In a ruling that borrowers may try to use in seeking to delay foreclosures or bankruptcy proceedings on proofs of claim, the U.S. Bankruptcy Court for the Eastern District of New York finds that the Mortgage Electronic Registration System (MERS) lacks authority to assign mortgages.

In yet another attack on Mortgage Electronic Registration Systems (MERS), the U.S. Bankruptcy Court for the Southern District of California has refused to allow the assignee of a deed of trust (DOT) to regain possession of a home on which it had foreclosed where the assignment had not been recorded.

A recent decision by the Second Circuit underscores the importance to debt collectors of accurately describing the options available to a student loan borrower in bankruptcy, even a borrower who previously filed but did not seek the determination of undue hardship that would have been a necessary predicate to any discharge.

A newly released IRS letter ruling (PLR 201006003, Oct. 28, 2009) provides guidance on how a consolidated return group may obtain an ordinary loss deduction in liquidating an insolvent subsidiary. Although a write-off of worthless stock generally produces a capital loss deduction, Code Section 165(g)(3) converts these losses to ordinary deductions when they arise from a write-off of stock of an affiliated corporation.

At a time when municipalities face historic fiscal challenges, the Commonwealth budget for fiscal year 2012 temporarily deprives Pennsylvania’s third-class cities of a useful tool for negotiating with creditors.