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NACTT CHICAGO . . . “Best conference ever” . . .

. . . are the types of outstanding feedback we are hearing on the NACTT annual conference. Comments like, ‘excellent panels’, ‘top notch speakers.’ If you missed the conference, recordings are now available, including single sessions.

CONGRATULATIONS TO ALL!!! – Winners Include

Sarah Smith (iPad); Andrew Jimenez (iPad mini) Pictured here.

VISA Gift Cards: Laila Gonzalez, Kathleen Mills, and Michael Frank

Academy Winners: Susan Luong (conference DVDs); Andraya Mimms (Adonit Jot Pro Stylus)

Mark your calendar now for next year’s conference – July 2-4, 2015 – Salt Lake City – Be there!

(Note to Chicago Attendees: The Educational Materials Website will be available until July 31st. Please let us know if you need assistance.)

• Surcharge of exemption violated § 522(k)
• Turnover to trustee not restricted to property of estate at time motion filed
• Sale of Texas homestead
• Exception from normal judicial estoppel

“The Bankruptcy Court held that because Frost did not reinvest the $23,000.00 in proceeds which were spent on medical bills and a vehicle, he had re-characterized the proceeds as nonexempt property – required to be paid into Frost’s Chapter 13 plan. The Fifth Circuit affirmed this holding.”

For the first time ever, you can attend a course in the prestigious St. John’s Bankruptcy LL.M. program from your desk or home, and receive CLE credit. Click here for more information . . .

• CFPB, Federal Trade Commission and States Announce Sweep Against Foreclosure Relief Scammers – CFPB Files Suits for Operations that Used Deception and False Promises to Collect More than $25 Million in Illegal Fees from Distressed Homeowners
• NCLC Reviews the Agency’s Top Consumer Protection Hits and Next Steps

Detroit Bankruptcy Judge Steven Rhodes’ Rock Band The Indubitable Equivalents Prepares For Vermont Gig

“Dear Readers: This month, let’s talk about fees.” Another great offering from Ms. Ps & Qs.Don’t forget, if you have a question for Ms. Ps & Qs, send it to us by utilizing the Contact Us feature in the toolbar above.

NACTT CHICAGO . . . WOW

Program Chair, Mary Ida Townson, along with
the Academy, did a tremendous job with this year’s agenda.
1,075 of the brightest and the best from the
consumer bankruptcy community converged on the Windy City.
A great time was had by all and just may have accidentally learned something!

“Dear Readers: This month, let’s talk about fees.” Another great offering from Ms. Ps & Qs.

Don’t forget, if you have a question for Ms. Ps & Qs, send it to us by utilizing the Contact Us feature in the toolbar above.

“Undistributed funds held by a Chapter 13 trustee at the time a debtor converts to a Chapter 7 should thereafter be distributed to creditors in accordance with the plan in place at the time the funds were received.”

Judge Waldron is back with another must read . . . “This article acknowledges that parties in family law proceedings terminating a marriage do consider debt in their universe of concerns.”

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This week, the conclusion to Judge Waldron’s look at marital dissolution intertwined with bankruptcy.

Ms. Scott looks at 2 recent Ninth Circuit decisions. “Both decisions allowed debtors to discharge student loan debt.”

“While there have been many recent articles in multiple bankruptcy publications, . . . , this is not such an endeavor. Rather, this will examine how we got here and some of the political and economic issues related to what has rightly been called the student loan crisis.”

“Undistributed funds held by a Chapter 13 trustee at the time a debtor converts to a Chapter 7 should thereafter be distributed to creditors in accordance with the plan in place at the time the funds were received.”

This week, the conclusion to Judge Waldron’s look at marital dissolution intertwined with bankruptcy.

Ms. Scott looks at 2 recent Ninth Circuit decisions. “Both decisions allowed debtors to discharge student loan debt.”

“While there have been many recent articles in multiple bankruptcy publications, . . . , this is not such an endeavor. Rather, this will examine how we got here and some of the political and economic issues related to what has rightly been called the student loan crisis.”

• Attorney fee award against IRS was based on litigation cost statute
• Multiple filings not cause for in rem relief
• Stay annulment reversed
• Effect of defective mailing address

In perfect timing for this week’s NACTT annual conference in Chicago, Trustee Burden brings us a practical tool we can all benefit from. A ‘how to’ on taking notes with smart devices.

Chico, California’s Ken Baker succumbed to kidney failure – Memorial Service July 11^th

• NCLC Advocates Applaud Rule Clarifying Mortgage Rights of Heirs; Urge Further Action
• CFPB Takes Action Against Ace Cash Express For Pushing Payday Borrowers Into Cycle Of Debt – ACE to Pay $10 Million for Using Illegal Debt Collection Tactics to Pressure Consumers Into Debt Traps

Judge Waldron is back with another must read . . . “This article acknowledges that parties in family law proceedings terminating a marriage do consider debt in their universe of concerns.”

