The Bankruptcy Court for the Eastern District of VA, imposed sanctions against a veteran attorney by barring him from practicing law before that court for six months. He is also banned from even entering the Courthouse.

Click here for Memorandum Opinion

• Moline Man Gets Two Years In Prison For Bankruptcy Fraud

• Wells Fargo Hit with Record Finds, Will Pay $1 Billion For Mortgage, Auto Lending Abuses

• Suntrust Employee May Have Tried To Steal Data From 1.5 Million Customers

• Debtor’s Valuation of Worker’s Comp Claim Insufficiently Supported

• Proposed Student Loan Cap Could Devastate Law Schools

• Why Would the Government Stop States From Helping Student Borrowers?

A continuation of last week’s links regarding signatures . . . From our friends at Credit Slips . . .

• Farewell to Signatures…

Systems Engineer/Courtroom Technology Administrator
Bankruptcy Court, Western District of Virginia
Application Due Date: April 19, 2018

Term Law Clerk
United States Bankruptcy Court, McAllen, TX
Application Due Date: Sep 1, 2018

Term Law Clerk
U.S. Bankruptcy Judge Joseph Meier
Boise, ID
Application Due Date: May, 27, 2018

• Argument Preview: Court to Decide Whether Bankruptcy Code Protects Dishonest Debtors

• Neurosurgeon to Admit Charge in Bankruptcy Fraud Case

• Rancho Sante Fe Couple Sentenced to Prison for Fraud, Tax Evasion

• Boulder Spinal Surgeon Set for May Trial on Bankruptcy Fraud, Money Laundering Charges

• Madoff Victims Get Another $500M from Recovery Efforts

• Bernie Madoff’s Beachfront Mansion Is Selling for $21 Million– Currently owned by Vornado chairman Steven Roth

• EITC Is Income Which May Be Prorated and Offset with Expenses

• U.S. Lawmakers Quiz Trump’s Consumer Chief Over Lack of Action

• Credit Card Signatures Are About to Become Extinct

• Why Signatures Matter

• Rules to Know for VA-Backed Adjustable-Rate Mortgages

• The 0% Auto Loan Era Is Fading into America’s Rearview Mirror – Average rate has risen to highest since 2009, Edmunds says

• Case Against Georgia Debt Collector Settled For $8.5M

• Roanoke Lawyer Loses License Following Claims of Bankruptcy Misconduct

• PHEAA Urges Caution as Millions Victimized by Student Loan Scams & Misleading Solicitations

• Ossineke Man, Parents Convicted In Bankruptcy Fraud Scheme

• Hackers Steal Credit Card Information for More Than 5 Million Saks Fifth Avenue, Lord & Taylor Shoppers

• Fourth Circuit Reverses Bad Decision on Chapter 13 Lien Stripping

• Mortgage Servicing FAQs – The questions and answers pertain to compliance with Regulation X and Regulation Z, effective April 19, 2018.

• Changes for Servicing Mortgages for Consumers in Bankruptcy: Are You Prepared for Compliance?

• Tax Refund Garnished Due to Student Loan Default? Here’s How to Get It Back

• These Are The Ways Student Loans Stop People From Buying A House

• How You Can Requalify for Public Service Loan Forgiveness – Student loan borrowers may have another shot at loan forgiveness thanks to a new law.

• A Look at Geographic Distribution of Student Debt

• Midlife ‘Wealth Shock’ May Lead To Death, Study Suggests – Big financial loss may shorten your life, study suggests

• How to Get the Best Tax Deductions If You Have Kids, Home, Student Loans

Chapter 13 Trusteeship Opening
Southern District of Texas, Corpus Christi
Application Due Date: April 23, 2018

Term Law Clerk
United States Bankruptcy Court, McAllen, TX
Application Due Date: Sep 1, 2018

Chapter 7 Trusteeship Opening
Middle District of Georgia, Albany Division
Application Due Date: April 16, 2018

• Portland-Area Man Wins Reported Seven-Figure Whistleblower Settlement from Wells Fargo Formerly enslaved by the Khmer Rouge, Duke Tran lived the American dream until a big bank fired him.

• Newfoundland, PA Woman Indicted on Bankruptcy Fraud Charges

• New York Bankruptcy Attorney Admits Embezzling Funds

• Allman Could Be Disbarred, Face Jail Time Soon

• Personal Injury Attorney Reprimanded for Punching Man in Face (not bankruptcy related but a great headline)

• Lawyer Sanctioned $50K For Alleged ‘Inappropriate Diatribes’ And ‘Unhinged Attack’ On Expert (not bankruptcy related)

• Mortgage Servicing FAQs – The questions and answers pertain to compliance with Regulation X and Regulation Z, effective April 19, 2018.

• RFIs – Each week since the end of January, the CFPB has (and will continue to) issued RFIs (Request for Information). ConsiderChapter13.org has not spotlighted these RFIs; however, if you are interested click here and scroll down for a listing of the RFI’s.

• (This one is important) Consumer Bankruptcy Committee Issues Observations and Recommendations Re: Student Loans

• Tips for Updating Form W-4 After Doing a Paycheck Checkup

• Step-by-Step Instructions for Using the IRS Withholding Calculator – The IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.” This is even more important this year because of recent tax law changes.

Back in September, ProPublica published two articles discussing racial patterns in bankruptcy filings. Their analysis considered statistics from across the country, but they focused on one judicial district in particular: the Western District of Tennessee. In this three part series, Law Clerk Ricky Hutchens examines, point by point, the reporters conclusions.

“Beyond all the legal and strategic reasons to choose Chapter 13 over Chapter 7, there is the debtor himself. Debtors are, after all, people.”

(Used with permission, originally published by BankruptcyMastery.com 2018)

“ . . . the vast bulk of all other legal recoveries ARE taxable under IRS Section 104. However, in the past, one could deduct the costs to obtain the award under the miscellaneous expense deduction.” But no more.

• Change in Prime Interest Rate

• Federal Reserve Raises Interest Rates: What it means for your wallet

• Stormy Daniel’s Three-Way (Contract) & Donald Trump’s Performance Problem (Sorry folks, couldn’t resist this title)

REGISTER NOW

In partnership with The Academy, Morgan King is offering a $200 discount to Academy members.

Please email Regina for the discount code. Register now to receive the conference hotel rate at the Marriott at Fisherman’s Wharf.

• How Often Do Medical Problems Lead to Bankruptcy? Poor health is a less common cause of bankruptcy than commonly thought, but it brings other economic woes, study finds.

• After a Hospital Stay, People are More Likely to Go Bankrupt

• Medical Bankruptcies Are Not as Common as Previously Thought, Study Finds

• Getting Sick Can Be Really Expensive, Even for the Insured – Beyond medical costs, a trip to the hospital can mean a permanent reduction in income for many Americans, new research shows

• February 2018 Study: American Economic Association: The Economic Consequences of Hospital Admissions

• June 2017 Study: The Economic Consequences of Hospital Admissions

• (This one is important) Consumer Bankruptcy Committee Issues Observations and Recommendations Re: Student Loans

• You May Soon Be Able to Declare Bankruptcy on Your Student Loans – Here’s How

• Student Loans: The Modern-Day Debtor’s Prison (A “Certainty of Hopelessness” Standard for Discharge?!) and a Tax Glitch

• Connecticut Bankruptcy Court Rejects Claw Back of Parent Plus Loan Proceeds

• Chinese Companies Are Buying Up Cash-Strapped U.S. Colleges

• This Community (LGBTQ) Has 17% More Student Loan Debt. Is Bankruptcy the Answer?

