Simpson v. PRA Receivables Mgmt., LLC (In re Simpson), No. 08-00137, 2008 WL 4216317, at *3 (Bankr. N.D. Ala. Aug. 29, 2008) (Mitchell) (No independent bankruptcy cause of action for violation of Fair Debt Collection Practices Act based on filing of false or misleading proof of claim; claims allowance process provides remedies. “An FDCPA claim … cannot be based on the filing of a proof of claim, regardless of the ultimate validity of the underlying claim.”).

George v. Wilshire Credit Corp. (In re George), No. 08-1068, 2008 WL 3925210 (Bankr. D. Mass. Aug. 26, 2008) (Feeney) (Motion to dismiss third-party complaint is granted, but show cause is issued to determine whether co-tenant who asserts TILA violation should be added as co-plaintiff.).

Wentz v. Saxon Mortgage (In re Wentz), 393 B.R. 545 (Bankr. S.D. Ohio 2008) (Humphrey) (Complaint for damages under TILA and HOEPA is subject to one year statute of limitations under 15 U.S.C. § 1635(g) but damage claim is in nature of recoupment, which is excepted from one-year limitation by 15 U.S.C. § 1640(e). Filing proof of claim is sufficient action to collect debt to constitute counterclaim for damages as recoupment. RESP A action for damages is also in nature of recoupment excepted from one-year statute of limitations found in 12 U.S.C. §2614.).

See Also:  Bankruptcy Boston

In re McCormick, 381 B.R. 594 (Bankr. S.D.N.Y. 2008) (Morris) (Because limited liability company is not eligible for Chapter 13 relief, LLC is also not beneficiary of codebtor stay.

Jet fuel costs - up more than 80 percent over last year - are forcing low-fare airlines to sharply raise some fares, and reinvent themselves to appeal to not just bargain hunters, but also business travelers, the New York Times reported today. Airlines like Southwest, JetBlue and AirTran have been able to offer cheap fares for years because of their lower operating costs, for reasons that include simpler jet fleets, work rules and less-sprawling route networks. Their low prices and rapid growth forced the largest carriers to cut fares whenever they entered a market. They still offer deals for passengers who book trips well in advance, travel off-season and at less popular times. However, bargains are getting harder to find, as low-fare carriers join the bigger airlines in raising fares, which are up about 18 percent industrywide this year.

MBIA Inc. booked its third consecutive quarterly loss, as the country’s largest bond insurer was hurt by a $3.58 billion loss on contracts the company has written to insure complicated securities often backed by mortgages against default, Dow Jones Newswires reported today. The quarter also showed the damage done to MBIA’s business by concerns about its exposure to troubled securities, as net premiums written fell 41 percent. MBIA posted a net loss of $2.41 billion compared with net income of $198.6 million a year earlier. The company reported negative revenue of $2.96 billion due to the loss on insured derivatives, compared with a profit of $729.9 million. MBIA’s paper losses on insured derivatives would have been $7.1 billion, except for an offsetting $3.6 billion gain on the declining value of its own credit guarantees.

The Federal Reserve yesterday auctioned $28.77 billion in safe Treasury securities to big investment firms, part of an ongoing effort to ease credit problems, the Associated Press reported. In exchange for the 28-day loan of Treasury securities, bidding firms can put up more risky investments, including risky mortgage-backed securities and bonds backed by federally guaranteed student loans, as collateral. Bidders’ identities are not made public. To help shore up the shaky student loan market, the Fed agreed last week to let financial institutions put up bonds backed by federally guaranteed student loans as collateral. Yesterday’s auction was the first where that option was available. Spreading credit problems have forced more than 60 lenders to stop making federally guaranteed student loans, either temporarily or permanently.

Delphi Corp. won court permission to pay executives as much as $39 million in bonuses over six months and give creditors the right to review its business decisions if it doesn’t exit bankruptcy by Aug. 15, Bloomberg News reported yesterday. Bankruptcy Judge Robert Drain yesterday approved the incentive program for executives, which will pay between $21.2 million and $39.1 million, depending on how close Delphi comes to its $1.3 billion pretax earnings target for the first half of 2008. The bankrupt former parts unit of General Motors Corp. requested the additional incentive pay as its exit from court protection remained stalled by tight credit markets.

Investor Wilbur Ross announced Monday that his investment firm, WL Ross & Co., would buy the mortgage-servicing business of tax-preparation firm H&R Block Inc. for nearly $1.1 billion, Dow Jones Daily Bankruptcy Review reported today. Ross previously bought the mortgage-servicing rights of subprime lender American Home Mortgage Investment Corp. for nearly $500 million. Together, the two units will handle nearly $100 billion of loans, the second-largest servicing business for subprime loans after mortgage lender Countrywide Financial Corp., Ross said.

A French appeals court ruled Tuesday that Jérôme Kerviel, the former trader that Société Générale has blamed for nearly $7.7 billion in losses, should be released from jail while the investigation into his alleged fraud continues, the New York Times reported today. Kerviel was to be placed under judicial supervision and was forbidden to leave France for the duration of the inquiry. The Paris prosecutor’s office had opposed his release on the grounds that he could flee or otherwise interfere with important witnesses or evidence in the case. Legal experts said the court’s decision was a recognition that Kerviel, who has already admitted to fabricating trades and forging documents to hid his activities, could only harm his chances for leniency if he failed to cooperate with the inquiry.

Carmakers expect 2008 to be challenging, at best, but hundreds of automotive parts suppliers are anticipating the year ahead to be one of the ugliest ever, the New York Times said today. Overall sales in the United States are projected to fall below 16 million vehicles next year, the lowest level in a decade, as a housing slump, high oil prices and weak consumer confidence deter car shoppers. Slow sales will mean less demand for parts at a time when many suppliers are already suffering from years of heavy losses or eroding profit margins. The outlook for suppliers, the nation’s largest manufacturing sector, worsened recently when Detroit automakers said that they did not plan to counter the softening market with bigger discounts, even if the country slipped into a recession.

Soaring fuel prices and slowing economic growth are likely to wipe out much of the airline industry’s profits next year, despite steady increases in global demand for air travel, the International Air Transport Association, a leading trade group said yesterday according to the New York Times. Analysts said that the expected slowdown could increase pressure on less-profitable carriers, particularly in the United States, to merge. North American carriers were likely to see the biggest drop in profit, down nearly 19 percent in 2008, to $2.2 billion, from a forecast of $2.7 billion in 2007.