April 5, 2021
Archives
deadline

Extensions of CARES Act Provisions By COVID-19 Bankruptcy Relief Extension Act of 2021

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H.R.1651 – No longer legislation but actual law, signed by the President 3/27/21.
ahern

The “Snapshot” Rule – Part 2: When is the Rule Not Determinative?

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
In Part 1, Larry Ahern summarized recent cases and considered how and why the circuits are more consistently finding the petition date to be determinative of the exempt status of assets (the “snapshot” rule). In this Part 2, he asks when the rule might not apply in different circumstances.

Click here for Part 1- The Circuits Begin to Line Up

americanrescueplan

United States Trustee Program Alert

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In case you missed this last week . . .

Notice to Chapter 7 and 13 Trustees Regarding Treatment of Recovery Rebates and Tax Credits for Consumer Bankruptcy Debtors Under the American Rescue Plan Act of 2021

“In Summary – Chapter 7 and 13 trustees should not consider recovery rebates or child tax credits in administering estate assets or calculating disposable income in chapter 13 repayment plans.”

billpurdy
telephone

From SCOTUS

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meanstest

Means Test Numbers Change April 1, 2021

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irs

From the IRS

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subchapterv

Subchapter V

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Debt limit cap extended to March 27, 2022.
courtscales

From the Courts

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foryourblog

For Your Blog

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

Student Loan Chronicles

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caution
hildebrand
IN CASE YOU MISSED IT . . .

Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of Tennessee (Nashville)
Section 1328(i) requires the court to consider the discharge provisions of §§ 1328(a) through (h) and the fact that incomplete personal residence mortgage payments or a forbearance do not preclude but do not compel a COVID-19 Discharge.

See Also Legislation to Watch below. It appears that extension of the new § 1328(i) provision created under the Consolidated Appropriations Acthas been omitted from the current Bill making its way to the President’s desk. BUT AS OF PRESS TIME, THIS IS STILL LEGISLATION.

March 29, 2021
Archives

happyeaster

hildebrand

Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of Tennessee (Nashville)
Section 1328(i) requires the court to consider the discharge provisions of §§ 1328(a) through (h) and the fact that incomplete personal residence mortgage payments or a forbearance do not preclude but do not compel a COVID-19 Discharge.
See Also Legislation to Watch below. It appears that extension of the new § 1328(i) provision created under the Consolidated Appropriations Act has been omitted from the current Bill making its way to the President’s desk. BUT AS OF PRESS TIME, THIS IS STILL LEGISLATION.
americanrescueplan

United States Trustee Program Alert

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“In Summary – Chapter 7 and 13 trustees should not consider recovery rebates or child tax credits in administering estate assets or calculating disposable income in chapter 13 repayment plans.”
legislation

Legislation to Watch

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Passed the House with Amendment 3/26 and is expected to be signed by the President on 3/28.

williambrown

From the Editor

By The Honorable William Houston Brown (Retired)
Even during spring break, Judge Brown made time to find two cases of interest regarding lien modification:

meanstest

Means Test Numbers Change April 1, 2021

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irs

From the IRS

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subchapterv

Subchapter V

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Reminder – March 27 WAS the Deadline to decrease the cap back to $2,725,625, although an extension has been proposed – stay tuned!
courtscales

From the Courts

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foryourblog

For Your Blog

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

Student Loan Chronicles

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caution
cmoran
IN CASE YOU MISSED IT . . .

6 Steps to Ethical Unbundling of Bankruptcy Representation

By Cathy Moran, Esq., (Redwood City, CA)
The client initialed every paragraph of the 19-paged representation agreement, and the appeals court still sanctioned the attorney over the agreement.Turns out, a long agreement and the client’s initials weren’t enough to protect the lawyer from sanctions for unbundling his services. So, what does it take??
March 22, 2021
Archives
cmoran

6 Steps to Ethical Unbundling of Bankruptcy Representation

By Cathy Moran, Esq., (Redwood City, CA)
The client initialed every paragraph of the 19-paged representation agreement, and the appeals court still sanctioned the attorney over the agreement.Turns out, a long agreement and the client’s initials weren’t enough to protect the lawyer from sanctions for unbundling his services. So, what does it take??
americanrescueplan

The American Rescue Plan

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The new $1,400 per person stimulus checks could be garnished for unpaid debts. Why this one but not the previous two?Reconciliation. Reconciliation in this context is a way for Congress to enact legislation on taxes, spending, and the debt limit with only a majority (51 votes, or 50 if the vice president breaks a tie) in the Senate, avoiding the threat of a filibuster, which requires 60 votes to overcome. Because Democrats have 50 seats in the Senate—plus a Democratic vice president—reconciliation is a way to get a tax-and-spending bill to the president’s desk even if all 50 Republicans oppose it.More information:

legislation

Legislation to Watch

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kevinanderson

Comparison of Annual Change in Chapter 13 Case Filings During the Beginnings of the 2008 and the 2020 Recessions

From The Honorable Kevin R. Anderson, United States Bankruptcy Court for the District of Utah
Coming off the longest economic expansion in U.S. history, Chapter 13 filings were at their lowest levels since 2007. With the country entering a sudden and unanticipated recession in February of 2020, we expected to see Chapter 13 filing rates increase; however, the opposite occurred.
wedoff

More on Fulton

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Judge Wedoff: On Representing Respondents at Supreme Court in Chicago v. Fulton (17-minute substantive and entertaining (I mean, it’s Judge Wedoff!!) interview by Don Swanson)
act12

Chapter 12 Conference Farm Reorganization
July 22, 23 & 29, 30, 2021 – VIRTUAL

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meanstest

Means Test Numbers Change April 1, 2021

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irs

From the IRS

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  • IRS Office of Chief Counsel Unveils National Virtual Settlement Days – IRS Office of Chief Counsel has embarked on its most far-reaching Settlement Days program ever, declaring the month of March 2021 (nice of them to announce this on March 18th) as “National Settlement Month.” If you have clients with IRS issues, this may be of interest to you. BUT if we are reading this properly, they would have to participate without counsel.
openposition

Positions Open

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subchapterv

Subchapter V

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Reminder – March 27 is the CurrentDeadline to decrease the cap back to $2,725,625, although an extension has been proposed (and passed the House 3/17).
courtscales

From the Courts

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foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
caution
hildebrand
IN CASE YOU MISSED IT . . .

Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of Tennessee (Nashville)
Despite a split in authority, funds held by a Chapter 13 trustee at the time a case is dismissed prior to confirmation, are subject to the trustee’s commission before any balance is returned to the debtor.
March 15, 2021
Archives
hildebrand

Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of Tennessee (Nashville)
Despite a split in authority, funds held by a Chapter 13 trustee at the time a case is dismissed prior to confirmation, are subject to the trustee’s commission before any balance is returned to the debtor.
ahern

The “Snapshot” Rule – Part 1: The Circuits Begin to Line Up

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
This week, Larry Ahern starts by summarizing In re Anderson, a March 1 opinion from the Ninth Circuit, and the First Circuit’s In re Rockwell decision, which the Supreme Court declined to review on February 22. In this Part 1, he considers how and why the circuits are finding the petition date determinative of the exempt status of assets (the “snapshot” rule). In Part 2, he will ask when future cases, especially those involving different circumstances, may not apply the rule.
williambrown

From the Editor

By The Honorable William Houston Brown (Retired)
Judge Brown had a little time on his hands this week and brings us two cases of interest:

markwheeler

Serendipity, a Tribute to Judge Jack B. Schmetterer

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By Mark S. Wheeler, Staff Attorney to M.O. Marshall, Standing Chapter 13 Trustee (Chicago, IL)
(Used with expressed permission. Published February 2021 in the Northern District of Illinois Bankruptcy Court Liaison Committee Newsletter.)“Despite appearing before the Senior Bankruptcy Judge for the Northern District of Illinois perhaps hundreds of times over the last 29 years, I was uncharacteristically nervous to interview him. After all, a person could be quite different personally in an interview setting than they appear professionally.”
fulton

Chapter 13 Practice and Procedure

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Free Section 5:12 – The forthcoming 2021 edition of Chapter 13 Practice and Procedure, a treatise by Hon. W. Homer Drake, Jr., Hon. Paul W. Bonapfel, and Adam M. Goodman, will include a revised section 5:12 that deals with the Supreme Court’s decision in City of Chicago v. Fulton and its implications for turnover issues in Chapter 13 cases. The publisher, Thomson Reuters, has given permission for posting a draft of section 5:12. Further use of the material is prohibited.ConsiderChapter13.org thanks the authors and Thomson Reuters for sharing this valuable resource FREE to our readers.
takethesurvey

The Advisory Committee on Bankruptcy Rules Needs Your Help

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As you know, the Supreme Court recently decided City of Chicago v. Fulton which has opened up much discussion regarding current turnover procedures. The Rules Committee would like to hear from you regarding your current practices. PLEASE take this survey.

openposition

Positions Open

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subchapterv

Subchapter V

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foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
caution
chrishawkins
IN CASE YOU MISSED IT . . .

Courts Continue to Fill in the Gaps on the Interplay of Bankruptcy and the FDCPA

By Chris Hawkins, Bradley Arant Boult Cummings LLP (Birmingham, AL)
“. . . the CFPB largely declined to address bankruptcy issues. As a result, the burden will remain on practitioners and the courts to fill in the gaps with respect to the interplay of bankruptcy and the FDCPA. . . . The United States District Court for the Southern District of Ohio recently analyzed correspondence sent by a mortgage servicer in the context of potential FDCPA and discharge violations, providing a helpful catalog of many of the cases previously addressing the FDCPA in bankruptcy.”
March 8, 2021
Archives
chrishawkins

Courts Continue to Fill in the Gaps on the Interplay of Bankruptcy and the FDCPA

By Chris Hawkins, Bradley Arant Boult Cummings LLP (Birmingham, AL)
“. . . the CFPB largely declined to address bankruptcy issues. As a result, the burden will remain on practitioners and the courts to fill in the gaps with respect to the interplay of bankruptcy and the FDCPA. . . . The United States District Court for the Southern District of Ohio recently analyzed correspondence sent by a mortgage servicer in the context of potential FDCPA and discharge violations, providing a helpful catalog of many of the cases previously addressing the FDCPA in bankruptcy.”
kuharich

An Open Thank You Letter to NACTT – Reflections from a New(er) Trustee: My First Two Years

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By Dynele Schinker-Kuharich, Chapter 13 Standing Trustee (Canton, OH)
“I vividly remember getting the call that I was to be appointed as a Standing Chapter 13 Trustee (effective October 1, 2018). I was so honored, and humbled, and excited.”
fulton

More on Fulton

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The forthcoming 2021 edition of Chapter 13 Practice and Procedure, a treatise by Hon. W. Homer Drake, Jr., Hon. Paul W. Bonapfel, and Adam M. Goodman, will include a revised section 5:12 that deals with the Supreme Court’s decision in City of Chicago v. Fulton and its implications for turnover issues in Chapter 13 cases. The publisher, Thomson Reuters, has given permission for posting a draft of section 5:12. Further use of the material is prohibited.ConsiderChapter13.org thanks the authors and Thomson Reuters for sharing this valuable resource FREE to our readers.Other resources on Fulton (Password Protected):