• Bill to Prevent Revoked Medical Licenses Over Student-Loan Debt Passes TN Senate

• In Texas, Falling Behind on Student Loan Payments Can Cost You Your License to Work

• Consumer Lawyers Want to End Education Department’s Partial Student Debt Relief Plan

Where’s My Refund?

We are pleased to provide a synopsis of this final rule.

Click here for Press Release (Not password protected)

Click here for Final Rule Effective Date April 19, 2018 (Not password protected)

• Confirmation Effect: Creditor bound by plan modifying mortgage

• Debtor’s Authority: No requirement for approval of professional’s employment by debtor

• Disposable Income: Contribution to retirement account

We are pleased to provide of synopsis of this final rule.

Click here for Press Release (Not password protected)

Click here for Final Rule Effective Date April 19, 2018 (Not password protected)

Some of What You Will Learn:

• Which transcripts to get, understanding tax transcripts, transcript red flags
• What is a “tax return”?
• Tax evasion & fraud
• How to interview the clientand communicate with the IRS
• The problems of using automated online tax discharge analysis
• Marketing & building your tax solution practice
• Stripping tax liens
• Litigating tax issues in bankruptcy court
• Non-bankruptcy solutions (OIC, CDPA)

In partnership with The Academy, Morgan King is offering a $200 discount to Academy members.

Please email Regina for the discount code. Register now to receive the conference hotel rate at the Marriott at Fisherman’s Wharf.

Back in ‘09, now retired Judge Pat E. Morgenstern-Clarren (N.D. Ohio) brought Academy members a great reminder that the only certainty in life is that there are no certainties.This article on planning for your future is still just as relevant today.

Do you have a plan for your practice if you become disabled? What will happen to your clients if you suddenly pass away?

TAKE THE TIME NOW – MAKE A PLAN.

Senior Judge Carolyn Dimmick (U.S. District Court, W.D. of WA) earned her law degree in 1957 when female lawyers and their opportunities were rare.In honor of Women’s History Month, a new video profile explores the highlights and challenges of Judge Dimmick’s groundbreaking and highly distinguished career.

Watch the video.

• Credit Card Debt Surpasses $1 Trillion in US for First Time

• Overdue US Card Debt Hits 7-Year High

• Bad Credit Card Debt Getting Cheaper, But Good Luck Buying It

• **These Are the Best Credit Cards Now for Every Type of Traveler**

• Federal Bankruptcy Judge Gets National Honor

• Judge John E. Waites Inducted into American College of Bankruptcy

• Dozens More Farmers Lose Milk Contracts

• 6th Cir BAP looks at chapter 12 eligibility and confirmation

• Consumer Bankruptcy Committee Issues Observations and Recommendations Regarding Student Loan Debts

• ‘Morally Suspect’ Way the Government Collects Student Loans – A tax credit aimed at helping working low and moderate-income Americans can be seized to repay defaulted student loans

• American Women Hold Two-Thirds of All Student Debt—Here’s Why

• Education Department Forgiving Only Part of Defrauded Corinthian Students’ Loans

• New Bill Would Incentivize Defaulting on Student Debt

• What the Battle Over Student Loan Servicers Means for Borrowers

• Lehman to Pay $2.4 Billion to End Crisis-Era Mortgage Claims

• Sanctions Order Regarding Ocwen Loan Servicing, LLC’s Automatic Draft Procedures in Chapter 13

• After Receiving 1-Year Sentence for Bankruptcy Fraud, Lawyer Convicted of Misappropriating $4.5K from Client

• Former Equifax Exec Charged with Insider Trading

• Dance Moms Star Abby Lee Miller Set for Early Release from Prison… After Being Sentenced to a Year Behind Bars for Bankruptcy Fraud

• Fifth Circuit, in Bankruptcy Ruling, Lets Convicted Businessman Pay Criminal Defense Counsel with House Sale Proceeds

If you haven’t warned your readers about IRS/tax scams, please do so. This is happening in every community. Below are a few links you may be interested in sharing.

• Beware of the Tax Scam Man

• IRS Warning Taxpayers of New Twist on Refund Scam

• How to Know It’s Really the IRS Calling or Knocking on Your Door

A recent decision struggles with the effect on Chapter 13 on the special protections given to “title pawn” creditors by state law. The purpose of this commentary is to analyze the case and identify some unintended consequences of the decision.In Part I, Larry Ahern reviewed the majority’s opinion. This week, in Part II, he discusses some consequences of the decision, which may not have been intended by the majority.

Click here for Part 1

A recent decision struggles with the effect on Chapter 13 on the special protections given to “title pawn” creditors by state law. The purpose of this commentary is to analyze the case and identify some unintended consequences of the decision.In Part I, Larry Ahern reviewed the majority’s opinion. This week, in Part II, he discusses some consequences of the decision, which may not have been intended by the majority.Click here for Part 1

Apparently, Attorney Moran’s article was an eye opener. This article has broken all previous ConsiderChapter13.org unique open records.YOU NEED TO SEE THIS ONE . . .Not an Academy member, JOIN NOW – Use the form attached and receive THREE months completely free.

If you read the article last week, be sure to check out the comments at the bottom of the page. Ms. Moran has added information regarding a related case.The Academy has also heard from Academy member Jeanne E. Hovenden of Chesterfield, Virginia, who reports catching the same issue in a case!

Let us know if you have seen this same issue.

CFPB Giving Servicers “More Latitude” in Dealing with Borrowers in Bankruptcy – Issues Final Rule on Communication with Certain BorrowersClick here for Press ReleaseClick here for Final Rule

Effective Date April 19, 2018

• Small Bank Credit Card Losses Explode

• 25 Cities Where People Have Most Credit Card Debt

• Credit Card Debt Has Now Reached Pre-Recession Levels

• Debt-Conscious Millennials Ditch Credit Cards, Threaten Industry

• About Half of People Lend Out Their Credit/Debit Cards and Often Results Aren’t Good

• Why Increasing Credit Card Interest Rates Can Be a Problem in 2018

The National Consumer Law Center has made some really cool info available . . . free:Consumer Protection in the States: A 50-State Evaluation of Unfair and Deceptive Practices LawsAppendix C is a State-By-State Summary of State Unfair and Deceptive Practices Statutes

NEW ON THIS ISSUE THIS WEEK

• She Owed $102,158.40 in Unpaid Tickets, but She’s Not in the Story – Still, we want to tell you a little bit about her, and about some of the other people we interviewed, because they helped inform our ticket debt investigation.

• Chicago Collected $264 Million In Parking Fines In 2016 And Bankrupted Thousands Of Drivers In The Process

• Florida Legislature Votes to Ease Payday Loan Restrictions – Florida may ease some of the restrictions now in place for so-called payday loans.

