Buying bad debt for profit

Economic development needs an evolved legal system that can support and complement it. The need for refined corporate case resolution with the rise in complexity of investments and global market integration was one of the intentions of a consolidated comprehensive law on corporate insolvencies and bankruptcies in India. This took the shape of the Insolvency and Bankruptcy Code, 2016 (IBC). Now, it is critical to note that the IBC was championed as a legislation which would also look at the debt market as a separate investment strategy option and enable the Indian economy to overcome the era of writing of debt as the only way to manage a situation where a debtor is unable to pay or a company malfunctions.Given the complexity of the economic makeup with different types of the investment engines that have become available, investment through debt instruments and intercompany arrangements with external commercial borrowings have also found their place in the market. The IBC, on its own has … [Read more...] about Writing Of Debt And Debt Restructuring: Another Conundrum With The Ordinance Amendment To The Insolvency Bankruptcy Code

So whether they are actively recruiting these low-income students for reasons of open-the-door altruism or keep-the-lights-on capitalism — or, more likely, some combination of the two — there has been a huge, largely hidden byproduct of this dramatic increase in access: These students are often being loaded up with staggering debt that is completely out of whack with the earnings boost they’ll likely get from a degree at a nonselective or less selective college. Already, average student loan debt is higher in Boston than any other metro area in the country, 44 percent above the national average, according to Credit Karma. But  more troubling, many of these low-income students — and, at some colleges, most of them — are not graduating. That means these non-completers are leaving campus saddled with lots of debt but none of the salary gains that traditionally come with a bachelor’s degree. RELATED STORY: Poor at an Ivy League school Dean College … [Read more...] about The college debt crisis is even worse than you think

Consumer attorney Jerry Jarzombek calls them “testaliars.”He’s talking about agents and attorneys representing creditors he says frequently falsify affidavits of service or present erroneous legal documents to his clients and to the court. The paperwork involves unpaid debts from credit cards, payday loans, medical bills and the like.“They are scavengers, buzzards picking at the decaying carcass of a debt,” he says. He recalls one client in recent years whose checking account records proved she was away from home purchasing supplies for her family farm the same day a debt process server swore she was personally served notice of a lawsuit. Another received two separate judgments for the same debt. A third was sued with documentation for a debt originating from a bank other than the one that issued her credit card.Jarzombek, whose Fort Worth, Texas, practice represents a wide range of consumer borrowers, says these are typical of cases he confronts in the … [Read more...] about Attorneys push for change in debt collection

Banks are increasingly pursuing deficiency judgments against former homeowners who lost their homes in foreclosures.Lenders may sue borrowers for mortgage debt that isn’t covered in a foreclosure sale in 41 states and the District of Columbia, creating a “foreclosure hangover” for former homeowners, the Wall Street Journal (sub. req.) reports. Some banks told the newspaper they are most likely to pursue homeowners when they perceive them to be “strategic defaulters” who stopped paying their mortgages because of a decline in property values.Lenders are still pursuing default judgments in only a fraction of the cases where they could recover the money, but at least one observer is expecting more. Sharon Bock, clerk and comptroller of Palm Beach County, Fla., tells the Wall Street Journal she expects “a massive wave of these cases as banks start selling the judgments to debt collectors.”One firm seeking to profit is Silverleaf Advisers, which buys … [Read more...] about Ex-Homeowners Face ‘Foreclosure Hangover’ as Banks Pursue Deficiency Judgments

The vultures perching on the roof of the abandoned Eastern Shore house seemed like a bad omen to Cindy Smith as she strolled by with her dogs.Smith, who battles blight for Dorchester County government, said the owner of the vacant, century-old home in Cambridge stopped paying property taxes almost a decade ago. The problem is well known in Baltimore, where thousands of vacant properties are stuck in the tax auction process, with debts soaring over time.Now officials from counties and towns across Maryland are pushing the General Assembly to change the laws governing the auction system to help them combat blight in communities from the Eastern Shore to Garrett County in Western Maryland.Generally, when property owners fall behind on taxes, local governments auction off liens on the buildings to investors, filling their coffers immediately rather than waiting for taxes they may never collect.The investors can then charge interest and try to collect on the debt to earn a profit beyond … [Read more...] about Fighting time and decay, Maryland towns seek new rights to seize vacants