Not a subscriber to ConsiderChapter13.org? You are missing out. Click here to subscribe now.

debmiller

From the Advisory Committee on Bankruptcy Rules

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Re: Survey of Bankruptcy Court Procedures for TurnoverDear Fellow Bankruptcy Practitioners:I have been asked to reach out on behalf of the Advisory Committee on Bankruptcy Rules which requests your assistance.As you know, the Supreme Court recently decided City of Chicago v. Fulton which has opened up much discussion regarding current turnover procedures.The Rules Committee would very much like to hear from you. PLEASE take this survey. It is only 3 questions and then asks for a summary as to whether or not your Court has adopted local rules or general orders on this issue. Please specify whether your Court is contemplating or has adopted local rules revisions or general, procedural, or administrative orders allowing a party to seek turnover of estate property under 11 U.S.C. § 542 by motion as suggested in the concurrence of the Supreme Court opinion in City of Chicago v. Fulton.I thank you in advance!!Debra L. Miller, Esq.
Chapter 13 Standing Trustee for the Northern District of Indiana
paulbonapfel

Of Interest to, Well, Everyone

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GA Bankruptcy Judge Lowers Boom on Chapter 7 Trustee and Counsel Fees (Chpt 7 case converted to 13)Really. You gotta read this one!
uscourts

From the United States Courts

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farmers

Farmers in the News

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Texas Farmers Tally Up Damage from Winter Storm ‘Massacre’ – The state’s agriculture sector has lost an estimated $600 million or more. Crop and livestock damage could mean shortages and higher prices beyond Texas.
newjudge

New Judge Appointed

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The Fifth Circuit has appointed Jamie Wilson to be a U.S. Bankruptcy Judge in the Southern District of Mississippi, stationed in Jackson. Ms. Wilson will replace retiring Judge Neil Olack and assume her position on July 1st.
openposition

Positions Open

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foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
cmoran
IN CASE YOU MISSED IT . . .

Reaffirmations Impose Impossible Demands on Bankruptcy Counsel

By Cathy Moran, Esq., (Redwood City, CA)
One of Attorney Moran’s best! Another MUST READ from ConsiderChapter13.org.“That’s until the court in Anzaldo dug into the effect of reaffirmation on credit.”Debtor attorney in this case was not only ‘dinged’ regarding recommending a reaffirmation agreement but also for not having sufficient (in the Court’s mind) information on credit scoring to properly advise his client.AND more info from last week on credit scores:NCLC: The Credit Score Pandemic Paradox and Credit InvisibilityAmericans Are Struggling, But You’d Never Know It from Their Credit Scores
March 1, 2021
Archives
bledsoe

Turnover by Motion? How About Under Rule 6008?

By Joseph A. Bledsoe, III (“Jody”), Chapter 13 Standing Trustee for the Eastern District of North Carolina (New Bern)
After his participation in ConsiderChapter13.org’s webinar City of Chicago v. Fulton: What SCOTUS Did Not Say, Trustee Bledsoe examined long-standing common practice in the recovery of assets. This is a MUST READ article!“In the aftermath of City of Chicago v. Fulton, discussions abound as to whether it is sufficient for a chapter 13 debtor to seek return of his vehicle, repossessed prepetition, via a motion for turnover. Most seem to believe a motion is not sufficient, but that – if pushed- a debtor will be required to file an adversary proceeding. But, let’s analyze the issue using the same methodology the Justices used in Fulton.”
webinar

Webinar Recording Now Available

Without a doubt, one of the best webinars we have ever produced.Chapter 13 Trustee Jody Bledsoe, along with noted attorneys Richard Parker and Tony Sottile, engage in a one-hour presentation on the recent Fulton decision. Our expert panel digs into what the Supreme Court did not rule on in this case. They also drill down into §§ 362 and 542 to look at adversary proceeding vs. motion for turnover.A few comments we received:

  • I think you guys have the most quality programming in bankruptcy-centric circles
  • Very interesting webinar
  • Webinar had some very practical suggestions for dealing with the complications/extra work created by The Supremes
  • Excellent

Not a subscriber to ConsiderChapter13.org? You are missing out. Click here to subscribe now.

Or click here for a discounted offer.

cmoran

Reaffirmations Impose Impossible Demands on Bankruptcy Counsel

By Cathy Moran, Esq., (Redwood City, CA)
One of Attorney Moran’s best! Another MUST READ from ConsiderChapter13.org.“That’s until the court in Anzaldo dug into the effect of reaffirmation on credit.”Debtor attorney in this case was not only ‘dinged’ regarding recommending a reaffirmation agreement but also for not having sufficient (in the Court’s mind) information on credit scoring to properly advise his client.
farmers

Farmers in the News

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Farm Bankruptcies During 2020 – Filings Drop 7% During 2020, Not Out of the Woods Yet

legislation

Legislation to Watch

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creditscore
openposition

Positions Open

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new

New Supplemental Proof of Claim Form

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Director’s Form 4100S is new, in response to the Consolidated Appropriations Act of 2020, which amended Code sections 501 and 502 to provide that creditors under Federally backed mortgages, qualified under the CARES Act and RESPA, and who entered into forbearance agreements with debtors, may file proofs of claim for the deferred forbearance payments, even when the claim would otherwise be untimely. The Code amendment sunsets one year after enactment; therefore, the form itself is proposed to terminate at that time.We noticed this week that many, many Courts have adopted this form.
dontforget

Subchapter V Reminder – March 27, 2021 Current Deadline

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In response to the economic consequences of the pandemic, the CARES Act increased the eligibility limit for electing to have a small business Chapter 11 governed by subchapter V from $2,725,625 of debt to $7,500,000. The cap is to return to $2,725,625 on March 27, 2021, although an extension has been proposed.Subchapter V candidates with debt between $2,725,625 and $7,500,000 should decide whether to file as soon as possible. The extension is included in the legislation to watch above.
courtscales

From the Courts

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caution

Sanctions and Irony and Fraud, Oh My!