• Under Trump, Payday Lenders and Consumer Protection Agency Exhibit Cozier Relationship

• High Court Limits Scope of 546(e) Safe Harbor for Recipients of “Conduit” Transactions

• Opinion Analysis: Justices approve deferential review of bankruptcy-court determinations on “insider” status

• An Oddity: Supreme Court Decides Nothing in its U.S. Bank v. Village at Lakeridge Bankruptcy Opinion

• New Fed Chair Wonders Why Student Debt Can’t Be Discharged in Bankruptcy

• Gainful Employment Rule Affects Student Loan Borrowers

• Efforts to Curb Revocation Of Professional Licenses Over Defaulting On Student Loans In Jeopardy

• Massachusetts Can Sue Federal Student Loan Servicer, Judge Rules

• California Braces for Battle with Trump Administration Over Student Loans

• Trump Proposal Could Help Protect Student Debt Collectors

• Disabled No Longer Face Big Tax Hit When Student Loans are Forgiven

• Citigroup to Refund $335 Million of Credit Card Interest Charges

• Equifax Reveals 2.4 Million More People Were Victims of Data Breach

• Wife of Mamtek’s Cole Shut Down by Judge Dow* During Court Hearing (*Judge Dow will be joining the esteemed list of speakers at the NACTT 2018 seminar in Miami!) REGISTER NOW

• Credit Reports: This 5-minute task can protect your banking reputation

• Financial Steps to Take if You Want to Buy a Home After Bankruptcy

• Seventh Circuit Seeks Bankruptcy Judge

• Request for Information on Evaluating Undue Hardship Claims in Adversary Actions Seeking Student Loan Discharge in Bankruptcy Proceedings

• Trump Administration Wants Input on Bankruptcy Standards for Student Debt

Responses must be received by May 22, 2018

Click here for Comment Portal

• Supreme Court’s Bankruptcy Opinion on § 546(e): Merit Management v. FTI Consulting, and an Important Footnote 2

• Opinion Analysis: Justices Reject Limits On Bankruptcy Recovery Of Fraudulently Transferred Assets

• Boise Attorney Joe Meier Named U.S. Bankruptcy Court Judge

• Seventh Circuit Seeks Bankruptcy Judge

• Request for Information on Evaluating Undue Hardship Claims in Adversary Actions Seeking Student Loan Discharge in Bankruptcy Proceedings

• Trump Administration Wants Input on Bankruptcy Standards for Student Debt

Responses must be received by May 22, 2018

Click here for Comment Portal

• No Excuses for Student Loan Servicer’s Failure to Comply with Plan

• A Shocking Number of Americans Now Owe at Least $50,000 in Student Debt—and Many Aren’t Paying It

• Congress Sets Sights on Federal Cryptocurrency Rules (Bitcoins)

• Lawyers Don’t Need Special Protection to Work as Debt Collectors

Do your clients know about this???

• New Budget Law Includes Last-Minute Tax Relief for Millions of Homeowners. . . on their 2017 tax returns.

“Potentially the most popular one is aimed at millions of people who pay mortgage-insurance premiums on conventional, FHA and VA loans. Roughly 4.1 million owners took write-offs averaging more than $1,500 during 2015 . . . Mortgage-insurance industry officials predict that at least that many will be able claim the benefit on their 2017 tax returns — provided they learn that the deduction has been revived for the year.” [emphasis added]

• Cease-and-Desist Notices Sent to Two Mortgage Companies

• Man Admits He Gave Escort Company Credit Card in $5M Fraud Case

• Tampa Realtor Indicted For Foreclosure, Bankruptcy Fraud

• ACLU Just Proved Courts Are Being Manipulated by Private Debt Collectors – A damning new ACLU report uncovers how the private debt collection industry uses courts to do their dirty work (very good, concise summary)

• Some U.S. Borrowers Jailed Over Civil Debts, ACLU Report Shows (same issue as above, more detail)

• Click here to see the whole study: The Criminalization of Private Debt

The Academy has been hard at work making much needed upgrades to the infrastructure of ConsiderChapter13.orgEven if you don’t normally have to log into your account, you may have to log in today. Be sure to click the ‘Remember Me’ button and in most* circumstances you should only have to log in when your cookies are cleared or when you click the log out feature.

*Some of you have very strict firewalls which do not allow individual computers to remember logins.

If you experience problems accessing the site or in viewing individual posts, please let us know.

• Dismissal of Case – Debtor’s attorney’s failure to file timely appeal of dismissal was not excusable neglect

• Executory Contracts – Buy-sell agreement for stock was not executory contract

• Pawn and Tax Sale Redemption – Expiration of time for redemption did not prevent treatment of taxes in plan

Title: In re Crawford – How Far Can a Court Go in Placing Conditions on Confirmation of a Plan?When: Wednesday, February 28, 2018 – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific

Description: Mary K. Viegelahn, Trustee will moderate a discussion with Debbie Langehennig, Trustee and Todd Malaise, Debtors’ Attorney on the issue involving excess disposable income beyond the amount necessary to pay all creditors in full and how far can a court go to place conditions on confirmation of a plan, including a discussion on how other courts have ruled on this issue.

• Consumer Protection Agency Drops Lawsuit Against Lender That Charged 950 Percent Interest Rates

• CFPB Funding Slashed – More changes afoot for agency already in the crosshairs?

On 1/31/18 Attorney Brent Meyer moderated an excellent one-hour discussion on new and existing loan modification programs throughout the country. Experts Robert Branson and Tammy Branson updated attendees on options available to clients right now and how to navigate the loan modification application process and how to get paid! This is a moderate to advanced level webinar directed primarily to attorneys who represent debtors.Access to webinar recordings is part of your Academy subscription. Not a member? Join NOW!

During The Current Loan Modification Arena webinar, the Bransons mentioned their proprietary software which makes loan modification calculations a breeze. Click here to check out how you can purchase this software.Additionally, the Bransons offer educational programs and materials to help you set up your own loan medication program. Click here for more information.

• Lawyers Don’t Need Special Protection to Work as Debt Collectors

• Why Credit Card Debt Can Be Bad for Your Health

• Bankruptcy Trustee on Hunt for Notorious Local Landlord’s Assets

• St. Peters Woman Admits Defrauding Bankrupt

• Elizabeth Warren Warns Equifax Could “Wiggle Off the Hook” for Users’ Credit Data Getting Hacked

• From Our Friends at Credit Slips: Wacky Warehouse Lien Scam

• National Consumer Bankruptcy Law Firm Sanctioned for Harming Financially Distressed Consumers and Auto Lenders

• (Same case as above) Upright Law, ‘Partners’ Sanctioned for Unauthorized Law Practice

• Aetna Under Investigation After Former Exec Admits Denying Care Without Reading Patient’s Records

• Four Accused of Mortgage Fraud Scheme

• Debt Relief Company Returns Money to FTC, Refund Checks in the Mail

• Inside One State’s Effort to Help Borrowers Erase Student Debt in Bankruptcy – Through a program championed by the AG, the Massachusetts Bar Association is matching borrowers with pro bono lawyers

• One Company Will Now Handle Close to Half of All Student-Loan Payments

• ‘Big Four’ Student Loan Servicers Now ‘Big Three’

• Student Loan Debt Not Just a Bugaboo for Young Americans, but for Parents as Well – Cosigner Survey & Study

• The 10 States Most Impacted by Student Debt

• Senate to Spotlight Virtual Currencies as Bitcoin Plunges

• Bitcoin Crashes as Credit Card Companies Block Purchases

• Get Ready for Most Cryptocurrencies to Hit Zero, Goldman Says

• Bitcoin Above $8,000 After Regulators Spare Toughest Reprisals
  • See also Bitcoins and Bankruptcy By Phil Lamosfor the definition of bitcoin

• Here’s Exactly How Much Credit-Card and Student Debt Makes You Undateable – There appears to be a tipping point where debt and singledom go hand-in-hand

• Ask Brianna: What If I Really, Really Need My Tax Refund? (Excellent article reiterating everything you want your clients to do!)

