Tag Archives: bankruptcy


ObamaA trove of 13.4 million records exposes ties between Russia and U.S. President Donald Trump’s billionaire commerce secretary, the secret dealings of the chief fundraiser for Canadian Prime Minister Justin Trudeau and the offshore interests of the queen of England and more than 120 politicians around the world.

MDC says, Wilbur Ross is next. We would love to see Trump’s family also busted, but politics and finance will fuck with that .

The leaked documents, dubbed the Paradise Papers, show how deeply the offshore financial system is entangled with the overlapping worlds of political players, private wealth and corporate giants, including Apple, Nike, Uber and other global companies that avoid taxes through increasingly imaginative bookkeeping maneuvers.

One offshore web leads to Trump’s commerce secretary, private equity tycoon Wilbur Ross, who has a stake in a shipping company that has received more than $68 million in revenue since 2014 from a Russian energy company co-owned by the son-in-law of Russian President Vladimir Putin.

In all, the offshore ties of more than a dozen Trump advisers, Cabinet members and major donors appear in the leaked data.1fxu59

The new files come from two offshore services firms as well as from 19 corporate registries maintained by governments in jurisdictions that serve as waystations in the global shadow economy. The leaks were obtained by German newspaper Süddeutsche Zeitung and shared with the International Consortium of Investigative Journalists and a network of more than 380 journalists in 67 countries.

The promise of tax havens is secrecy – offshore locales create and oversee companies that often are difficult, or impossible, to trace back to their owners. While having an offshore entity is often legal, the built-in secrecy attracts money launderers, drug traffickers, kleptocrats and others who want to operate in the shadows. Offshore companies, often “shells” with no employees or office space, are also used in complex tax-avoidance structures that drain billions from national treasuries.

The offshore industry makes “the poor poorer” and is “deepening wealth inequality,” said Brooke Harrington, a certified wealth manager and Copenhagen Business School professor who is the author of ‘Capital without Borders: Wealth Managers and the One Percent.’

“There is this small group of people who are not equally subject to the laws as the rest of us, and that’s on purpose,” Harrington said. These people “live the dream” of enjoying “the benefits of society without being subject to any of its constraints.”

The records expand on the revelations from the leak of offshore documents that spawned the 2016 Panama Papers investigation by ICIJ and its media partners. The new files shine a light on a different cast of underexplored island havens, including some with cleaner reputations and higher price tags, such as the Cayman Islands and Bermuda.

H.R 532


MDC says, watch out for H.R 534, the government wants to collect on the dysfunctional student loan program.

While students get breaks on their loans in some ways, filing bankruptcy has never been one of them. But if a federal appellate opinion and action in Congress are any indicators, that could be changing.

Rural and Poor

The 7th U.S. Circuit Court of Appeals on Apr. 10 held that a woman’s student loan debt fell under the “hardship exception” to the general rule that such debt is not dischargeable in bankruptcy. The exception is nothing new; what’s notable about this case is that the court felt comfortable applying the exception in it.

Susan Krieger, 53, is simply poor. Living with her 75-year-old mother in rural Illinois, the household only brings in a couple hundred dollars a month from welfare programs, according to the opinion. Too poor to move, saddled with a broken car, and lacking Internet access, she can’t seek a job.

Krieger got the student loan in order to go to school to become a paralegal, but despite a decade of searching, she hasn’t been able to get a job – doing anything, much less legal work. She used a chunk of a divorce settlement to pay off the student loan but $25,000 was left unpaid.

Certain Hopelessness

The undue hardship exception applies when three conditions are met, according to the opinion:
based on her current income and expenses, the debtor wouldn’t be able to maintain a “minimal” standard of living if forced to repay the loan; her situation is likely to persist for a significant portion of the repayment period of the loan; and the debtor has made good faith efforts to repay the loans
Krieger’s facts met the test according to the bankruptcy judge, and the appellate court agreed. The three-part test can be boiled down, said the court, to “certainty of hopelessness,” and Krieger met it. While the opinion didn’t limit its holding to the specific facts of her case, a concurring judge did.

