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January 21, 2019
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Archives |
Martin Luther King Jr. – A look back at the life of an American icon
Arbitration in Bankruptcy: Reading Opinions & Tea Leaves in Recent Supreme Court & Lower Court Actions
In his next articles, Larry Ahern selects several recent decisions addressing the effect of arbitration clauses, starting with two cases presented to the Supreme Court in 2018, and considers what guidance may be found in the caselaw to date, especially as it relates to student loan dischargeability arbitration.
Avoidance Powers in Chapter 13 – Part 4 of 6
Judge Gustafson continues his exploration of Avoidance Powers, this week taking a deeper dive into the case law on the avoidance powers of the chapter 13 debtors.Click here for Part 1 of 6
Click here for Part 2 of 6
Click here for Part 3 of 6
Click here for Part 2 of 6
Click here for Part 3 of 6
Meet Another of the New Trustees
On October 1, 2018, Dynele L. Schinker-Kuharich was appointed as a Chapter 13 Standing Trustee for the Northern District of Ohio replacing retiring Toby Rosen who served in this position for 30 years.
Northern District of MS Welcomes New Judge
Investiture Ceremony Honors Local Bankruptcy Court’s Newest Judge
From the National Consumer Bankruptcy Rights Center
From the Courts
For Your Blog
Student Loan Chronicles
In Case You Missed It . . .
Pump the Brakes: Bad Faith Debtors Are Not Gaming the System Part 1 of 2
This article will examine the Holman case further, but it does not believe Holman is cause for alarm. Posted this week is part one of a two part article.
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Cash-Out Mortgage Refinancing: Here’s where homeowners are using it most
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
Air Traffic Controllers Union: Flying is ‘less safe today than it was a month ago’
Democrats Move to Prevent Foreclosures, Evictions on Unpaid Federal Workers 22 Democrats introduce legislation to protect federal workers
BY THE NUMBERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
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January 14, 2019
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Archives |
Pump the Brakes: Bad Faith Debtors Are Not Gaming the System Part 1 of 2
This article will examine the Holman case further, but it does not believe Holman is cause for alarm. Posted this week is part one of a two part article.
From the Editor
Bankruptcy Protections Limited for Repeat Filers
Judge Brown takes a quick look at a recent First Circuit decision.
Avoidance Powers in Chapter 13 – Part 3 of 6
Judge Gustafson continues his exploration of Avoidance Powers, this week looking at § 522(h) & (g) and the statutory basis for, and against, chapter 13 debtors exercising avoidance powers.Click here for Part 1 of 6
Click here for Part 2 of 6
Click here for Part 2 of 6
Meet One of Our Newest Trustees
Jason Wilson-Aguilar was appointed as the Chapter 13 Standing Trustee for Western District of Washington, Seattle Division, effective on October 2, 2018
Position Openings
Chapter 13 Trusteeship Available
Southern District of Mississippi, primarily Eastern and Western Divisions
Application Due Date: January 15, 2019
Southern District of Mississippi, primarily Eastern and Western Divisions
Application Due Date: January 15, 2019
From the National Consumer Bankruptcy Rights Center
9th Circuit Clarifies Appellate Attorney’s Fees in Sanctions Case
“ . . . the Ninth Circuit Court of Appeals reversed the judgment of the District Court.”
From the Supreme Court
- Can You Be Held in Contempt for Obeying a Court Order? The U.S. Supreme Court Will Decide
- SCOTUSblog: Is Foreclosure Debt Collection?
For Your Blog
Affected by the Shutdown? The Do’s and Don’ts
Sanctions and Irony and Fraud, Oh My!
- ‘Restitution comes first:’ Judge cuts twins’ prison sentence for $18 million Ponzi scheme
- Consumer Diary: Collection agency amasses complaints
In Case You Missed It . . .
Yet Another Arrow in the Quiver of the “Less Than Honest Debtor”?
The District Court of Kansas has lowered the bar of acceptable conduct by Debtors to a new, unimaginable low. “The policy implications of this holding are greatly distressing.”NOTE: New Comment Posted at End of Article (scroll to the bottom of the article page and look for ‘Comments’)
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Article: Applications Up 23%!
Article: How Shutdown Affects Mortgages
Article: Rates Dip to Start 2019
Article: When the Lender Makes Mistakes
MILITARY MATTERS (Not password protected)
Coast Guard Only Military Branch Going Without Pay During Shutdown – Northeast Florida Coast Guard families feeling pinch of no paychecks
BY THE NUMBERS (Not password protected)
HEALTHCARE IN THE NEWS (Not password protected)
Health Care Industry Spends $30 Billion a Year on Marketing – Critics say patients are often misled by ads that advocate high-priced drugs, unapproved stem cell treatments or genetic tests.
DEBT AND THE ECONOMY (Not password protected)
‘This is Ridiculous’: Small-business owners can’t get loans as shutdown enters Day 20
As Government Shutdown Goes On, Workers’ Finances Fray: ‘Nobody Signed Up for This’
Economist: Expect General Motors to lay off even more Michigan workers
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January 7, 2019
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Archives |
Yet Another Arrow in the Quiver of the “Less Than Honest Debtor”?
The District Court of Kansas has lowered the bar of acceptable conduct by Debtors to a new, unimaginable low. “The policy implications of this holding are greatly distressing.”
Avoidance Powers in Chapter 13 – Part 2 of 6
Judge Gustafson continues his exploration of Avoidance Powers, looking at the case law and
working backward from the rest of the Code to Chapter 13.Click here for Part 1 of 6
working backward from the rest of the Code to Chapter 13.Click here for Part 1 of 6
Position Openings
Chapter 13 Trusteeship Available
- Southern District of Mississippi, primarily Eastern and Western Divisions
Application Due Date: January 15, 2019
Three Chapter 7 Trusteeships Available
- Eastern District of California, Fresno Division
Application Due Date: January 11, 2019
- District of Nevada, Las Vegas Division
Application Due Date: January 11, 2019
- District of Nevada, Reno Division
Application Due Date: January 11, 2019
Passing of Former Clerk
Passing of Bankruptcy Judge – Update
- Coroner: Bankruptcy judge’s death a suicide
- Posted 11/26/18: Federal Bankruptcy Judge Hon. Laurel E. Babero Dies in Courthouse
From the Courts
Courts Endure Rough Storm Season
From the IRS
IRS Issues Standard Mileage Rates For 2019
Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018,
- 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018, and
- 14 cents per mile driven in service of charitable organizations.
However, it is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.
Student Loan Chronicles
- Navient Audit: Borrowers May Have Paid More for Student Loans
- (Not just another saga but a potential primer on how to succeed) A Teacher’s Long Road to Student Loan Forgiveness (and a $4,500 Surprise)
For Your Blog
Sanctions and Irony and Fraud, Oh My!
MORTGAGE MATTERS (Not password protected)
MILITARY MATTERS (Not password protected)
This Federal Program Wipes Away Disabled Vets’ Student Debt – They’re defaulting on their loans anyway
Stolen Valor Meets Fake News: Facebook trolls targeting vets
OF INTEREST (Not password protected)
Newly-Proposed Bankruptcy Legislation (“Small Business Reorganization Act”) Needs To Be Enacted ASAP
Mike Isabella’s Restaurant Empire Is Headed For Liquidation – He blames ‘bad press’
DEBT AND THE ECONOMY (Not password protected)
Government Shutdown – Employees lose not only paychecks but paid time off, too
(A wave of the future?) School Turns Students’ Lunch Debt Over to Collection Agency
Debt Collector Reaches Settlement with 41 States – Thousands of consumers will have debts forgiven
FOR YOUR HEALTH (Not password protected)
Study Explains How Red Meat Raises Heart Disease Risk – Eating meat also altered kidney function, the researchers found.