• How to Raise Your Credit Score After Bankruptcy

• Case Ends Against Erie Debt Collector Said to Use Fake Courtroom

• Travelers Keep Falling for ‘Free’ Cruise Schemes. Here’s How Companies Get Away with It

• District Court Reassesses Evidence of Undue Hardship

• Would Overhaul of Federal Student-Loan Programs Help Bring Down Law School Tuition?

“The debtors soon realize the lienholders are never going to start the foreclosure proceedings.”Other Academy resources on vesting:

• No Forced Vesting Over Creditor’s Objection, at Least Not in Massachusetts (Sagendorph from 2/2017)

• From the Editor – Surrender and Vesting (Zair from 10/2016)

• Vesting Property in Disinclined Creditors (Sagendorph from 8/2015)

“The debtors soon realize the lienholders are never going to start the foreclosure proceedings.”Other Academy resources on vesting:

• No Forced Vesting Over Creditor’s Objection, at Least Not in Massachusetts (Sagendorph from 2/2017)

• From the Editor – Surrender and Vesting (Zair from 10/2016)

• Vesting Property in Disinclined Creditors (Sagendorph from 8/2015)

Millions get their taxes done free through two programs sponsored by the IRS. These help people with lower and moderate incomes:

• The Volunteer Income Tax Assistance: This program is also known as VITA. It offers free tax return preparation to eligible taxpayers who generally earn $54,000 or less.
• Tax Counseling for the Elderly: TCE is mainly for people age 60 or older, but offers service to all taxpayers. The program focuses on tax issues unique to seniors. AARP participates in the TCE program through AARP Tax-Aide.

• Free Electronic Noticing of Court Notices and Orders Now Available for Debtors Through Debtor Electronic Bankruptcy Noticing (DeBN) Program

(Now available (on various terms) in about half of the courts.)

• Why Now Is a Critical Time to Pay Off Credit Card Debt

• Court Won’t Let Bank of America “Buy and Bury” Judgment Against It

• SEC Looking into Metlife’s Failure to Pay Some Pensions

• Morgan Stanley Sues Former Adviser for Close to $1 Million in Unpaid Loans

• Understand Discharge Rates for Defrauded Borrowers – Thousands are submitting borrower defense discharge claims, but only a fraction are seeing any relief.

• Decline in Student Loan Borrowing

• Overpayment of domestic support obligation

• Attorney fees by divorce court and priority claim

• Permissive abstention for determination of whether lump-sum payments were domestic support obligation

• Postpetition traffic tickets not administrative expense

• Administrative expense allowed to attorney for substantial contribution in Chapter 13 case

• Bankruptcy Filings Fall 0.7% – Smallest 12-Month Decline Since 2010

• Borrow $5,000, repay $42,000 — How super high-interest loans have boomed in California

• CFPB Signals Shift by Dropping Payday Lender Lawsuit

• Farmers Face Tough Decisions as Yields Increase but Prices Drop

• America’s Farmers Are in Crisis, and They’re Looking to Trump for Relief

• Western Wisconsin Led Nation In Farm Bankruptcies In 2017 – Ag Experts Say Low Commodity Prices, High Land Costs Have Farmers Feeling More Financial Stress

• Credit Card Defaults on the Rise, and Chicago Is Worst, as Holiday Bills Come Due

• No More Pins: Visa Testing Biometric Credit Cards

• Stamp Farms Owner, 2 Others Indicted in Bankruptcy Fraud Scheme

• Utah Lender Issues First Securitization Backed by Bankrupt Borrowers

• Projections for Student Loan Defaults are Terrifying. It’s time to act.

• Student Loans in Crisis as Two in Five Likely to Default

• Students from Defunct ITT Tech Get a Shot at Claiming School’s Remaining Assets

• Court had jurisdiction over fees after dismissal of case

• Counsel failed to show cause why undistributed funds on dismissal of confirmed case should be paid to attorney

• Debtor’s special counsel fees

• CFPB Says It Will Reconsider Its Rule on Payday Lending

• Three Things Companies Hate About the CFPB’s Investigative Demands – CFPB will start soliciting comments on a host of matters—including enforcement, supervision and rule-making.

• America’s Debt Load Is Hitting Record — And Risky — Territory

• Prison for Bankruptcy Fraud Where Creditors Paid 100%

• British Bankruptcy Kerfuffle . . .BBC Investigation Exposes High-Living Debtors Exploiting Weaknesses in Bankruptcy System

• Pastor, Wife Convicted of Hurricane Fraud File for Bankruptcy

• Methuen Real Estate Broker Pleads Guilty to Role in Mortgage Fraud Conspiracy

• The IRS Hired Bill Collectors To Collect Back Taxes — And Got Ripped Off

Creepy parents who chained up kids had previously filed a Chapter 7:

• Louise Turpin & David Turpin Bankruptcy Records: Read

• Shackled Kids’ Dad Fought to Keep Muscle Car in Bankruptcy

Back by popular demand, Judge Brown is at it again. This week he brings Academy subscribers three cases, all regarding the automatic stay.

• Section 362(k)(1) damages include attorney fees for prosecuting and defending damage action on appeal

• Repossessing creditor’s passive retention of vehicle did not violate stay

• Jurisdiction over in rem stay order

A Stern Warning from the Supreme Court . . .

• A Patent Law Dispute Before the Supreme Court This Term Could Have a Major Impact on U.S. Bankruptcy Courts

• U.S. Senators Take Aim at Delaware’s Bankruptcy Advantage

• Prominence of Delaware Bankruptcy Court Threatened

• Congress Likely to Consider Another Short-Term Funding Measure

All Forms 8809, Application for Extension of Time to File Information Returns,filed on paper are now processed by the Internal Revenue Service Center in Ogden, Utah. These paper forms must be mailed. Faxes will not be accepted.The mailing address is:

Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0209

The IRS will only grant extensions for very specific reasons. For example, records were lost in a disaster or someone responsible for filing the company’s returns has an unavoidable absence.

• Credit Card Debt Hits New Record, Raising Warning Sign

• U.S. Has More Credit Card Debt Than Ever Before

• US Consumer Debt Surges by the Most in Over 2 Years

• Here’s Five Reasons to Use Direct Deposit for a Tax Refund

• New Analysis of Student Loan Default Data

• Student Loan Crisis Could Be Worse Than Originally Thought – Nearly 40% of those who entered in 2004 could default by 2023 (2023 sounds like a LONG time off . . . um, it’s only FIVE years)

• Looming Student Loan Default Crisis Worse Than Thought

• For-Profit College Students Defaulting on Loans at Alarming Rate

• U.S. Backs Student Loan Servicer in Lawsuit by Massachusetts

• More Seniors Citizens Have Student Loan Debt

• Bankruptcy Court Lacked Power to Order $375K Punitive Damages

• Aspen Homeowner Sentenced to 16-Yr Prison Sentence for Predatory Lending Scheme – U.S. District Judge Kevin Castel also sentenced co-defendant Timothy Muir, an attorney, to 7 years in prison

• Prominent Jasper Couple Convicted of Wire Fraud Files for Bankruptcy

• Carroll County Business Owner Sentenced on Federal Charges

• How to Protect Your PC Against the Major ‘Meltdown’ CPU Security Flaw – Everything we know so far

• Six Questions Preparers Should Ask Themselves About Office Security

• US Considers Mortgage Credit Check Shake-Up – Critics complain current system is outdated and locks millions out of home ownership

• A Fight Over the Credit Score Lenders Use for Your Mortgage

• Downside of Automatic 401(k) Savings: More Debt – New research finds employees auto-enrolled in retirement plans borrow more than they otherwise would have, offsetting savingsMessage to Clients: DON’T BORROW FROM YOUR 401(k)!

