Maybe the $26 billion Attorney General settlement the other month finally did in Ally Financial. The recent Chapter 11 bankruptcy filing by ResCap, the mortgage arm of Ally Financial, formerly known as GMAC Mortgage won’t just go away quietly.
The NACBA will be seeking global relief from the automatic stay to allow consumers in bankruptcy cases of their own to bring actions in those cases related to ResCap/Ally/GMAC claims.
NACBA made it clear that it remains committed to quickly obtaining the broadest and most efficient relief from the stay as possible, so that consumers and their attorneys can continue to bring lien-strip actions, objections to claim, and other actions in bankruptcy cases, without having to individually seek permission from the bankruptcy court in New York.
NACBA is both working with the U.S. Trustee and retaining counsel to bring appropriate motions. We, as well as the NACBA, will continue to provide updates as it moves forward on this important matter.