However, the amendment caters to only a class of promoters and does not cater to the bourgeois investors and companies. Situations of companies where the debt is not so large or the promoters can find a fix through individual pooling of resources and risk, have been overlooked. The characterization in the amendment ordinance does not come with clear legislative intent and creates more room for ambiguity as it disallows companies to opt out of debt through other means such a debt buy outs. An example of a debt buy out that saved jobs and assisted in translating the economic dent created by the scam was Tech Mahindra’s investment into Satyam. Options such as this should be available as a part of the resolution plan and the jobs of insolvency professionals, on a literal read, includes assistance on this aspect as well. … [Read more...] about Writing Of Debt And Debt Restructuring: Another Conundrum With The Ordinance Amendment To The Insolvency Bankruptcy Code
Bad debt write off
Sadly, as per the scheme of the Code as it exists, the NCLT is not an authority to supervise an investigation into malpractices and even when such authority is assumed, the scope of supervision is limited by time. Since the cognizance is taken strictly based on a complaint, the discretion lies with the ‘Insolvency and Bankruptcy Board of India’ which is for all practical purposes an extended arm of the Central Government with its own interests and bureaucratic hurdles. The Code,despite the amendments and continuous reviews, remains utterly silent on this aspect. I think the Code needs to be more explicit and empowering in order to bring within its fold the crimes already committed. … [Read more...] about Insolvency Proceedings – Safe Passage for Defaulters?
To Dean’s credit, about half of its students who pursue a bachelor’s degree manage to graduate. Contrast that with Becker College in Worcester. On its website, Becker talks about being able to trace its roots back to two signers of the Declaration of Independence. It does not, however, mention what US Department of Education data from 2012-2013 show: namely, that just 16 percent of Becker’s students managed to graduate in four years, a number that inches up only to 24 percent when the time frame is extended to six years, the federal standard for completing a bachelor’s degree. In other words, 3 out every 4 students who enrolled as freshmen at Becker failed to graduate. Nor does the website mention that, after all grants and discounts are applied, a typical zero-EFC low-income student is required to come up with more than $25,000 every single year to cover the costs of attending Becker. … [Read more...] about The college debt crisis is even worse than you think
All 575 or so members of DBA International must be certified by March 2016 through a training program to ensure compliance with state and federal rules and laws on matters such as documentation and handling complaints. To qualify, a company must have a compliance officer (often the owner) who takes 24 hours of continuing education credits in ethics and issues, and another 24 hours every two years. … [Read more...] about Debt-buying industry and lax court review are burying defendants in defaults
With the help of today’s database technology, it’s relatively easy to determine when an estate is opened in any of the nation’s 3,000 probate courts, allowing bill collectors to file timely claims when estates have the money to pay them. But when that’s not an option, what one collection agency calls “empathic active listening” comes into play, reports the New York Times. … [Read more...] about Debt Collectors Find the Dead Can Be More Lucrative Than the Living