcy of Momentive Performance Materials Inc. holds up, it could dramatically alter the playing field for debtors and even junior creditors who seek to restructure debts held by senior lenders at so-called cram-down interest rates.

NYC Courthouse Charlotte Debt Lawyer North Carolina Bankruptcy AttorneyCram-down interest rates are interest rates that are considered below market value. In the Momentive bankruptcy, the debtor—Momentive—crafted a reorganization plan that would pay senior lien holders “with new long-term debt, at below-market interest rates,” according to Law 360.

The senior lien holders had an opportunity to accept a cash-out option and fight the restructuring plan, but turned it down. Momentive sought to enforce the restructuring plan, and in August, Judge Drain ruled that the senior lien holders could be paid based on the so-called “Till rate.”

The “Till rate” was formulated in a 2004 Supreme Court case that involved an individual debtor. Momentive marks the first time that the “Till rate” was adopted in a corporate Chapter 11 bankruptcy. In the Momentive case, the effect of the ruling on senior lien holders was dramatic. Immediately after the decision, the senior lien holders lost as much as $100 million in trading value on their Momentive notes.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Do I need an attorney to file bankruptcy?”

 

A long-dead Playboy playmate has come back to haunt the United States Supreme Court, and soon she may be haunting a bankruptcy judge near you.

Anna Nicole Mecklenburg Bankruptcy Lawyer Charlotte Debt AttorneyIn 2011, the Supreme Court ruled in a case involving former playmate Anna Nicole Smith that bankruptcy judges only have the power to make final rulings on issues that stem from the bankruptcy itself. Before that, bankruptcy courts considered only “core” bankruptcy matters, while federal district courts heard “non-core” bankruptcy matters. That division of labor had been prescribed by Congress.

Smith—whose real name was Vickie Lynn Hogan Marshall—died in 2007, but before she did, she married oil tycoon J. Howard Marshall. At the time of their marriage in 1994, Marshall was 89-years old; Smith was only 26. Their marriage lasted until Marshall’s death in August 1995.

Marshall’s will left his estate to a trust; both Smith and Marshall’s eldest son petitioned to have Marshall’s will overturned. Their legal fight continued even after both Smith and Marshall’s eldest son died. Ultimately the Supreme Court ended Smith’s claim to Marshall’s millions, but the larger ramifications of the high court’s decision in Stern v. Marshall continue to reverberate.

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