Richard Cordray, the first and only Director of the Consumer Financial Protection Bureau, announced today that he will resign from the Bureau by the end of November–presumably in order to explore a run for governor in his home state of Ohio. Cordray, a Democrat, was appointed to serve as the agency’s first Director in a recess appointment by former President Obama in 2012. He was subsequently confirmed by the Senate in July of 2013. Since that time, Cordray has been the face of the young agency as it pursued aggressive policy and enforcement initiatives.

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Downtown Redevelopment Districts

Slide Rules and Hula Hoops – Business Obsolescence and Bankruptcy

When Detroit filed for Chapter 9 bankruptcy on July 18, 2013, it was the largest municipal bankruptcy filing in U.S. history. The bankruptcy court calculated Detroit to be $18.5 billion in debt.

“Reasonably equivalent value” – – part of the standard for evaluation of potential constructive fraudulent transfers – – is both subjective and imprecise. The words “equivalent value” require the court to make a subjective judgment whether consideration received in exchange for a transfer is worth the same as the consideration transferred by the debtor. And the considerations exchanged by the two parties are necessarily of differing characters. A transaction may involve the exchange of money for a tangible asset or for services.

College students across the country have begun returning to campus for the start of the fall semester. This arrival heralds new opportunities, new friends and new classes. It also means new tuition payments. Given the soaring price of college tuition, many students will rely on their parents to assist them with the cost of attendance. This parental support may take many forms, from co-signing or guarantying undergraduate loans to directly funding tuition costs.

Bankruptcy Court Rules in Favor of University in Trustee's Suit to Recover Tuition Payments, Then Certifies Trustee's Appeal to First Circuit

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The first Monday of each October marks the beginning of a fresh term for the Supreme Court of the United States. As the 2016 term approaches, the court’s docket has already begun to fill with cases that will impact commercial practitioners. While the court will continue to accept additional cases throughout the upcoming term, it has already agreed to hear at least five cases that may have significant implications for commercial lawyers throughout the country.

As we have discussed in prior blog posts, The Battle of the Student Loan Discharge, The Eternal Pursuit to Collect: Due Process Rights and Actions to Collect on a Debtor’s Defaulted Student Loans