Credit Score Magic

The Supreme Court in the Stern v. Marshall case 10-179 decided on June 23, 2011, declared unconstitutional a bankruptcy judges entering a final judgment in a tort claim that is non-core.  The Court ruled that consent was irrelevant to the authority of an non-Article III bankruptcy judge to exercise judicial power by rendering a final judgment.

Previously the Northern Pipeline case from 1982 had been used to justify the current system enacted in 1984 in response to that case which declared the 1978 system unconstitutional.  Arguments for the current system included that parties could consent to having a bankruptcy judge handle non-core matters, that bankruptcy is a public right, and that bankruptcy judges are adjuncts to Article III judges with life tenure and a prohibition against salary dimunition.  

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Senator Dick Blumenthal now seeks a valid explanation from the three credit rating bureaus with regard to the New York Times report that reportedly refers to a VIP list that these bureaus apparently keep while favoring the rich and the famous over the others.

A letter was written on Monday by the Connecticut Democrat to the 3 credit reporting agencies – Equifax, TransUnion, and Experian, regarding the separate system where disputes and errors are resolved much faster and more attention is paid while the other customers should heavily rely on the outsourced and automated systems for customer support in order to correct the errors in the report.

In the letter he stated that he was deeply troubled by the implications that the majority of the consumers were neglected by these companies while preferential treatment was being meted out to the rich and famous. H

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Anybody who has been to the doctor’s office or hospital lately knows that the cost of medical care is significant, and steadily rising. In the United States, health care expenditures surpassed $2.3 trillion in 2008 – more than three times the amount spent on health care in 1990. While the cost of care can be expensive, regardless of whether you are insured or not, did you know that unpaid medical debt can ruin your credit scores?

Debt collection calls for medical bills used to be unheard of, but more and more hospitals and doctors are utilizing that option to collect money owed from patients. Sometimes, the debt turned over to a collector has gone unpaid due to a misunderstanding between the patient and insurance company.

The Atlanta Journal-Constitution recently reported that a local man did not pay a $500 bill for an ambulance ride that he thought was settled by insurance. Six years later, when applying to refinance his mortgage, he discovered one of his credit scores had dropped 92 points. The

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Introduction

On Monday, June 13, 2011, Perkins & Marie Callender’s, Inc. (“Debtors”), filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  According to the Declaration of Debtors’ CEO in Support of its Chapter 11 Petitions (the “Declaration” or “Decl”), Debtors operate approximately 600 restaurants in North America.  As the name suggests, Debtors operate two types of restaurants – the Perkins chain and the Marie Callender’s chain.  While the company owns many of the restaurants, the majority of stores are operated by franchisees.  See Decl. at *4.  A copy of Debtors’ Declaration is available here for review.

Events Leading to Bankruptcy

Debtors describe themselves as “leading operators of family-dining and casual-dining restaurants.”  Decl.  at *2.  Many of Debtors stores are located in California and Florida – two of the states hit hardest by the recession over the last couple of years.  High unemployment rates nationwide have lowered consumer discretionary income, which in turn has had a negative impact on Debtors’ sales.  Decl. at *7.  D

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Summary

In a 14 page opinion published June 7, 2011, Judge Carey ruled that publication of notice in only two newspapers was insufficient information to grant a motion to dismiss based on adequacy of notice. Judge Carey’s opinion is available here (the “Opinion”).

Background

New Century TRS Holdings, Inc. (the “Debtor”), filed voluntary petitions for bankruptcy on April 2, 2007 and the claims Bar Date was established as August 31, 2007. On July 23, 2007, the claims agent published a notice of the Bar Date in The Wall Street Journal and The Orange County Register. Opinion at *3. On November 22, 2008, the plaintiffs in the adversary proceeding that gave rise to this opinion (the “Whites”) filed a claim. The Trustee for the Debtor objected to the claim on August 13, 2010, and the Whites filed this adversary complaint on November 10, 2010, requesting the Court cancel their mortgage note. After the Cou

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Once upon a time, hunting for a summer job was as easy as a walk on the beach. The problem was less about finding work than about which opportunity to choose. Now, as the economy continues to struggle, it’s not quite as easy, but with a little diligence and creative thinking, you can find the perfect gig for extra spending cash this summer.

Do friends and family know you are looking for a job? If they don’t know you are searching, they won’t know to tell you when they see a “Help Wanted” sign or hear of the perfect opening. Do you have an uncle that owns a landscaping business or a second cousin who runs a summer camp? Don’t be shy about asking folks you know if they will hire you for the summer – they may be looking for seasonal help.

You need to do more than pound the pavement to find a summer job. While you should be looking for “Help Wanted” signs while you’re out and about, the Internet is full of resources. Your city’s Craigslist can be a great place to start, though be extra careful to avoid scams and shady job listings. Also, monitor social

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