The attempt of the ex-wife of jailed attorney Marc S. Dreier to collect $7 million in support from his bankruptcy estate suffered a setback this week. Refusing to lift an automatic stay in the case, a bankruptcy judge held that Elisa Dreier was not entitled to have a state judge decide whether Mr

A logical chain of events has been occurring recently: The recession has caused more consumer debts to go unpaid, which in turn, has led to more legal battles between consumers and their creditors. On one hand, debt collectors are suing consumers to collect the unpaid debts. On the other, consumer debtors are filing suits claiming debt collection harassment.

A federal judge has granted shareholders’ request to have an independent examiner investigate whether creditors and the Washington Mutual estate are leaving billions on the table in a proposed settlement. The shareholders believe the proposed plan might shortchange the value of certain WaMu assets and of potentially explosive legal claims WaMu might make against JPMorgan. An examiner, to be appointed Monday, will issue a preliminary report by Sept

The committee representing Washington Mutual shareholders has managed to do something pretty extraordinary: unite almost every other party in the case against its request for discovery and an extended investigation into WaMu’s collapse, according to court records. The other parties — including the bank’s estate, the creditors committee, the FDIC and the Federal Reserve — are hoping that a Delaware federal bankruptcy judge will shoot down the request.

Two weeks after the deadline for victims of Scott Rothstein’s Ponzi scheme to file claims against Rothstein’s defunct law firm, the largest single creditor on Tuesday requested an extension, which was strongly opposed by the firm heading the creditors’ committee.