“This kind of multi-factored test is quite common and rarely results in consistency; these tests are incredibly subjective and vague. This is the problem with the Code’s drafting.”See also articles on student loans in the news:

• Interest Rates Rising Modestly on Student Loans
• The Stupidity of Student Debt

Discharge and Dischargeability is Judge Brown’s topic this week:

• Court had authority under Rule 9011
• Debtor did not require court approval of special counsel

• “Thank You, SCOTUS; It’s About Time!”: Supreme Court Grants Cert to Decide Meaningful Stern v. Marshall Questions
• Bankruptcy Proceedings: Dare We Hope for Some Clarity on Stern?
• Did The Supreme Court Finally Explain Marathon And Stern? Executive Benefits’ Impact on Bankruptcy Court Jurisdiction
• Supreme Court Hits New Low: Only 30% Have Confidence in Justices

• NM Supreme Court: Exorbitant Payday Loans Violate State Law – 2 1,000% Interest Rate Companies To Pay Back Customers
• Idaho Payday Loan Act Protections Effective July 1
• What We All Can Learn from the Military’s Payday Loan Problem

“Wells Fargo Bank, N.A. v. Scantling . . . Court answered the Chapter 20 lien strip question that had previously vexed the lower courts, and had created division and district splits. . .”

MME’s workshop will cover how to analyze debtors’ qualifications for numerous programs such as HAMP Tier I, HAMP Tier II, Fannie Mae, Freddie Mac, FHA, VA, National Mortgage Settlement, and more.

“Wells Fargo Bank, N.A. v. Scantling . . . Court answered the Chapter 20 lien strip question that had previously vexed the lower courts, and had created division and district splits. . .”

Where debtors have made all payments to the trustee as required by their plan but failed to maintain “conduit” payments to the mortgage creditor, the debtors did not make all payments under their plan and their case should be dismissed.

The NACTT and the Academy are highly honored that Judge Pam Pepper, along with Trustee Ronda Winnecour and Attorney Larry Ahern, will be conducting a workshop on evidence at the upcoming NACTT Annual Conference in Chicago.It’s not too late to register!!

Discharge and Dischargeability is Judge Brown’s topic this week:

• Late-filed state income tax returns qualified as “returns” for discharge
• State’s Single Business Tax of defunct company was nondischargeable excise tax in former officer’s case
• Creditors justifiably relied under § 523(a)(2)(A)
• Imputing agent’s fraud requires that debtor knew or should have known of agent’s fraud

MME’s workshop will cover how to analyze debtors’ qualifications for numerous programs such as HAMP Tier I, HAMP Tier II, Fannie Mae, Freddie Mac, FHA, VA, National Mortgage Settlement, and more.

“This voluntary program will be a step to help protect taxpayers during the 2015 filing season,” said IRS Commissioner John Koskinen.

. . . “having lost its value, money may no longer be the root of all evil; credit having taken its place.”

Another SCOTUS decision . . . “The Supreme Court focused on the meaning of ‘retirement funds;’ therefore, the reach of the Clark opinion to state exemptions that use that term is open to question.”

. . . “having lost its value, money may no longer be the root of all evil; credit having taken its place.”

Discrimination is Judge Brown’s topic this week:

• Former debtor not protected in political appointment

• Attorney apologizes for potentially fake document in DECA case

Are proceeds of post-confirmation stay violations property of estate? Brief of Appellee – Crouser v. BAC Home Loans – Court affirmed in an unpublished opinion.

Ms. Ps & Qs brings an ethics article which speaks to ALL of us. Ms. Ps & Qs has outdone herself, again, with a thoughtful and well-researched look at stress and its relation to ethical conduct.

“The Supreme Court made one thing perfectly clear in its 9-0 ruling on In re Bellingham. It doesn’t always reverse the Ninth Circuit.”Click here for the Opinion . . .

Executive Benefits Insurance Agency v. Arkison (In re Bellingham) 2014 WL 2560461 (S.Ct. June 9, 2014) (Thomas)”When a bankruptcy court is called upon to adjudicate a “core” matter, as defined by the statute, as to which the bankruptcy court is not given Constitutional authority to decide per Stern v. Marshall, 564 U.S. ______, 131 S.Ct. 2594 (2011), the statute will be construed to treat such matters as “non-core” subject to de novo review by an Article III court.”See also Credit Slips: Stern II, now time for Stern III While Prof. Pottow’s comments are minimal, the blogged comments under the article are worth the glance.

Lest Ms. Ps & Qs gets overshadowed by SCOTUS, click here, for an ethics article which speaks to ALL of us. Ms. Ps & Qs has outdone herself, again, with a thoughtful and well-researched look at stress and its relation to ethical conduct.