• These Towns Will Help Pay Off Your Student Loan Debt If You Move There (May also be a good topic for your blog.)

• DeVos May Make It Harder for Students to Prove They Were Defrauded – Potential rule revisions from the Education Department would force students to meet a higher standard of evidence when seeking loan relief.

• Q&A: Understanding Student Loan Discharge Eligibility

• $119,000 Sanctions for Discharge Injunction Violations (Chapter 7 case)

• Nigerian Prince Scammer Isn’t Nigerian or a Prince

• Judge Clears the Way for Government to Sell Eric Conn’s Law Office

• Judge Slams Notorious Con Artist for ‘Mayhem’

• $1.2 Billion Scammed From Investors in Phony Hard-Money Lending Scam – SEC

“ . . . Faced with these equally undesirable alternatives, clever attorneys came up with a fourth option – the ‘ride through’. This alternative, not found anywhere in the Code, could be used where Debtor was not in default under the loan agreement.”

This is one you definitely want to read!

• Shut Out: SCOTUS Law Clerks Still Mostly White and Male

• Tax “Reform”

• IRS Extends Due Date for Employers and Providers to Issue Health Coverage Forms to Individuals in 2018

• Making Extra Mortgage Payments: How much will you save?

• How to Get Away with Bankruptcy Fraud – Los Angeles is the nation’s hub for bankruptcy crime. Scammers prey on struggling homeowners with little fear of getting caught, because criminal enforcement of bankruptcy laws is rare.

• Family-Run Mortgage Scam Nets $30 Million

• German Company Sues Greenwich Attorney for Malpractice Over Insurance Claim

On behalf of the Board of Directors and Staff of the Academy, we are pleased to bring you a special Holiday poem by one of our very favorite Trustees . . .

T’WAS AN UGLY SWEATER
By Marie Ann Greenber

There once was a sweater;
It wasn’t that nice.
Nobody would wear it;
Not even the mice.

The sweaters were knit by hand with great care.
They’re ugly still.
Wear them; I dare!

The children were puzzled and scratching their heads.
Dad’s wearing that? They yelled with great dread.

And moms going to let him?
and I’m yelling NO!
Theirs brains must have left them.
Their heads filled with snow.

Then all of a sudden there was a loud sound.
We jumped from our seats and looked all around.

It came from the chimney.
We were ready to flee.
Then down came a girl;
And her name was Aly.

Her sweater was hideous.
Her plan insidious.
She seemed quite rogue –
Perhaps a subscription to Vogue?

She swapped every present and filled every stocking with sweaters so ugly –
A sight oh so shocking.

Put them on and let’s see. She said with great glee.
The ugly sweater is all the rage.
Even Beyoncé wears one on stage.

Who’s is the best? Who wins this contest?
They all shouted ME.
Mine is ugly! You see.

So year after year we all gather here.
To show off our sweater and see who’s is better.

Merry Christmas and Happy New Year!

• Proposal for a 2019 Pay Freeze Called ‘Dunderheaded’ and ‘Pennywise and Pound Foolish’

• Judge Alex Kozinski, Apologizing Amid Harassment Claims, Retires Immediately

“This trustee has found a growing number of attorneys who file petitions and other documents without first having an original signature. They are using the simple /s/ procedure not as a signature, but as a sword. . . .In the Eastern District of Virginia an attorney was declared a forger by the bankruptcy court for filing a bankruptcy without an actual signed petition.”

NEW THIS WEEK . . . An Unexpected Development

In response to Trustee Greenberg’s article above, we received the following comment:

The Central District of California has recently done away with the Electronic signing declaration entirely.

See LBR 9011‐1. SIGNATURES

(a) Holographic Signatures. Except as provided below, every signature on a filed document must be handwritten in ink (holographic). If the document is filed electronically then the filer must scan the signature page and insert it into the electronic (.pdf) version of the document filed with the court. Nothing in this local rule precludes the filing of a signature page that has been transmitted to the filer by facsimile or .pdf, provided that the filer promptly obtains the document bearing the signer’s original holographic signature and complies with LBR 9011‐1(d) below. Under no circumstances may a reproduction of the same holographic signature be used on multiple pages or in multiple documents. Each page that bears the signature of a person must actually have been signed by the person whose signature appears on such page.

Anybody else have an alternative signature local rule??? Click here to let us hear from you.

• Prime is now 4.5% so for bankruptcy purposes 4.5 “plus a risk factor” is your starting point.

• ABA Warns Judges of Ethical Problems Over Benches’ Internet Research – A formal opinion issued Friday from the ABA’s ethics committee outlines when judges should, or shouldn’t, use the internet for their own research.

• May Judges Search the Internet for Facts? ABA Ethics Opinion Sees Problems

• Refusing to Pay Could Hurt You More Than Them

• U.S. Not Granting Loan Relief To Defrauded Students: Inspector General

• U.S. States Sue Trump Administration For Not Granting Student-Loan Relief

• Boulder Spinal Surgeon Indicted on Charges of Bankruptcy Fraud, Money Laundering

• Seattle Crook Behind $120M Ponzi Scheme Missing from Prison

• Navajo Nation sues Wells Fargo over ‘predatory’ sales practices

• NY State Issues First Fine Under Law Cracking Down On Zombie Homes

• Miami Judge Threatens Major Mortgage Company Lawyers With Criminal Charges for Hiding Documents

In this series of articles, Beverly Burden and Larry Ahern have explained the changes to the Rules of Bankruptcy Procedure and the means by which the amendments bring more uniformity to chapter 13 practice.

Click here for Part 1 – Claims: New Bar Dates and Other Requirements

Click here for Part 2 – Objections to Claims

Click here for Part 3 – Security, Priority & Avoidance: New Rules for “Treatment” of Claims

Click here for Part 4 – No Math Required? Avoiding Liens Under § 522(f)

Click here for Part 5 – New National and Local Plans: Common Elements and Related Issues

Click here for Summary which highlights the changes to each rule and provides a cross-reference to the articles, which give a more in-depth analysis.

Click here for Unresolved Issues

Professor Rafael Pardo has written an extensive and fascinating article to be published in an upcoming Vanderbilt Law Review. He has given us a sneak peek. AND Attorney Phil Lamos gives us a brief summary of the study and a present-day commentary. New this week . . .

