March 30, 2020
Archives
userpass In these trying times, this week’s update is offered with NO passwords. Every attempt has been made to provide you with the most accurate, up to date, COVID-19 information regarding consumer bankruptcy.
kensiomos

Covid-19 and the 7 Year Plan

(Not password protected)
By Ken Siomos, Staff Attorney for Standing Chapter 13 Trustee Marsha L. Combs-Skinner (Newman, IL)

A small part of the “Cares Act” is the ability of Chapter 13 debtors experiencing a “material financial hardship” as a result of the covid-19 pandemic to modify their plan to 84 months.(Attention non-Academy subscribers: this is an excellent example of the type of password protected information you will have access to EVERY SINGLE WEEK with your subscription. Click here to subscribe.

Bulletin: SBRA Postscript, the Definition of Income, and Changes to Section 1113(b)(1)(B) and (C)

(Not password protected)

CARES Act Increases Eligibility to Small Business Debtors with Aggregate Debts Up to $7,500,000 and Other Changes(Another example of a normally password protected item)

ust

From the UST – Means Test Numbers Change April 1st – No Fooling

(Not password protected)
The United States Trustee has posted an increase, effective for cases filed on or after April 1, 2020, in median family income relevant to Bankruptcy Forms 122A-1 and 122C-1, as based on Consumer Price Index adjustments.
nclc

From the National Consumer Law Center

(Not password protected)

Really good comprehensive information you need on consumer protection in one place:

Major Consumer Protections Announced in Response to COVID-19 – NCLC is updating this page on a regular basis.

COVID-19 & Consumer Protections Re: eviction of renters and homeowners; utilities shutoffs; student loan borrowers; etc. This page is being updated regularly with new resources for attorneys, advocates, and consumers.

NCLC is also offering free access to the digital edition of Surviving Debt: Expert Advice For Getting Out of Financial Trouble, NCLC’s most comprehensive guide to navigating debt for consumers and consumer advocates. ***When you click the link, look at the Table of Contents on the left – continue to click on the chapter you want and it will open.***

utilityshutoffs

Where to Find Coronavirus Eviction and Utility Shutoff Rules for Your State

(Not password protected)
Princeton University’s Eviction Lab has created a directory of municipal and state policy changes for evictions. The directory has several federal policy changes at the top, followed by an alphabetical list by state. The directory contains the type of action and the dates in effect.
carpayments

Car Payment Relief

(Not password protected)
This is the same edmunds page as last week (a very popular link) but the information is being updated regularly.
Car Payment Relief During Coronavirus – Links to Resources and Advice from Our Experts
foreclosures

Foreclosure Actions Suspended

(Not password protected)

The ‘fine print’ so far (although there are still unanswered questions):Foreclosure and Eviction Moratorium in Connection with the Presidentially-Declared COVID-19 National Emergency – The purpose of this Mortgagee Letter is to inform mortgagees of a foreclosure and eviction moratorium for all FHA-insured Single Family mortgages for a period of 60 days (effective until May 18, 2020)

  • Click here for the Servicer version of the above letter.

Fannie Mae Letter to Servicers – “Servicers must suspend all foreclosure sales for the next 60 days. . . . does not apply to mortgage loans on properties that have been determined to be vacant or abandoned.”

Freddie Mac Announces Enhanced Relief for Borrowers Impacted by COVID-19 – “Forbearance plans provide borrowers with payment relief for up to 12-months and suspend borrower late charges and penalties. It also suspends reporting to credit bureaus of past due payments of borrowers who are in a forbearance plan as a result of hardships attributable to this national emergency.”

From the VA and the USDA – VA and USDA ‘strongly encourages’ its servicers . . .

Maryland Court of Appeals – Administrative Order on Foreclosures, Evictions, and Other Ejectments Involving Residences

New York Waives Mortgage Payments for 90 Days Based on Hardship

evictions

Eviction Action Suspended

(Not password protected)
Here is a gold nugget: Tenant Protection During the Novel Coronavirus Outbreak – A running list of eviction moratoriums and other tenant protections by state, city/county.
irs

From the IRS

(Not password protected)

IRS Unveils New People First Initiative; COVID-19 Effort Temporarily Adjusts, Suspends Key Compliance Program

The article is fairly long so here are a few highlights:Existing Installment Agreements – Payments due between April 1 and July 15, 2020 are suspended. . . . , the IRS will not default any Installment Agreements during this period. Interest will continue to accrue.

Offers in Compromise (OIC) –

  • Pending OIC applications – Taxpayers have until July 15 to provide requested additional information to support a pending OIC. In addition, the IRS will not close any pending OIC request before July 15, 2020, without the taxpayer’s consent.
  • OIC Payments – Taxpayers have the option of suspending all payments until July 15, 2020 – interest will continue to accrue.
  • Delinquent Return Filings – IRS will not default an OIC for those who are delinquent in filing their tax return for 2018. However, taxpayers should file any delinquent 2018 return (and their 2019 return) on or before July 15, 2020.

Field Collection Activities – Liens and levies (including any seizures of a personal residence) initiated by field revenue officers will be suspended during this period. However, field revenue officers will continue to pursue high-income non-filers….

Automated Liens and Levies – New automatic, systemic liens and levies will be suspended during this period.

Private Debt Collection – New delinquent accounts will not be forwarded to private collection agencies during this period.

Click here for more on: Independent Office of Appeals and Statute of Limitations

Practitioner Priority Service – . . . there may be more significant wait times for the PPS.

courtscales

From the Courts

(Not password protected)
  • The United States Courts has created this web page which may be a site you check on a regular basis.
  • …“TO ENSURE THE QUALITY OF THE RECORD, THE USE OF SPEAKERPHONES, BLUETOOTH DEVICES, AND CELL PHONES ARE PROHIBITEDalthough we only saw this on one Court’s website, it is an excellent best practices guide.
  • Western District of Virginia NON-CORONAVIRUSNextGen – Are you ready? CM/ECF will be unavailable from noon on Friday, March 27th through Sunday, March 29th
sandiego2020

NACTT SAN DIEGO

(Not password protected)
NACTT 55th Annual Seminar
Registration Deadline ExtendedIn light of the current national pandemic the NACTT is extending the early registration deadline for the NACTT Annual Seminar to be held in July in Sunny San Diego to May 1st.While we are hopeful the pandemic will be resolved and life returns to normal soon with the Annual Seminar proceeding, we will continue to monitor the situation and will advise our members, sponsors and exhibitors if there is a change as soon as possible. In the meantime, on behalf of the NACTT please stay safe and healthy.Mary Viegelahn, NACTT Vice President & Program Chair

******************************

REGISTER NOW to attend the NACTT annual conference in San Diego, CA, July 9-11.
Check out this great program!!!!

Registration Form – After NACTT processes your registration, you will receive a link to make your hotel reservation.

cfpb

From the CFPB

(Not password protected)

5th Cir. Holds CFPB Structure is Constitutional

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

Probably the most important thing you can share on your blog is that struggling consumers need to contact their creditors and/or you – sooner rather than later.

March 23, 2020
Archives
AlexSchmidt

Chapter 13 Practice in the Time of COVID-19

By Alex Schmidt, Law Clerk to the Honorable John P. Gustafson., Northern District of Ohio at Toledo
“Though specifics regarding the disease’s impact evolve by the day, one thing that is clear is that bankruptcies will be filed, potentially in large numbers. . . . Leaving aside the questions about the Means Test in normal times, it seems clear that it is poorly suited to its gatekeeping task in the context of a sudden national decline in the economy.”
ahern

No Room for Error? Determining Whether Your “Secured” Creditor Has a Fatally Deficient UCC-1

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN)
Trustees and debtors’ counsel may often think they cannot win in a contest over the secured status of a creditor. Prompted by recent bankruptcy and district court decisions, Larry Ahern reviewed in Part I and Part II some rules governing the preparation of financing statements (UCC-1s) and explained how a UCC-1 might be fatally deficient under the rules governing naming of debtors on UCC-1s. In this Part III, he turns to the required description of the collateral, including a recent split in the circuits that the Supreme Court declined to resolve.
carpayments

There’s Always A Car

(Not password protected)
This is a really helpful article . . . Car Payment Relief During Coronavirus – Links to Resources and Advice from Our Experts
foreclosures

Foreclosure Actions Suspended

(Not password protected)

(As of “press time” we at the Academy could not locate any official rules or ‘fine print’ regarding the below. We will continue to watch for that information. However, see From the Courts below.)

nclc

From the National Consumer Law Center

(Not password protected)
NCLC has created a new “COVID-19 & Consumer Protections” page to provide updates on current efforts to protect renters and homeowners from eviction and utilities shutoffs; advocate for student loan borrowers whose ability to repay their loans may suffer due to lost income, insufficient paid leave, or lack of access to childcare; encourage financial institutions to offer loan modification and payment accommodations to their clients; and protect all consumers from the financial scams that arise in disaster situations. This page is being updated constantly with new resources for attorneys, advocates, and consumers.
NCLC is also offering free access to the digital edition of Surviving Debt: Expert Advice For Getting Out of Financial Trouble, NCLC’s most comprehensive guide to navigating debt for consumers and consumer advocates. All inquiries related to NCLC’s publications or Digital Library can be directed to publications@nclc.org.
courtscales

From the Courts

(Not password protected)

(We have not attempted to list every notice from every bankruptcy district; however, we have tried to list those that may be of interest to national creditors, any notice that seems ‘out of the norm’ from what most courts are doing, and notices that apply to the entire country.)

  • The United States Courts has created this web page which may be a site you check on a regular basis.
  • We draw your attention to this Notice as a reminder that not all courts are doing things the same way. In the District of South Carolina for hearings you must request to appear by telephone/video conference . . . District of South Carolina Bankruptcy Court
  • Western District of Virginia NON-CORONAVIRUSNextGen – Are you ready? CM/ECF will be unavailable from noon on Friday, March 27th through Sunday, March 29th
sandiego2020

NACTT SAN DIEGO

(Not password protected)

REGISTER NOW (March 30th is the discount deadline) to attend the NACTT annual conference in San Diego, CA, July 9-11.No doubt, this will be one of, if not THE BEST NACTT conference EVER! Something for everybody . . . trustees, trustee staff, debtor attorneys, creditors and creditor attorneys, and attorneys who represent trustees.

Check out this great program!!!!

Click here for Registration Form – After NACTT processes your registration, you will receive a link to make your hotel reservation.

caution

Sanctions and Irony and Fraud, Oh My!

(Not password protected)

Debtor Attorney Sanctioned for Inadequate Investigation Prior to Emergency Filing

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

Coronavirus Stockpiling: Don’t waste your money on these items, according to a pandemic planner

rapoport

IN CASE YOU MISSED IT . . .

Ask Ms. Ps & Qs

By Professor Nancy Rapoport
Ms. Ps & Qs addresses how to respond when your client calls you a defamatory name – to a third party.See also: Making the Most of Online Client Reviews
March 16, 2020
Archives
jenlee

In re Evans: Disgorging Chapter 13 Trustee Fees in Cases Dismissed Prior to Confirmation

By Jen Grondahl Lee, Jen Lee Law, Inc. (San Ramon, CA)
“When is a collected fee not a collected fee? When the statutes authorizing payment to the standing Chapter 13 trustee do not provide clear guidance on when that fee is paid and/or earned.”
rapoport

Ask Ms. Ps & Qs

By Professor Nancy Rapoport
Ms. Ps & Qs looks at the toughest ethical questions we can throw her way. So, don’t be afraid to throw them! At any time, click the Contact Us feature on the homepage and send us any questions you have. You can remain anonymous.So, back by popular demand, this week she addresses how to respond when your client calls you a defamatory name – to a third party.Endnote 3 to Ask Ms. Ps & Qs references an excellent article debtor attorneys won’t want to miss: Making the Most of Online Client Reviews
waterman

Federal District Court Affirms Decision that Residential Loan Modification Does Not Alter Lien Priority in Pennsylvania

By Scott Waterman, Standing Chapter 13 Trustee Eastern District of Pennsylvania (Reading)
Modifying a first mortgage is one of the most common loss mitigation tools available to bring a loan current to prevent foreclosure. In this case, a second mortgage lender, argued that the Bankruptcy Court should have applied the equitable subordination doctrine to reorder the priority of its mortgage.
nclc

From the National Consumer Law Center

(Not password protected)

NCLC Sues Over Illegal Debt Collection Activity

Last month, NCLC, Justice Catalyst Law, and Flitter Milz, P.C. filed a class action lawsuit against Maximus Federal Services, Inc., alleging it is engaging in illegal collection activity — including wage garnishments, tax refund offsets, and Social Security offsets — against thousands of federal student loan borrowers who submitted Borrower Defense applications to the U.S. Department of Education.For more background on this case, check out the Project on Predatory Student Lending’s overview of Calvillo Manriquez v. DeVos.
doj

From the UST

(Not password protected)

Vacancy Announcement of Chapter 13 Standing Trustee

Middle District of Georgia – Columbus, Albany, and Valdosta Divisions
Application due date: March 27, 2020
sandiego2020

NACTT SAN DIEGO

(Not password protected)

REGISTER NOW (March 30th is the discount deadline) to attend the NACTT annual conference in San Diego, CA, July 9-11.No doubt, this will be one of, if not THE BEST NACTT conference EVER! Something for everybody . . . trustees, trustee staff, debtor attorneys, creditors and creditor attorneys, and attorneys who represent trustees.