The Editor looks at modification this week:

• Decision certified to Fifth Circuit on whether above-median debtor may receive discharge prior to completion of 60-month plan
• Postconfirmation modified plan not required to comply with projected disposable income test.

• Another Judge Expresses Concerns About Pittsburgh Bankruptcy Lawyer  (You may have to answer a marketing question in order to read this article.)

“To determine what portion of a tax refund, payable jointly to a debtor and a debtor’s non-filing spouse, is property of a Chapter 7 estate, the Court must apply the ‘separate filings rule’ and analyze what each taxpayer would have received had they filed separate tax returns.” Click here for more . . .

“. . . That got me thinking about the judicial experience of the other Justices.” . . . Click here for more.

Discharge is what Judge Brown is thinking about this week:

• Ineligibility for loan restructure supported § 523(a)(8) undue hardship.
• Marital relationship did not constitute express or technical trust for purposes of § 523(a)(4).
• False pretense in settlement justified § 523(a)(2) exception.

• Attorney Babcock Experiences Setback in Home Foreclosure Fight (Atty Babcock’s response to suspension)

See also Academy Brief Bank: Trustee’s Appeal of Court’s Calculation of Disposable Income re: Business Expenses Deducted From CMI or to Obtain CMI

See also Academy Brief Bank: Trustee’s Appeal of Court’s Calculation of Disposable Income re: Business Expenses Deducted From CMI or to Obtain CMI

“Although the decision in Michigan v. Bay Mills Indian Community was a victory for the tribe (which was resisting a state lawsuit over the tribe’s illegal casino), the Court’s reasoning demonstrates that tribal-affiliated payday lenders are not above the law.”  (Not password protected.)

Judge Brown brings us several topics of differing issues this week:

• Trustee was “person acting under” officer of United States for removal of suit
• Disposable Income: Step up payments required after completion of 401(k) loan
• Disposable Income: Payments on stripped mortgage were part of projected disposable income
• Effect of Confirmation: Disputed claim “provided for” by plan

• Disbarred Lawyer Accused of Cheating Client of $54,000, Pleads Not Guilty
• Attorney Disbarred For Taking $100K From Client Days Before She Died

Elizabeth Vaughan is back in the news. We first met Ms. Vaughan last year . . .Click here for more.

“Dated February 12, 1771, it is a memorandum signed by the creditors who attended the meeting of creditors at the Turk’s Head Tavern. (Unlike old English indentures, this document is short and easy to read.)“

• Dallas Bankruptcy Attorney Pleads Guilty to Felony Offense

Lien Stripping is on the mind of the Editor this week:

• Court could not strip lien on tenancy by entirety
• Debtor ineligible for discharge could not cram down lien
• Untimely proof of claim did not void lien
• For lien stripping, petition date proper time to value property and determine senior lien

• CFPB Supervision Report Highlights Risky Practices In Nonbank Markets (i.e. Payday lenders) - Return More than $70 Million to 775,000 Consumers

Ms. Ps & Qs brings us practical advice for behavior both in and out of the courtroom and if you’re thinking you don’t need to read it, yes, YOU do! “If one mantra in bankruptcy is ‘disclose, disclose, disclose,’ another one is ‘tone, tone, tone.’ . . . Your stress level will decrease if you start with the assumption that the other side is neither stupid nor evil.”

As a result of the webinar Why Your Clients Should Consider Chapter 13, more questions were submitted than could be answered in a single webinar. Our panelists are diligently working to answer these questions. Here, they answer two more questions generated from the webinar: (1) Is it 7 years from filing or from discharge? (2) Are people finding they can get around the 910 day restriction by saying car titled to the debtor was bought for another person’s use, not the debtor’s use.*Responses were prepared prior to Gustafson’s judicial appointment.

This week’s installation From the Editor includes one case on a spouse’s income being considered for abuse purposes and a plethora of cases on discharge – all Chapter 7 issues.

U.S. Department of Justice announced an enforcement action against Sallie Mae, the largest servicer of federal and private student loans, which was found to be systematically violating the legal rights of U.S. servicemembers.

Vesting, re-vesting, at confirmation, if not at confirmation then when??? Attorney Bruce looks at case law showing the importance of vesting timing.

Exemptions Part 2. Academy Editor & Advisor Wm. Houston Brown and notable bankruptcy expert Larry Ahern follow-up on their December 2013 Saving Homes and Stripping Liens webinar. Both Brown and Ahern are experts as they literally wrote the book: Bankruptcy Exemption Manual, 2013 ed. (West’s Bankruptcy Series). This webinar is designed for attorneys at an advanced level.FREE to Academy members, this webinar recording is now available. For non-members, we offer a pay per view option.

The Staff Attorney to former Chapter 13 Trustee Philip A. Geddes was appointed as the Standing Chapter 13 Trustee for the Northern Division of the Northern District of Alabama on April 16, 2014. Congratulations Mike! Click here for more . . .

