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
Sections 68 to 77 deal with offences and penalties in the Code. The ambit of these provisions cover fraudulent actions on the part of the erstwhile creditors, including those actions that fall before the twilight period; however there are no corresponding provisions in the Code enabling the adjudicating authority which can breathe life into these penal provisions.According to Section 236 (2), no court shall take cognisance of any offence punishable under the Code except on a complaint made by the IBBI or the central government or any person authorised by the Central Government in that behalf. So in order to prosecute a fraudster-promoter and management, there has to be a complaint made by the Board or the Central Government or any person authorised by the Central Government. The banks and the economy at large are to rely on the vigilance of the Board or that of the Central government to prosecute such matters. The powerlessness of the adjudicating authority is embarrassingly exposed in … [Read more...] about Insolvency Proceedings – Safe Passage for Defaulters?
If you’re a low-income student, college selection, from a purely financial perspective, is a no-brainer. If you can get into Harvard or Amherst College or another elite school that uses some of its ample resources to meet all of its students’ demonstrated need (sadly, not all well-heeled colleges do), then you go there. But the reality is this elite pathway will be available only to the outliers. If you’re not one, the financially sensible decision is to do your first two years at your local community college. For a low-income zero-EFC student, the combination of federal and state grants will just about cover the entire cost of education at a community college. (A new mayor’s initiative will expand the number of lower-income Boston students who can go to community college tuition-free.) After that, you can transfer to a state college, preferably one close enough to commute to. … [Read more...] about The college debt crisis is even worse than you think
He looked deeper into this head-scratcher. The only evidence provided in discovery was a spreadsheet with little more than his client’s name and some dollar figures. And he found that no judge had given so much as a side glance at the debt buyer’s lawsuit. A clerk simply processed the creditor’s claim based on a document stating little more than this person owes us this much, and the fact that she was served with the suit, then entering judgment after it went unchallenged. (Benshoof’s client had never heard of the company pursuing her and considered the various contacts junk mail or spam.) … [Read more...] about Debt-buying industry and lax court review are burying defendants in defaults
However, “it all amounts to a baby step’s worth of progress, largely because there’s still nothing in the Fair Debt Collection Practices Act to give it teeth,” Jaffe writes. Although consumers can sue to enforce their rights, and have won some courtroom victories, such litigation appears to have little effect in actually preventing bad behavior by bill collectors, he contends. … [Read more...] about Debt Collectors Find the Dead Can Be More Lucrative Than the Living