Check out this great program!!!!

Click here for Registration Form – After NACTT processes your registration, you will receive a link to make your hotel reservation.

debt

Student Loan Chronicles

(Not password protected)
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
  • Taxpayers should be aware that aggressive criminals pose as IRS agents in hopes of stealing money or personal information in phone scams. Here are some tell-tale signs of a tax scam. The IRS will never:
    • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer.
    • Threaten to immediately bring in local police to have taxpayer arrested for not paying.
    • Demand taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
    • Call out of the blue about an unexpected tax refund.
    • Taxpayers who receive these phone calls should: Hang up the phone immediately.
herr

IN CASE YOU MISSED IT . . .

Meet Another New Trustee

Rebecca A. (Becky) Herr was appointed Chapter 13 Standing Trustee for the District of Maryland on October 1, 2019 and maintains her offices in Annapolis.But Ms. Herr is no stranger to the Chapter 13 world.
March 9, 2020
Archives
boltz

Engaging a Non-Profit to Solve the Chapter 13 Trustees PSLF Conundrum

By Ed Boltz, The Law Offices of John T. Orcutt, P.C. (Durham, NC) and Sarah Beth Withers, Inner Banks Legal Services (Washington, NC)

SBW HeadshotWhenever staff attorneys or other staff members for Chapter 13 trustees learn about the (moderately) affordable Income Driven Repayment plans for student loans the first thing they ask is whether their job qualifies for Public Service Loan Forgiveness. And in general, the answer is no. But could it?

williambrown

From the Editor – Confirmation

By The Honorable William Houston Brown (Retired)
herr

Meet Another New Trustee

Rebecca A. (Becky) Herr was appointed Chapter 13 Standing Trustee for the District of Maryland on October 1, 2019 and maintains her offices in Annapolis.

But Ms. Herr is no stranger to the Chapter 13 world.

ivor

Farewell Reception for Bankruptcy Judge

(Not password protected)

Marci B. McIvor, United States Bankruptcy Judge for the Eastern District of Michigan Retired

doj

From the UST

(Not password protected)

Vacancy Announcement of Chapter 13 Standing Trustee

Region 21 has posted a vacancy announcement for the Chapter 13 Standing Trustee for the Middle District of Georgia in the Columbus, Albany, and Valdosta divisions.

Ms. Kristin Hurst, the current Standing Trustee, has communicated her intention to retire at the end of September, 2020.

bankruptcycourt

Middle District of Florida Has New Judge

(Not password protected)

Judge Lori V. Vaughan Sworn in as Middle District of Florida Bankruptcy Judge

cfpb

From the CFPB

(Not password protected)

Supreme Court Seems Inclined to Curb CFPB’s Independence

sandiego2020

NACTT SAN DIEGO

(Not password protected)

REGISTER NOW (March 30th is the discount deadline) to attend the NACTT annual conference in San Diego, CA, July 9-11.

No doubt, this will be one of, if not THE BEST NACTT conference EVER! Something for everybody . . . trustees, trustee staff, debtor attorneys, creditors and creditor attorneys, and attorneys who represent trustees.

ah_rochelle_3647

ABI Editor at Large, Bill Rochelle will host an extra special,
fast paced Judges’ Roundtable to kick off the first day of the conference.

Check out this great program!!!!

Click here for Registration Form – After NACTT processes your registration, you will receive a link to make your hotel reservation.

farmerfield

Farmers in the News

(Not password protected)
  • Seeds of Despair – Saddled with near-record debt, unpredictable climate change and a trade war, Midwest farmers find themselves in a pressure cooker. Isolated, and with limited access to mental-health care, hundreds are dying by suicide.
judicialposition

Judicial Position Posting

(Not password protected)
  • U.S. Bankruptcy Court Judgeship Middle District of Pennsylvania (Wilkes-Barre) Notice of Vacancy (App. due by 3/25/20)
debt

Student Loan Chronicles

(Not password protected)
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
williambrown

IN CASE YOU MISSED IT . . .

Two Supreme Court Decisions with Effects on Bankruptcy Practice

By William Houston Brown, Adviser, Academy for Consumer Bankruptcy Education, Inc. and
Lawrence R. Ahern, III, Brown and Ahern (Nashville, TN)
ahernIn two February opinions, the Supreme Court addressed issues that appear in bankruptcy cases, one dealing with a common practice of entering nunc pro tunc orders and the other affecting determination of property rights under state law.
March 2, 2020
Archives
curtisgeraci

Obtaining Credit in Chapter 13 – Did the Amendment to FRBP 4001(c) Eliminate Motions to Incur Additional Credit?

By Nathan E. Curtis and Peter Francis Geraci, Geraci Law LLC (Chicago, IL)
“At first glance, this would appear to mean that debtors in a chapter 13 would not need permission to obtain credit, but as is the norm in consumer bankruptcy practice, things are not quite that simple.”
williambrown

Two Supreme Court Decisions with Effects on Bankruptcy Practice

By William Houston Brown, Adviser, Academy for Consumer Bankruptcy Education, Inc. and
Lawrence R. Ahern, III, Brown and Ahern (Nashville, TN)
ahernIn two February opinions, the Supreme Court addressed issues that appear in bankruptcy cases, one dealing with a common practice of entering nunc pro tunc orders and the other affecting determination of property rights under state law.
bankruptcycourt

From the UST

(Not password protected)

Vacancy Announcement of Chapter 13 Standing Trustee

The United States Trustee for Region 21 has published the attached vacancy announcement. The trustee will administer cases filed under Chapter 13 in the Columbus, Albany, and Valdosta divisions of Georgia.Ms. Kristin Hurst, the current Chapter 13 Standing Trustee in Columbus, has communicated her intention to retire at the end of September, 2020, after serving with distinction for 27 years in the Middle District of Georgia.

bankruptcycourt

In the ‘This Is Way Cool’ Department

Not password protected)

The Bankruptcy Court for the Eastern District of Washington now offers an interactive statistics dashboard showing real-time filing/closing data in chapters 7, 11, 13 and adversary proceedings.The statistics webpage has been updated to include judge activity, a 20-year history of case flings to date and a link to U.S. Courts website for national statistics. The new filing statistics page can be found by selecting the Court Information tab on our website.

ahern

Previously published SBRA library:

(Password protected unless otherwise noted)
sandiego2020

NACTT SAN DIEGO

(Not password protected)

REGISTER NOW to attend the NACTT annual conference in San Diego, CA, July 9-11.No doubt, this will be one of, if not THE BEST NACTT conference EVER! Something for everybody . . . trustees, trustee staff, debtor attorneys, creditors and creditor attorneys, and attorneys who represent trustees.

Check out this great program!!!!

Click here for Registration Form – After NACTT processes your registration, you will receive a link to make your hotel reservation

farmerfield

Farmers in the News

(Not password protected)

Trump Signals He’s Prepared to Give Farmers More Federal Aid

openposition

Job Posting

(Not password protected)
Northern District of Ohio – Deputy Clerk in Charge

From the Bankruptcy Court for the District of Minnesota

(Not password protected)

Amendments to Local Rules 3015-2 and 9006-1 and Local Forms 2016-1 and 4001-1 will take effect March 1, 2020 and will govern in all bankruptcy cases commenced on or after March 1st.A red-lined copy of the amendments is available here.

May be of interest to National Mortgage Creditors: What may be of most interest is Local Form 4001-1 which is a revised Loan History payment Chart.

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
gustafson

IN CASE YOU MISSED IT . . .

Thoughts on the Law: Stay at the Crossroads – The Code of the Wild, Wild West?

By The Honorable John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio (Toledo)

There are two legal battles going on that may end up being dysfunctionally related: (1) what happens if the automatic stay is not extended in a “second case pending within one year”? And (2) what happens if there is no stay and § 542(a) is not self executing?Also from this author:

Thoughts on the Law: “None of My Business” Or “CU Later”? – Does Refusing to Do Business with a Debtor Violate the Automatic Stay?

February 24, 2020
Archives
gustafson

Thoughts on the Law: Stay at the Crossroads – The Code of the Wild, Wild West?

By The Honorable John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio (Toledo)

There are two legal battles going on that may end up being dysfunctionally related: (1) what happens if the automatic stay is not extended in a “second case pending within one year”? And (2) what happens if there is no stay and § 542(a) is not self executing?Also from this author:

Thoughts on the Law: “None of My Business” Or “CU Later”? – Does Refusing to Do Business with a Debtor Violate the Automatic Stay?

ahern

Two Final Observations about the SBRA

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)

This final installment from Larry Ahern winds up his review with observations about the challenges for new Chapter 11 counsel and some speculation about the scope of this new law for Chapter 13 practitioners.Easy access to the previously published SBRA library:

motley

Black History Month

(Not password protected)

Constance Baker Motley: Judiciary’s Unsung Rights Hero

“She was the first African American woman to argue a case before the Supreme Court, and the first to serve as a federal judge.”
sandiego2020

NACTT SAN DIEGO

(Not password protected)

REGISTER NOW to attend the NACTT annual conference in San Diego, CA, July 9-11.No doubt, this will be one of, if not THE BEST NACTT conference EVER! Something for everybody . . . trustees, trustee staff, debtor attorneys, creditors and creditor attorneys, and attorneys who represent trustees.

Check out this great program!!!!

openposition

Judgeship Position Postings

(Not password protected)

United States Bankruptcy Judgeship Eastern District of Michigan Notice of Vacancy (App. due by 3/10/20)Announcement of Judgeship Openings (App. due by 3/6/20)

  • Southern District of New York in Manhattan
  • Eastern District of New York in Brooklyn
ncbrc

From the National Consumer Bankruptcy Rights Center

(Not password protected)

First Circuit BAP Applies “Gavel Rule” to Foreclosure Sale

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
cmoran

IN CASE YOU MISSED IT . . .

The Hunt for Deductible Interest – Money Too Often Left on the Table

By Cathy Moran, Esq. (Redwood City, CA)
One of the mysteries of Chapter 13 is why mortgage lenders don’t send an IRS 1098 for mortgage payments made through a plan. . . . Miss that deduction and clients leave tax money on the table.
February 17, 2020
Archives

presidentsday

ahern

Well, it’s here: SBRA goes into effect 2/19. Be sure to check your local court for interim rules implementing SBRA.

Five More Things Debtors Should Know About the SBRA

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)

This week, Larry Ahern continues his review of issues of particular interest to small-business debtors and their counsel.

See also:

Click here for SBRA Official Forms

Click here for a 3-paged visual of changes to forms – although this was made available by the US Bankruptcy Court for the Southern District of Mississippi, it would appear to be applicable to all districts.

Easy access to the previously published SBRA library:

cmoran

The Hunt for Deductible Interest – Money Too Often Left on the Table

By Cathy Moran, Esq. (Redwood City, CA)
One of the mysteries of Chapter 13 is why mortgage lenders don’t send an IRS 1098 for mortgage payments made through a plan. . . . Miss that deduction and clients leave tax money on the table.
sandiego2020

NACTT SAN DIEGO

(Not password protected)

Make your plans now to attend the NACTT annual conference in San Diego, CA, July 9-11.

Debtor Attorneys make special note that there are sessions especially for YOU – advanced level talks on getting paid and how to be the best!

phillipi

Meet the Newest Trustee

Julie Philippi was appointed as the Chapter 13 Standing Trustee for the Western District of New York on January 1, 2020.
georgewright

SCOTUSblog

(Not password protected)
This is a detailed analysis of the case . . .Justices to Consider Constitutionality of CFPB Structure
georgewright

Passing of a Bankruptcy Pioneer

(Not password protected)

Honorable George S. Wright, 94, died peacefully at home surrounded by his family.

Click here for Notice

Click here for Obituary

update

Updated Consent Order Guidelines – Middle District of Louisiana

(Not password protected)
May be of interest to national creditors: The U.S. Bankruptcy Court, Middle District of LA, has updated its guidelines for consent orders resolving stay relief motions in consumer cases filed on or after March 1, 2020. Attorneys should review the updated guidelines and ensure that all consent orders resolving stay relief motions align with the updated guidelines.
openposition

Judgeship Position Postings

(Not password protected)

New United States Bankruptcy Judgeship Eastern District of Michigan Notice of Vacancy (App. due by 3/10/20)

Announcement of Judgeship Openings (App. due by 3/6/20)

  • Southern District of New York in Manhattan
  • Eastern District of New York in Brooklyn
ncbrc

From the National Consumer Bankruptcy Rights Center

(Not password protected)

Tax Debt from Late-Filed Tax Return Dischargeable

webinar

Epiq Webinar

(Not password protected)
Enabling Bankruptcy Digital Transformation for Secured and Unsecured Portfolios
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
caution

Sanctions and Irony and Fraud, Oh My!