The conclusion of Judge Gustafson’s “Windfalls” outline addresses The Tyler Decision. We hope you have enjoyed this extensive outlineClick here for Part 1
Click here for Part 2
Click here for Part 3
Click here for Part 4
Click here for Part 5*This outline was written and submitted prior to Gustafson’s judicial appointment.

“These call center data security issues in the Philippines are most worrisome. They raise serious questions regarding the potential liability of U.S. bankruptcy attorneys for possible damages sustained by their clients who may suffer from identity fraud and telephone ‘scams’ as a result of recommending a low-cost BK Ed provider that outsources its credit counseling and business support services to a call center in the Philippines.”

This week, Judge Brown looks at 3 cases pertaining to property of the estate and exemptions:

• Annuity purchased through rollover from tax-exempt IRA remained exempt.
• Annuity claimed as exempt was still in estate until time to object to exemptions expired, with analysis of stay relief.
• Lack of timely objection to exemption did not prevent trustee asserting higher than scheduled value of entireties property.

• CFPB Spotlights Mortgage Debt Challenges Faced By Older Americans - CFPB Issues Advisory about Managing Mortgage Debt in Retirement
• CFPB Proposes Rule To Promote More Effective Privacy Disclosures - Rule Would Benefit Companies That Limit Consumer Data-Sharing

As a result of Why Your Clients Should Consider Chapter 13, more questions were submitted than could be answered in a single webinar. Our panelists are diligently working to answer all of your questions. Here, we begin publishing the first in a series of answers. This week, student loan issues are addressed.  As a gift from the authors, this article is NOT password protected.

Academy Board Member and Chapter 13 Standing Trustee Beverly Burden provides members with two new additions to the Academy Toolbox, sub-heading Debtor Attorney:

• Agreement For Chapter 13 Bankruptcy Services (Retainer Agreement)
• Checklist For Drafting A Retainer Agreement For Chapter 13 Clients

Only two parts left . . . Part 5 of Judge Gustafson’s “Windfalls” outline continues by ‘Talking Turkey About The Chapter 13 Trustee’s Dilemma With Post-Petition Windfalls – Conversion, Dismissal, Early Payoffs, Etc.’

Click here for Part 1
Click here for Part 2
Click here for Part 3
Click here for Part 4

This week, Judge Brown looks at 4 cases pertaining to avoidance actions:

• Chapter 13 debtor had standing for avoidance of attorney’s lien on homestead.
• Chapter 7 trustee’s abandonment did not deprive court of jurisdiction to hear § 522(f) lien avoidance.
• Chapter 13 debtors had authority to bring avoidance action.
• Lien avoidance and domestic support obligation.

• Boxer, Schumer: Reverse Mortgage Companies Threatening Heirs of Deceased Homeowners With Foreclosure Unless They Pay More Than Legally Required
• Why Thousands of Homeowners are Getting Money For Mortgage Abuses They Never Suffered
• Two Giant Banks, Seen as Immune, Become Targets
• Why Only One Top Banker Went to Jail for the Financial Crisis
• Detroit man accused of filing tax returns for the dead sentenced to 2 1/2 years in prison
• Former Westmoreland Clerk Charged With Altering Mortgage Records To Hide Pending Foreclosure

• IRS Seeks Applications for the Internal Revenue Service Advisory Council

Ms. Ps & Qs brings another fascinating case all should be aware of. “You all know about the importance of ‘wet’ signatures, right? . . . Lessons? Wet signatures are important. Following local rules are important. And blaming others for your mistakes? Not a great idea.”

9th Circuit BAP Reverses Bankruptcy Court in Drummond v. Luedtke (In re Luedtke).

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Drummond v. Luedtke (In re Luedtke) provides additions to the Academy’s Brief Bank:

• Drummond Appellant Brief
• Luedtke Appellee Brief
• Drummond Appellant Reply Brief

Part 4 of Judge Gustafson’s “Windfalls” outline continues by answering the questions:

• What About Other Substantial Assets Acquired Post-Petition?
• If The Debtor Is Judicially Estopped – Is The Chapter 13 Trustee?

Click here for Part 1
Click here for Part 2
Click here for Part 3

*This outline was written and submitted prior to Gustafson’s judicial appointment.

This week, Judge Brown looks at 4 cases pertaining to claims:

• Untimely claim basis for disallowance but not lien avoidance, and stay relief motion was not informal proof of claim.
• Failure to provide notice of correct cure amount required disallowance of claim.
• State law did not make debt unenforceable for purposes of § 502(b)(1).
• Insufficient notice justified allowance of late-filed claim.

A Qualitative Study of Mandatory Debtor Financial Education by Assistant University of Denver Sturm College of Law Professor Michael D. Sousa

• In Memory of Leonard M. Rosen