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hauber
IN CASE YOU MISSED IT . . .

Chapter 13 – It’s Good To Have A Plan

By John M. Hauber, Chapter 13 Standing Trustee (Indianapolis, IN)
The next in our series “Chapter 13 – It’s Good to Have a Plan” is a poignant, personal story of a debtor attorney in response to the recent desire to modify the Bankruptcy Code based upon perceptions that debtors’ attorneys get rich off the backs of minorities by inordinately steering minorities toward Chapter 13.“The banker asked whether I could then expect a regular, monthly payment at confirmation. I chuckled and replied that while I kept track of what I would get paid, I might not see a penny for many years, if at all.”
February 22, 2021
Archives
ahern

SBRA – The Sequel: Leases in Bankruptcy Under the Consolidated Appropriations Act, 2021

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
Larry Ahern has previously reported on bankruptcy-related legislation passed in 2019 and amended in response to the COVID-19 pandemic. This week, he returns to the subject and focuses on a much-needed patch in the treatment of small business debtors’ leases under the Consolidated Appropriations Act, 2021 (“CAA”).
billpurdy

Form 1099G – How to Fight Back Against Scams

By William J. Purdy III (Soquel, CA)
Although written for Californians, the issue is national. Simply replace the acronym EDD for your state’s unemployment entity.Many taxpayers believe any form 1099 writ from on high. They figure such forms are unchallengeable, immutable, all powerful, and require full and docile submission. Poppycock. In the Great Recession, banks issued millions of Forms 1099-A and 1099-C that were inspired fiction. Many taxpayers attached the erroneous forms to their tax returns and using a well drafted Plain Paper Attachment, explained why the forms were wrong and the potential tax increase was short circuited right then and there!See also: Massive Fraud Slows Legitimate Unemployment Claims, State Says
hauber

Chapter 13 – It’s Good To Have A Plan

The Chapter 13 Business Model

By John M. Hauber, Chapter 13 Standing Trustee (Indianapolis, IN)
The next in our series “Chapter 13 – It’s Good to Have a Plan” is a poignant, personal story of a debtor attorney in response to the recent desire to modify the Bankruptcy Code based upon perceptions that debtors’ attorneys get rich off the backs of minorities by inordinately steering minorities toward Chapter 13.“The banker asked whether I could then expect a regular, monthly payment at confirmation. I chuckled and replied that while I kept track of what I would get paid, I might not see a penny for many years, if at all.”
whitehouse
blise

New Judge Appointed in the Eastern District of Wisconsin

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supremecourt

From the Supreme Court: Case to Watch

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pardo

On Bankruptcy’s Promethean Gap: Building Enslaving Capacity into the Antebellum Administrative State

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By Professor Rafael I. Pardo, Emory University School of Law
“. . . by looking to modern U.S. bankruptcy law’s first forebear, the 1841 Bankruptcy Act, which Congress enacted in response to the depressed economic conditions following the Panic of 1837. That legislation created a judicially administered system that nationalized bankrupts’ assets, some of which featured prominently in the business of slavery.”

New Proof of Claim Form

(Not password protected)
Director’s Form 4100S is new, in response to the Consolidated Appropriations Act of 2020, which amended Code sections 501 and 502 to provide that creditors under Federally backed mortgages, qualified under the CARES Act and RESPA, and who entered into forbearance agreements with debtors, may file proofs of claim for the deferred forbearance payments, even when the claim would otherwise be untimely. The Code amendment sunsets one year after enactment; therefore, the form itself is proposed to terminate at that time.
starofdavid

Passing of Judge Shapiro

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James E. Shapiro was a bankruptcy court judge for the Eastern District of Wisconsin from 1986 to September of ’96 when he was elevated to Chief Judge. He served as Chief Judge for four years and retired from the court on December 31, 2012. He passed away Feb. 5, 2021 at the age of 90.
dontforget

Subchapter V Reminder – March 27, 2021 Deadline

(Not password protected)
In response to the economic consequences of the pandemic, the CARES Act increased the eligibility limit for electing to have a small business Chapter 11 governed by subchapter V from $2,725,625 of debt to $7,500,000. The cap is to return to $2,725,625 on March 27, 2021 (unless extended).Subchapter V candidates with debt between $2,725,625 and $7,500,000 should decide whether to file as soon as possible.
bitcoin

Bitcoin

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How are Bitcoin Created? An illustrated guide to bitcoin mining, blockchains, and the “minting” process of cryptocurrency’s most popular coin.

  • See also this ConsiderChapter13.org resource from 2016: Bitcoins and Bankruptcy By Phil Lamos, Chief Legal Counsel, Office of the Chapter 13 Trustee (Cleveland, OH)
courtscales

From the Courts

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foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
  • Your clients need to know this . . . Lost a Job or Income? Don’t lose access to key tax credits – Earned Income Tax Credit and the Child Tax Credit.
caution
markleffler
IN CASE YOU MISSED IT . . .

Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part 2 of 2: Thomas v. Midland Funding, LLC

By Mark C. Leffler, Boleman Law Firm, PC (Richmond, Hampton, and Va. Beach, VA)
In order to “eliminate abusive debt collection practices by debt collectors . . .”, the Fair Debt Collection Practices Act (“FDCPA”) bars debt collectors from using any “false, deceptive, or misleading representation or means in connection with the collection of any debt . . .” 15 U.S.C. § 1692e.Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part 1 of 2
February 15, 2021
Archives

blackhistorybanner

jansensenich

2020 Vision

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By Jan Sensenich, Chapter 13 Standing Trustee for the District of Vermont
“Before the murder of George Floyd, I thought I understood institutional racism. I did not deny that it existed, and I knew it was a terrible thing. I believed that by supporting politicians who called for social reforms aimed at correcting institutional racism, I was doing my part.”
bernicedonald

Judges on Race: Reducing Implicit Bias in Courtrooms

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By United States Circuit Judge Bernice Donald
In December and January Law360 ran a series of free articles entitled Judges on Race. While they are all very good, we want you to particularly note Judge Donald’s article: With unconscious biases deeply embedded in the court system, judges must take steps to guard against the power and influence of stereotypes during jury selection, evidence admissibility hearings, bail proceedings and other areas of judicial decision making, says Sixth Circuit Judge Bernice Donald.The National Association of Chapter Thirteen Trustees is pleased to announce that The Honorable Bernice Donald will be the keynote speaker at its summer conference (hopefully) in Washington, D.C. Mark your calendar now for July 7-10 for an in person or virtual seminar.
autherinelucy

Autherine Lucy: Failed Integration Bid Left Lasting Legacy

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Before Brown v. Board of Education there was Autherine Lucy.
pardo

On Bankruptcy’s Promethean Gap: Building Enslaving Capacity into the Antebellum Administrative State

(Not password protected)
By Professor Rafael I. Pardo, Emory University School of Law
“. . . by looking to modern U.S. bankruptcy law’s first forebear, the 1841 Bankruptcy Act, which Congress enacted in response to the depressed economic conditions following the Panic of 1837. That legislation created a judicially administered system that nationalized bankrupts’ assets, some of which featured prominently in the business of slavery.”
webinar

Still Time to Register for Free Webinar

City of Chicago v. Fulton: What SCOTUS Did Not Say

This Friday, February 19th – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific

Join Chapter 13 Trustee Jody Bledsoe along with noted attorneys Rich Parker and Tony Sottile in a one-hour presentation on the recent Fulton decision. Our expert panel will dig into what the Supreme Court did not rule on in this case. They will also drill down into Sections 362 and 542.

Can’t attend on Friday? It is ConsiderChapter13.org’s practice to record all webinars. Although we offer live webinars FREE, access to the recordings is a benefit of subscription. Only $275/year for access to ALL of the resources! Click her to subscribe.

(If you are a solo practitioner and have been impacted by the pandemic, contact us for a discount.)

moretime

Forbearance Period Extended

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FHFA Extends Foreclosure and REO Eviction Moratoriums and COVID Forbearance Period

Note the fine print regarding forbearances – three-month extension only applies to those already in a forbearance by 2/28/21 and it is not an automatic extension – one must request it.
dontforget

Subchapter V Reminder – March 27, 2021 Deadline

(Not password protected)
In response to the economic consequences of the pandemic, the CARES Act increased the eligibility limit for electing to have a small business Chapter 11 governed by subchapter V from $2,725,625 of debt to $7,500,000. The cap is to return to $2,725,625 on March 27, 2021 (unless extended).Subchapter V candidates with debt between $2,725,625 and $7,500,000 should decide whether to file as soon as possible.
legislation

Webinar Recording Now Available

Recent Legislation January 2021Join The Honorable William H. Brown (retired), and Chapter 13 Trustees Henry Hildebrand and Debra Miller in a one hour discussion regarding consumer bankruptcy implications of the Bankruptcy Administration Improvement and Consolidated Appropriations Acts, along with some thoughts on pending legislation.New Information: During the webinar Trustee Miller mentioned a not yet available Director’s Form – several of you have emailed asking for it. The form has now been released: Supplemental Proof of Claim for CARES Forbearance Claim
nclc

From the National Consumer Law Center

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NCLC is partnering with Consumer Reports to hold credit reporting agencies accountable for errors and need your help.At least one in four of us probably has an error in our credit report. And the COVID-19 financial crisis has made that bad situation even worse.Can you check your credit report for errors, and let Consumer Reports know what you find? You’ll be a key part of a groundbreaking Consumer Reports’ people-powered research project, where thousands of consumers like you use their credit report to finally hold these powerful credit agencies accountable.
courtscales

From the Courts

(Not password protected)
openposition

Positions Open

(Not password protected)
Judgeship Positions

foryourblog

For Your Blog

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

Common and Costly Errors Taxpayers Should Avoid When Preparing a Tax Return

KenSiomos
IN CASE YOU MISSED IT . . .

Is 1328(i) Ultimately Terrible for Debtors?

By Ken Siomos, Staff Attorney for Marsha L. Combs-Skinner (Newman, IL)
Attorney Siomos focuses on how 1328(i) can hurt debtors.“The December 2020 Consolidated Appropriations Act, 2021, more commonly known as the second covid-19 stimulus bill, contains a few bankruptcy related provisions, but none stood out more with respect to Chapter 13 than the newly created § 1328(i).”See also:

February 8, 2021
Archives
markleffler

Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part 2 of 2: Thomas v. Midland Funding, LLC

By Mark C. Leffler, Boleman Law Firm, PC (Richmond, Hampton, and Va. Beach, VA)
In order to “eliminate abusive debt collection practices by debt collectors . . .”, the Fair Debt Collection Practices Act (“FDCPA”) bars debt collectors from using any “false, deceptive, or misleading representation or means in connection with the collection of any debt . . .” 15 U.S.C. § 1692e.Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part 1 of 2
KenSiomos

Is 1328(i) Ultimately Terrible for Debtors?