(Not password protected)
  • Kansas Farmer Sentenced for Crop Insurance Fraud – Also pleaded guilty to bankruptcy/fraud . . . falsely answered “no” to question about whether he had recently transferred property to anyone in his bankruptcy filing. He actually made two large transfers
gustafson

IN CASE YOU MISSED IT . . .

Thoughts on the Law: “None of My Business” Or “CU Later”? – Does Refusing to Do Business with a Debtor Violate the Automatic Stay?

By The Honorable John P. Gustafson
“Can a creditor refuse to do business with a debtor, or is such refusal a violation of the automatic stay?”
February 10, 2020
Archives
gustafson

Thoughts on the Law: “None of My Business” Or “CU Later”? – Does Refusing to Do Business with a Debtor Violate the Automatic Stay?

By The Honorable John P. Gustafson
“Can a creditor refuse to do business with a debtor, or is such refusal a violation of the automatic stay?”
ahern

Supreme Court Revisits Finality of Orders in Bankruptcy: Comment on Ritzen and Review of “Finality”

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN)
This week, Larry Ahern addresses the Supreme Court’s January 14 opinion in Ritzen Group, Inc. v. Jackson Masonry, LLC, in which the Court declared an order denying stay relief “final.” He also reviews the broader issues implicated by finality in bankruptcy and offers some guidance to practitioners.
williambrown

From the Editor – Claims

bonapfel

Small Business Reorganization Act of 2019 “A Guide to the Small Business Reorganization Act of 2019”

(Not password protected)

Judge Paul W. Bonapfel of the United States Bankruptcy Court for the Northern District of Georgia has published “A Guide to the Small Business Reorganization Act of 2019.”Click here to read the summary.As a reminder, the new Section V of Chapter 11 of the Bankruptcy Code goes into effect on February 19, 2020.

openposition

Judgeship Postings

(Not password protected)

United States Bankruptcy Judge, District of Maryland at Greenbelt (App. due by 2/19/20)Announcement of Judgeship Openings (App. due by 3/6/20)

  • Southern District of New York in Manhattan
  • Eastern District of New York in Brooklyn

Term Law Clerk Posting

Judge Duncan, District of South Carolina is accepting applications for a term law clerk

Magistrate Judge Posting

United States District Court for the Southern District of Mississippi is receiving applications for the position of Magistrate Judge assigned to the District’s Southern Division in Gulfport, Mississippi (App. Due by 2/28/20)

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

Many Taxpayers Don’t Realize They Could Benefit from the Earned Income Tax Credit

hildebrand

IN CASE YOU MISSED IT . . .

Critical Case Comment

By Henry E. Hildebrand, III, Standing Chapter 13 Trustee for the Middle District of TN (Nashville)

Chapter 7 debtor may successfully discharge student loan obligations by satisfying the basic holding of Brunner rather than satisfying the judicial gloss added by subsequent decisions.“Trustees must encourage this type of realistic approach to student loan obligations and encourage such challenges.”

Click here for Opinion

February 3, 2020
Archives
gretchenholland

From the Archives (originally posted 8/25/19)

Trustee Cannot Require Debtor to Treat Nondischargeable Student Loan Debts in a Separate Class

By Gretchen D. Holland, Standing Chapter 13 Trustee for the Greenville/Spartanburg Division of South Carolina
The Bankruptcy Code does not – and thus a trustee cannot – require a debtor to treat nondischargeable student loan debts in a separate class.
nataliecox

The 2019 Numbers Are Out

(Not password protected)
alanstrust

Chief Judge Announced

(Not password protected)

United States District Court for the Eastern District of New York

openposition

Judgeship Postings

(Not password protected)

United States Bankruptcy Judge, District of Maryland at Greenbelt (App. due by 2/19/20)Announcement of Judgeship Openings (App. due by 3/6/20)

  • Southern District of New York in Manhattan
  • Eastern District of New York in Brooklyn

Term Law Clerk Posting

Judge Duncan, District of South Carolina

Magistrate Judge Posting

New Posting United States District Court for the Southern District of Mississippi is receiving applications for the position of Magistrate Judge assigned to the District’s Southern Division in Gulfport, Mississippi (App. Due by 2/28/20)

bankruptcycourt

From the UST

(Not password protected)

Chapter 7 Trusteeship Openings – Application Due Dates for both – 2/7/20

  • Districts of Guam and Northern Mariana Islands
  • Northern District of Texas (primarily in San Angelo, Abilene, Amarillo and Lubbock Divisions)
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
debt

Student Loan Chronicles

(Not password protected)
  • As of 1/27/20, the U.S. Bankruptcy Court for the S.D. of NY announced it has adopted the Student Loan Mediation Before Litigation Program. Click here for more information
  • Growing Student Debt Burden for Parents – With federal Parent PLUS loans accounting for a quarter of borrowing for undergraduates, new data reinforce concern about parents’ ability to repay the loans.
cmoran

IN CASE YOU MISSED IT . . .

Vesting of Property in the Debtor Cuts Off Creditor’s Rights, Ninth Circuit Says

By Cathy Moran, Esq. (Redwood City, CA)
“Clouds of uncertainty have hovered over Chapter 13 debtors who find that they need to sell appreciated property before the case is over.”
January 27, 2020
Archives
cmoran

Vesting of Property in the Debtor Cuts Off Creditor’s Rights, Ninth Circuit Says

By Cathy Moran, Esq. (Redwood City, CA)
“Clouds of uncertainty have hovered over Chapter 13 debtors who find that they need to sell appreciated property before the case is over.”
hildebrand

Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville)
When a case converts from 13 to 7 prior to confirmation, the Chapter 13 Trustee is not permitted to divert funds from the debtor to the debtor’s attorney.
farmerfield

Farmers in the News

(Not password protected)
openposition

Judgeship Postings

(Not password protected)

United States Bankruptcy Judge, District of Maryland at GreenbeltAnnouncement of Judgeship Openings

  • Southern District of New York in Manhattan
  • Eastern District of New York in Brooklyn

Solicitations of Applicants for Appointment as United States Bankruptcy Judge Western District of Kentucky

Term Law Clerk Posting

(Not password protected)

New Posting Judge Duncan, District of South Carolina, is accepting applications for a term law clerk

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

These two items are not only applicable “For Your Blog” but are also of interest to all of us.

hildebrand

IN CASE YOU MISSED IT . . .

Critical Case Comment

By Henry E. Hildebrand, III, Standing Chapter 13 Trustee for the Middle District of TN (Nashville)

Chapter 7 debtor may successfully discharge student loan obligations by satisfying the basic holding of Brunner rather than satisfying the judicial gloss added by subsequent decisions.“Trustees must encourage this type of realistic approach to student loan obligations and encourage such challenges.”

Click here for Opinion

You may also be interested in the “Now What” section of this article: More Clarity on What Constitutes a Final, Appealable Order in Bankruptcy After Ritzen Group Inc. v. Jackson Masonry, LLC

BUT . . . Student Loan Servicer Appeals Landmark $220,000 Bankruptcy Ruling

January 20, 2020
Archives
hildebrand

Critical Case Comment

By Henry E. Hildebrand, III, Standing Chapter 13 Trustee for the Middle District of TN (Nashville)

Chapter 7 debtor may successfully discharge student loan obligations by satisfying the basic holding of Brunner rather than satisfying the judicial gloss added by subsequent decisions.“Trustees must encourage this type of realistic approach to student loan obligations and encourage such challenges.”Click here for Opinion

davidcox

Representing Elderly Clients in Bankruptcy – Part 3 of 3

By David Cox, Cox Law Group, PLLC (Lynchburg, VA)
We continue the detailed guide for representing older clients and the special issues they bring to your office. This, Part 3, looks at the unique challenges faced by older debtors.Click here for Part 1 of 3
Click here for Part 2 of 3
supremecourt

Bulletin: Supreme Court Rules Against Creditor

The Supreme Court unanimously held that an order denying stay relief was final. Thus, the creditor should have appealed the denial instead of waiting until later in the case to seek again to pursue its pre-bankruptcy litigation against the debtor. Ritzen Group, Inc. v. Jackson Masonry, LLC, 2020 WL 201023 (U.S. Jan. 14, 2020).Justice Ginsberg added to bankruptcy terminology by declaring that a final order is one in which the bankruptcy court “unreservedly grants or denies relief” in “a discrete procedural unit within the embracive bankruptcy case.” A motion for stay relief is such a “unit.”Ritzen was reportedly Judge Keith Lundin’s last order before retirement. The Court found that in denying stay relief Judge Lundin was unreserved, so his order was final. In so holding, the Court handed a win to a friend of The Academy, Ned Hildebrand, co-counsel for Jackson Masonry.

The Academy will publish a more detailed analysis and survey of the law of finality in an upcoming article by Larry Ahern, a frequent contributor here and co-author of West’s Bankruptcy Procedure Manual.

Click here for Ahern’s comment on the case after cert was granted.

In the meantime, file those notices of appeal early and often.

shopneck

From the Other Side

By Craig Shopneck, Chapter 13 Standing Trustee for the Northern District of Ohio Retired
Next in our series “Senior Moments” is an EXCELLENT piece on retirement from Cleveland, Ohio, retired Trustee Craig Shopneck who beautifully expounds on how much money is enough vs. time with the obvious love of his life, Bonnie.
nclc

From the National Consumer Law Center

(Not password protected)

FDIC and OCC Proposals Threaten Expansion of Predatory Lending

openposition

Judgeship Postings

(Not password protected)

New Posting United States Bankruptcy Judge, District of Maryland at GreenbeltAnnouncement of Judgeship Openings

  • Southern District of New York in Manhattan
  • Eastern District of New York in Brooklyn

Solicitations of Applicants for Appointment as United States Bankruptcy Judge Western District of Kentucky

Term Law Clerk Posting

(Not password protected)

New Posting Judge Peter C. McKittrick – United States Bankruptcy Court for the District of Oregon

foryourblog
cmoran

IN CASE YOU MISSED IT . . .

How Guarantors Can Escape Tax on Soured Debt

By Cathy Moran, Esq. (Redwood City, CA) and William J. Purdy, III, Simmons & Purdy (Soquel, CA)
purdy bill picTax lawyer Bill Purdy and Cathy Moran shared a client with a small interest in a failed corporation with a huge SBA loan. Could our client escape the tax consequences should we be able to settle his liability on a million dollars in unpaid loan. Was the client looking at a million dollars of cancellation of debt income? Here’s the marvelous result that Bill’s caper through the IRS regs returned.See also: Tax Form 1099 Needs A Closer Look: Chances Are It’s Wrong
January 13, 2020
Archives
beskin

Cars, Fines, and Chapter 13 in the Windy City

By Herb Beskin, Chapter 13 Trustee and Edward M. Wayland, Esq. (Charlottesville, VA)
“The Court noted that it was joining the 1st, 5th, and 11th Circuits in holding that fines for civil offenses committed after a bankruptcy case has been filed must be treated as administrative expenses, and that it had not found any decisions to the contrary.”
davidcox

Representing Elderly Clients in Bankruptcy – Part 2 of 3

By David Cox, Cox Law Group, PLLC (Lynchburg, VA)
We continue the detailed guide for representing older clients and the special issues they bring to your office. This, Part 2, looks at filing considerations.Click here for Part 1 of 3
pro-se

Pro Se Wins Motion for Summary Judgement

(Not password protected)
And winning means his over $200,000 in student loan debt is discharged.
puertoricoseal

Puerto Rico

(Not password protected)
Our thoughts and prayers to the Bankruptcy Community in Puerto Rico – Bankruptcy Courts have been closed due to earthquakes in the region

Judgeship Posting

(Not password protected)
smallbusiness

Easy access to the previously published SBRA library.

irs

From the IRS

(Not password protected)

IRS Sets Up Online Gig Economy Tax Center

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
caution

Sanctions and Irony and Fraud, Oh My!

(Not password protected)
January 6, 2020
Archives
davidcox

Representing Elderly Clients in Bankruptcy – Part 1 of 3

By David Cox, Cox Law Group, PLLC (Lynchburg, VA)
We kick off 2020 with a detailed guide for representing older clients and the special issues they bring to your office. This, Part 1, is an overview and ethical considerations. Part 2 looks at filing considerations and Part 3 explores the unique issues.

image002

NACTT 55th Annual Educational Program
– San Diego, California

BE THERE!!