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December 31, 2018
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Archives |
Avoidance Powers in Chapter 13 – Part 1 of 6
Judge Gustafson kicks off the new year (well, end of the old!) with an excellent six part outline on avoidance powers.
From Credit Slips
A couple of humorous posts we think you will enjoy:
Student Loan Chronicles
- More Than 41,000 Public Service Workers Sought Federal Student Loan Forgiveness – Government Approved 206
Sanctions and Irony and Fraud, Oh My!
- Westerville Lawyer Suspended for Sexual Affair with Client. . . and failing to file a bankruptcy
- Gary Frank Saga Hits New Phase – His firm is sold for a pittance as he faces loan fraud charges
In Case You Missed It . . .
Give Me Back My Car! Recent Cases Highlight Circuit Split over Whether Failure to Return Repossessed Property Violates the Automatic Stay
“Whether a lender is required to turnover repossessed property immediately after a debtor files a Chapter 13 petition – and whether the failure to return that property is a violation of the automatic stay – is an issue that deeply divides the circuits and may be headed to the Supreme Court for review.”
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTHCARE IN THE NEWS (Not password protected)
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December 24, 2018
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Archives |
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December 17, 2018
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Archives |
Amendments to Remaining Rules of Procedure Related to Bankruptcy Appeals Effective December 1, 2018
This month saw amendments to 16 bankruptcy rules, as well as a new rule and Appendix in Part VIII. Some of these changes are of more interest to the Chapter 13 community than others and were the subject of analyses by Larry Ahern published here before their December 1 effective date, including Rule 8011, dealing with electronic filing and service.His analyses continue this week with the remaining changes in Part VIII.See also:
- Electronic Filing Comes of Age – Part I: Revised Bankruptcy Rule 5005
- Electronic Filing Comes of Age – Part II: Revised Bankruptcy Rule 8011 and Civil Rule 5
- Late-Filed Secured Claims After the 12/01/2017 Rule Changes
- December 1 Approaches (Again): Home Equity Lenders Get a Break and Other Changes to Rule 3002.1
Give Me Back My Car! Recent Cases Highlight Circuit Split over Whether Failure to Return Repossessed Property Violates the Automatic Stay
“Whether a lender is required to turnover repossessed property immediately after a debtor files a Chapter 13 petition – and whether the failure to return that property is a violation of the automatic stay – is an issue that deeply divides the circuits and may be headed to the Supreme Court for review.”
Cars & Bankruptcy: What You Must Know to Get It Right
Think you know how to handle cars and their loans in the Schedules? Are you sure you are doing it right?“It’s time for a summary and refresher on dealing with car loans in bankruptcy. Somehow, my staff hit a wall this week on what information we needed about cars and car loans. So, here’s my roadmap to cars in bankruptcy.”
From the Courts
Judges: Separation of Powers Protects Bill of Rights
In a new, five-minute video, federal judges offer insights into their thinking about the separation of powers and describe how healthy tensions among the branches have a stabilizing effect on democracy.Current Rules of Practice & Procedure
Detailed information regarding the December 1, 2018, amendment.
In a new, five-minute video, federal judges offer insights into their thinking about the separation of powers and describe how healthy tensions among the branches have a stabilizing effect on democracy.Current Rules of Practice & Procedure
Detailed information regarding the December 1, 2018, amendment.
For Your Blog
Taxpayers Can Now Instantly Get Tax Info on Instagram
The IRS also has their own app, IRS2Go. Taxpayers can use this free mobile app to check their refund status, pay taxes, find free tax help, watch IRS YouTube videos and get IRS Tax Tips by email. Like Instagram, the IRS2Go app is available from the Google Play Store for Android devices, or from the Apple App Store for Apple devices. IRS2Go is available in both English and Spanish.
Sanctions and Irony and Fraud, Oh My!
In Case You Missed It . . .
Watch the Clock – Timing of Appeals
“A recent decision out of the Sixth Circuit may bring some much needed clarity to the situation.”
MORTGAGE MATTERS (Not password protected)
FreddieMac: Rates Dip, Applications Up
FreddieMac: Inventory Short for Years to Come
Credit Slips: 10 Years After the Foreclosure Crisis
MILITARY MATTERS (Not password protected)
Making a PCS Move from Overseas? Your Social Security number and other personal data might be at risk.
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
What’s Under the Tree This Year? Bigger Credit Card Bills – Tax experts warn that changes to IRS withholding tables mean people could get a smaller tax refund — and less money to pay off that holiday spending tab.
FOR YOUR HEALTH (Not password protected)
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December 10, 2018
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Archives |
Watch the Clock – Timing of Appeals
“A recent decision out of the Sixth Circuit may bring some much needed clarity to the situation.”
American College of Bankruptcy Elects Chapter 13 Trustee Marie Ann Greenberg as a Fellow
“Marie-Ann is one of 36 inductees to this year’s class and joins 12 other Chapter 13 Trustees . . .”
From the IRS
Strong Passwords Help Protect Accounts Against Cybercriminals
- Passwords like – “uE*s3P%8V)” – are out. Longer, personal phrases people can remember – for example, SunWalkRainDrive – are now preferred.
Employers Should Be Aware of W-2 Scam, Protect Employee Information
Farms in the News
Student Loan Chronicles
- She Took Out $20,000 In Loans For Her Son’s College – Then he went blind
Sanctions and Irony and Fraud, Oh My!
- After Microsoft Complaints, Indian Police Arrest Scammers at 26 Call Centers – Indian police raid 26 call centers, make 63 arrests
In Case You Missed It . . .
Late-Filed Secured Claims After the 12/01/2017 Rule Changes
“Attorneys for debtors and creditors need to be aware of the law and customs in their local jurisdictions.”
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Housingwire.com: Affordability vs Inventory
Article: In a Down Mortgage Lending Market, Subprime Stays Positive – Transunion reports rise in subprime originations
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
Verdict Is In: Food Stamps Put Poor Kids on Path to Success – Long-term evidence starting in the 1960s now shows that government support in childhood reduces the need for welfare in adulthood.
FOR THE ACADEMIC SET (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
Millennials are Killing Countless Industries — but the Fed says it’s mostly just because they’re poor
America Is Poorer Than It Thinks — Statistics don’t quite capture the extent of U.S. poverty. A new measure could change that.
US HEALTH CARE (Not password protected)
FOR YOUR HEALTH (Not password protected)
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December 3, 2018
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Archives |
Late-Filed Secured Claims After the 12/01/2017 Rule Changes
“Attorneys for debtors and creditors need to be aware of the law and customs in their local jurisdictions.”
Eastern District of Wisconsin Bankruptcy Appoints Judge
Congratulations Katherine Maloney Perhach who was the chair of Quarles & Brady’s Financial Institutions Litigation Practice Group and a leader of the firm’s Financial Services Industry Team.
Farms in the News
- Penny for Your Corn? Stingy trade-war aid irks U.S. farmers
From the National Consumer Bankruptcy Rights Center
For Your Blog
- When to Contact Your Student Loan Servicer – Sometimes borrowers need to be proactive about reaching out to their servicer
IN THE NEWS (Not password protected)
The Problem with Charitable Giving – Taxpayers should not have to subsidize rich people’s donations.
MORTGAGE MATTERS (Not password protected)
Article: The Other Housing Crisis: Cities where home prices are low because people have left
Article: A Tale of Two Fishers: Unsettling Ohio’s ‘Well-Settled Law’ on the Proper Statute of Limitations for Mortgage Foreclosure Actions
Article: Buying and Selling a Home Will Become More Difficult in 2019 – Affordability to diminish
Article: 5 Ways You Might Be Committing Mortgage Fraud – It carries a penalty of up to 30 years in jail or $1 million in fines.
OF INTEREST (Not password protected)
Protect Small Businesses from Predatory Lenders – Small business lending remains largely unregulated in the U.S., with no consistent requirements for clear disclosure of terms and interest rates.