By Ken Siomos, Staff Attorney for Marsha L. Combs-Skinner (Newman, IL)

Attorney Siomos focuses on how 1328(i) can hurt debtors.“The December 2020 Consolidated Appropriations Act, 2021, more commonly known as the second covid-19 stimulus bill, contains a few bankruptcy related provisions, but none stood out more with respect to Chapter 13 than the newly created § 1328(i).”

See also:

legislation

 WEBINAR RECORDING NOW AVAILABLE

On 1/29/21 ConsiderChapter13.org hosted its first webinar of the year with many to come. All webinars are free if viewed live; however, access to the webinar recordings are a benefit of subscription to ConsiderChapter13.org. Not a subscriber? Click here to join now.

The Recording of “Recent Legislation January 2021” is now available.

Join The Honorable William H. Brown (retired), and Chapter 13 Trustees Henry Hildebrand and Debra Miller in a one hour discussion regarding consumer bankruptcy implications of the Bankruptcy Administration Improvement and Consolidated Appropriations Acts, along with some thoughts on pending legislation.

farmerinthenews
gaveljudge
irs

From the IRS

(Not password protected)
courtscales

From the Courts

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openposition

Positions Open

(Not password protected)

Judgeship Positions

Chapter 13 Standing Trustee

cfpb

On the CFPB

(Not password protected)
foryourblog

For Your Blog

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

Student Loan Chronicles

(Not password protected)
caution
racheljones
IN CASE YOU MISSED IT . . .

Legal Aid and Who Are Our Chapter 13 “Customers”

By Rachel Jones, Staff Attorney to Chapter 13 Standing Trustee Chris Micale, Western District of Virginia (Roanoke)
DON’T SKIP THIS ONE JUST BECAUSE YOU THINK YOU KNOW WHO OUR CLIENTELE IS!“I would argue that for the Debtors living in poverty, Trustees need to take a more panoramic approach and be mindful of the issues impacting individuals in extreme poverty. On the face of the petition and schedules, it may certainly appear some Debtors are making bad choices.”Additional recommended reading:

February 1, 2021
Archives
Beskin

Paying the Car Loan Directly vs. Through the Plan: Till Debt Us Do Part?

By Herbert L. Beskin, Chapter 13 Trustee for the Western District of Virginia (Charlottesville)
Debtor owed $13,000 to Dort Federal Credit Union on a car loan. The confirmed plan called for her to repay the loan directly to DFCU at the contract interest rate of 15%. The Trustee challenged this provision on two grounds.
geraci

Fulton’s Aftermath – What Do Chapter 13 Practitioners Need To Know?

By Nathan E. Curtis and Peter Francis Geraci, Geraci Law LLC (Chicago, IL)
NAT 1The Geraci firm takes a different approach in looking at Fulton.“Chapter 13 practitioners are urged to examine this decision more closely because the holding in Fulton is quite narrow: . . .”See also:
City of Chicago v. Fulton And the Turnover Conundrum
By Kara K. Gendron, Esquire, Mott & Gendron Law (Harrisburg, PA)Click here for the Opinion
racheljones

Legal Aid and Who Are Our Chapter 13 “Customers”

By Rachel Jones, Staff Attorney to Chapter 13 Standing Trustee Chris Micale, Western District of Virginia (Roanoke)

DON’T SKIP THIS ONE JUST BECAUSE YOU THINK YOU KNOW WHO OUR CLIENTELE IS!“I would argue that for the Debtors living in poverty, Trustees need to take a more panoramic approach and be mindful of the issues impacting individuals in extreme poverty. On the face of the petition and schedules, it may certainly appear some Debtors are making bad choices.”Additional recommended reading:

courtscales

From the Courts

(Not password protected)
openposition

Positions Open

(Not password protected)

Judgeship Positions

Chapter 13 Standing Trustee

cfpb

On the CFPB

(Not password protected)
caution

Sanctions and Irony and Fraud, Oh My!

(Not password protected)
cmoran
IN CASE YOU MISSED IT . . .

Delinquent Utilities and Disconnection Under New Bankruptcy Provision

By Cathy Moran, Esq., (Redwood City, CA)
Another great, practical piece from Board Member Cathy Moran: “Bankruptcy debtors with delinquent utility bills got a measure of protection from interruption in their service under an amendment to the Bankruptcy Code in the omnibus spending bill enacted December 27, 2020.”
January 25, 2021
Archives
gendron

City of Chicago v. Fulton And the Turnover Conundrum

By Kara K. Gendron, Esquire, Mott & Gendron Law (Harrisburg, PA)

“If the creditor is likely to lose the turnover action, it would make more sense from a cost-benefit analysis simply to turn over the property as soon as possible, without requiring a formal turnover action.”

Click here for the Opinion

cmoran

Delinquent Utilities and Disconnection Under New Bankruptcy Provision

By Cathy Moran, Esq., (Redwood City, CA)
Another great, practical piece from Board Member Cathy Moran: “Bankruptcy debtors with delinquent utility bills got a measure of protection from interruption in their service under an amendment to the Bankruptcy Code in the omnibus spending bill enacted December 27, 2020.”
Merideth-Akers

In The Staff Department

I Feel A Change Coming On (Song by Bob Dylan, 1964)

By Merideth Akers, CPA, PHR, Comptroller for Bradford W. Caraway (Birmingham, AL)

This week we launch the first in a new, ongoing series of articles directed to staff – particularly staff of trustees’ offices but many of the lessons conveyed will transfer to support staff of any office type.