Click here for details of the Educational Program. Mark your calendar now for July 8-11.Trustees (and others) should note that pre-meetings are on the 8th so you will want to arrive by the 7th.
cynthianorton

Quick Tips to Make You a PowerPoint Master – Effective Use of PowerPoint

By Honorable Cynthia Norton & Honorable Kevin R. Anderson
kevinandersonA great, short resource garnered from the written materials of the NACTT Indianapolis conference. A sample of the great information you miss if you don’t attend the NACTT annual conference.
changeahead

Two Districts Revise Plans

(Not password protected)
smallbusiness

Easy access to the previously published SBRA library.

change

Unclaimed Funds Reminder

(Not password protected)

Click below for the new Director’s Form and/or instructions or check your local rules for new forms. This is effective NOW.

irs

From the IRS

(Not password protected)

2020 Standard Mileage Rates – Note that this is a decrease in business and medical/moving.

  • 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019,
  • 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and
  • 14 cents per mile driven in service of charitable organizations
openposition

From the UST

(Not password protected)

Chapter 7 Trusteeship Opening

  • Northern District of Texas (primarily in San Angelo, Abilene, Amarillo and Lubbock Divisions) – Applications due by 1/12/20
debt

Student Loan Chronicles

(Not password protected)

Why Student Loan Debt Is Ballooning for Those 50 and Up

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
December 30, 2019
Archives

2020

December 23, 2019
Archives
ahern_larry

Five More Things Debtors Should Know About the SBRA of 2019

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)

This week, Larry Ahern continues a report on bankruptcy-related legislation passed in the first session of the 116th Congress. This Part VII continues his review of issues of particular interest to small-business debtors and their counsel, including his primer on Chapter 11 confirmation.

Below is easy access to the previously published SBRA library.

supremecourt

Supreme Court Grants Cert

On December 18th, the Supreme Court granted the Petition for Certiorari in City of Chicago, Illinois v. Fulton.

See Mr. Ahern’s previous analysis of this case.

In re Fulton: Seventh Circuit Affirms Its Position with Majority of Circuits on Passive Retention of Property as Violation of Sections 362 and 542

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN)
Larry Ahern analyzes the Seventh Circuit’s June 19 decision in In re Fulton that a municipality’s passive retention of impounded property constitutes a violation of § 362. He also considers implications of the decision for consumer loan transactions.
bankruptcycourt

There’s Always a Car

(Not password protected)

More Borrowers Are Getting Rejected for Auto Loans

bankruptcycourt

New U.S. Trustee Appointed

(Not password protected)

Andrew R. Vara Appointed as U.S. Trustee for Ohio and Michigan

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
Veronica Brown-Moseley

IN CASE YOU MISSED IT . . .

Disregarding Bankruptcy Protections Can be Costly: How Courts Decide Punitive Damages Awards for Stay Violations

By Veronica D. Brown-Moseley and Stephen F. Relyea
SteveRelyea“When a creditor willfully continues to engage in collection efforts in violation of the automatic stay, the harm to a debtor can be devastating.”
December 16, 2019
Archives
Veronica Brown-Moseley

Disregarding Bankruptcy Protections Can be Costly: How Courts Decide Punitive Damages Awards for Stay Violations

By Veronica D. Brown-Moseley and Stephen F. Relyea
SteveRelyea“When a creditor willfully continues to engage in collection efforts in violation of the automatic stay, the harm to a debtor can be devastating.”
williambrown

Supreme Court on Statute of Limitations Under Fair Debt Collection Practices Act

By William Houston Brown, Editor/Adviser Academy for Consumer Bankruptcy Education
Important new decision. . . FDCPA claims run from date of violation.
congratulations

New Fellows of American College of Bankruptcy

By William H. Brown, Editor and Advisor, Academy for Consumer Bankruptcy Education, Inc. (d/b/a ConsiderChapter13.org)
Congratulations Academy Members Mary Beth Ausbrooks, Joyce Bradley, Alane Becket and Gina Thomas!!!
ahern_larry

SBRA – Below is easy access to the entire SBRA library to date.

McIvor

Judge Marci B. McIvor Retires

(Not password protected)
Click here for bio
Click here for reception notice
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

From the IRS – Using Strong Password Is a Strong Defense Against Identity Thieves

rapoport

IN CASE YOU MISSED IT . . .

Ask Ms. Ps & Qs

By Professor Nancy Rapoport
“I’ve found a set of cases that intrigued me, . . . courts here in Nevada have made it clear that lawyers should do a better job of proving up their fees (and proofreading them), . . .”
December 9, 2019
Archives
ahern_larry

2019 Legislation Affecting Bankruptcy Practice – Part VI

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
This week, Larry Ahern continues reporting on bankruptcy-related legislation passed in the first session of the 116th Congress. This Part VI begins his review of issues of particular interest to debtors and their counsel, arising under the new small-business subchapter added to Chapter 11, starting with a primer on Chapter 11 confirmation rules.
rapoport

Ask Ms. Ps & Qs

By Professor Nancy Rapoport
“I’ve found a set of cases that intrigued me, . . . courts here in Nevada have made it clear that lawyers should do a better job of proving up their fees (and proofreading them), . . .”
redcar

An Interesting Opinion from the Sixth Circuit BAP – In re Donnadio

(Not password protected)
“ . . . where Creditor objected to confirmation of Debtors’ plan because it did not include a provision regarding the retention of Creditor’s lien securing its 910 Claim—the bankruptcy court erred in confirming Debtors’ plan. Further, including Lien Retention Language in a nonstandard provision in Debtors’ plan to address Creditor’s objection does not violate Rule 9009(a) . . . bankruptcy court’s Opinion is REVERSED.”
farmerfield

Farmers in the News

(Not password protected)
December 2, 2019
Archives

Due to the Thanksgiving Break, we bring you an abbreviated and “Greatest Hits” Update.

petefessenden

This is a lovely, new article.

Senior Moments

By Peter Fessenden, Chapter 13 Standing Trustee, Retired September 30, 2017 (Portland, ME)
Continuing our series of articles from now retired Chapter 13 Trustees . . .“To everything there is a season.”
cmoran

Taxes, Offset, and Mutuality

By Cathy Moran, Esq. (Redwood City, CA)
“. . . as we approach the end of the tax year, a client’s current year tax situation becomes another moving part in the ‘when do we file’ analysis.”
gretchenholland

Trustee Cannot Require Debtor to Treat Nondischargeable Student Loan Debts in a Separate Class

By Gretchen D. Holland, Standing Chapter 13 Trustee for the Greenville/Spartanburg Division of South Carolina
“In fact, some discrimination is even allowed – as long as it’s not unfair discrimination.”Be sure to scroll to the end of the article for a surprise!
ahern_larry

Are you behind on the SBRA?

Three Last Things Trustees Should Know About the Small Business Reorganization Act of 2019 – Part V

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)

This week, Larry Ahern continues a report on bankruptcy-related legislation. This Part V concludes his review of issues arising under the new small business subchapter added to Chapter 11, of particular interest to Chapter 12 and 13 trustees.See also our previously published articles:

hildebrand

A good time to catch up on the ABI Recommendations . . .

ABI Commission on Consumer Bankruptcy Recommendations – What Does It Mean to Surrender?

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN)
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

If You Have These Personality Traits, You Could Be at Higher Risk of Going Broke in Retirement

williambrown

In Case You Missed It. . .December 1 is HERE

New and Revised Bankruptcy Forms

By William Houston Brown, Editor and Adviser, NACTT Academy for Consumer Bankruptcy Education, Inc.

This week Judge Brown breaks down the new and revised bankruptcy forms that you need to be aware of.AND . . . below is a link to a really good article on rule amendments you also need to be aware of . . .

Amendments to the Federal Rules of Bankruptcy Procedure Take Effect December 1, 2019

(Not password protected)
November 25, 2019
Archives
givethanks

Happy Thanksgiving
from Us to You

kevinanderson

Per Capita Bankruptcy Filings Heat Map

Based on data provided by the American Bankruptcy Institute using data compiled by Epiq Systems, Judge Kevin Anderson shares a bankruptcy heat map which illustrates per capita consumer filings by state (includes both Ch 7 and Ch 13 filings). Below are the top ten states in per capita filings. The numbers represent year-to-date filings through September 2019.
Click here for the map
Click here for the raw data

Ranking State Filings per 1,000
1 Alabama 5.75
2 Tennessee 5.47
3 Georgia 4.43
4 Mississippi 4.28
5 Nevada 3.82
6 Illinois 3.79
7 Indiana 3.67
8 Arkansas 3.66
9 Kentucky 3.56
10 Utah 3.50
supremecourt
farmerfield

Farmers in the News

(Not password protected)
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

Debt Collection Scams

  • Dealing with debt collection issues can be challenging—especially when you’re not sure if the person you’re being contacted by is a legitimate debt collector or someone trying to scam you. The CFPB has released a video to help educate the public on the difference in scam vs. real.

5 Signs an Online Loan Is a Debt Trap

williambrown

In Case You Missed It. . .December 1 is NEXT Week

New and Revised Bankruptcy Forms

By William Houston Brown, Editor and Adviser, NACTT Academy for Consumer Bankruptcy Education, Inc.

This week Judge Brown breaks down the new and revised bankruptcy forms that you need to be aware of.AND . . . below is a link to a really good article on rule amendments you also need to be aware of . . .

Amendments to the Federal Rules of Bankruptcy Procedure Take Effect December 1, 2019

(Not password protected)
November 18, 2019
Archives
AlexSchmidt

In re Crocker: New Approaches to Discharge Enforcement and Student Loan Dischargeability?

By Alexander E. Schmidt, Law Clerk to the Honorable John P. Gustafson (Toledo, OH)
“Not only do these opinions oftentimes illuminate the dark corners of the law, they can also raise or provide answers to questions attorneys did not know they needed to ask.”
ahern_larry

Three Last Things Trustees Should Know About the Small Business Reorganization Act of 2019 – Part V

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)

This week, Larry Ahern continues a report on bankruptcy-related legislation. This Part V concludes his review of issues arising under the new small business subchapter added to Chapter 11, of particular interest to Chapter 12 and 13 trustees.See also our previously published articles:

cmoran

Why Your Bankruptcy Client Doesn’t Understand You (And How to Fix the Problem)

By Cathy Moran, Esq. (Redwood City, CA)
We often seem to be speaking different languages.Let’s have some fun with this; please insert your comments in the comments section at the bottom of the article page.
uscourts

From the Courts

(Not password protected)

2019 Director’s Awards Presented for Leadership, Excellence, Bravery

Two of the ten recipients are from Bankruptcy Courts! One of whom you met last week – Double Duty: Reflections of an Army General and Clerk of CourtCongratulations to all!
usbankruptcycourt

From the United States Trustee

(Not password protected)

Location: District of Guam, Missouri
Application Deadline: November 22, 2019

uscourts

From the Courts

(Not password protected)
irs
williambrown

In Case You Missed It. . .

New and Revised Bankruptcy Forms

By William Houston Brown, Editor and Adviser, NACTT Academy for Consumer Bankruptcy Education, Inc.

This week Judge Brown breaks down the new and revised bankruptcy forms that you need to be aware of.AND . . . below is a link to a really good article on rule amendments you also need to be aware of . . .

Amendments to the Federal Rules of Bankruptcy Procedure Take Effect December 1, 2019

(Not password protected)
November 11, 2019
Archives
veterans-and-flag

Happy Veteran’s Day

We at The Academy thank each
of you for your valuable service.

marciaanderson

In honor of Veteran’s Day, we bring you a story from uscourts.gov

(Not password protected)

Double Duty: Reflections of an Army General and Clerk of Court

williambrown

New and Revised Bankruptcy Forms

By William Houston Brown, Editor and Adviser, NACTT Academy for Consumer Bankruptcy Education, Inc.

This week Judge Brown breaks down the new and revised bankruptcy forms that you need to be aware of.AND . . . below is a link to a really good article on rule amendments you also need to be aware of . . .

Amendments to the Federal Rules of Bankruptcy Procedure Take Effect December 1, 2019

(Not password protected)
kennethstill

Memories of a Chapter XIII Trustee

By C. Kenneth Still, Standing Chapter 13 Trustee for the Eastern District of Tennessee, Retired (1968-2015)
The title to this article does not nearly give it justice. This is a delightful, short memoir of a 47-year career.
supremecourt

From the Supreme Court

(Not password protected)
  • Argument Preview: Justices to consider when creditors in bankruptcy can appeal orders denying relief from the automatic stay
ncbrc

From the National Consumer Bankruptcy Rights Center

(Not password protected)
  • No Amortization of Tax Refund in W.D. Texas
    • Note that Standing Trustee Mary Viegelahn (Vega v. Viegelahn and Diaz v. Viegelahn) is Program Chair for the 2020 NACTT conference in San Diego. Mark your calendar NOW; it’s going to be EPIC!!! July 9-11, 2020. BE THERE!
notjustajob

For the Academic Set

(Not password protected)
Not Just a Job: New Evidence on the Quality of Work in the United States – Find out what matters most to U.S. workers and how the quality of their current job compares to the quality of life they want.Pretty interesting findings. To Download the report, you may have to sign in – name/email address – to get a link to download the report.
usbankruptcycourt

From the United States Trustee

(Not password protected)

DEADLINE TO APPLY IS NOVEMBER 15, 2019

Solicitation of Applicants to Serve as Subchapter V Trustees

Announcements are going up, all over the country, for applications to be a Small Business Trustee. Click here for the national, uniform information then scroll to your state for the applicable email address to which submissions should be sent.
farmerfield

Farmers in the News

(Not password protected)
  • Report: Farm bankruptcies rose 24% over past year, growers increasingly depend on federal aid, programs
kristinastanger

Newest Webinar Recording Now Available

The HAVEN Act – Understanding this complicated new law

jessicayoungbergA comment from one debtor attorney:

“One of the best presentations I have heard in many years. Clear,
concise, relevant, thorough. Excellent materials.”