Small New England City Was on the Verge of Bankruptcy – Now It’s a Turnaround Success Story
FOR THE ACADEMIC SET (Not password protected)
From Harvard.edu: Regulating Bankruptcy Bonuses (Chapter 11 issue)
DEBT AND THE ECONOMY (Not password protected)
General Motors, Sears and Toys R Us: Layoffs across America highlight our shredding financial safety net
US HEALTH CARE (Not password protected)
Overdoses, Bedsores, Broken Bones: What happened when a private-equity firm sought to care for society’s most vulnerable
FOR YOUR HEALTH (Not password protected)
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November 26, 2018
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Archives |
And much much more . . .
Critical Case Comment
When Chapter 7 debtors’ counsel bifurcated services and “factored” the fees due for post-petition services and failed to adequately disclose the arrangement, the attorney violated § 329; the business of “factoring” of obligations owed to debtors’ counsel constituted an impermissible splitting of fees.
Electronic Filing Comes of Age – Part II: Revised Bankruptcy Rule 8011 and Civil Rule 5
Absent contrary Congressional action, this December will see amendments to 16 bankruptcy rules, as well as a new rule and Appendix in Part VIII. Some of these changes will be of less interest to the Chapter 13 community than others. Larry Ahern has selected four that are most significant in Chapter 13 and has analyzed them for the Academy, starting with amended Rule 3002.1. He continued with amended Rule 5005, which imposes new, mandatory electronic-filing rules.Now, in Part II of this analysis of the electronic filing changes, he addresses parallel changes in Part VIII and the civil rules.Click here for Part I
Passing of Bankruptcy Judge
Federal Bankruptcy Judge Hon. Laurel E. Babero Dies in Courthouse
From Our Friends at Credit Slips
Congratulations to Former Slipster and (Congresswoman-Elect) Porter!
Vocabulary Word of the Week
“Overbiffing” is Latest Outrage in Debt Collection
(A popular link from last week)
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
In Case You Missed It . . .
Federally Funded Slaving
This Article presents a new frame of reference for thinking about the federal government’s complicity in supporting the domestic slave trade in the antebellum United States. While scholars have accounted for several methods of such support, they have failed to consider how federal bankruptcy legislation during the 1840s functionally created a system of direct financial grants to slave traders in the form of debt discharges. Relying on a variety of primary sources, including manuscript court records that have not been systematically analyzed by any published scholarship, this Article shows how the Bankruptcy Act of 1841 enabled severely indebted slave traders to reconstruct their financial lives and thus return to the business of enslaving black men, women, and children. Knowing this legal history gives us a richer understanding of the federalization of American slavery and its role in the development of the nation’s economy.
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
CoreLogic: Mortgage Delinquencies at 12 Year Low
Black Knight: Mortgage Rates Cut Eligible Borrowers in Half
OF INTEREST (Not password protected)
Not So High on Bankruptcy – Limited Options for Medical Marijuana Companies Facing Insolvency
DEBT AND THE ECONOMY (Not password protected)
IN THE ‘OH COOL’ DEPARTMENT (Not password protected)
23 Insanely Cool Products You Haven’t Heard Of . . . Yet (A popular link from last week)
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November 19, 2018
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Archives |
Electronic Filing Comes of Age – Part II: Revised Bankruptcy Rule 8011 and Civil Rule 5
Absent contrary Congressional action, this December will see amendments to 16 bankruptcy rules, as well as a new rule and Appendix in Part VIII. Some of these changes will be of less interest to the Chapter 13 community than others. Larry Ahern has selected four that are most significant in Chapter 13 and has analyzed them for the Academy, starting with amended Rule 3002.1. He continued with amended Rule 5005, which imposes new, mandatory electronic-filing rules.Now, in Part II of this analysis of the electronic filing changes, he addresses parallel changes in Part VIII and the civil rules.Click here for Part I
Federally Funded Slaving
This Article presents a new frame of reference for thinking about the federal government’s complicity in supporting the domestic slave trade in the antebellum United States. While scholars have accounted for several methods of such support, they have failed to consider how federal bankruptcy legislation during the 1840s functionally created a system of direct financial grants to slave traders in the form of debt discharges. Relying on a variety of primary sources, including manuscript court records that have not been systematically analyzed by any published scholarship, this Article shows how the Bankruptcy Act of 1841 enabled severely indebted slave traders to reconstruct their financial lives and thus return to the business of enslaving black men, women, and children. Knowing this legal history gives us a richer understanding of the federalization of American slavery and its role in the development of the nation’s economy.
Congratulations Judge Kornreich
From the IRS
Tax Reform Affects If and How Taxpayers Itemize Deductions
The tax reform law made the following changes to itemized deductions that can be claimed on Schedule A for 2018:
- Limit on overall itemized deductions suspended
- Deduction for state and local income, sales and property taxes modified
- New dollar limit on total qualified residence loan balance
- Deduction for home equity interest modified
- Limit for charitable contributions modified
- Deduction for casualty and theft losses modified
- Miscellaneous itemized deductions suspended
Vocabulary Word of the Week
“Overbiffing” is the Latest Outrage in Debt Collection
From the National Consumer Bankruptcy Rights Center
For Your Blog
How to Outlast a Job You Hate Until You Can Retire
IN THE NEWS (Not password protected)
Important Wins on Behalf of Debt Collection Industry – Hinshaw & Culberston LLP team analyzes precedent in several court cases on the FDCPA and FCRA, including collection of nontraditional debts, safe harbor language and more.
Average Utah Payday Loan Interest Rate Rises to Nearly 528% Annually — Double what loan sharks charged in the ‘60s
IN THE TECH DEPARTMENT (Not password protected)
MORTGAGE MATTERS (Not password protected)
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
FOR YOUR WALLET (Not password protected)
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November 12, 2018
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Archives |
In Memory of Those Who Served |
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History of Veterans Day: 100 years since the end of World War I
Remembrance Day: Poppies, Armistice and why the act of remembrance matters
Electronic Filing Comes of Age – Part I: Revised Bankruptcy Rule 5005
Absent contrary Congressional action, this December will see amendments to 16 bankruptcy rules, as well as a new rule and Appendix in Part VIII. Some of these changes will be of more interest to the Chapter 13 community than others.Larry Ahern’s analyses for the Academy started with amended Rule 3002.1. He continues this week with amended Rule 5005 – imposing new, mandatory electronic-filing rules. In Part II of this analysis of the electronic filing changes, he will address parallel changes in Part VIII and the civil rules.
A Few Supreme Court Bankruptcy Decisions That May Be Helpful To Know By Name – Part 2 of 2
In this two-part series, Judge Gustafson has pulled together a resource you will want to be able to put your hands on later!Click here for Part 1
From the National Consumer Bankruptcy Rights Center
In Case You Missed It . . .
From the Editor
This week Judge Brown looks at three distinct cases. One each on turnover, valuation, and postpetititon debt:
IN THE NEWS (Not password protected)
Chicago Considers Wiping Away Old Ticket Debt for Motorists Who File for Chapter 7 Bankruptcy – Proposal is intended to discourage drivers from filing Chapter 13, but it does nothing to change onerous payment plans for motorists who don’t file at all.
MORTGAGE MATTERS (Not password protected)
Article: Interest Up, Applications Down
Article: Zombie Foreclosure Homes Down
OF INTEREST (Not password protected)
IRA Contribution Limit Lifted for the First Time in Six Years (a popular link from last week – worth running again)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
FOR YOUR WALLET AND WAIST (Not password protected)
13 Meals that Prove You Can Eat Healthy at Chain Restaurants – We analyzed the menus of more than two dozen chain restaurants in search of the healthiest options. Here are the winners
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November 5, 2018
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Archives |
A Few Supreme Court Bankruptcy Decisions That May Be Helpful To Know By Name – Part 1 of 2
In this two-part series, Judge Gustafson has pulled together a resource you will want to be able to put your hands on later!
