Showing 225 posts in Bankruptcy & Banking Law.
Payment card networks are built on a web of contractual arrangements containing incentives and allocations of risk. A common assumption among merchants and issuing banks is that merchants are wholly liable for expenses incurred as a result of a data breach. But recent decisions in three federal courts send a message that this assumption doesn’t always hold. In a three-part series, we will discuss recent case law on the topic and how that impacts contracts at all levels of the vertical. Read More ›
Over the years, I have often addressed questions related to IRS Form 1099-C titled Cancellation of Debt for multiple lender clients. Sophisticated borrower’s counsel also consider possible tax issues as they negotiate the workout of defaulted loans. Read More ›
When the Dispatcher Must Stop the Truck: A Collection Lawyer’s Duty to Stop the Work of Others That She Caused
Collection lawyers know that sometimes their efforts, including litigation, are temporarily halted. Occasionally, the client directs the delay. On other occasions, the defendant / borrower unilaterally grants itself a delay. The classic borrower caused delay is the automatic stay that is imposed on collection counsel when a borrower files bankruptcy. 11 U.S.C. Section 362. Read More ›
A lawyer’s usual task is to help solve the client’s current problem: resolve a dispute; close a loan; obtain a permit; avoid a conviction; etc. Lawyers are so task oriented that some consultants advise us to have task specific engagement understandings and send dis-engagement letters when a task is complete. For bankruptcy lawyers representing individuals in a Chapter 13 bankruptcy, the task at hand is getting clients to and through a confirmed Chapter 13 plan with the promised debt relief and fresh start. Read More ›
Guarantor was the spouse of a business owner. Spouse’s business opened a deposit account and a disbursement account at Bank 1. Later, Bank1 extended to Spouse’s business a commercial revolving loan with a borrowing limit of $135,000; that loan provided overdraft protection by funding the disbursement account if the business’ account balance went below zero. To obtain the $135,000 loan, Spouse and Guarantor executed an unlimited commercial guaranty.  Bank1 and Spouse executed multiple extensions of both the $135,000 commercial revolving loan. Read More ›
An Ohio residential loan and mortgage were made and recorded in 2008. After default, a foreclosure case was started, but not completed – it was dismissed without prejudice. Read More ›
As the 2015 tax filing season begins, it is important that individuals and businesses understand their reporting and filing obligations under the federal income tax laws. In certain situations where a financial institution discharges a debt, a Form 1099-C, Cancellation of Debt, must be filed with the Internal Revenue Service on or before February 28, 2015 (March 31, 2015 if electronically filed). Generally, for debt that was discharged during 2014, a creditor must file a Form 1099-C when the following three conditions are met: (1) the debt discharged was $600 or more; (2) the creditor is an applicable entity; and (3) an identifiable event has occurred. Read More ›
When victims of Ponzi schemes, also referred to as fraudulent investment schemes, cannot collect from the persons who committed the fraud and "stole" their money, they often look to the bank that handled the deposit account used in the fraud as the deep pocket for recovery. After the July 30, 2013 decision in Parlin Fund LLC, et al., v. Citibank N.A., Case No. 1:13-CV-111, 2013 U.S. Dist. LEXIS 106511 (S.D. Ohio, July 30, 2013, J. Beckwith), individuals damaged by investing in Ponzi schemes may find it much harder to pursue banks. Read More ›
In Salyersville Nat’l Bank v. Bailey (In re Bailey), 664 F.3d 1026 (6th Cir. 2011), Chapter 7 bankruptcy debtors, prior to filing for bankruptcy, obtained a loan from Salyersville National Bank, pledging their home and 40 acres of land as security. Several years later, the debtors took out a second loan from the bank, this time pledging their truck as security. After encountering financial difficulties, the debtors eventually filed for bankruptcy in 2005. Less than a month later, the debtors and the bank entered into a reaffirmation agreement, which committed the debtors to pay the two debts that would have otherwise been dischargeable in bankruptcy. In particular, the debtors reaffirmed their secured indebtedness in the two loans, and in return, maintained possession of their home and truck. Read More ›
On Account Claim Deficient Where Account Statements Attached To Plaintiff's Complaint Do Not Reflect Purchases And Payments
In Equable Ascent Fin., LLC v. Christian, 196 Ohio App.3d 34, 2001-Ohio-3791 the Court of Appeals in the Tenth District, Franklin County, reversed a trial court’s order granting default judgment to plaintiff credit card account holder on the grounds that the on account claim filed against Defendant debtor Sue Ann Christian (“Christian”) failed because the credit card statements attached to the Complaint were insufficiently detailed. Read More ›
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Vincent E. Mauer represents clients in commercial and business disputes with particular emphasis on financial institutions and instruments, including financial institution bonds, securities, insurance policies and commercial loans.