Bankruptcy

How to Write an Effective Hardship Letter Part 1: Explain what happened and why you are applying. … Part 2: Specifically illustrate the time and severity of the hardship. … Part 3: Back up the reasons traditional remedies won’t work. … Part 4: Detail why you are stable enough to…

Financial distress The Companies Act defines “financially distressed”, to mean that it appears to be: i. reasonably unlikely that the company will be able to pay all of its debts as they fall due and. payable within the immediately ensuing six months, or. ii. How do you know if a…

The purpose of liquidation is to wind up a company, whereas the purpose of voluntary administration is to assess the company’s viability, turn its fortunes around if possible and provide a better return to creditors if not. What is the difference between in administration and liquidation? In simple terms, liquidation…

This simply is not the case. A power of attorney is no longer valid after death. The only person permitted to act on behalf of an estate following a death is the personal representative or executor appointed by the court. Assets need to be protected. What is the first thing…

The gap mortgage is an interim document that secures the new money lent to the borrower in a CEMA financing, and counsel for borrower and lender typically focus primarily on negotiating the terms of the consolidated mortgage. What does gap mean in loans? The gap is the distance between assets…

What is an example of a loan modification? Typical ways in which a loan is modified include: (1) interest rate changes, such as a reduction in interest rate or a change from a floating to a fixed rate, (2) an extension of the loan term, (3) a waiver of late…

The opening statement at the beginning of the trial is limited to outlining facts. This is each party’s opportunity to set the basic scene for the jurors, introduce them to the core dispute(s) in the case, and provide a general road map of how the trial is expected to unfold.…

Involuntary administration. Involuntary administration occurs when it is not the company that decides to go into administration, but the creditors. This usually happens after a company has failed to repay its debts. What is meant by voluntary administration? What is voluntary administration? An insolvency procedure where an external administer is…

around four yearsaround four years. Does a deed of trust expire in California? California Civil Code §882.020 provides that a DOT has a statute of limitations of 60 years following the DOT’s recording if the DOT neither includes a copy of an underlying promissory note nor indicates the date the…

Momentary footswitches only stay on when your foot remains pressed on the pedal. They’re best used for short-term sound effects like controlling a keyboard or synthesizer sustain and patch advance, drum machine or sequencer start and stop, and more. What is the difference between a latching and non latching footswitch?…

A constructive trust is created to remedy (or make up for) a situation where there is “unjust enrichment.” If someone has possession of property (money, real estate, or other assets) that they should not have because they obtained it unfairly through fraud or breach of a fiduciary duty, this is…

If a judgment is entered against you, a debt collector will have stronger tools, like garnishment, to collect the debt. The CFPB’s Debt Collection Rule clarifying certain provisions of the Fair Debt Collection Practices Act (FDCPA) became effective on November 30, 2021. How do you get around a Judgement? There…

In general, a Z-score below 1.8 suggests a company might be headed for bankruptcy, while a score closer to 3 suggests a company is in solid financial positioning. What is a good Z-score value? According to the Percentile to Z-Score Calculator, the z-score that corresponds to the 90th percentile is…

What is the purpose of a bank holding company? A bank holding company is a corporation that owns a controlling interest in one or more banks but does not itself offer banking services. Holding companies do not run the day-to-day operations of the banks they own. However, they exercise control…

Third party litigation funding (TPLF) is a multibillion-euro global industry that allows hedge funds and other financiers to invest in lawsuits in exchange for a cut of any settlement or award. The industry operates in the shadows, meaning that no one knows who has invested in a lawsuit. What is…

Special appearance is a tool defendants can use to challenge a court’s jurisdiction over them. If a court does not have personal jurisdiction or there are other errors like for service of process, many states allow defendants to challenge the lawsuit without submitting to a court’s jurisdiction. How can I…

Rescission is when a contract is rendered null and void, and so is no longer recognized as legally binding. The courts can free non-liable parties from their agreed obligations and, when possible, will effectively seek to restore them to the position they were in before the contract was signed. What…

The term remoteness refers to the legal test of causation which is used when determining the types of loss caused by a breach of contract or duty which may be compensated by a damages award. What is the meaning of remoteness of damages? What does Remoteness mean? If the damage…

When must a escrow account be interest bearing? 1. By default, all escrow accounts are interest bearing. Is interest offered in escrow account? The Escrow account shall be non-interest bearing. 5. No fund or non-fund based facilities would be permitted against the balances in the Escrow account. Who gets the…

A Lien Release is a form that removes a lien on a property once the property owner pays the lienor in full. The lienor is the person who placed the lien against the property. A lien is a protective legal document that establishes the lienor’s claim to another party’s assets…