“Every Trusteeship has encountered unexpected change during the past year.”

JohnGJansing

Meet a Newish Trustee

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On October 1, 2019, John G. Jansing was appointed Chapter 13 Standing Trustee for the Southern District of Ohio at Dayton. John took over from Jeff Kellner, who retired and moved to New Hampshire.
courtscales

From the Courts

(Not password protected)
openposition

Positions Open

(Not password protected)

Judgeship Positions

Chapter 13 Standing Trustee

foryourblog

For Your Blog

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

Congress Approves $25 Billion in Rental Assistance. Here’s How to Apply

caution
markleffler
IN CASE YOU MISSED IT . . .

The Proposed Consumer Bankruptcy Reform Act: A Political Analysis

By Kevin M. Ball, Eastern Michigan University
“This memorandum provides a brief description of the reasons that the legislation is likely to fail and proposes that the Chapter 13 trustees best chance to defeat the legislation comes from aligning themselves with other interests opposed to its passage.”
January 18, 2021
Archives

mlk

supremecourt

SCOTUS Decision: Section 362(a)(3) Is Not Violated by Retention of Repossessed Propert

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On January 14, 2021, the Supreme Court held in City of Chicago v. Fulton, 592 U.S. _____ (2021), that “mere retention” of estate property after the filing of a bankruptcy petition does not violate § 362(a)(3) of the Bankruptcy Code. Essentially, in order to recover property from a repossessing creditor, turnover under § 542 would be required. Watch for more about the opinion and its ramifications coming soon.Click here for the Opinion
ahern

Creditors’ Rights and Debtors’ Protections at the Intersection of Consumer Bankruptcy and UCC Article 9 – Part VII

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN)
In the consumer bankruptcy field, practitioners are often uncomfortable with the rules in UCC Article 9. Ahern has written a series for the Academy, designed to review Article 9’s rules related to consumer transactions. This week, he concludes his review of Article 9’s rules related to consumer transactions with an essential analysis of penalties imposed on creditors for violations of rules regulating their exercise of remedies.Click here for Part I
Click here for Part II
Click here for Part III
Click here for Part IV
Click here for Part V
Click here for Part VI
markleffler

The Proposed Consumer Bankruptcy Reform Act: A Political Analysis

By Professor Kevin M. Ball, Eastern Michigan University
“This memorandum provides a brief description of the reasons that the legislation is likely to fail and proposes that the Chapter 13 trustees best chance to defeat the legislation comes from aligning themselves with other interests opposed to its passage.”
law

1/12/21 – Bankruptcy Administration Improvement Act Signed Into Law

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Bill modifies administrative provisions related to the bankruptcy trustee system. Specifically: (1) provides for the distribution of bankruptcy fees made to the U.S. Trustee System Fund for the costs of administering payments and trustee compensation, (2) establishes the Chapter 7 Trustee Fund and associated fees, and (3) extends the temporary office of bankruptcy judges in specified judicial districts.

courtscales

From the Courts

(Not password protected)
irs

From the IRS

(Not password protected)
  • Recovery Rebate Credit – No Double Dipping – this credit is ONLY for folks who did NOT receive their stimulus payments ($1,200 and $600)
openposition

Positions Open

(Not password protected)

Judgeship Positions

Chapter 13 Standing Trustee

debt

Student Loan Chronicles

(Not password protected)

Biden to Extend Pause on Federal Student Loan Payments

foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
  • Notice: If You Are a Former Member of Members 1st Federal Credit Union Who Was Charged Overdraft Fees between March 29, 2015 and January 14, 2019, and who had closed their accounts prior to January 14, 2019, You May Be Eligible For Benefits Under a Class Action Settlement.
appnotworking

From the Judiciary

(Not password protected)

ChapMobile App Not Working as of 1/15/21

On January 14, 2021, updates were made on Google servers which affected the display of Hearing and 341 Calendars for the ChapMobile App. Although the main display of the hearing and 341 calendars will not produce data, the Search functions within these areas will produce results. This is a national problem, but the Judiciary has isolated the issue and has adjusted the ChapMobile App code to match the changes made by this Google update. The Judiciary will be deploying an updated ChapMobile App to the Apple and Google App Stores as soon as possible. We anticipate the new app will be released by the App Stores in the next few days. Users will receive the update via their devices.
williambrown
IN CASE YOU MISSED IT . . .

Just the Facts, Ma’am – Consolidated Appropriations Act, December 27, 2020

By The Honorable William Houston Brown (Retired)
hildebrand

Never Let a Good Crisis Go to Waste: The Bankruptcy Amendments in the Consolidated Appropriations Acts of 2021

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of Tennessee (Nashville)
January 11, 2021
Archives
williambrown

Just the Facts, Ma’am – Consolidated Appropriations Act, December 27, 2020

By The Honorable William Houston Brown (Retired)

Judge Brown looks at the “Stimulus Bill”

“Consumer bankruptcy issues are addressed in Title X of the Act, section 1001, which amends Bankruptcy Code § 541(b)’s exclusions from property of the estate, adding subsection 11 for certain coronavirus relief, defined as “recovery rebates made under section 6428 of the Internal Revenue Code.” . . . Section 1001 also amends Bankruptcy Code § 1328 to add subsection (i)(1), . . .”

