Bankruptcy judge confirms ResCap liquidation plan

The Associated Press A U.S. bankruptcy court judge has confirmed Residential Capital's plan to exit Chapter 11 bankruptcy. The signing of the order Wednesday marks the court's formal approval and a major milestone in the bankruptcy of the troubled mortgage lending and service company. ResCap filed for bankruptcy protection in May 2012 under the weight of toxic mortgages. It also closes a messy chapter for Ally Financial, which cut ties with ResCap after the subsidiary filed for bankruptcy protection. Ally is the former finance arm of General Motors that now operates as a bank after a government bailout. Ally reached an agreement with creditors earlier this year that allowed ResCap to file a liquidation plan. Ally said Wednesday that the court's approval releases it from all related mortgage claims against the company. Published: Fri, Dec 13, 2013