• Data Analysis: Bankruptcy and Race in America

• ‘This Is Unacceptable’: ProPublica Story on Bankruptcy in Memphis Prompts City Council Soul-Searching

• Beyond Racism and Self Interest: Why Blacks File and Fail at Chapter 13

• No Bankruptcy Aid for Marijuana Businesses, Justice Department Officials Say

• Legal Malarkey from the White House about the CFPB Putsch

• OLC Legal Opinion and the Missing Legislative History

• Federal Judge Rules Mulvaney Can Lead CFPB for Now

• Mick Mulvaney Is Now One of the Most Powerful Bureaucrats in the Country

• Survey: 34% of Students in Default Never Made a Payment – 48% expect to have loans forgiven

• Student Loan Debt Is Now As Big as the U.S. Junk Market

• Millions of Millennials Don’t Want Gifts This Holiday Season — The Reality Is Much Sadder

• House Republicans May End Student Loan Forgiveness

• The Other Student Debt Crisis

• CFPB Hits Citibank with Fine Over Student Loan Servicing

• City Lawyer Donald J. McCarthy Gets Two Years for Tax Evasion

• Thanks to Bankruptcy Judge, UWO Football Has Help in its National Championship Bid

• Rosa Parks’ Lawyer Surrenders Items Amid Treasure Hunt

• Wells Fargo Could Face Enforcement Action for Charging Excess Fees

• Appeals Court Upholds North Huntingdon Businessman’s Bankruptcy Fraud Sentence

• Two Members of Nevada City-Based Conspiracy Convicted in Multi-Million Dollar Bank and Title Fraud Scheme

• CFPB Files Federal Lawsuit Against Think Finance LLC Which Recently Sought Bankruptcy Protection, Allegedly Collected Debts Consumers Did Not Owe

Please check the attached list and send us a link to your plan if it is missing.Attached is the list of Plans. (Note that many of the form links will not open in Firefox but do open in Explorer.)

From our research (so far) ELEVEN Districts will be utilizing the National Form Plan: Northern District of Illinois; Northern District of Indiana; Northern and Southern Districts of Iowa; Western District of Kentucky; Western District of New York; Northern District of Ohio; District of Utah; District of Vermont, Western District of Virginia; and the District of Wyoming.

• Attorney General Jeff Sessions Appoints U.S. Trustee and Acting U.S. Trustees to Cover Six U.S. Trustee Program Regions

• Behind Lucrative Assembly Line of Student Debt Lawsuits

• How to Pick a College That Won’t Leave You With a Mountain of Student Loan Debt

• Students Defrauded by For-Profit School Sue US Department of Education

• Watchdog CFPB Targets CitiBank with Fine Involving Student Loans

Please check the attached list and send us a link to your plan if it is missing. Attached is the most recently updated list of Plans*. (Note that many of the form links will not open in Firefox but do open in Explorer.)

From our research (so far) ELEVEN Districts will be utilizing the National Form Plan: Northern District of Illinois; Northern District of Indiana; Northern and Southern Districts of Iowa; Western District of Kentucky; Western District of New York; Northern District of Ohio; District of Utah; District of Vermont, Western District of Virginia; and the District of Wyoming.

Newly added to above list: District of Vermont

*The District of Kansas Plan has been updated.

• How Much Student Loan Debt People Owe in Each State Exposes Pattern We Should Have Seen Coming

• 2 Borrowers Sue Over Forgiveness of Student Loans

• 5 Flaws That Kill Student Loan Collection Lawsuits

• Student Loan Borrowers To Share $3.75M From Citibank For Failures That Led To Overpayments

• Win for Debtor in Student Loan Arena

• Manhattan Jury Convicts Kansas City Payday Lender in $220 Million Fraud Scheme

• Teacher Loses $2,000 to Phony Student Loan Forgiveness Scheme

• South Dakota Punishes People Behind On Their Student Loans By Stripping Them Of Their Driver’s License

• Fraud, Mismanagement Claims Lodged Against Bangor Agency Serving Adults with Disabilities

• Criminal Defense, Bankruptcy Lawyers Face Misconduct Charges

Thank you to those who responded with a link to your District’s Chapter 13 Plan. Attached is the most recently updated list of Plans. Note that many of the form links will not open in Firefox but do open in Explorer. From our research (so far) TEN Districts will be utilizing the National Form Plan: Northern District of Illinois; Northern District of Indiana; Northern and Southern Districts of Iowa; Western District of Kentucky; Western District of New York; Northern District of Ohio; District of Utah; Western District of Virginia; and the District of Wyoming. ***Note that the Southern District of Indiana has been omitted from last week’s list and the Western District of Virginia has been added.***

Please check the attached list and send us a link to your plan if it is missing. Thank you for your assistance.

• US Household Debt Continues Steady Rise: NY Federal Reserve Bank

• Household Debt Rises By $116 Billion as Credit-Card Delinquencies Pile Up

• Subprime Auto Delinquency Is Near Crisis Levels at Non-Bank Lenders

• People Have Stopped Paying Their Car Loans, and It’s a Risk to $200 Billion Market

• 6.3 Million Americans are 90 Days Late on Their Auto Loan Payments

• Behind the Lucrative Assembly Line of Student Debt Lawsuits

• Rosa Parks Lawyer Dodges Jail Amid Treasure Hunt

• Syracuse Real Estate Company Faces Lawsuit For Deed Theft, Mortgage Rescue Scam

• Tyrone Twp. Man Accused Of Stealing Thousands In Mortgage Foreclosure Scam

• Akron Women Accused of Fraudulently Enrolling Students in College, Pocketing Aid Money (“Oh My” is right!)

No Trustee Percentage Fee Says One CourtA Chapter 13 trustee is not permitted to retain the trustee’s percentage fee on payments made in cases where a Chapter 13 plan is not confirmed; the trustee is under a statutory obligation to return all funds, including the trustee’s percentage fee, to the debtor.

Thank you to those who responded with a link to your District’s Chapter 13 Plan.Attached is the beginning of The Academy’s efforts to comprise an exhaustive list of Plans.

From our research (so far) TEN Districts will be utilizing the National Form Plan: Northern District of Illinois; Northern District of Indiana; Northern and Southern Districts of Iowa; Western District of Kentucky; Western District of New York; Northern District of Ohio; District of Utah; Western District of Virginia; and the District of Wyoming.

Please check the attached list and send us a link to your plan if it is missing. Thank you for your assistance.

(Great news for those of us in the consumer bankruptcy business!)Slight increase in total bankruptcy filings reflects changes from September this year and October 2016.

Oral arguments heard 11/6 in Merit Management Group, LP v. FTI Consulting, Inc.Issue: Whether the safe harbor of Section 546(e) of the Bankruptcy Code prohibits avoidance of a transfer made by or to a financial institution, without regard to whether the institution has a beneficial interest in the property transferred, consistent with decisions from the U.S. Courts of Appeals for the 2nd, 3rd, 6th, 8th, and 10th Circuits, but contrary to the decisions from the U.S. Courts of Appeals for the 7th and 11th Circuits.