The HAVEN Act – effective NOW – is a helpful, yet complicated new tool in your arsenal to help veterans get the fresh start offered through bankruptcy.

Chapter 13 Trustee Naliko Markel moderates a one hour discussion between Kristina M. Stanger and Jessica Hopton Youngberg. Both Stanger and Youngberg were members of the ABI Task Force and each has extensive experience in the area of veteran affairs.

AND FOR THOSE WHO JOINED THE LIVE PRESENTATION:

There were many questions regarding the example discussed on Slide #26. Click here for an augmented dissection of the example.

debt

Student Loan Chronicles

(Not password protected)
gretchenholland

In Case You Missed It. . .

Hanging Paragraph, Cars for Non-Personal Use, and PMSI

By Gretchen Holland, Standing Chapter 13 Trustee for the Greenville/Spartanburg Division of South Carolina
The hanging paragraph of § 1325(a)(9) prevents bifurcation of a PMSI claim if the collateral securing it was purchased within certain time periods prepetition. A 910-day limitation applies to motor vehicles acquired for the debtor’s personal use. A one-year limitation applies all other PMSI collateral, including a vehicle purchased for non-personal use.
November 4, 2019
Archives
hildebrand

Critical Case Comment

By Henry E. Hildebrand, III, Standing Chapter 13 Trustee for the Middle District of TN (Nashville)
A creditor may request an extension of time to file a claim under Rule 3002, F.R.B.P. only where the conditions of that rule have been fully satisfied; the filing of a defective list of creditors does not permit an extension of the time for a creditor to file a claim under Rule 3002.
gretchenholland

Hanging Paragraph, Cars for Non-Personal Use, and PMSI

By Gretchen Holland, Standing Chapter 13 Trustee for the Greenville/Spartanburg Division of South Carolina

The hanging paragraph of § 1325(a)(9) prevents bifurcation of a PMSI claim if the collateral securing it was purchased within certain time periods prepetition. A 910-day limitation applies to motor vehicles acquired for the debtor’s personal use. A one-year limitation applies to all other PMSI collateral, including a vehicle purchased for non-personal use.

kilpatrick

Barbara J. Rom Award for Bankruptcy Excellence

(Not password protected)

The 2019 recipient of the Barbara J. Rom Award for Bankruptcy Excellence given by the Federal Bar Association, Eastern District of Michigan chapter, was awarded to NACTT and Academy member Richardo Kilpatrick. We are honored that Kilpatrick will be a speaker at the 2020 NACTT Conference in San Diego.

The Barbara J. Rom Award for Bankruptcy Excellence honors individuals who have exhibited the highest level of overall excellence in the practice of bankruptcy law. The following criteria are among those considered in making this award: Excellence, civility, sophistication of practice, community involvement, Bar association and Court activity involvement, and pro bono participation.

CONGRATULATIONS RICHARDO!!!!

foryourblog

For Your Blog

This week, we offer you a special, not password protected, article on how credit scores go UP after bankruptcy.

Credit Scores Trend Upward After Bankruptcy

By Cathy Moran, Esq. (Redwood City, CA)
usbankruptcycourt

From the United States Trustee

(Not password protected)

Public Notice – Solicitation of Applicants to Serve as Subchapter V Trustees

Announcements are going up, all over the country, for applications to be a Small Business Trustee. Click here for the national, uniform information then scroll to your state for the applicable email address to which submissions should be sent.

DEADLINE TO APPLY IS NOVEMBER 15, 2019

farmerfield

Farmers in the News

(Not password protected)

Farm Bankruptcies Rise Again

kristinastanger

Newest Webinar Recording Now Available

The HAVEN Act – Understanding this complicated new law

jessicayoungbergA comment from one debtor attorney:

“One of the best presentations I have heard in many years. Clear,
concise, relevant, thorough. Excellent materials.”

The HAVEN Act – effective NOW – is a helpful, yet complicated new tool in your arsenal to help veterans get the fresh start offered through bankruptcy.

Chapter 13 Trustee Naliko Markel moderates a one hour discussion between Kristina M. Stanger and Jessica Hopton Youngberg. Both Stanger and Youngberg were members of the ABI Task Force and each has extensive experience in the area of veteran affairs.

AND FOR THOSE WHO JOINED THE LIVE PRESENTATION:

There were many questions regarding the example discussed on Slide #26. Click here for an augmented dissection of the example.

debt

Student Loan Chronicles

(Not password protected)

CFPB Announces Action Against Student Loan Debt Relief Operation

AlexSchmidt

In Case You Missed It. . .

As a Halloween Treat, the following article is NOT password protected.

Evidentiary Issues Arising from Attempts to Prove Alleged “Facts” Stated in The Monster Mash

By Alexander Schmidt, Law Clerk, and The Honorable John P. Gustafson, United States Bankruptcy Court for the Northern District of Ohio (Toledo)
gustafson“You have never heard – or seen – the Monster Mash. What have you heard, is a song ABOUT the Monster Mash. Let that sink in for a minute. Inevitably, that leads to the obvious question: What facts could we actually PROVE about the Monster Mash, in a federal court?”
October 28, 2019
Archives
AlexSchmidt

As a Halloween Treat, the following article is NOT password protected.

Evidentiary Issues Arising from Attempts to Prove Alleged “Facts” Stated in The Monster Mash

By Alexander Schmidt, Law Clerk, and The Honorable John P. Gustafson, United States Bankruptcy Court for the Northern District of Ohio (Toledo)
gustafson“You have never heard – or seen – the Monster Mash. What have you heard, is a song ABOUT the Monster Mash. Let that sink in for a minute. Inevitably, that leads to the obvious question: What facts could we actually PROVE about the Monster Mash, in a federal court?”
ahern_larry

Two More Things Trustees Should Know About the Small Business Reorganization Act of 2019

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)

This week, Larry Ahern continues reporting on bankruptcy-related legislation passed in August. This week, Ahern drills further into the new small business subchapter added to Chapter 11, which will also be of interest to Chapter 12 and 13 trustees and practitioners.See also our previously published articles:

williambrown

From the Editor

Judge Brown brings us one case of interest on curing defaults:

usbankruptcy

From the United States Trustee

Public Notice – Solicitation of Applicants to Serve as Subchapter V Trustees

Announcements are going up, all over the country, for applications to be a Small Business Trustee. Click here for the national, uniform information then scroll to your state for the applicable email address to which submissions should be sent.DEADLINE TO APPLY IS NOVEMBER 15, 2019
towtruck

City of Chicago, Illinois v. Fulton Appealed to Supreme Court

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
Issue: Whether an entity that is passively retaining possession of property in which a bankruptcy estate has an interest has an affirmative obligation under the Bankruptcy Code’s automatic stay, 11 U.S.C § 362, to return that property to the debtor or trustee immediately upon the filing of the bankruptcy petition.
cfpb

From the CFPB

(Not password protected)
kristinastanger

Newest Webinar Recording Now Available

The HAVEN Act – Understanding this complicated new law

jessicayoungbergA comment from one debtor attorney:

“One of the best presentations I have heard in many years. Clear,
concise, relevant, thorough. Excellent materials.”

The HAVEN Act – effective NOW – is a helpful, yet complicated new tool in your arsenal to help veterans get the fresh start offered through bankruptcy.

Chapter 13 Trustee Naliko Markel moderates a one hour discussion between Kristina M. Stanger and Jessica Hopton Youngberg. Both Stanger and Youngberg were members of the ABI Task Force and each has extensive experience in the area of veteran affairs.

AND FOR THOSE WHO JOINED THE LIVE PRESENTATION:

There were many questions regarding the example discussed on Slide #26. Click here for an augmented dissection of the example.

debt

Student Loan Chronicles

(Not password protected)
caution

Sanctions and Irony and Fraud, Oh My!

(Not password protected)
DanielCohn

In Case You Missed It. . .

Fourth Circuit Overrules Own Precedent, Holds Certain Primary Residence Claims Can be Crammed Down in Chapter 13 Bankruptcies

(First published here on August 19, 2019. Used with permission.)
By Daniel Cohn, Esq., Legal Department, Wells Fargo Bank, N.A.
A self-explanatory title which takes a detailed look at the Hulburt decision.
October 21, 2019
Archives
wayland

Some Basics You Always Wanted to Know About the FCRA But Were Too Embarrassed to Ask

By Herb Beskin, Chapter 13 Trustee and Edward M. Wayland, Esq. (Charlottesville, VA)
beskinThis article discusses the FCRA, the rules and practices of those who prepare credit reports, and some of the problems and issues that consumers need to be aware of. Much of it is based on the actual experience of one of the authors in representing consumers with credit report problems.
DanielCohn

Fourth Circuit Overrules Own Precedent, Holds Certain Primary Residence Claims Can be Crammed Down in Chapter 13 Bankruptcies

(First published here on August 19, 2019. Used with permission.)
By Daniel Cohn, Esq., Legal Department, Wells Fargo Bank, N.A.
A self-explanatory title which takes a detailed look at the Hulburt decision.
smallbusinessowner

Small Business Reorganization Act…(“SBRA”) – All previously published articles:

uscourts

From the Courts – Form Changes

(Not password protected)

Forms effective October 1, 2019On August 26, 2019, the President signed into law the Honoring American Veterans in Extreme Need Act of 2019 (the HAVEN Act) Public Law No. 116-52. The HAVEN Act amended 11 U.S.C. § 101(10A) to exclude from the definition of Current Monthly Income certain payments made under title 10, 37, or 38 of the United States Code in connection with a disability, combat-related injury or disability, or death of a member of the uniformed services.At its September 26, 2019 meeting, the Advisory Committee on Bankruptcy Rules made minor conforming amendments to lines 9 and 10 of Official Forms 122A-1, 122B, and 122C-1 to address the HAVEN Act.Click here for New Form 122C-1Forms Effective December 1, 2019Two bankruptcy forms are on track to go into effect this December.

The proposed change to Official Form 122A-1 adds an instruction to line 14a to remind a debtor that if there is no presumption of abuse, that Official Form 122A-2 should not be filled out or filed.

Director’s Form 1340, Application for Payment of Unclaimed Funds, is a new form issued by the Director of the Administrative Office of the United States that bankruptcy courts may adopt or revise as needed to facilitate requests for unclaimed funds.

cfpb

From the CFPB

(Not password protected)
uscourts

Also from the Courts

(Not password protected)
webinar

There is still time . . . REGISTER NOW

The next free Academy webinar is THIS Wednesday, October 23rd at 2 eastern/1 central/12 mountain/11 pacificThe HAVEN Act – Understanding this complicated new law (click here to register)
debt

Student Loan Chronicles

(Not password protected)

Turf War Blocked CFPB From Helping Fix Student Loan Forgiveness Program

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

Zombie Debt: How collectors trick consumers into reviving dead debts

October 14, 2019
Archives
cmoran

Taxes, Offset, and Mutuality

By Cathy Moran, Esq. (Redwood City, CA)
Lawyers are accustomed to evaluating the dischargeability of taxes . . . as we approach the end of the tax year, a client’s current year tax situation becomes another moving part in the ‘when do we file’ analysis.
ahern_larry

Small Business Reorganization Act…(“SBRA”)

The First Thing a Chapter 13 Debtor’s Attorney Should Know About the Small Business Reorganization Act of 2019

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)

Larry Ahern continues his reporting on bankruptcy-related legislation passed in the first session of the 116th Congress. This week, he answers the single most frequently asked question from the debtors’ bar about the new small business rules: Could the new law require my client to file before the February 19 effective date?See also:

uscourts

From the Courts

(Not password protected)

From the Courts – Form Changes

Forms effective October 1, 2019On August 26, 2019, the President signed into law the Honoring American Veterans in Extreme Need Act of 2019 (the HAVEN Act) Public Law No. 116-52. The HAVEN Act amended 11 U.S.C. § 101(10A) to exclude from the definition of Current Monthly Income certain payments made under title 10, 37, or 38 of the United States Code in connection with a disability, combat-related injury or disability, or death of a member of the uniformed services.At its September 26, 2019 meeting, the Advisory Committee on Bankruptcy Rules made minor conforming amendments to lines 9 and 10 of Official Forms 122A-1, 122B, and 122C-1 to address the HAVEN Act.Click here for New Form 122C-1Forms Effective December 1, 2019Two bankruptcy forms are on track to go into effect this December.

The proposed change to Official Form 122A-1 adds an instruction to line 14a to remind a debtor that if there is no presumption of abuse, that Official Form 122A-2 should not be filled out or filed.

