Latest Bankruptcy Attorneys News

Florida Bar disciplines 2 Sarasota lawyers
Pysczynski, who specializes in bankruptcy, civil litigation and workers' compensation law, is the subject of six disciplinary matters, according to Florida Bar officials. He is accused of taking more than $ 100,000 from six clients, which he failed to …
Read more on Sarasota Herald-Tribune

Rejecting Jewel v. Boxer, The District Court's Heller Decision Is A Potential
The Heller Law Firm Bankruptcy. The Heller litigation arose out of a fairly common scenario when a law firm becomes insolvent or files bankruptcy. After Heller's bank declared a default, Heller was unable to continue in business and voted to dissolve …
Read more on JD Supra (press release)

Victims of bankrupt Lakewood Ranch builder get 23 separate trials in suit

Victims of bankrupt Lakewood Ranch builder get 23 separate trials in suit
Nearly two dozen homeowners filed a $ 5-million lawsuit against SMR in March 2013 after company-approved developer Paradise Homes went bankrupt and walked away from 23 unfinished single family residences. Judge Gilbert Smith Jr. signed the order …
Read more on Bradenton Herald

Derry bookshop's huge bankrupt stock left in skip
Peter MacKenzie, the former joint owner of the Bookworm bookshop, was declared bankrupt in 2012, the Irish Times reported, and the receiver ordered that the contents of his shop should be disposed of. The books were dumped into a skip outside the shop, …
Read more on The Guardian

Genco Denies Undervaluing in Bankruptcy Trial
Lawyers for bankrupt Genco Shipping & Trading Ltd on Tuesday insisted the dry bulk shipping company is not being undervalued during the closing of a trial pitting the company against angry shareholders who wanted better treatment in the restructuring.
Read more on The Maritime Executive

Ex-All Black keeps up his bankruptcy fight
Fawcett, who played two test matches for the All Blacks in 1976, was declared bankrupt in September 2010 over an outstanding $ 1.34 million debt to the Southland Building Society for money borrowed on a failed subdivision, the Tairua Palms Estate in the …
Read more on New Zealand Herald

Ledford & Wu Chicago Illinois Bankruptcy Attorneys Cook County Foreclosure Lawyers 888-542-1900 Ledford & Wu practices bankruptcy in the Chicago area. The attorneys have many years of consumer bankruptcy experience …
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Chapter 7 Las Vegas Bankruptcy Attorney, Wipe out debt in Henderson Nevada, Bankruptcy Lawyers get rid of credit card debt. HOW CHAPTER 7 BANKRUPTCY WORKS IN…

When the Bank Demands Payment in Full: Attorney David Soble Weighs 3 Options for Stressed Borrowers with Matured Business Loans

Detroit, Michigan (PRWEB) May 27, 2014

Although the economy appears to be on the mend, many business owners still struggle. Especially those with commercial loans taken between 2007 and 2009. They either received, or will receive bank demands that their loans are now due in full. Commercial loans typically have 5 year maturities and most banks will not provide more than a one year loan extension of the maturity date to pay back a loan. For example a business owner who took a loan out in 2008 with a 2013 maturity, and received a one year extension is most certainly feeling intense pressure from their bank to pay back the money –this year!

There are 3 realistic options that a business owner should consider when their bank demands payment of the loan in full:

1. Pay off the loan. In today’s restrictive banking climate refinancing sounds much easier than it really is. Banks infrequently rewrite their own commercial loans upon maturity. This is because the financial position of many small businesses has diminished since 2007. Also lending guidelines were more’ flexible’ then, with commercial properties reportedly having higher values. So unless a business owner has a load of cash to pay off the loan, refinancing with the same bank is almost impossible, and securing funds from an outside bank is increasingly difficult.

2. Negotiated Exit. Be assured that if a loan has matured and the borrower is not prepared to pay if off, the bank will begin a lawsuit. Defending a law suit can be expensive, but in most cases it will only delay the inevitable. Absent real legal defenses for bank misconduct or the mishandling of a loan, the best approach for a business owner is to negotiate a realistic “exit” from the bank with the assistance of experienced counsel. There are a numerous variables for consideration when negotiating a forbearance or settlement agreement, so unless a business owner is familiar with bank work out or special asset protocol, retain an experienced attorney.

3. Reorganization. Chapter 11 reorganization can be expensive, but it is an excellent remedy for business owners when a bank acts in bad faith or has become a relentless and unreasonable collector despite all of the borrower’s repayment efforts. . A Chapter 11 bankruptcy should be a final option, but it will halt collection actions and enable a business owner to restructure its business debt under court supervision. Chapter 11 legal practice is highly specialized and complex so seek a business bankruptcy attorney who can demonstrate past results.

There are few choices a business owner can make when their bank issues a demand for repayment: refinance, fight, negotiate or file business bankruptcy. Doing nothing however, is unacceptable. It’s an all -around recipe for financial disaster, and while a business owner may experience temporary paralysis upon receipt of a bank demand, weigh the options, seek experienced representation and take action.

About the Author: Since 1990, David Soble has represented lenders, loan servicers, consumers and business owners on residential and commercial real estate, finance and compliance issues. He has been involved in thousands of real estate transactions, being responsible for billions in real estate loan portfolios throughout his career. He has over 24 years of real estate and lending law experience to support his tempered cynicism.

Disclaimer: You should not rely or act upon the contents of this article without seeking advice from your own attorney.

Mastro chartered private jet from Toronto to Portugal

Mastro chartered private jet from Toronto to Portugal
A court filing by attorneys for James Rigby, the bankruptcy trustee who's been pursuing Michael R. Mastro for years, spells out how the Seattle real estate magnate fled North America. Rigby alleges that on July 18, 2011, Mastro called the office of …
Read more on Puget Sound Business Journal (Seattle) (blog)

New Settlement Talks Ordered in Sex-Abuse Case
The Ursuline Sisters of the Western Province have found a lender willing to put up money to allow the order to begin settlement negotiations with hundreds of people who claim they were abused by priests and nuns in Montana, an attorney said Thursday …
Read more on Flathead Beacon

Man's mistake cost his children $400000 of an IRA inheritance

Man's mistake cost his children 0000 of an IRA inheritance
Before Leonard Smith lost his battle with cancer in 2008, he worked with his financial advisors and attorneys to make sure his children received the balance of his retirement funds when he died. A single mistake, however, thwarted his well-laid plans …
Read more on Yahoo Finance (blog)

Timeshare firm looks to settle dispute from attorney's estate
As it hovers in Chapter 11 bankruptcy protection, a local timeshare and resort development company is close to settling a longstanding legal dispute with the estate of a deceased Richmond attorney. And if approved, the agreement could end with the sale …
Read more on RichmondBizSense

Whistle-Blower Wins Case Against State But Unemployment Fraud Claims
Parcell says she found 97 other instances where people who were either dead, bankrupt or otherwise not legally liable for reimbursing the state were also referred to collection agencies. Her attorney, Keisha Rice, says Parcell later contacted the …
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