• For-Profit Colleges Linked to Almost All Loan Fraud Claims

• U.S. Consumer Agency Sues Freedom Debt Relief for Misleading Consumers

• Ocwen to Show Cause Why it Shouldn’t Be Held in Contempt

• For 93-Year-Old Widow Who Lost Savings, North Little Rock Home, Court Opens Path to Builder’s Wallet

• Rising Rents Are Pushing More Tenants Past the Breaking Point

• Been Evicted? You Have a Lot of Company. Study Finds Cincinnati Area Has High Eviction Rate, Driven by Escalating Rents and Poverty

• Detroit Bankruptcy Court to Beef Up Bench

• AP Sources: Devos May Only Partly Forgive Some Student Loans

• Indianapolis House Flipping Company Files Bankruptcy

• Woman’s ID Stolen 15 Times After Equifax Breach

• Former Bridgeport Attorney Suspended for 6 Years Over Fraud Scheme

• Eastern District of Michigan: Notice Regarding Implementation of Electronic Filing of Proofs of Claim (ePOC program)

• Eastern District of Michigan: Notice of New Local Chapter 13 Plan Form

• Congress Adds Bankruptcy Judges in Eastern District of Michigan

• Ohio’s Honorable Lawrence S. Walter Retired

• Coons’ Bill Adds 2 Temporary Judges to Busy Delaware Bankruptcy Court

Taxpayers Who are Victims of Domestic Abuse Should Know Their RightsDomestic abuse often includes control over finances. An important part of managing finances is understanding one’s tax rights. Taxpayers have the right to expect the IRS to consider facts and circumstances that might affect the individual’s taxes.

• Court Properly Declined to Compel Arbitration of Educational Loan Issue (Chapter 7)

• Oakland County Attorney Sentenced to Prison 1 Year After Release From Jail in Fake Mortgage Scheme – Steven Ruza sentenced to 2.5 to 15 years in prison

• Convicted Landlord Loses Five Properties in Bankruptcy Sale

As of November 1st, the Western District of Texas will be conduit.

We have also corrected an error reflected in the Eastern District of Tennessee. The entire state of Tennessee is conduit.

• Bankruptcy Filings Decline Is Smallest in Years

• Social Security Benefits to Rise by 2 Percent in 2018

• January Retirement COLA Set: 2 Percent

• To Protect Children from Identity Theft, Parents Must Be Proactive

• Feds, 11 States Crack Down on Companies Selling Student Debt Relief

• FTC Cracks Down on Student Debt Scammers

• CT Man Pleads Guilty to Making Threats Against Bankruptcy Judge

• Equifax Says Code on its Website ‘Was Serving Malicious Content’

• IRS Puts Equifax Contract on Hold During Security Review

• Wells Fargo Dented by Surprise Charge From Pre-Crisis Mortgages

• CFPB Takes Action Against “Document Preparation” Company as Debt Industry Struggles to Deal With Influx of Mass Validation Requests

• Sketchy Debt Relief Company Accused Of Impersonating Federal Agency

• Former New Haven Bankruptcy Lawyer Gets Prison for Embezzlement

• Thieving Lawyer Gets 5 Years

• Lawyer Who Blamed Ethics Case on Mother Can’t Discharge $500K in Student Debt, Federal Judge Rules

• Greek Church Treasurer Who Stole $415K Has Filed for Bankruptcy

• Feds Grab Gold, Cash from Man in HOA-Foreclosure Home-Buying Scheme

• Payday Loans Rule Could Lead to Cheaper Alternatives

• Teacher: $200 Payday Loan Pushed Me to Brink of Bankruptcy

• Bankruptcy Filings Decline Overall in 2017

• Millennials Being ‘Left Behind,’ and It Poses Huge Risk to US Economy

Term Law Clerk Opening – Tacoma, WA

Application Deadline: When Filled

• Researchers Find 450,000 Financial Scams Operating on Social Media – Each successful attack can cost victims tends of thousands of dollars.

• 30 Used Cars Consumer Reports Gave the ‘Never Buy’ Label

• IRS Gives Tax Relief to Victims of California Wildfires; Extension Filers Have Until Jan. 31 to File

• IRS Offers Web Conference on Tax Relief for Disaster Victims

• Tips for Business Owners Who Need to Reconstruct Records After a Disaster

• Americans are More Terrified of Student Debt Than North Korea’s Kim Jong Un

• Judge Says No to New Trial for Houston Debt Buyer After $25 Million Verdict

• Senate Acts to Ease Pressure on Bankruptcy Courts and Increase Bankruptcy Fees

• From Her Dad’s Killing During the Crack Epidemic to Supreme Court Clerkship

Term Law Clerk Opening – Tacoma, WA

Application Deadline: When Filled

• PA AG Files Suit Against Navient Alleging ‘Deceptive Practices’

• Post-Recession Borrowers Struggle to Repay Loans

• For-Profit College Students Twice as Likely to Default on Loans, Report Says

• Federal Student Loan Default Rates See Slight Uptick

• Ex-Trump Adviser Paul Manafort Conspired to Mislead Bankruptcy Court, Son-In-Law Charges

• St. Peters Woman Overcharged Bankruptcy Filers, Federal Prosecutors Say

• Christiansburg Woman Convicted of Bankruptcy Fraud Charges

• Former Billings Neurosurgeon Charged With Bankruptcy Fraud

• Irony: Judge Doesn’t Want to Rip Up Scathing Ruling Against Bank

In a Two for One special, Attorney Moran brings Academy readers two articles addressing mortgage servicing issues and the power of Rule 3002.1.

Mortgage Servicing Under the Microscope

The judge looked closely at the creditor’s accounting records and found the usual fright . . . then holding secured creditor in contempt of stay and confirmation order for its loan servicing blunders.

Chronicles of Bankruptcy Rule 3002.1

A homeowner should emerge from Chapter 13 knowing exactly what she owes on her mortgage; thus we have FRBP 3002.1 said Judge Hannah Blumenstiel.

• 90% of Americans Don’t Like to Cook — and it’s costing them thousands each year

• Greatest Bankruptcy Case Name Ever?

• Toys “Я” US’s Curious Bankruptcy Venue

• Eastern District of Tennessee: Proposed Adoption of Local Form 3015.1, Chapter 13 Plan, and Amendments to Local Rules Published For Comment

• More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

• Court Applies Realistic Fact-Based Analysis to Student Loan Discharge

• Which Law Schools Had Highest Loan Default Rates Fiscal Year 2014?

• Private Schools Defeat Clawback Claim by Chapter 7 Trustee

• Bankruptcy Judge Finds Peoria Attorney Liable on One Count in Florida Condo Deal

Click here for Part IIIThe Academy received a follow-up question regarding this series and we are pleased to post the Q & A:

Q: What is your opinion on a subsequent loan that is cross-collateralized with a 910 loan?
A: While ‘opinion’ is a strong word, here’s the response: “The drafters of Article 9 in 2001 left the question open for courts to follow existing law, or not. See Part 1 of the series. So, if there has not been a decisive ruling in the jurisdiction since 2001, you should be free to argue either way.”

Click here for a NEWLY UPDATED list of Trusteeships which primarily (or not) pay mortgage payments through the trustee’s office – i.e. ConduitChanges have been made to South Carolina and the Western District of Texas.

• Visa’s Maginot Line: Chip Cards and the Equifax Breach

CFPB Amends Rules to Provide Flexibility and Clarity to Certain Mortgage Lenders in Collecting Information – Bureau Also Seeks Public Comment on Proposal for Disclosure of Mortgage DataThe CFPB modified Equal Credit Opportunity Act (ECOA) regulations to provide additional flexibility for mortgage lenders in the collection of consumer ethnicity and race information. Click here for the final rule on ECOA issued 9/20/17.