Director’s Form 1340, Application for Payment of Unclaimed Funds, is a new form issued by the Director of the Administrative Office of the United States that bankruptcy courts may adopt or revise as needed to facilitate requests for unclaimed funds.

irs

From the IRS

(Not password protected)

2 Million ITINs Set to Expire in 2019

  • An ITIN is a tax ID number used by taxpayers who don’t qualify to get a Social Security number. Any ITIN with middle digits 83, 84, 85, 86 or 87 will expire at the end of this year.

New Payment Option Available to Taxpayers in Private Debt Collection Program

  • IRS officials announced on 10/8/19 that a new payment option – preauthorized direct debit.

IRS: Sorry, but It’s Just Easier and Cheaper to Audit the Poor

  • Congress asked the IRS to report on why it audits the poor more than the affluent. Its response is that it doesn’t have enough money and people to audit the wealthy properly. So it’s not going to.
openposition

Chapter 13 Trustee Position Opening

(Not password protected)
Location: Western District of New York, Buffalo Division
Application Due Date: October 18, 2019
webinar

REGISTER NOW

(Not password protected)
The next free Academy webinar is Wednesday, October 23rd at 2 eastern/1 central/12 mountain/11 pacificThe HAVEN Act – Understanding this complicated new law (click here to register)

Webinar Recording Now Available

(Not password protected)

How the New MDFL Student Loan Management Program Works

mdflTrustee Laurie Weatherford joins experts Robert Branson and Tammy Branson in a one-hour discussion on the new court supervised student loan modification program recently launched in the Middle District of Florida. Details you need to start a program in your district.This is a moderate to advanced level webinar directed to trustees, judges, attorneys who represent debtors and student loan creditor representatives.This recording is free to Academy subscribers or we offer a pay per view option.

Session Recordings Now Available

(Not password protected)
Audio recordings of The ENTIRE NACTT 2019 Conference, are now available for a mere $35 per session. Click here to purchase any session.Or Click here to purchase the entire conference!
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

The $51,000 Mistake Thousands of Retirement Savers Have Already Made

October 7, 2019
Archives
janhamilton

Small Business Reorganization Act…(“SBRA”) H.R. 3311 – Part Three

By Jan Hamilton, Chapter 13 Standing Trustee (Topeka, KS)

“What needs to be in a plan filed in a case under the SBRA? Start with the statute…”Yes, MORE on SBRA. We realize that to attorneys February of 2020 seems a LONG way away but it really isn’t, um, this is OCTOBER! We are building our library on this important legislation so it is available when YOU are ready for it.See also:

mikefitzgerald

Senior Moments

We are pleased to introduce a new article series which we are affectionately calling “Senior Moments.” These articles will be sporadic but will come from retired trustees. The inaugural piece comes from the recently retired Standing Trustee for the Western District of Washington, Mike Fitzgerald.
hildebrand

ABI Commission on Consumer Bankruptcy – Collateral Repossessed Pre-Petition

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN)
“The post-petition continued retention of property that is necessary for a debtor would no longer be an option and the property would need to be turned over through specific statutory requirement. The practical effect of the proposed changes simply recognizes current reality.”Previously published articles on recommendations:Recommendations Related to Exemptions
Post-Petition Changes in Value
A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability
openposition

Chapter 13 Trustee Position Opening

(Not password protected)
Location: Western District of New York, Buffalo Division
Application Due Date: October 18, 2019
webinar

SAVE THE DATE

(Not password protected)
The next free Academy webinar is Wednesday, October 23rd at 2 eastern/1 central/12 mountain/11 pacificThe HAVEN Act – Understanding this complicated new law (click here to register)
redcar

There’s Always a Car

(Not password protected)

Americans Are Taking Out Ridiculously Long Auto Loans

Webinar Recording Now Available

(Not password protected)

How the New MDFL Student Loan Management Program Works

mdflTrustee Laurie Weatherford joins experts Robert Branson and Tammy Branson in a one-hour discussion on the new court supervised student loan modification program recently launched in the Middle District of Florida. Details you need to start a program in your district.This is a moderate to advanced level webinar directed to trustees, judges, attorneys who represent debtors and student loan creditor representatives.This recording is free to Academy subscribers or we offer a pay per view option.
farmer

Session Recordings Now Available

(Not password protected)
Audio recordings of The ENTIRE NACTT 2019 Conference, are now available for a mere $35 per session. Click here to purchase any session.Or Click here to purchase the entire conference!
debt

Student Loan Chronicles

(Not password protected)

Student Loan Crisis Driving Racial Wealth Gap

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

Taxpayers Should Beware of Property Lien Scam

With scam artists hard at work all year, taxpayers should watch for new versions of tax-related scams. One such scam involves fake property liens. It threatens taxpayers with a tax bill from a fictional government agency.
caution

Sanctions and Irony and Fraud, Oh My!

(Not password protected)

IN CASE YOU MISSED IT. . .

johnson Johnson Retires
By Academy Staff
Jeff-Kellner Kellner Retires
By Academy Staff
A Sappy Farewell to Jeff Kellner as the Dayton Chapter 13 Trustee
By The Honorable Guy R. Humphrey, Southern District of Ohio
September 30, 2019
Archives
HannahBlumenstiel

Small Business Reorganization Act

By The Honorable Hannah Blumenstiel

Yes, MORE on SBRA. We realize that to attorneys February of 2020 seems a LONG way away but it really isn’t. We are building our library on this important legislation so it is available when YOU are ready for it.In this week’s installation, Judge Blumenstiel, analyzes the legislation. The first two and a half pages are of particular importance as she very briefly summarizes the chief take-aways.See also:

Katy-Brewer

It Takes a Village

By Katherine B. Brewer, Esq. (Westerville, OH)
“As lawyers, especially bankruptcy lawyers, it’s so important to admit if we aren’t OK. . . . It should never be seen as out of line to ask a colleague if they are having any problems.”
Jeff-Kellner

Kellner Retires

By Academy Staff

AND

A Sappy Farewell to Jeff Kellner as the Dayton Chapter 13 Trustee

By The Honorable Guy R. Humphrey, Southern District of Ohio
Above are two tribute articles – Jeff, you will be greatly missed!!
openposition

Term Law Clerk Posting

(Not password protected)
johnson

Johnson Retires

By Academy Staff
Jan P. Johnson served as a Chapter Standing 13 Trustee for the Eastern District of California, Sacramento Division, from 1998 to September 30, 2019, and also served as Trustee in Puerto Rico and the Virgin Islands.This article contains a ‘love’ letter to Jan.Jan, we will miss you immensely!
joanfeeney

Bankruptcy Judge Receives Award

(Not password protected)
Judge Joan N. Feeney (Ret.) to Receive the 2019 American Inns of Court Bankruptcy Inn Alliance Distinguished Service Award
farmer
court

PACER in the News

(Not password protected)

A popular link from last week. . . . Judiciary Doubles Fee Waiver for PACER Access to Court Records

Session Recordings Now Available

(Not password protected)
Audio recordings of The ENTIRE NACTT 2019 Conference, are now available for a mere $35 per session. Click here to purchase any session.Or Click here to purchase the entire conference!
debt

Student Loan Chronicles

(Not password protected)
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

The No. 1 Thing People with Fat Savings Accounts Scrimp on That You Likely Don’t

cmoran

IN CASE YOU MISSED IT. . .

Tax Projections and the Means Test – Part II

By Cathy Moran, Esq. (Redwood City, CA)
“ . . .what if things aren’t the same year over year? . . . Mindful that we’re not preparing a tax return, we’re estimating future expense, what do we look for to get a meaningful projection?”See also: Tax Projections and the Means Test Part I
September 23, 2019
Archives
janhamilton

Small Business Reorganization Act…(“SBRA”) H.R. 3311 – Part Two

By Jan Hamilton, Standing Chapter 13 Trustee (Topeka, KS)

Part 2 of Trustee Hamilton’s dissection at SBRA looks at the Plan . . . specifically notions to consider before the plan is filed.See also:

cmoran

Tax Projections and the Means Test – Part II

By Cathy Moran, Esq. (Redwood City, CA)
“ . . .what if things aren’t the same year over year? . . . Mindful that we’re not preparing a tax return, we’re estimating future expense, what do we look for to get a meaningful projection?”See also: Tax Projections and the Means Test Part I
williambrown

From the Editor – Avoidance

By The Honorable William Houston Brown (Retired)

Judge Brown takes a look at two cases on avoidance. The first one is an important finding.

redcar

There’s Always a Car

(Not password protected)

Driven to Bankruptcy — New Research from the Consumer Bankruptcy Project

marijuana

Medicaid Estate Recovery Program

(Not password protected)
Re-run from last week but many of you found this interesting . . . (A little long but interesting if you are not aware of the Medicaid Estate Recovery Program)Medicaid’s Dark Secret – For many participants, the program that provides health care to millions of low-income Americans isn’t free. It’s a loan. And the government expects to be repaid.
farmer
court

PACER in the News

(Not password protected)

Judiciary Doubles Fee Waiver for PACER Access to Court Records

cfpb

CFPB in the News

(Not password protected)

Session Recordings Now Available

(Not password protected)
Audio recordings of The ENTIRE NACTT 2019 Conference, are now available for a mere $35 per session. Click here to purchase any session.Or Click here to purchase the entire conference!
debt

Student Loan Chronicles

(Not password protected)

Why You Got Rejected for Student Loan Forgiveness

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

Should I Pay Off Mortgage Early?

September 16, 2019
Archives
janhamilton

Small Business Reorganization Act…(“SBRA”) H.R. 3311 – PART ONE

By Jan Hamilton, Standing Chapter 13 Trustee (Topeka, KS)

“I do not suggest my thoughts here are anywhere close to exhaustive. . . . Of course, my thoughts may be off mark on one or more items, but the discussions need to start somewhere, so here we go…”See also:

cmoran

Tax Projections and the Means Test

By Cathy Moran, Esq. (Redwood City, CA)
Mention tax calculations to a bankruptcy attorney and 7 out of 10 freeze on the spot.I’m not a tax attorney, they retort.That’s right, but, if you are a bankruptcy attorney, that doesn’t relieve you from knowing enough tax to get the means test right.
williambrown

From the Editor

By The Honorable William Houston Brown (Retired)
marijuana
farmer

Session Recordings Now Available

(Not password protected)
Audio recordings of The ENTIRE NACTT 2019 Conference, are now available for a mere $35 per session.Click here to purchase any session.Or Click here to purchase the entire conference!
debt

Student Loan Chronicles

(Not password protected)

5th Circuit Finds No Room for Sympathy for Student Loan Debtor

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

How Student Loan Fees Work and What They Cost

scolforo

In Case You Missed It . . .

Undersecured Short-Term Mortgages May be Crammed Down

By Angela M. Scolforo, Staff Attorney to Herbert L. Beskin, Chapter 13 Trustee (Charlottesville, VA)
“ . . . Fourth Circuit Court of Appeals overturned its prior decision . . . This is a powerful tool for saving homes.”
September 9, 2019
Archives
scolforo

Undersecured Short-Term Mortgages May be Crammed Down

By Angela M. Scolforo, Staff Attorney to Herbert L. Beskin, Chapter 13 Trustee (Charlottesville, VA)
“ . . . Fourth Circuit Court of Appeals overturned its prior decision . . . This is a powerful tool for saving homes.”
ahern_larry

2019 Legislation Affecting Bankruptcy Practice

Five Things Trustees Should Know About the Small Business Reorganization Act of 2019

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)

This week, Larry Ahern continues a report on bankruptcy-related legislation passed in the first session of the 116th Congress. This installment begins to drill down into the new small business subchapter added to Chapter 11, which will also be of interest to Chapter 12 and 13 trustees and practitioners.

See also:

cmoran

When $400 Emergency Pushes You Over the Edge

By Cathy Moran, Esq. (Redwood City, CA)
Federal Reserve reported that 40% of Americans couldn’t meet a $400 emergency without borrowing. . . . So, a Bloomberg economist devoted his column to deconstructing how the press and political figures misused that finding. . . .OMGoodness.
farmer
seniorcitizen

The Graying of Debtors

(Not password protected)

Rising Senior Debt Levels are Concerning Researchers

Session Recording Now Available

At the NACTT 2019 conference, an exceptional panel addressed the ‘graying’ of debtors across the country. Click here* to purchase this 75 minute session featuring Trustee Krispen Carroll, Professor Robert Lawless, William Rule PhD, and Debtor Counsel David Cox.

*Ninth session from the top – a mere $35 for the session.

paydaylender

Payday Lenders

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
September 2, 2019
Archives

laborday

In observance of Labor Day, The Academy brings you an abbreviated/”Greatest Hits” weekly update. This would be a great time to catch up on the 2019 Legislation.

ahern_larry

First published 8/19. Bills have now been signed into law.