From the Editor
This week Judge Brown looks at three distinct cases. One each on turnover, valuation, and postpetititon debt:
Passing of Long Time Nashville Attorney
After a hard-fought battle, James Alan Flexer, ‘Jimmy’ to those who knew him, succumbed to pancreatic cancer on Monday, October 29th. Jimmy was a very well-known, beloved bankruptcy attorney in the Middle Tennessee area. Flexer Law, PLLC, has been among the top Chapter 13 filers for many many years. Jimmy will be sorely missed.
There’s Always a Car
For Your Blog
Student Loan Chronicles
- FTC Accuses SoFi of Lying about Loan Savings in Misleading Ads – Online lender allegedly overinflated savings claims on student loan refinances
Sanctions and Irony and Fraud, Oh My!
- Federal Jury Convicts Woman For Running $1 Million Car Loan Scheme – Kimberlie Flemings and co-conspirators defrauded 15 credit unions and three banks.
In Case You Missed It . . .
Post-Confirmation Property & Income Changes
“If you represent Chapter 13 Debtors, you will eventually have a case where the Debtor does not promptly tell you they received substantial property or additional income after the plan has been confirmed. When the Chapter 13 Trustee learns about this, they will try to increase the dividend to unsecured claims, and you will have to decide what to do.”
IN THE NEWS (Not password protected)
Chicago City Clerk Calls for Reforms of Vehicle Sticker Program – Anna Valencia proposed creating city sticker options so low-income drivers can afford to be in compliance and avoid costly tickets.
MORTGAGE MATTERS (Not password protected)
Article: Who to Blame for Housing Slump
Article: Homeowners Staying Longer
Article: Risk Shift from Banks to Servicers
OF INTEREST (Not password protected)
Happy Halloween to FCRA Defendants in Wisconsin: Court Rules that the Courts, not CRAs, are Charged with Resolving Legal Disputes
Bankruptcy Attorney Rule 9011 Sanctions – Halloween Edition (Chpt 11 issue)
BY THE NUMBERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR WALLET (Not password protected)
Thanksgiving vs. Black Friday vs. Cyber Monday: What to Buy Each Day – You should buy most electronics on Thanksgiving, but leave laptops for Black Friday and TVs for Cyber Monday.
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October 29, 2018
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Archives |
Post-Confirmation Property & Income Changes
“If you represent Chapter 13 Debtors, you will eventually have a case where the Debtor does not promptly tell you they received substantial property or additional income after the plan has been confirmed. When the Chapter 13 Trustee learns about this, they will try to increase the dividend to unsecured claims, and you will have to decide what to do.”
From the Editor
This week’s cases from The Academy Editor look at claims and the Fair Debt Collection Practices Act.
From the Courts
Tuesday, Oct. 30 Livestream Hearing: Proposed Changes to Judicial Conduct Code and Rules
Click here for more information
Click here for Executive Summary
From the National Consumer Bankruptcy Rights Center
For Your Blog
Student Loan Chronicles
In Case You Missed It . . .
Tragic Passing of Southern Gentleman
“He was a good man and that is how I will remember John Talton.” David Peake, NACTT President.
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More Tragedy Hits Bankruptcy World
IN THE NEWS (Not password protected)
MO Top Court: Consumer Lender Can’t Rewrite Arbitration Clause to Avoid Class Action (Not a bankruptcy case but one you might want to be aware of)
MORTGAGE MATTERS (Not password protected)
OF INTEREST (Not password protected)
Mortgage Assignee Claims: Hang on to that Promissory Note (Chpt 11 case)
MILITARY MATTERS (Not password protected)
The Military Moves Hundreds of Thousands of Families Each Summer. Many of Them Don’t Go Well
BY THE NUMBERS (Not password protected)
Child-Care Costs Just Hit New High – New study calculates the annual average cost to send one kid to day care
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
Bankruptcy Isn’t Usually This Dwayne Johnson Cool (Not password protected)
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October 22, 2018
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Archives |
Tragic Passing of Southern Gentleman
“He was a good man and that is how I will remember John Talton.” David Peake, NACTT President.
December 1 Approaches (Again): Home Equity Lenders Get a Break and Other Changes to Rule 3002.1
Absent contrary Congressional action, this December will see amendments to 16 bankruptcy rules, as well as a new rule and Appendix in Part VIII. Some of these changes will be of more interest to the Chapter 13 community than others. Larry Ahern’s analyses start this week with amended Rule 3002.1.Looking ahead, before the effective date he will analyze amended Rule 5005 – imposing new, mandatory electronic-filing rules – in another article for the Academy.
From the Editor
After a brief absence, Judge Brown is back with his case synopsis. This week he looks at discharge in three Chapter 13 cases.
More Tragedy Hits Bankruptcy World
From Our Friends at Credit Slips
CFPB “Abusive” Rulemaking?
For Your Blog
Student Loan Chronicles
- Public Service Loan Forgiveness Is Looking Pretty Bleak, But Maybe You Don’t Need To Worry – The approval rate can’t remain at 1 percent forever… can it?
Sanctions and Irony and Fraud, Oh My!
In Case You Missed It . . .
Circuit Split???
Is a Finding of Contempt Precluded by a “Good Faith” but Unreasonable Belief that an Action Does Not Violate the Discharge Injunction?
The Ninth Circuit’s Taggart rule says a good faith belief that a discharge injunction does not apply to a creditor’s actions precludes a finding of contempt. In a September 7 decision, that Circuit’s BAP applied the rule to a stay violation. This week, Larry Ahern reviews the decisions, together with one by the First Circuit, and considers whether there is a circuit split on this issue.
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Article: 2018 Mortgage Fraud Report
Article: Wall Street Loves These Risky Loans
FreddieMac: Increased Mortgage Rates Will Slow Purchase
OF INTEREST (Not password protected)
Our Court Not Good Enough? Why a Chicago business icon filed bankruptcy in New York
MILITARY MATTERS (Not password protected)
BY THE NUMBERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
Consumer Delinquencies Remain Stable in Second Quarter – Bank card delinquencies remain below 15-year average and consumers’ overall financial health is “excellent,” according to American Bankers Association economist.
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October 15, 2018
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Archives |
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Shout Out to Attendees and Speakers Congratulations Mitchell Marczewski and Wendi Henderhan Drawing Winners |
Circuit Split???
Is a Finding of Contempt Precluded by a “Good Faith” but Unreasonable Belief that an Action Does Not Violate the Discharge Injunction?
The Ninth Circuit’s Taggart rule says a good faith belief that a discharge injunction does not apply to a creditor’s actions precludes a finding of contempt. In a September 7 decision, that Circuit’s BAP applied the rule to a stay violation. This week, Larry Ahern reviews the decisions, together with one by the First Circuit, and considers whether there is a circuit split on this issue.
Critical Case Comment
Unless a Chapter 13 debtor has articulated a specific need to use a tax refund for a reasonable and necessary expense, post-petition tax refunds must be turned over to the Chapter 13 trustee to be distributed to creditors.
From the IRS
New 100% Depreciation Deduction Benefits Business Taxpayers
Tax reform legislation passed in December 2017 includes changes that allow businesses to write off most depreciable business assets in the year they place them in service.
Artificial Intelligence is Here
AI-Based Credit Scores Will Soon Give One Billion People Access to Banking Services
Alternative credit scores — using data, in part, from customers’ smartphones — will be migrating from emerging economies to the U.S.
For Your Blog
- Stanford Analyzed 292 Retirement Strategies – Here’s What Its Experts Determined Is Best
Sanctions and Irony and Fraud, Oh My!
In Case You Missed It . . .
Dismiss Absent a Hearing? Not so Fast
“ . . . So, in the E.D.N.C, unless a debtor requests a dismissal, or explicitly agrees to one, there will be a hearing, even with respect to an otherwise uncontested motion.”
