Workout and bankruptcy professionals braced themselves for a wave of consumer and commercial bankruptcy filings because of the COVID-19 economic recession. Afterall, shuttered businesses led to the highest rates of job loss in recent memory. Business interruption and job loss usually result in bankruptcy filings. Instead, we saw a major drop in filings.
We provide insight and analysis on complex issues affecting distressed businesses or funds throughout the United States and abroad. Our Bankruptcy team is available to speak on various bankruptcy issues and claims. Contact us to learn more.
All too often, after protracted and contentious litigation, the parties finally reach a settlement that requires the opposing party to pay your client over time, only to find that they file bankruptcy shortly after the ink dries. There is language you can include in a settlement agreement that could prevent the agreement from being completely undone.
United States District for the District of Columbia Judge Dabney Friedrich, threw out the U.S. Centers for Disease Control and Prevention’s nationwide moratorium on evictions, blocking enforcement. Judge Friedrich explained that the plain language in the Public Health Service Act blocks the moratorium.
In April 2021, the Consumer Financial Protection Bureau (CFPB) issued an interim final rule in support of the Centers for Disease Control and Prevention (CDC)’s eviction moratorium. The CFPB’s rule requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium.
Millions of borrowers continue to miss payments on personal loans, including auto, home and student loans. For the most part, these missed payments are consensual between the lender and the borrower. Otherwise, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) placed several temporary moratoriums on foreclosures and evictions of federally-backed loans. Additionally, most, if not all of the larger states and/or cities have instituted statewide or citywide moratoriums or limitations on trials, hearings and eviction procedures.