The 7th Circuit’s opinion is important because it shows that the exception can be applied to “a strange set of facts,” and because there are so few published appellate opinions about how the hardship exception works, much less ones in which the debtor wins, says Adam McNeile, a bankruptcy lawyer with Sheppard Mullin in San Francisco.

A Trend Developing

In a recent blog post, McNeile points to the Krieger case and to the introduction of a bill in Congress as two recent developments that “may signal that this bedrock principle is eroding,” referring to the difficulty in getting a student loan discharged in bankruptcy.

The bill in Congress, H.R. 532, would amend the Bankruptcy Code so that private student loan debt is treated the same as any other debt, “meaning it would be dischargeable in bankruptcy without the debtor having to prove undue hardship,” writes McNeile.

Federal student loans – those backed by the government, as opposed to those issued by banks, credit unions and other private lenders – would still be subject to the undue hardship test, making them more difficult to discharge.

“Although this bill has previously failed four times, the recent increased focus on student loan debt may give it a better chance of being enacted this time around,” McNeile tells Lawyers.com. He notes the noise surrounding the over $1 trillion in outstanding student loan debt that Americans have accumulated.

Private Loan Regulation

“For the past decade, private student loans have been the fastest growing and most profitable part of the student loan industry,” according to a press release from Rep. Steve Cohen of Tennessee, a co-sponsor of the bill. “The interest rates and fees on private loans can be as onerous as credit cards,” with some reaching 15 percent and higher.

“This can place a tremendous burden on student borrowers with private loans and unlike federal student loans, there is no government-imposed loan limit on private loans and no public regulation over the terms and cost of these loans,” said Cohen.

H.R. 532 is currently in the Subcommittee on Regulatory Reform, Commercial And Antitrust Law and has 27 co-sponsors, all Democrats.

McNeile indicates anything could happen. “As more and more borrowers default on their student loan debt, it is likely that we will see cases both similar and dissimilar to that of Ms. Krieger work through the courts,” he says. “Only time will tell how the law related to student loan debts will continue to evolve.”

Source: lawyers.com

Goodbye Twinkies


Twinkies are about to disappear from the stores entirely when Hostess files Chapter 7 from Chapter 11. They had been  in and out of bankruptcy several times since 2004. Its terminal crisis begDespite its closure, Twinkies and other of the company’s products could still return to store shelves. The company has said several potential buyers have expressed interest in its brands.

MDC wants to save the Twinkie and provide the recipe to  make 10 Twinkies.

Twinkie Cake Nonstick spray 4 egg whites one 16-ounce box golden pound cake mix 2/3 cup water

Cream Filling 2 teaspoons very hot water rounded 1/4 teaspoon salt 2 cups marshmallow creme (1 7-ounce jar) 1/2 cup shortening 1/3 cup powdered sugar 1/2 teaspoon vanilla Preheat oven to 325 degrees F.

  1. Fold each piece of aluminum foil in half twice. Wrap the folded foil around the spice bottle to create a mold. Leave the top of the mold open for pouring in the batter. Make ten of these molds and arrange them on a cookie sheet or in a shallow pan. Grease the inside of each mold with a light coating of nonstick spray.
  2. Disregard the directions on the box of cake mix. Instead, beat the egg whites until stiff. In a separate bowl combine cake mix with water, and beat until thoroughly blended (about 2 minutes). Fold egg whites into the cake batter and slowly combine until completely mixed.
  3. Pour the batter into the molds, filling each one about 3/4 of an inch. Bake in the preheated oven for 30 minutes, or until the cake is golden brown and a toothpick stuck in the center comes out clean.
  4. Combine the salt with the hot water in a small bowl and stir until salt is dissolved. Let this mixture cool.
  5. Combine the marshmallow creme, shortening, powdered sugar, and vanilla in a medium bowl and mix well with an electric mixer on high speed until fluffy.
  6. Add the salt solution to the filling mixture and combine.
  7. When the cakes are done and cooled, use a skewer or chopstick to make three holes in the bottom of each one. Move the stick around inside of each cake to create space for the filling.
  8. Using a cake decorator or pastry bag, inject each cake with filling through all three holes.

Good Luck baking and Enjoy and old past time !