MORTGAGE MATTERS (Not password protected)
Article: Inflating Income and Mortgage Fraud
OF INTEREST (Not password protected)
In Case of Fire, File a Claim (Chpt 11 case but good reminder to creditors to FILE A CLAIM)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HMMMM (Not password protected)
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October 8, 2018
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Archives |
Dismiss Absent a Hearing? Not so Fast
“ . . . So, in the E.D.N.C, unless a debtor requests a dismissal, or explicitly agrees to one, there will be a hearing, even with respect to an otherwise uncontested motion.”
Civil vs. Criminal Standard of Proof
Court explores evidence of willful intent under 11 U.S.C. § 523(a)(1)(B) and finds debtor innocent based on civil standard of proof. Taxes discharged.
Interested in more on discharging taxes? Check out Morgan King’s Tax Practice Library Plus. Includes The 3-Volume Tax Practice Library; The 7.5 hr. Tax Discharge Recorded Webinar; and one hour of consultation with Morgan King
IRS Issues Guidance on Changes to Business Expense Deductions for Meals, Entertainment
. . . eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation.
The Supreme Court
From the National Consumer Bankruptcy Rights Center
- Debtor Wins Battle of the Code Sections: Exemption vs Set-Off
In Congress
ABA Supports Chapter 7 Bankruptcy Changes
Click here for the text of H. R. 3553Click here for Testimony of Ariane Holtschlag for ABI Commission Before the Subcommittee on Regulatory Reform, Commercial and Antitrust Law House Committee on the Judiciary
Farmers in the News
Drought-Stricken Farmers/Ranchers Have More Time to Replace Livestock
Farmers/ranchers forced to sell livestock due to drought may get extra time to replace the livestock and defer tax on any gains from the forced sales.
See also: In Debt and Out of Options, Thousands of Dairy Farmers Turn to GoFundMe for Bailout
For Your Blog
- Mark Cuban: ‘If you use a credit card, you don’t want to be rich’
Student Loan Chronicles
- Debt Collection May Change for Student Loan Borrowers – U.S. Department of Education plans to rework how debt collection agencies interact with borrowers
- Unpaid Student Loan Debt Threatens Readers’ Wages – More than a third of federal student loan borrowers age 65 and older are in default, one report found.
In Case You Missed It . . .
Ask Ms. Ps & Qs
This case involves someone who lacks imagination when it comes to cursing (or, as we Texans say, cussin’). . . . the attorney was looking a seventh (!) sanction in the eye for telling one of her associates that her litigation strategy was to eff someone and give him “an [effing] hard time.”Note: Don’t miss Endnote #4!
MORTGAGE MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
Downward Mobility: Where Middle-Class Kids are Worse Off than their Parents
JUST FOR FUN (Or For Your Blog) (Not password protected)
FOR YOUR HEALTH (Not password protected)
A Brief Jog Sharpens the Mind, Boosting Attentional Control and Perceptual Speed — If you wanted to ensure your mind was in top gear, in terms of your attentional skills and processing speed, which do you think would provide the better preparation – 15 minutes of calm relaxation, or a 15-minute jog?
Fitness — How the Daily Mile program changes kids’ lives in 15 minutes
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October 1, 2018
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Archives |
Ask Ms. Ps & Qs
This case involves someone who lacks imagination when it comes to cursing (or, as we Texans say, cussin’). . . . the attorney was looking a seventh (!) sanction in the eye for telling one of her associates that her litigation strategy was to eff someone and give him “an [effing] hard time.”Note: Don’t miss Endnote #4!
Critical Case Comment
When Chapter 7 debtors’ counsel bifurcated services and “factored” the fees due for post-petition services and failed to adequately disclose the arrangement, the attorney violated § 329; the business of “factoring” of obligations owed to debtors’ counsel constituted an impermissible splitting of fees.
In Congress
ABA Supports Chapter 7 Bankruptcy Changes
Click here for the text of H. R. 3553
Click here for Testimony of Ariane Holtschlag for ABI Commission Before the Subcommittee on Regulatory Reform, Commercial and Antitrust Law House Committee on the Judiciary
Vacancy Department
- Notice Regarding Candidates for Consideration for Appointment to the Bankruptcy Judge Vacancy in the Eastern District of Michigan – Written comments are now being accepted and must be received by October 12th.
There’s Always a Car
Farmers in the News
NACTT Miami Conference Recordings
Your Choice of DVDs or Audio CDs
$150.00 – Order TODAY Ships TODAY
Couldn’t attend the NACTT 2018 Conference – Order this fabulous resource NOW!
Quasi Celeb in Chapter 13
Sanctions and Irony and Fraud, Oh My!
- U.S. Trustee Program Reaches $5 Million Settlement with Citibank to Protect Debtors in Bankruptcy – Settlement Addresses Robo-Signing in Tens of Thousands of Bankruptcy Cases
Student Loan Chronicles
- Help or Hardship? – Income-Driven Repayment in Student-Loan Bankruptcies
- There’s Supposed to Be a Student Loan Forgiveness Program for Public Servants – So Far, It’s Rejected Almost Every Applicant
IN THE NEWS (Not password protected)
Whose Claim is it Anyway? (FCRA Chpt 7 case)
MORTGAGE MATTERS (Not password protected)
US Census: Home Sales Up After 2 Month Decline
FreddieMac: Inventory and Affordability Affecting Sales
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
American Credit Scores Hit a Record High – The bad news is bank card, mortgage and auto loan debt are all flashing red.
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September 24, 2018
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Archives |
Making Amends in Chapter 13: Why Davis Should Cause You to Take Action
“. . . Such was the case in a recent unpublished opinion out of the Sixth Circuit Court of Appeals, a case in which a debtor’s failure to list a civil rights cause of action in her Chapter 13 plan effectively robbed her of the opportunity to ever have the merits of her claim heard.”
What is Feasibility and Why does it Matter?
This article discusses how feasibility has been interpreted by the courts and is intended to aid parties to chapter 13 proceedings – counsel for debtors, counsel for creditors, and chapter 13 trustees– better understand this concept.
In Congress
- New Bill Would Finally Tear Down Federal Judiciary’s Ridiculous Paywall – A Republican member of Congress wants free public access to judicial records.
Vacancy Announcement
From the Courts
Proposed Amendments Published for Public Comment
- Bankruptcy Rules 2002, 2004, 8012
- Comment period closes February 15, 2019
Military Matters
Combat-Injured Disabled Veterans May Be Due Refund
The IRS is alerting certain veterans that they may be due a credit or refund. This is a result of the Combat-Injured Veterans Tax Fairness Act passed in 2016. It affects veterans who received disability severance payments after January 17, 1991, and included that payment as income.
American Farmers Are in Crisis
Falling prices and a trade war mean small farmers are struggling to stay afloat
From Our Friends at Credit Slips
Excuse Me?
“Barry Ritholtz has a generally sensible column about the ten-year anniversary of the financial crisis, but the bankruptcy stuff really makes no sense at all.”
For Your Blog
Sanctions and Irony and Fraud, Oh My!
- Cyber Crooks Try to Divert Direct-Deposit Paychecks into Their Accounts – According to the latest alert from the FBI, cyber criminals have been targeting online payroll accounts at school districts, universities, hospitals and commercial airway transportation.
Student Loan Chronicles
- What the Proposed Borrower Defense Rules Mean – The Trump administration is trying to delay an Obama-era policy meant to boost protections for defrauded students.
IN THE NEWS (Not password protected)
Delinquent Property Tax Procedures: To Stay or Not to Stay – In response to repeated requests for comfort orders, the Bankruptcy Court for the Middle District of Florida issued a district wide administrative order confirming that the automatic stay did not apply to the post-petition sale of tax certificates for delinquent property taxes owed on property owned by a debtor in bankruptcy.