hildebrand

Never Let a Good Crisis Go to Waste: The Bankruptcy Amendments in the Consolidated Appropriations Acts of 2021

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of Tennessee (Nashville)
“While several of the bankruptcy provisions are to be expected – such as excluding stimulus payments made under the Internal Revenue Code from being considered property of the estate or disposable income – the law creates, for a one-year period, a substantial modification in § 1328 . . .”
kevinanderson

Statistics – Sad but True

From The Honorable Kevin R. Anderson, United States Bankruptcy Court for the District of Utah
racheljones

Legal Aid and Who Are Our Chapter 13 “Customers”

(Not password protected)
By Rachel Jones, Staff Attorney to Chapter 13 Standing Trustee Chris Micale, Western District of Virginia (Roanoke)
Attorney Jones looks takes a graceful look at poverty in America. “What I found most troubling about low-income representation is how one, seemingly minor but frustrating, episode to the middle or upper classes, can be devastating for a low-income individual.”
bernstein

Passing of Judge Bernstein

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“Intellectually curious and committed to helping develop a generation of excellent attorneys, Bernstein continued to teach while building his own career, including courses at the University of Toledo, Wayne State and the University of Detroit law schools.”

Click here for obituary

openposition

Positions Open

(Not password protected)

Judgeship Positions

Chapter 13 Standing Trustee

cfpb

From the CFPB

(Not password protected)
foryourblog

For Your Blog

(Not password protected – this category offers suggestions for trustee or debtor attorneys’ blogs)
markleffler
IN CASE YOU MISSED IT . . .

Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases

By Mark C. Leffler, Boleman Law Firm, PC (Richmond, Hampton, and Va. Beach, VA)
Derby III is important to debtor’s attorneys, trustees, and creditors, because it demonstrates the broad powers Rule 3001 affords bankruptcy courts to govern the claims process.”
January 4, 2021
Archives
markleffler

Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases

By Mark C. Leffler, Boleman Law Firm, PC (Richmond, Hampton, and Va. Beach, VA)
Derby III is important to debtor’s attorneys, trustees, and creditors, because it demonstrates the broad powers Rule 3001 affords bankruptcy courts to govern the claims process.”
cmoran

Chapter 13 Discharge Expanded by COVID Relief Legislation

By Cathy Moran, Esq., Moran Law Group (Redwood City, CA)
“While generous in intent, the drafting of amended 1328(i) is sketchy and its other bankruptcy provisions only marginally coordinate with other bankruptcy provisions of the CARES Act of March, 2020. . . . Maybe I’m wrong, but I suspect we’re going to spend a bunch of time speculating on what the drafters intended.”
courtscales

From the Courts

(Not password protected)
takethesurvey

Consumer Attorneys Work and Fee Survey

(Not password protected)

Your assistance is requested.This is the 21st year that Ron Burdge has undertaken the herculean task of surveying consumer attorneys about their work and fees. The last published Consumer Bankruptcy Survey Report was 371 pages of detailed city and state data, that breaks down the fees that different courts allow and that attorneys charge for the various aspects of consumer rights and bankruptcy cases. There has never been any charge for the survey reports that are published and generously posted online for everyone’s use.Previous reports have been used in Courts nationwide to award more than thirty million dollars in attorney fees to consumer advocates all over the country, including consumer bankruptcy attorneys. State and Federal Courts routinely rely on this report in awarding hourly fees in consumer cases. (If they aren’t using this report in your cases, you should be using it as evidence!) It is one of the primary resources that has been used to increase presumptive fees set by bankruptcy courts in Chapter 13 cases and also invaluable for attorneys in setting their fees for Chapter 7 cases.

The more people that participate the more accurate and useful the data becomes, so please feel free to share this with your local listservs and Google groups.

Go to www.AttorneyFeeStudy.com to fill out the online questionnaire. The survey does not obtain any personal information and there is no charge to participate and no charge for obtaining the published survey results.

taxcredit

CARES Act FFCRA Tax Credit Extended

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Congress Extends FFCRA Tax Credit into 2021, Declines to Extend FFCRA Leave

For employers with under 500 employees . . . beginning 1/1/21, employers are no longer required to provide Covid leave; however, covered employers who voluntarily offer such leave may utilize payroll tax credits to cover the cost of benefits paid to employees through the end of March.Click here for more information.
moneyhide

State-By-State Guide to Litigation Financing Disclosure

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Not the normal kind of thing you would see at ConsiderChapter13.org, but a very informative resource from Mondaq.“. . . , we now share an overview of similar procedures for determining whether a plaintiff has taken out a loan in 12 other states.”
openposition

Positions Open

(Not password protected)

Judgeship Positions

cfpb

On the CFPB

(Not password protected)
  • You need to glance at this one. Our guess is that Debtor Attys will see debts from these cards in the future. . . . CFPB Issues Approval Order to Facilitate the Use of Dual Usage Credit Cards “The card is designed for consumers with a limited or damaged credit history as a tool that can be used to establish or reestablish a favorable credit history. Synchrony intends to offer a lower rate on secured use with the opportunity for eligible accountholders to graduate to unsecured use after 12 months.”
foryourblog

For Your Blog

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

Debt Collectors Can Now Contact Borrowers Through Social Media

hildebrand
IN CASE YOU MISSED IT . . .

Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of Tennessee (Nashville)
An important, “critical” case analysis for each player in the bankruptcy arena – trustees, creditors and debtor attorneys.Section 506(d) does not allow the voiding of a lien when the underlying claim, filed by the debtor, has been disallowed; when notice is provided to a corporation it must be addressed to the individual who holds the office of an officer, manager, or general agent.