2019 Legislation Affecting Bankruptcy Practice

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)

This week, Larry Ahern begins a report on bankruptcy-related legislation passed in the first session of the 116th Congress. This Part I summarizes four bills that would amend both business and consumer provisions in the Bankruptcy Code and related statutes. If the legislation becomes law, Part II will drill down into the new small business subchapter added to Chapter 11, which will also be of interest to Chapter 12 and 13 practitioners.

See also: New Bankruptcy Act Makes Chapter 11 Plan Confirmation Easier for Small Business Debtors and Offers Benefits to Preference Defendants

ditech

Ditech Bank in the News

(Not password protected)

See also, Academy Webinar Recording

Ditech – What Consumer Bankruptcy Folks Need to Know

Join experts Tara Twomey and Thad Bartholow in a discussion regarding Ditech consumer claims. You will learn how/where to file claims; the bar date; the entire list of entities involved; why your client may not have received notice and what to do about it; what the proposed plan does and doesn’t say; and more.

ostafy

Less Than 100% Dividend, Can a Chapter 13 Plan be Paid Off Early? Originally published 4/22/19

By Stacey A. O’Stafy, Staff Attorney, Office of the Chapter 13 Trustee Faye D. English (Columbus, OH)
Paid off early? Temporal interpretation or monetary/multiplier approach? Since BAPCPA many questions remain in this issue we see every week.
williambrown

From the Editor

Bankruptcy Protections Limited for Repeat Filers Originally published 1/14/19

By William H. Brown, United States Bankruptcy Judge (Retired) and Academy Editor & Advisor
Judge Brown takes a quick look at a First Circuit decision.
comment

Proposed Amendments Published for Public Comment

(Not password protected)
  • Appellate Rules 3, 6, 42, and Forms 1 and 2;
  • Bankruptcy Rules 2005, 3007, 7007.1, and 9036; and
  • Civil Rule 7.1.

The comment period is open from August 19, 2019 to February 19, 2020.

debt

Student Loan Chronicles

(Not password protected)

99% of Public Workers Who Seek Student Debt Relief Don’t Qualify. California wants to know why

gretchenholland

IN CASE YOU MISSED IT . . .very popular article from last week. . .

Trustee Cannot Require Debtor to Treat Nondischargeable Student Loan Debts in a Separate Class

By Gretchen D. Holland, Standing Chapter 13 Trustee for the Greenville/Spartanburg Division of South Carolina

“In fact, some discrimination is even allowed – as long as it’s not unfair discrimination.”

Be sure to scroll to the end of the article for a surprise!

August 26, 2019
Archives
gretchenholland

Trustee Cannot Require Debtor to Treat Nondischargeable Student Loan Debts in a Separate Class

By Gretchen D. Holland, Standing Chapter 13 Trustee for the Greenville/Spartanburg Division of South Carolina
“In fact, some discrimination is even allowed – as long as it’s not unfair discrimination.”Be sure to scroll to the end of the article for a surprise!
amyx

What to Do with the Dreaded Timeshare?

By Karin N. Amyx, Staff Attorney to the Trustee Carl Davis (Wichita, KS)
. . . what is a timeshare? And how do you deal with them in bankruptcy? Is it an executory contract? A secured debt? What do you own and how do you keep it . . . or get rid of it?
ckelly

As reported in March, we are pleased to publish articles written by law students who benefited from the grant money provided by the National Data Center.

The Bankruptcy Moot Court Experience – Duberstein 2019

By Cameron Kelly & Michael Carroll, Law Students, The University of Texas School of Law

“. . . I had no idea what I was getting myself into. . . . coach’s question was challenging. It made it seem like the Court siding with my position would bring an end to the financial world as we know it. . . . I diverted and acted like the question had never been asked. And that was it, I was hooked on bankruptcy moot court.”See also:

farmer
comment

Proposed Amendments Published for Public Comment

(Not password protected)
  • Appellate Rules 3, 6, 42, and Forms 1 and 2;
  • Bankruptcy Rules 2005, 3007, 7007.1, and 9036; and
  • Civil Rule 7.1.

The comment period is open from August 19, 2019 to February 19, 2020.

irs
bootcamp

Bankruptcy Boot Camp 2019

(Not password protected)
If you are newer to bankruptcy practice or would like to brush up your skills, Bankruptcy Boot Camp is for you! The seminar will be held on September 27, 2019 at Grand Valley State University’s Eberhard Center. Speakers include the Bankruptcy Judges for the Western District of Michigan. The deadline for registration is September 20, 2019, but space is limited so register soon!
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

Car Payment Trouble? How to turn it around

ahern_larry

IN CASE YOU MISSED IT . . .

2019 Legislation Affecting Bankruptcy Practice

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
This week, Larry Ahern begins a report on bankruptcy-related legislation passed in the first session of the 116th Congress. This Part I summarizes four bills that would amend both business and consumer provisions in the Bankruptcy Code and related statutes. If the legislation becomes law, Part II will drill down into the new small business subchapter added to Chapter 11, which will also be of interest to Chapter 12 and 13 practitioners.
August 19, 2019
Archives
cmoran

Win Now, Wreck Later: A Tale of Bankruptcy and Mortgage Servicing

By Cathy Moran, Esq. (Redwood City, CA)
. . . “As a debtor attorney, I’m on board so far. . . . But I doubt this resolution will be the last dispute on the matter.”
ahern_larry

2019 Legislation Affecting Bankruptcy Practice

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
This week, Larry Ahern begins a report on bankruptcy-related legislation passed in the first session of the 116th Congress. This Part I summarizes four bills that would amend both business and consumer provisions in the Bankruptcy Code and related statutes. If the legislation becomes law, Part II will drill down into the new small business subchapter added to Chapter 11, which will also be of interest to Chapter 12 and 13 practitioners.
rebeccagarcia

Chapter 12 and Act2/Conference Update

(Not password protected)
By Rebecca Garcia and Jan Sensenich, Chapters 12 and 13 Standing Trustees

jan sensenich“The presentations and materials are a great start for someone just getting into chapter 12, and for those more experienced practitioners the conference provided a chance to sharpen some skills and get up to date on the latest in Chapter 12.”This article contains valuable information about materials and the Act2 officers.

farmer
Bob-Drummond

Drummond Receives Professionalism Award

(not password protected)
By Regina Logsdon, Executive Director, The Academy d/b/a ConsiderChapter13.org
Drummond was awarded the 2019 Don Torgenrud Professionalism Award which recognizes an individual who exemplifies the highest standards of professional conduct in their everyday practice.
irs

From the IRS

(Not password protected)
debt

Student Loan Chronicles

(Not password protected)
debt

Student Loan Chronicles Part B

(Not password protected)

CFPB Settles Lawsuit Against ITT Educational Services

CFPB announced 8/12/19 a proposed settlement with ITT Educational Services, Inc. to resolve the lawsuit which alleges that ITT engaged in unfair and abusive practices in connection with its private loan program in violation of the Consumer Financial Protection Act of 2010.The Complaint, filed in the U.S. District Court for the Southern District of Indiana in 2014, alleges that ITT helped to create private loan programs for students at ITT Technical Institute, the school run by ITT until it filed for bankruptcy and ceased operations in 2016. The Bureau alleges that ITT improperly induced students to take out those loans to pay the tuition amounts not covered by loans or other tuition assistance from the federal government. The Bureau’s complaint also alleges that ITT knew the student borrowers did not understand the terms and conditions of the loans and could not afford them, resulting in high default rates and other negative consequences.

The terms of the proposed stipulated order include, among other things, a judgment against ITT for $60 million and an injunction prohibiting ITT from offering or providing student loans in the future.

In a separate action filed by the Bureau on June 14, 2019, a final stipulated judgment was entered against the entity holding the private loans at issue, Student CU Connect CUSO, LLC. Under the terms of that judgment all collection on such loans must cease, all outstanding loans must be discharged, and all negative credit reporting must be corrected.

See also:

U.S. Regulator Settles Lawsuit Against ITT Educational, Will Not Collect $60 Million

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

15 Spending Habits Personal Finance Experts Hate the Most

selwyn

IN CASE YOU MISSED IT . . .

Score One for the United States Bankruptcy Court in the Service of the African America Community

Within Johnson Publishing Company, LLC’s Chapter 7 Liquidation Bankruptcy there is a treasure trove of irreplaceable American history. Although the images primarily depict Americans of color, it is a portion of history of all Americans . . . In 2005, the then-future President Obama gave words to why the images in the archive have meant and still mean so much to Blacks . . .
August 12, 2019
Archives
selwyn

Score One for the United States Bankruptcy Court in the Service of the African America Community

Within Johnson Publishing Company, LLC’s Chapter 7 Liquidation Bankruptcy there is a treasure trove of irreplaceable American history. Although the images primarily depict Americans of color, it is a portion of history of all Americans . . . In 2005, the then-future President Obama gave words to why the images in the archive have meant and still mean so much to Blacks . . .
2019seminar

Don’t forget to complete your NACTT Indy Evaluation

NACTT Indianapolis EVALUATION TIME – Attention NACTT Indy Attendees: Your Voice is Important

Thank you for your recent participation at the NACTT Indianapolis Seminar! We value your opinion. Please take a few moments to complete this evaluation. Your feedback is important to us and will assist in planning the 2020 San Diego Seminar. We look forward to seeing you there next year. Mark your calendar NOW – July 8-11, 2020.Click Here To Let Your Voice Be Heard

gustafson

Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 5 of 5

By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division
The conclusion of this detailed resource looks at the Tyler decision which details how Chapter 7 filers do not escape from these post-petition issues.
hildebrand

ABI Commission on Consumer Bankruptcy – Recommendations Related to Exemptions

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN)

NEW – Commission Member Hildebrand continues looking individually at the recommendations of the Commission.“Applying that convoluted mechanism, debtors get to assert the exemptions of the state in which they reside or, in several jurisdictions that did not ‘opt out’ of the federal exemptions, unless the debtor has moved to that jurisdiction within two years of filing of the bankruptcy petition.”

See also previous recommendations:

Post-Petition Changes in Value
A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability

farmer
cfpbsettlement
caution

Sanctions and Irony and Fraud, Oh My!

(Not password protected)
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
  • Judges Explain Rule of Law, Why It Matters
    What does the rule of law mean, and how does it affect our daily lives?This five minute “Court Shorts” video, explains how fair and consistent adherence to the law protects our rights and well-being in everyday situations like buying a breakfast sandwich, reading mail, and investing in the stock market. Definitely not our ‘normal’ For Your Blog option but a short, interesting reminder of why ‘the Rule of Law’ is important.
forcedvesting

IN CASE YOU MISSED IT . . .

Forced Vesting by Any Other Name – Just Might Work

By Academy Staff
“A decision from the Bankruptcy Court in the Eastern District of Kentucky may provide an alternative to forced vesting while effectively accomplishing the same result. . . .The concept of ‘dirt for debt’ may not work in all cases, but is something a Debtor (and Debtor’s Counsel) may want to consider.”
August 5, 2019
Archives
forcedvesting

Forced Vesting by Any Other Name – Just Might Work

By Academy Staff
“A decision from the Bankruptcy Court in the Eastern District of Kentucky may provide an alternative to forced vesting while effectively accomplishing the same result. . . .The concept of ‘dirt for debt’ may not work in all cases, but is something a Debtor (and Debtor’s Counsel) may want to consider.”
2019seminar

NACTT Indianapolis EVALUATION TIME – Attention NACTT Indy Attendees: Your Voice is Important

(Not password protected)

Thank you for your recent participation at the NACTT Indianapolis Seminar! We value your opinion. Please take a few moments to complete this evaluation. Your feedback is important to us and will assist in planning the 2020 San Diego Seminar. We look forward to seeing you there next year. Mark your calendar NOW – July 8-11, 2020.

Click Here To Let Your Voice Be Heard

gustafson

Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 4 of 5

By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division
Part D’s title says it all: Talking Turkey About the Respective Dilemmas of the Chapter 13 Trustee and Debtors in Dealing with Post-Petition Windfalls – Conversion, Dismissal, Early Payoffs, Etc.
mccormick

Hot Off the Press – Judgment and Memorandum Opinion

(Not password protected)

Mortgage servicer was not required to specifically state on its proof of claim that it was servicing the loan on behalf of Freddie Mac. Nor was it necessary for there to be a specific endorsement of the Note or an assignment of the Mortgage to Freddie Mac. The servicer was in physical possession of the Note with an affixed endorsement in blank, and was therefore the holder of a negotiable instrument under the Alabama Uniform Commercial Code. Accordingly, the servicer had standing to file a proof of claim in the Debtors’ Chapter 13 case and to enforce the Note. Furthermore, the post-petition assignment of the Mortgage was not a violation of the automatic stay or an avoidable transfer. Moreover, under Eleventh Circuit law, the Debtors did not have standing to challenge the assignment of their Mortgage.

The Court further found that the Debtors (i) failed to establish by competent evidence that the servicer made any misrepresentations either pre-petition or during the post-petition loan modification process regarding the servicer’s ability to foreclose, (ii) failed to establish that the servicer’s proof of claim was materially defective, and (iii) failed to establish that their loan modification agreement was unenforceable.