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
What’ll Spark the Next Crisis? Here’s One Candidate – Lenders to subprime corporate borrowers are dropping their guard.
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September 17, 2018
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Archives |
Section 522(f) Avoidance of Liens on Co-Owned Property
In an August decision, the Tenth Circuit held that, when avoiding liens under § 522(f), and when the debtor owns only a partial interest in exempt property, you start with that interest and allocate senior liens proportionately. This is now the majority view at the circuit level.This week, Larry Ahern reviews how the calculation works and describes the Tenth Circuit’s decision.
Is There a Light in the Farm Economy?
- Mark your calendar now for the Chapter 12 Conference July 15 and 16, 2019 in Indianapolis
Judge Issues
- Third Circuit Begins Search for Temp Judges on Del. Bankruptcy Court – The U.S. Court of Appeals for the Third Circuit has begun its search for two temporary bankruptcy judges in Delaware, nearly 10 months after Congress passed legislation to provide reinforcement for one of the busiest bankruptcy courts in the nation.
For the Academic Set
U.S. Banking De-Regulation, Financial Engineering, and Bankruptcy Reform: How Banks Took Control over Consumer Insolvency Law
New from the author of Credit Card Nation a review of the legislative history of banking deregulation and bankruptcy reform. It provides a brief explanation of financial engineering, and compares the stringent effects of BAPCPA for consumers with the generosity offered to those financial services firms that created the crisis.
From the Courts
Proposed Amendments Published for Public Comment
- Bankruptcy Rules 2002, 2004, 8012
- Comment period closes February 15, 2019
From the Courts
- Bankruptcy Court Miscellaneous Fee Schedule Effective September 1st
- BAPCPA Report – 2017 Report of Statistics Required by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
From the IRS
IRS Urges Taxpayers to Prepare for Natural Disasters
“Check on fiduciary bonds – Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.”
From Our Friends at Credit Slips
From the National Consumer Bankruptcy Rights Center
- Court Puts Trustee Fees Under the Microscope (Chpt 7 case)
For Your Blog
Retirees: Avoid Surprise Tax Bill Do Paycheck Checkup ASAP
“Because of this law change, retirees who receive a monthly pension or annuity check may need to raise or lower the amount of tax they pay in during the year.”
Sanctions and Irony and Fraud, Oh My!
- A Year Later, Equifax Lost Your Data but Faced Little Fallout – Equifax is financially stable and legally in the clear, but lawmakers aren’t backing down.
MORTGAGE MATTERS (Not password protected)
Article: New Home Sales Hit 9 Month Low
FreddieMac: Mortgage Rates Creeping Up
CoreLogic: Home Prices Rising at Reduced Rate
OF INTEREST (Not password protected)
8th Circuit BAP Rules Bad Faith Not Grounds to Deny Amended Exemption of Assets Disclosed Post-Petition (Chpt 7 case)
Montana Had Highest Suicide Rate in the Country: Then Budget Cuts Hit – Suicide has been a persistent problem in Montana — and it’s getting worse. Now, some who have lost loved ones are mobilizing to stop the deaths.
Interesting Chapter 11 case . . . Who Gets to Keep the Money: Sometimes Procedural Arguments Can Matter as Much as Substantive Arguments
Bankruptcy Claims Trading . . . the first empirical study of trading in the financial claims of Chapter 11 debtors to learn more about how claims trading impacts the average Chapter 11 case
JoCo Man Bought a Bank Upon ‘Revelation From God’ – Now $30M in debt, he’s bankrupt
DEBT AND THE ECONOMY (Not password protected)
MILITARY MATTERS (Not password protected)
Watchdog Report: VA benefits backlog is higher than officials say
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September 10, 2018
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Archives |
Critical Case Comment
A debt obligation for a penalty resulting from fraud can be both a debt under § 523(a)(2) and § 523(a)(7) and the obligation is excepted from discharge in a Chapter 13 case.
Factoring in Valuation – Consumer Cases that Impact Business Cases
Practitioners should be aware of important consumer decisions that may influence lower courts in the business context and commercial case decisions which may influence consumer cases.
Supreme Court Fellows Set to Begin New Term
- Two of four Fellows are from the bankruptcy world
- Congratulations Ms. Willie and Ms. Jones
From the Courts
- Bankruptcy Court Miscellaneous Fee Schedule Effective September 1st
- BAPCPA Report – 2017 Report of Statistics Required by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
Bankruptcy is Often a Gambler’s Only Sure Bet
“ . . . gamblers may actually have some luck on their side if they take advantage of current bankruptcy laws.” (Chapter 7 related article)
Federal Judges Mourn Passing of Retired Bankruptcy
Federal judges in the Pacific Northwest and beyond are mourning the passing of retired Bankruptcy Judge Thomas T. Glover of the United States Bankruptcy Court for the Western District of Washington.Click here for Obituary
From Our Friends at Credit Slips
From the National Consumer Bankruptcy Rights Center
Sanctions and Irony and Fraud, Oh My!
MORTGAGE MATTERS (Not password protected)
What’s the Frequency: Keeping Up with Tax Installment Changes – If a mortgage servicer knows that property taxes in a particular state or region are always due at the same time, forecasting workload volume and staffing needs can be more easily predicted . . . a few of the interesting changes and requirements of some of the jurisdictions around the country.
MBA Report: Profits Up In 1st Qtr
FreddieMac Forecast: Home Sales Slowing
OF INTEREST (Not password protected)
Are Our Days as Lawyers Numbered? Yes, robots/AI are changing the landscape of the legal world. But will they one day take over completely?
DEBT AND THE ECONOMY (Not password protected)
BY THE NUMBERS (Not password protected)
FOR YOUR HEALTH (Not password protected)
Texas Teacher Thought He Had Great Health Insurance – Now he’s stuck with a $109,000 ER bill.
Know what to do if this happens to you or your client:
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September 3, 2018
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Archives |
UpRight Not Right in East Tennessee
Law Solutions Chicago, LLC d/b/a Upright Law has once again been sanctioned. This time in the Eastern District of Tennessee by settlement agreement with the United States Trustee, Chapter 13 Trustee, Gwendolyn Kerney, and Chapter 7 Trustee, Jerrold Farinash.
From the National Consumer Bankruptcy Rights Center
Forgive Us Our Debts
NACTT Miami speaker and Orlando attorney Anne-Marie Bowen, has just published an exciting new resource for you and your clients. Forgive Us Our Debts is a short, easy read primarily written for Christian debtors and/or potential debtors but as a debtor or creditor attorney, this book is also a resource for you into the mindset of those clients who, for religious reasons, struggle with allowing themselves a chance at a fresh financial start.
From the IRS
IRS to Introduce New Tax Transcript to Better Protect Taxpayer Data
The new transcript replaces the previous format and will be the default format available via Get Transcript Online, Get Transcript by Mail or the Transcript Delivery System for tax professionals as of September 23.Click here for more . . .
For Your Blog
Taxpayers Should Be Prepared for Natural Disasters
With hurricane season underway, it’s a good idea for taxpayers to think about what they can do to be prepared should a hurricane or other natural disaster strike where they live. Here are a few helpful tips for taxpayers to keep in mind.
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
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August 27, 2018
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Archives |
Notice: Pitfalls and Perils of Rule 7004(h)
“Where the Plan proposes to strip or cram or avoid a lien held by an Insured Depository Institution, Rule 7004 contains much higher requirements for service.”
See also: Don’t Skimp on Service When Your Client’s House Is on the Line
From Our Friends at Credit Slips
Attention Trustees/Office Managers
NACTT Miami – Staff Track DVDs Now Available
Order the four staff track sessions TODAY for ONLY $75
(Ships within 24 hours)Training Includes
(Ships within 24 hours)Training Includes
- Understanding Business Entities and the Self-Employed Debtor
- National Data Center Training
- Acing the Annual Audit
- Mortgage Claims Issues
From the IRS
IRS to Introduce New Tax Transcript to Better Protect Taxpayer Data
The new transcript replaces the previous format and will be the default format available via Get Transcript Online, Get Transcript by Mail or the Transcript Delivery System for tax professionals as of September 23.
