Category Archives: Bankruptcy

Bankruptcy Trustee Seeks to Recharacterize Litigation Financing Contract as Loan, Survives Motion to Dismiss

A litigation finance firm advanced funds to an attorney working a personal injury case on contingency. The attorney ultimately settled the case and was awarded a portion of the settlement as his fee. Following the settlement award, the attorney’s creditors, including the … Continue reading

Posted in Bankruptcy, Civil Usury, Federal Court, Recharacterization | Comments Off on Bankruptcy Trustee Seeks to Recharacterize Litigation Financing Contract as Loan, Survives Motion to Dismiss

Stipulated Settlement Waives Usury Defense

A Florida debtor entered into a series of business deals with a creditor to obtain funds to purchase real estate investment properties. After the debtor defaulted on the agreements, the parties entered into a settlement which required the debtor to … Continue reading

Posted in Bankruptcy, Civil Usury, Florida, Waiver | Comments Off on Stipulated Settlement Waives Usury Defense

When it Comes to Usury Law, Be Careful What You Ask For

In a previous post, Creditor Fails to Navigate Usury Law “Minefield”, Ordered to Refund $1.3 Million to Debtor, I discussed a recent bankruptcy case in California. In the case, a lender had filed a claim in the borrower-debtor’s bankruptcy case. The … Continue reading

Posted in Bankruptcy, California, Choice-of-Law, Federal Court, Statute of Limitations, Usury Exceptions | Comments Off on When it Comes to Usury Law, Be Careful What You Ask For