Click here for Judgment
Click here for Memorandum Opinion

janhamilton

Stop and Smell the . . . Well, Corn

By Jan Hamilton, Standing Chapter 13 Trustee (Topeka, KS)
(Not password protected)
IMG_0223I stop and visit with folks a lot. (Surprise…) I had an encounter this year that I found meaningful. It greatly reminded me of my days of representing farmers in 12s and 11s. And it made me stop for a moment and think about how we, as trustees, interact with debtors and how, for the most part, they are just case numbers to us. But they all have stories.
farmer

Farmers in the News

(Not password protected)
safedepositbox

Safe Deposit Boxes

(Not password protected)
  • Unclaimed Property (a second article about safe deposit boxes and how they become unclaimed property in states’ coffers)
PhilLamos

An Oldie But a Goodie – Original Publication 12/9/18

Watch the Clock – Timing of Appeals

By Phil Lamos, Chief Legal Counsel, Office of the Chapter 13 Trustee Lauren A. Helbling (Cleveland, OH)
Regardless of the merits of an appeal, an appeal must be timely filed to have even a chance at succeeding.
debt

Student Loan Chronicles

(Not password protected)

Thousands of Scammed Student-Loan Borrowers Filed Claims for Debt Relief – the feds haven’t approved any in over a year

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

Have a Capital One Credit Card? Then take these 5 steps

schuman

IN CASE YOU MISSED IT . . .

A Well-Deserved Thank You to Attorneys Who Represent Debtors . . .

Ordinary Heroes Deliver Second Chances with Bankruptcy

By Robert (Bob) Schuman, Owner/Managing Broker, Network Financial Group
(Not password protected)

“With your help, a mother or father can enjoy their child’s soccer game without fear that a tow truck might show up at the game and take their car, or show up at their door when they have guests or a myriad of other embarrassing situations.”

Be sure to check-out the NEW comments at the end of this article.

July 29, 2019
Archives
schuman

A Well-Deserved Thank You to Attorneys Who Represent Debtors . . .

Ordinary Heroes Deliver Second Chances with Bankruptcy

By Robert (Bob) Schuman, Owner/Managing Broker, Network Financial Group
“With your help, a mother or father can enjoy their child’s soccer game without fear that a tow truck might show up at the game and take their car, or show up at their door when they have guests or a myriad of other embarrassing situations.”
gustafson

Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 3 of 5

By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division
This detailed resource continues this week by looking at which post-petition assets are, indeed, property of the chapter 13 estate.
tiffanycornejo

Meet A Newish Trustee

(Not password protected)
“Tiffany M. Cornejo was appointed as the Chapter 13 Standing Trustee for the District of New Mexico on December 1, 2017. She took the reins from retiring Kelley Skehen.”
irs

From the IRS

(Not password protected)

IRS Attempting to Collect on Virtual Currency

IRS has begun sending letters to virtual currency owners advising them to pay back taxes, file amended returns; part of agency’s larger efforts.
gavel

From the Judiciary

(Not password protected)
Bankruptcy Judge Up for Reappointment in Augusta – Comments on the reappointment of Bankruptcy Judge Susan Barrett of Augusta should be sent Circuit Executive James P. Gerstenlauer by Aug. 19.
usbankruptcycourt

From the Courts

(Not password protected)
ncbrc

From the National Consumer Bankruptcy Rights Center

(Not password protected)

City Did Not Violate Stay by Failing to Rescind Warrant

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

From Dead Broke to $100,000 in Cash, in One Quick and Simple Side Hustle

July 22, 2019
Archives
indy

Due to the Annual NACTT Conference,
we bring you a Greatest Hits Update – Enjoy!

Shout Out to NACTT Indianapolis Attendees.
Indianapolis is a fun city and it was a great conference.

Indy-Car
gustafson

NEWPost-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 2 of 5

By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division
This detailed resource begins its analysis by discussing property acquired after the filing of the chapter 13 case and different approaches. Part 2 looks at the duty to disclose post-petition causes of action.
Burden

A very popular article from last week . . .

Unscheduled Creditor May Not File a Late Proof of Claim

By Beverly M. Burden, Standing Chapter 13 Trustee (Lexington, KY)

Unscheduled creditor without notice of the bankruptcy case was denied an extension of time to file a proof of claim pursuant to Bankruptcy Rule 3002(c)(6)(A).More from this author:

Tips and Traps: Issuing A Subpoena for Bank Records

carriehaydenjohnson

Complete Termination of The Automatic Stay Under §362(c)(3)(A) According to the First Circuit

By Carri Hayden Johnson, Staff Attorney to O. Byron Meredith, Chapter 13 Trustee (Savannah, GA)
“Moving forward, in cases where the debtor is filing a subsequent petition within a year of the prior case being filed and dismissed it is important for debtors to take advantage of §362(c)(3)(B).”
beskin

Trustee May Use Any Law Available to Avoid a Transfer

By Herbert L. Beskin, Chapter 13 Trustee for the Western District of Virginia (Charlottesville)
*Special thanks to Gretchen D. Holland for editing this article.
Although this is a Chpt 7 case, there are Chpt13implications: “The plain language of §544(b)(1) ‘permits a trustee to step into the shoes of any existing unsecured creditor, including the IRS, and utilize any ‘applicable law’ to avoid a transfer, including the FDCPA.’”
hildebrand

ABI Commission on Consumer Bankruptcy – Post-Petition Changes in Value

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN)
Another issue concerns Chapter 7 trustees who would not take prompt action to abandon exempt or partially exempt assets but, would retain assets in the hope that there might be equity in the future to sell the asset for the full lien amount and exemption. In doing so, the trustee delays the debtor’s ability to use the asset as part of the fresh start.
usbankruptcycourt

From the UST

(Not password protected)
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

Successful Side Hustlers Share Their Best Secrets

caution

Sanctions and Irony and Fraud, Oh My!

(Not password protected)
bobbranson

IN CASE YOU MISSED IT . . .

Court Supervised Student Loan Modification

By Robert B. Branson and Tammy Branson, Branson Law PLLC (Orlando, FL)

TB-Headshot-270x270“The Order provides for use of online software to assist Debtors with student loan repayment options.”See also original article: Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy

Watch for a webinar on this topic in September!!

July 15, 2019
Archives
Burden

Unscheduled Creditor May Not File a Late Proof of Claim

By Beverly M. Burden, Standing Chapter 13 Trustee (Lexington, KY)
Unscheduled creditor without notice of the bankruptcy case was denied an extension of time to file a proof of claim pursuant to Bankruptcy Rule 3002(c)(6)(A).
gustafson

Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 1 of 5

By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division
This detailed resource begins its analysis by discussing property acquired after the filing of the chapter 13 case and different approaches.
hildebrand

ABI Commission on Consumer Bankruptcy – Post-Petition Changes in Value

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN)

Another issue concerns Chapter 7 trustees who would not take prompt action to abandon exempt or partially exempt assets but, would retain assets in the hope that there might be equity in the future to sell the asset for the full lien amount and exemption. In doing so, the trustee delays the debtor’s ability to use the asset as part of the fresh start.

See also previous recommendations:

A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability

glenn
usbankruptcycourt

From the Courts

(Not password protected)
farmer
ncbrc

From the National Consumer Bankruptcy Rights Center

(Not password protected)

Debt for Overpayment of DSO Not Itself DSO

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
bobbranson

IN CASE YOU MISSED IT . . .

Court Supervised Student Loan Modification

By Robert B. Branson and Tammy Branson, Branson Law PLLC (Orlando, FL)

TB-Headshot-270x270“The Order provides for use of online software to assist Debtors with student loan repayment options.”

See also original article: Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy

July 8, 2019
Archives
hildebrand

Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville)
Where confirmation order of a Chapter 12 plan specifically provides for payments to a creditor and Chapter 12 trustee supported confirmation of the plan, the trustee would be precluded from seeking to disallow a late-filed claim. Following the plan, the trustee must make payments to creditors even if a proof of claim is not timely filed
bobbranson

Court Supervised Student Loan Modification

By Robert B. Branson and Tammy Branson, Branson Law PLLC (Orlando, FL)

TB-Headshot-270x270“The Order provides for use of online software to assist Debtors with student loan repayment options.”

See also original article: Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy

hildebrand

ABI Commission on Consumer Bankruptcy – A Chapter 7 Trustee’s Sale of Encumbered Property

By Henry E. Hildebrand, III, Chapter 13 Trustee (Nashville, TN)

The Commission heard from several individuals and attorneys that related tales of Chapter 7 trustees negotiating a “carve out” with a lienholder on the debtor’s real property when there was no equity available in the property. This article addresses the Commission’s recommendations regarding prevention of such “carve out.”

Click here to register for the NACTT conference

See also:

Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability

unitedstatescourts

From the United States Courts

(Not password protected)

Judiciary Creates Public User Group for PACER

The federal Judiciary has created and is seeking members for a public user group to provide advice and feedback on ways to improve its electronic public access services. . . . membership will be selected from interested applicants who represent the legal sector, media, academia, government agencies, the public, and other entities that use PACER to access federal court records. The group will allow for the exchange of information about issues experienced by users, and it will recommend ideas for expanding and improving services.
farmer

Farmers in the News

(Not password protected)
ridgway

On the Judiciary

(Not password protected)

Balls and Strikes: New Bankruptcy Court Chief Judge is also a hall of fame baseball umpire

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
  • Savvy Senior: Can a debt collector take my Social Security benefits?
PhilLamos

IN CASE YOU MISSED IT . . .

What IS a Principal Residence?

By Phil Lamos, Chief Legal Counsel, Office of the Chapter 13 Trustee Lauren A. Helbling (Cleveland, OH)
Section 1322(b)(2) of the Bankruptcy Code states that a Chapter 13 plan may not modify a claim that is “secured only by a security interest in real property that is the debtor’s principal residence.” But the inverse of this statute is true; if a debtor can prove that a claim is secured by something other than “the debtor’s principal residence” then the claim can be modified in a Chapter 13 plan. A debtor can bifurcate or even totally avoid a security interest if the debtor can prove that the claim is secured by something other than “the debtor’s principal residence.” But what exactly is a “principal residence?” This question has been the subject of much litigation since BAPCPA went into effect in 2005.
July 1, 2019
Archives
americanflag

Happy Independence Day

ahern_larry

In re Fulton: Seventh Circuit Affirms Its Position with Majority of Circuits on Passive Retention of Property as Violation of Sections 362 and 542

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN)
This week, Larry Ahern analyzes the Seventh Circuit’s June 19 decision in In re Fulton that a municipality’s passive retention of impounded property constitutes a violation of § 362. He also considers implications of the decision for consumer loan transactions.
PhilLamos

What IS a Principal Residence?

By Phil Lamos, Chief Legal Counsel, Office of the Chapter 13 Trustee Lauren A. Helbling (Cleveland, OH)
Section 1322(b)(2) of the Bankruptcy Code states that a Chapter 13 plan may not modify a claim that is “secured only by a security interest in real property that is the debtor’s principal residence.” But the inverse of this statute is true; if a debtor can prove that a claim is secured by something other than “the debtor’s principal residence” then the claim can be modified in a Chapter 13 plan. A debtor can bifurcate or even totally avoid a security interest if the debtor can prove that the claim is secured by something other than “the debtor’s principal residence.” But what exactly is a “principal residence?” This question has been the subject of much litigation since BAPCPA went into effect in 2005.
unitedstatescourts

From the United States Courts

(Not password protected)

Judiciary Creates Public User Group for PACER

The federal Judiciary has created and is seeking members for a public user group to provide advice and feedback on ways to improve its electronic public access services. . . . membership will be selected from interested applicants who represent the legal sector, media, academia, government agencies, the public, and other entities that use PACER to access federal court records. The group will allow for the exchange of information about issues experienced by users, and it will recommend ideas for expanding and improving services.
hildebrand

ABI Commission on Consumer Bankruptcy – Judicial Estoppel

By Henry E. Hildebrand, III, Chapter 13 Trustee (Nashville, TN)
“Over the past twenty years, the judicial estoppel doctrine has had a significant impact on people who file bankruptcy. Judicial estoppel has grown to be a significant issue within the consumer bankruptcy system. The Commission was asked to address it.”
Click here to register for the NACTT conference
farmer

Farmers in the News

(Not password protected)

Ohio Farmland Underwater – Big Trouble for Corn Industry

There is still time to register for the Chapter 12 conference July 15-16 in Indianapolis. Click here for more information.
oldcase

OLD Cases

(Not password protected)
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)

7 Keys to Keeping Your House: Chapter 13 After You File

Beskin

IN CASE YOU MISSED IT . . .

The Brunner Student Loan Hardship Test: Alive and Well in The Big Apple

By Herbert L. Beskin, Chapter 13 Trustee for the Western District of Virginia (Charlottesville)
Let’s take a certain set of facts and see how it plays out in the labyrinthian world of hardship discharge of student loan debt. . . . the saga begins with failing the bar exam . . .