Student Loan Chronicles
For Your Blog
Sanctions and Irony and Fraud, Oh My!
- US v. VALDÉS-AYALA – For at least eight years, Defendant, who was not an attorney, exploited desperation of individuals behind on court-ordered child support payments by assisting them in filing ‘skeleton’ petitions.
MORTGAGE MATTERS (Not password protected)
Article: The Million-Dollar Brownstone No One Owned – On a quiet street in Brooklyn, a real-estate imbroglio proved nearly impossible to solve.
OF INTEREST (Not password protected)
Federal Courts Propose Broad Evidence, Civil, Bankruptcy Rule Changes (Bankruptcy Rules 2002(h), 2004(c))
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
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August 20, 2018
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Critical Case Comment
Claim that is not timely filed cannot be an allowed claim and trustee is precluded from making distribution to the claim even where no application to disallow the claim has been filed.
“Judge Dees has prevented the payment of the claim even though no one sought to disallow the claim or challenge the payments.”
Are You Throwing Your Bankruptcy Client to the Predators?
Standard operating procedure for taxing authorities who are in discussion with a tax payer about a tax issue is to “request” that the taxpayer sign an extension of the period in which the taxes can be assessed. The alternative, the taxpayer is told, is an immediate assessment.
Trustee Passes Away
It is with great sadness and respect that we report the passing away of a Standing Chapter 13 Trustee for the Eastern District of Pennsylvania with offices in Reading. Frederick L. “Fred” Reigle was appointed in 1981. He passed away on July 15th after a lengthy illness.
Standing Chapter 13 Trustee William C. Miller has been appointed interim trustee of the division until a replacement can be appointed.
Passing of Jim Batchelor
Jim Batchelor passed away Saturday morning August 10th after a long battle with cancer. Jim was the recipient of the Civility Award at the 2017 State of the Court luncheon and was a well-respected colleague in the bankruptcy bar in the Western District of Michigan.
No Room for Error? Determining Whether Your “Secured” Creditor Has a Fatally Deficient UCC-1 – Part 2 of 2
Trustees and debtors’ counsel may often think they cannot win in a contest over the secured status of a creditor. Prompted by recent bankruptcy and district court decisions, Larry Ahern reviewed in Part I some rules governing the preparation and filing of financing statements (UCC-1s) and explained how a UCC-1 might be fatally deficient. Now, in Part II, he reviews four recent decisions that illustrate the strictness of the rules governing naming of debtors on UCC-1s.
On the CFPB
CFPB Settles with Defendants in Hydra Group Payday Lending Case
District Court entered an Order effectuating settlement CFPB and Richard Moseley, Sr., Richard Moseley, Jr., and 20 interrelated corporate entities controlled by Moseley, Sr. and Moseley, Jr.
For Your Blog
Sanctions and Irony and Fraud, Oh My!
- Fil-Am Lawyer Pleads ‘Not Guilty’ to Attempted Murder of Ex-Clients (Has Chapter 13 lawyer income really sunk this low? . . . Oh My indeed!! . . . Now, the rest of the story . . . (on good authority but not verified, Academy staff was told that the victims had been in a Chapter 13 which was dismissed. Their attorney (Paul Mendoza Allen) went to their home to demand the balance of his fees. When they said they had no money, he shot them, then tried to flee.)
IN THE NEWS (Not password protected)
Retired and Broke: Bankruptcy filings surging for seniors
MORTGAGE MATTERS (Not password protected)
Article: Fannie Mae Seeks to Offload Large Pool of Reperforming Loans BIDS DUE SEPTEMBER 6th
Article: Americans Now Have More Debt Than Ever Before – Mortgage debt hits highest level in 9 years
Article: Paying Rent in America
Article: Home Remodels Up 30%
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
Many Americans Still Feel the Sting of Lost Wealth – The housing crash hurt the poor and middle class more than the rich, who rode the bull stock market
BY THE NUMBERS (Not password protected)
Stagnating Salaries: Real US wages are essentially back at 1974 levels, Pew reports
CYBERSECURITY (Not password protected)
FOR YOUR HEALTH (Not password protected)
The Illness Is Bad Enough. The Hospital May Be Even Worse – Elderly particularly vulnerable to “post-hospital syndrome,” some experts believe, and that may be why so many patients return.
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August 13, 2018
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Archives |
Ask Ms. Ps & Qs
Dear Readers:I just finished reading a disgorgement . . . Although D’Arata is a chapter 7 case, you might be interested in the Court’s take on appearance counsel.
No Room for Error? Determining Whether Your “Secured” Creditor Has a Fatally Deficient UCC-1 – Part 2 of 2
Trustees and debtors’ counsel may often think they cannot win in a contest over the secured status of a creditor. Prompted by recent bankruptcy and district court decisions, Larry Ahern reviewed in Part I some rules governing the preparation and filing of financing statements (UCC-1s) and explained how a UCC-1 might be fatally deficient. Now, in Part II, he reviews four recent decisions that illustrate the strictness of the rules governing naming of debtors on UCC-1s.Click here for Part 1
New Study
Graying of U.S. Bankruptcy: Fallout from Life in a Risk Society
“Using data from the Consumer Bankruptcy Project, we find more than a two-fold increase in the rate at which older Americans (age 65 and over) file for bankruptcy and an almost five-fold increase in the percentage of older persons in the U.S. bankruptcy system.”See also:
- Older Americans’ Rising Bankruptcy Filings
- ‘Too Little Too Late’: Bankruptcy Booms Among Older Americans
- Growing Number of Americans Over 65 Filing for Bankruptcy Just to Get By, and It Could Signal a Larger Problem in US
- Baby Boomers in Bankruptcy
- Retirees Struggle to Locate Billions in Lost Pensions
For Your Blog
Sanctions and Irony and Fraud, Oh My!
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Article: Wells Fargo Faces Tax Credit Probes
Article: Housing: Still A Seller’s Market
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
BY THE NUMBERS (Not password protected)
CYBERSECURITY (Not password protected)
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August 6, 2018
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Archives |
No Room for Error? Determining Whether Your “Secured” Creditor Has a Fatally Deficient UCC-1 – Part 1 of 2
Trustees and debtors’ counsel may often think they cannot win in a contest over the secured status of a creditor. Prompted by recent bankruptcy and district court decisions, Larry Ahern reviews some rules governing the preparation and filing of financing statements (UCC-1s) and explains how a UCC-1 might be fatally deficient.In Part II, he will review four recent decisions that illustrate the strictness of the rules governing naming of debtors on UCC-1s.
Discharged or Not? Post-Petition Interest on Pre-Petition Priority Taxes
“The Chapter 13 Debtor who completes the Plan and obtains a discharge is relieved of any further liability associated with the priority tax debt. Interest and penalties continue to accrue during the pendency of the Chapter 13 case and if the case is either dismissed or converted to a proceeding under Chapter 7, the suspension of the accrual of interest and penalties terminates and is excepted from the Chapter 7 discharge.”
From the IRS
IRS Offers Guidance on Recent 529 Education Savings Plan Changes
On 7/30/18 the IRS and Department of the Treasury announced their intent to issue regulations on three recent tax law changes affecting popular 529 education savings plans.
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Article: Slump in California Home Sales
Article: Average Closing Costs $5650.00
Article: Poorer Half of US Bolsters Economy
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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July 30, 2018
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Archives |
Critical Case Comment
A discharge under § 1328(a) will discharge an obligation of the debtor to a condominium association where the condominium was purchased pre-petition and owned by the debtor post-petition.Click here for Opinion
From the Courts
Sanctions and Irony and Fraud, Oh My!
