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Tricolor Auto Group Files for Chapter 7 After Fraud Allegations; Lenders Face Major Losses
Tricolor Auto Group, a large subprime used-car lender and dealer based in Texas, has filed for Chapter 7 liquidation after listing between $1 billion and $10 billion in assets and liabilities and more than 25,000 creditors. The filing followed revelations that Fifth Third Bank uncovered alleged fraud tied to a roughly $200 million loan. Fifth
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Proposal to Amend Rule 3002.1 Would Let Chapter 13 Debtors Seek Mid-Case Mortgage Status Reviews to Cure Postpetition Arrears
Proposed amendments to Federal Rule of Bankruptcy Procedure 3002.1 would give debtors and Chapter 13 trustees a new, optional way to check a mortgage claim’s status while a case is pending and — if needed — cure postpetition defaults before the plan closes. The change would authorize a mid-case motion for a full loan-status assessment,
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Congress Weighs Higher Debt Limits in Chapter 13
Congress has returned from recess and the Senate is expected to consider an amendment that would significantly expand Chapter 13 eligibility. The proposal would replace the existing split limits of approximately $1.58 million in secured debt and $526,000 in unsecured debt with a single ceiling of $2.75 million. This change would matter most in high
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A Welcome Step Toward Justice: New Bill Would Finally Make Student Loans Dischargeable in Bankruptcy
For decades, bankruptcy practitioners like myself have watched clients walk through our doors buried under student loan debt—only to discover that relief under the Bankruptcy Code is largely off-limits. The reason? An impossibly high legal standard requiring borrowers to prove “undue hardship” to discharge their student loans, a vague and outdated threshold that has turned