• The Senate Recently Approved a Bill to Correct a Problem with a 2005 Farm-Bankruptcy Law

• CFPB Takes Action Against National Collegiate Student Loan Trusts, Transworld Systems For Illegal Student Loan Debt Collection Lawsuits – All 800,000 Loans Will Be Independently Audited, Companies Will Pay at Least $21.6 Million and Stop Suing for Invalid or Unverified Debts

• High Anxiety as First Student Loan Forgiveness Program ‘Graduates’ Await Relief This October

• U.S. Cracks Down on Debt Collection of Private Student Loans

• Loan Creditor Fined $19M for Suing Students with ‘False’ Legal Documents

• Not Just Millennials: Baby Boomer Student Debt State-By-State

• Court Allows ‘Swindled’ Homeowner’s Fraud Defense in Foreclosure Case

• Former Huntley Resident Indicted on Bankruptcy Fraud Charges

• Bankruptcy Fraud – Wife Stole Husband’s Identity, Retirement Account

• The nation’s ‘luckiest’ lottery players may not be as lucky as they seem

“Prompted by recent bankruptcy court decisions, the purpose of this multi-part article is to review the rules under § 1325 and the UCC and help practitioners understand this arcane area.”In Part I, Larry Ahern reviewed the underlying rules governing PMSIs in consumer transactions.

In Part II, he discusses two recent cases that favored the debtor (one in a surprising way).

Click here for a NEWLY UPDATED list of Trusteeships which primarily (or not) pay mortgage payments through the trustee’s office – i.e. ConduitChanges have been made to South Carolina and the Western District of Texas.

Harvey’s Hit to Mortgages Could Be Four Times Worse Than Predicted—and Then There’s Irma

• As many as 300,000 borrowers could become delinquent on their loans after Hurricane Harvey, Black Knight Financial Services says.
• That is four times the original prediction because new disaster zones were designated and more homes flooded.
• The sheer volume of homes hit by Hurricane Irma will likely cause an increase in mortgage delinquencies as well, though the storms are difficult to compare.

• Finally, Some Answers from Equifax to Your Data Breach Questions

• Affected by Equifax Hack? Here’s What to do Now

Standing Trustee for the Southern District of New York – Manhattan, White Plains and PoughkeepsieApplication Deadline: September 22, 2017

Term Law Clerk Opening – Toledo, Ohio

Application Deadline: September 29, 2017

Career Law Clerk Opening – Columbus, Ohio

Application Deadline: September 22, 2017

• Median Household Income Hits $59,039, Rising for 2nd Straight Year

• American Household Income Finally Topped 1999 Peak Last Year

• Census Bureau: Median Incomes Rose and Poverty Levels Fell in 2016

• HOAs Foreclosing on Hundreds of Phoenix-Area Homeowners for as Little as $1,200

• This Bad Food Habit Could Be Costing You $2,000 a Year

• Trump’s Education Department Delays Student Loan Forgiveness – Tens of thousands of former students who say they were swindled by for-profit colleges are being left in limbo as the Trump administration delays action on requests for loan forgiveness, according to court documents obtained by The Associated Press.

• Long Wait for Loan Forgiveness

• Rancho Santa Fe Accountant Admits to Hiding Yacht, Silver in Bankruptcy Case, Evading $6M in Taxes

• (Same case as above) Wealth Manager Doug Jennings Pleads Guilty to Bankruptcy Fraud, Tax Evasion – Rancho Santa Fe couple pleads guilty to charges in a multi-million dollar bankruptcy fraud and tax evasion case.

• Late Motorcycle ‘Burnout King’s’ Guns and Grenade Launcher Up for Auction

• IRS Urges Taxpayers to Prepare for Hurricanes, Floods and Other Disasters
  For September’s National Preparedness Month, the IRS offers advice to taxpayers who may be affected by storms, fires, floods or other disasters reminding them that the agency is here to help, including offering a special toll-free number (866-562-5227) to taxpayers in federally-declared disaster areas that’s staffed with IRS specialists trained to handle disaster-related issues.

• SBA Ready to Help Victims of Harvey with Disaster Loans

• IRS Makes It Easier for Harvey Victims to Tap 401(k) Money for Rebuilding

• Article: Hit By Harvey? Help From Fannie

In Part I, Larry Ahern reviewed the underlying rules governing PMSIs in consumer transactions.In this Part II, he will discuss two recent cases that favored the debtor (one in a surprising way).

Next week, in Part III, Christina Parrish will set up a complex fact situation and provide a roadmap for the debtor to show that a PMSI no longer exists, when a subsequent transaction operates to extinguish the PMSI, thereby allowing a “cram-down.”

• Hackers May Have Personal Details of 143 Million US Customers (oy vey)

• Here’s What To Do if You Are a Victim of the Equifax Hack

• Caught Up in Equifax Hack? Here’s one thing you can do to protect yourself.

Standing Trustee for the Southern District of New York – Manhattan, White Plains and PoughkeepsieApplication Deadline: September 22, 2017

Term Law Clerk Opening – Toledo, Ohio

Application Deadline: September 29, 2017

Career Law Clerk Opening – Columbus, Ohio

Application Deadline: September 22, 2017

• Posner to Retire

• Posner Retires from 7th Circuit after 36 Years

• Posner Says Friction On 7th Circuit Bench Led To His Retirement

• Coons’ Bill to Add, Extend Bankruptcy Judgeships Passes Senate

• Republicans Pushing To Slice Up The 9th Circuit Court

• Trump Sets 2.1% Pay Raise for Troops, 1.9% for Federal Workers (“Federal Workers” including Trustees????)

• First Public Service Loan Forgiveness Application Now Available

• Education Dept. Ends Partnership with CFPB – Dept. of Ed. quietly ended a collaboration with the CFPB to share information

• Why Paying Off Student Loans Early Could be a Mistake

• How States Could End Student-Debt Collections Trap

• CFPB Takes Action Against Zero Parallel for Steering Consumers Toward Bad Deals – Bureau Orders Zero Parallel and Its Owner to Pay $350,000 and Stop Their Abusive Practices

• Two Local Charities Reap Thousands From Foreclosure-Mill King Case

• East Bay Investor Heads to Prison for Rigging Foreclosure Auctions During Recession

• Why Tapping Retirement Cash Early Shouldn’t Be Done Lightly

• Liz Weston: What does an unpaid tax lien do to your credit?

• Fannie Mae, Freddie Mac Suspend Foreclosures and Evictions in Wake of Hurricane Harvey – GSEs halt foreclosure efforts in affected areas for 90 days

• Hurricane Harvey Shuts Pipeline, Ups Gasoline Prices and Prompts Reserve Release

• SBA Ready to Help Victims of Harvey with Disaster Loans

• IRS Makes It Easier for Harvey Victims to Tap 401(k) Money for Rebuilding

• Will Houston Find Enough Workers to Rebuild After Harvey?

An interesting side story . . .

• As Terrible as Harvey Is, The Galveston Hurricane of 1900 Was Much, Much Worse

Standing Trustee for the Southern District of New York – Manhattan, White Plains and PoughkeepsieApplication Deadline: September 22, 2017

• Former Head of Upper Valley Veterans Non-Profit Arrested in Her Driveway for Misuse of Funds

• Homeowner’s Lawsuit Says Wells Fargo Charged Improper Mortgage Fees

• Debt Settlement Bad Alternative to Bankruptcy

• Don’t Fall Victim to Harvey Flood Scams