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Article: Tapping 401K Is Risky
Here Are 5 Reasons Millennial Homeownership Rate Is Low – Urban Institute breaks down the data
Article: Lil Kim Struggles to Save Home in BK
OF INTEREST (Not password protected)
Bankruptcy Law as a Balancing System – Lessons from a Comparative Analysis of the Interaction Between Labor and Bankruptcy Laws
BY THE NUMBERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
Mortgage, Groupon and Card Debt – How the bottom half bolsters U.S. economy
CYBER SECURITY (Not password protected)
None of Google’s 85,000 Employees Have Been Successfully Phished in Over a Year — And It’s Because of a Simple $20 Product Anyone Can Use
IN THE ‘OH WOW’ DEPARTMENT (Not password protected)
Health Insurers Are Vacuuming Up Details About You — And It Could Raise Your Rates
Without any public scrutiny, insurers and data brokers are predicting your health costs based on data about things like race, marital status, how much TV you watch, whether you pay your bills on time or even buy plus-size clothing.
Without any public scrutiny, insurers and data brokers are predicting your health costs based on data about things like race, marital status, how much TV you watch, whether you pay your bills on time or even buy plus-size clothing.
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July 23, 2018
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Archives |
Who Gets Paid When? A Short Primer on the Order of Distribution in the Era of National and Local Plans
The Federal Rules of Bankruptcy Procedure and Official Forms were amended last year in ways that significantly affected Chapter 13 Trustees and practitioners in many ways. Below, Mr. Ahern follows his 2017 series with Beverly Burden by discussing an important unanswered question for trustees, debtors and creditors: How is the order of distribution to creditors determined?
Rule 3002.1 and the Tangled Web of HOA Assessments
“Secured creditors relying on the precept that a secured claim passes through bankruptcy unaffected (absent a proceeding focused on the lien) take note.”
From the IRS
Here’s How the IRS Contacts Taxpayers
Everyone should know how the IRS contacts taxpayers
Retired Bankruptcy Judge Passes Away
Judge James F. Queenan
From Our Friends at Credit Slips
Sanctions and Irony and Fraud, Oh My!
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
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July 16, 2018
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Archives |
Critical Case Comment
Although a secured creditor with a purchase money security interest in personal property is entitled to adequate protection payments under § 1326(a)(1), the trustee is not obligated to make the payments without a motion, hearing, or court order.
From the Ninth Circuit Court of Appeals
Opinion: Goudelock v. Sixty-01 Association of Apartment Owners“The panel reversed the district court’s decision affirming the bankruptcy court’s summary judgment in favor of a condominium association, which sought in an adversary proceeding to determine the dischargeability of a debtor’s personal obligation to pay condominium association assessments that accrued between the date the debtor filed her Chapter 13 bankruptcy petition and the date the condominium unit was foreclosed upon.”See also: Post-Petition Condo Fees Dischargeable
From the IRS
Spread the Word . . . this could be a significant amount of money for veterans.
Veterans Owed Refunds for Overpayments Attributable to Disability Severance Payments Should File Amended Returns to Claim Tax Refunds
- $1,750 for tax years 1991 – 2005
- $2,400 for tax years 2006 – 2010
- $3,200 for tax years 2011 – 2016
District Authority to Opt Out of the “National” Chapter 13 Plan: Does Your Local Plan Improperly Restrict Plan Provisions?
The Rules of Bankruptcy Procedure were amended last year in ways that significantly affected Chapter 13 Trustees and practitioners in many ways. In a series of articles, Beverly Burden and Larry Ahern explained many of these changes.This week, Mr. Ahern follows that series with an issue that tests the interplay of the national rules with local practice, rules, and judicial rulings.
On the CFPB
- CFPB Acting Director Mulvaney announced he has selected Brian Johnson, who currently serves as Principal Policy Director at the Bureau, to assume the responsibilities of Acting Deputy Director. “Brian Johnson is the first person I hired at the Bureau and has been an indispensable advisor,” said Acting Director Mulvaney. “Brian knows the Bureau like the back of his hand. He approaches his role as a public servant with humility and unsurpassed dedication. His steady character, work ethic, and commitment to free markets and consumer choice make him exactly what our country needs at this agency.”
From Our Friends at Credit Slips
MORTGAGE MATTERS (Not password protected)
Black Knight: Tappable Equity Up $380B In Q1
Article: Millennial Homeownership Stymied
BY THE NUMBERS (Not password protected)
OF INTEREST (Not password protected)
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July 9, 2018
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Archives |
The FDCPA and Bankruptcy One Year After Midland v. Johnson, Part IV Bankruptcy Court Interpretations
The conclusion to the Midland v. Johnson ‘epic’. . . “In Midland v. Johnson, the Supreme Court put an end to FDCPA lawsuits over proofs of claims for stale debts, at least where the claimant tells the truth about the date of last payment. Since the Midland ruling in May of 2017, there have been few decisions from bankruptcy courts on complaints under the Fair Debt Collection Practices Act (FDCPA).”
Click here for Part I
Click here for Part II
Click here for Part III
District Authority to Opt Out of the “National” Chapter 13 Plan: Does Your Local Plan Improperly Restrict Plan Provisions?
The Rules of Bankruptcy Procedure were amended last year in ways that significantly affected Chapter 13 Trustees and practitioners in many ways. In a series of articles, Beverly Burden and Larry Ahern explained many of these changes.
This week, Mr. Ahern follows that series with an issue that tests the interplay of the national rules with local practice, rules, and judicial rulings.
Permitted Changes to Official Bankruptcy Forms
The use of Official Bankruptcy Forms is required with certain exceptions, and the ability to modify Official Forms is limited. However, there are exceptions. Click here for an analysis done by the AO of permitted changes to official bankruptcy forms
See also: Director’s Forms and Their Use by Phil Lamos
From the Courts – Retirements
For Your Blog
- The 130 Best Military Discounts in 2018 – Active-duty service members, veterans, and retirees can save big by asking about deals and freebies.
From Our Friends at Credit Clips
Student Loan Chronicles
- Sixth Circuit Opinion: Follow Brunner until the Circuit Court decides to use a different standard
- Off the Salary Battlefield, Public Sector Struggles with Retention, Student Debt – As Big Law races to pay young lawyers ever-higher starting salaries, the public sector is struggling to pay enough to lawyers burdened by student debt.
IN THE NEWS (Not password protected)
Debtor Must Exhaust Administrative Remedies to Get Damages and Fees from IRS – Given that financial issues are the number one reason for security clearance denials and revocations, it’s no small wonder that one of the most frequent questions my office receives is how to resolve delinquent debt.
MORTGAGE MATTERS (Not password protected)
CoreLogic: Home Prices Up 7.1%
Redfin: Weak Home Sales A Major Threat
DEBT AND THE ECONOMY (Not password protected)
OF INTEREST (Not password protected)
Best Advice to U.S. Dairy Farmers? ‘Sell Out as Fast as You Can’
Upon Further Review, Ninth Circuit Finds No Flag on the Play – Creditor Allowed to Block a Cram-Up Plan Following Claims Purchases
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July 2, 2018
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Archives |
Impact of Supreme Court’s Decision on § 523(a)(2)(B)
“The opinion suggests that a statement respecting the debtor’s financial condition, whether a single-asset or overall condition statement, must meet all the requirements of subsection 523(a)(2)(B) to be nondischargeable. Otherwise, even though the statement is false, the debt is dischargeable, notwithstanding subsection 523(a)(2)(A).”
Not Born in the USA? The Perils of Bankruptcy Filings by Undocumented Persons
An excellent article exploring answers to can and should an undocumented person file for bankruptcy protection in America??
Sanctions and Irony and Fraud, Oh My!
From Our Friends at Credit Slips
OF INTEREST (Not password protected)
