Kathryn Davis

The Consumer Financial Protection Bureau (CFPB) has two sets of new amendments to its RESPA and TILA mortgage servicing rules that will go into effect on April 19. One set of these amendments affects borrowers who are in or have been in bankruptcy. New Amendments This set of amendments gives homeowners who are in or have been in a bankruptcy the right to receive monthly mortgage statements. In 2014, the CFPB issued a periodic mortgage statement rule that requires mortgage servicers to send monthly statements with detailed information about a borrower’s loan.  The rule has a broad exemption for a…Read   More

For my generation, no middle school trip to the mall was complete without a visit to Claire’s to pick up some jewelry, gifts, or maybe even get your ears pierced.  In fact, Claire’s says it has pierced more than 100 million ears around the world!  Last week, the company became the last retailer to file for Chapter 11 bankruptcy. The Financial State of Claire’s Claire’s held $2.1 billion in debt at the close of 2017, and is seeking to reduce its debt by $1.9 billion through the bankruptcy.  The company earned $29 million in profit and $1.3 billion in revenue…Read   More

After much speculation, one of the largest American manufacturers of ammunition and firearms, Remington Outdoor Company, announced that it is planning to file bankruptcy in the state of Delaware. Remington has reached a Restructuring Support Agreement with creditors that will be effectuated through a reorganization plan filed in a Chapter 11 bankruptcy. The restructuring deal will reduce the company’s debt by around $700 million and will add $145 million in new capital. The deal will give lenders ownership in the firearms maker. Why Did Remington File Bankruptcy? Some have speculated that the election of Donald Trump affected Remington’s gun sales,…Read   More

The largest oil refinery on the East Coast has filed for bankruptcy. Philadelphia Energy Solutions LLC is the owner of the biggest oil refinery that serves the New York Harbor diesel and gasoline market. The company filed for Chapter 11 bankruptcy protection on Sunday, January 21. The bankruptcy petition listed its debt between $1 billion and $10 billion.  The company will seek to restructure its debt and continue with operations. Behind the Scenes of Philadelphia Energy Solutions In 2012, private equity firm Carlyle Group and Sunoco Inc. saved Philadelphia Energy Solutions from financial distress.  It received government aid and tax…Read   More

Taking control of your finances is extremely liberating.  This is the time of the year when people set financial goals for the year.  Here are some of the more popular financial resolutions and some tips for meeting your goal. Common Financial Resolutions (And How to Achieve Them) Save More Money If your goal is to save more money this year, there are a couple of ways to make sure you are successful.  First, make savings automatic.  Go ahead and set part of your paycheck to be deposited straight into a savings account.  It is also helpful to set manageable goal. …Read   More

According to the U.S. Department of Housing and Urban Development’s annual Point in Time report released this month, the U.S. homeless population increased for the first time since 2010. The report showed that during counts taken in January, nearly 554,000 homeless people are living in the U.S.  That number is up nearly 1% from 2016.  Of the homeless people living in the U.S., approximately 193,000 are considered unsheltered, which means that they are living in tents, vehicles, on the streets and other places that are uninhabitable.  This figure is up by over 9 percent over the last two years. Homeless…Read   More

XCOR Aerospace, an innovator in the aerospace industry, has filed for bankruptcy. XCOR is a private spaceflight and rocket engine development company based at the Mojave Air and Space Port in Mojave, California, and in Midland, Texas. There are also locations in Amsterdam and Hong Kong. XCOR is best known in the aerospace industry for a suborbital space plane that was announced in 2008.  They designed “Lynx” to carry a pilot and one space flight participant. The company intended for Lynx to take off from a runway and fly into a suborbital arc, landing back on the runway after the…Read   More

A piece of bipartisan legislation concerning Chapter 12 of the Bankruptcy Code landed on the President’s desk for signature last week.  The Family Farmer Bankruptcy Clarification Act of 2017 was sponsored by Senator Al Franken (D-Minn.) and Senator Chuck Grassley (R-Iowa), and was included as a part of the supplemental appropriations package that the Senate approved 82-7.  “Our bipartisan bill is a commonsense fix to ensure that the law functions as intended and protects family farmers in Minnesota and across the country,” Senator Franken said in a statement on October 24. “I’m glad this bill is set to become law and…Read   More

Things are starting to look up for U.S. Retailers going through bankruptcy.  Recently, more creditors are extending a helping hand and allowing a greater number of retailers to retain their stores and employees. Since 2014, many brick and mortar retail chains such as the Limited and Sports Authority have shut down their operations.  While investors and companies acquired the assets of these bankrupt retailers, in many cases they did not choose to take on the operations of the retailers because of the risk in assuming store leases and attempting to continue to operate. Examples of Bankrupt Retailers Things seem to…Read   More

Last week, the Consumer Financial Protection Bureau (CFPB) announced that in January to June of 2017, supervisory actions resulted in $14 million for over 104,000 consumers.  “The Bureau’s recent supervision work has returned $14 million to more than 100,000 consumers, and found companies deceiving consumers and violating the law,” CFPB Director Richard Cordray stated. “Through supervision, the CFPB is putting an end to practices that harm consumers and taking proactive steps to prevent future violations.” Supervision and Corrective Actions The CFPB has authorization to supervise credit unions and banks with over $10 billion in assets.  The CFP also has authorization…Read   More