December 2, 2019
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Archives |
Due to the Thanksgiving Break, we bring you an abbreviated and “Greatest Hits” Update.

Senior Moments

Taxes, Offset, and Mutuality

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

Three Last Things Trustees Should Know About the Small Business Reorganization Act of 2019 – Part V
- Two More Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- The First Thing a Chapter 13 Debtor’s Attorney Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act by Jan Hamilton – Part One, Part Two and Part Three
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Larry Ahern
- H.R. 3311

ABI Commission on Consumer Bankruptcy Recommendations – What Does It Mean to Surrender?
Collateral Repossessed Pre-Petition
Recommendations Related to Exemptions
Post-Petition Changes in Value
A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability

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

Sanctions and Irony and Fraud, Oh My!
- Now-Defunct Globe University Files for Chapter 11, Citing Many Millions Owed – With Minnesota School of Business, it owes millions in connection with fraud.
- Student Loan Debt Scam Stopped by FTC After Consumers Lose Millions – FTC says the companies would promise lower payments, and then push the loans onto another company.

New and Revised Bankruptcy Forms
Amendments to the Federal Rules of Bankruptcy Procedure Take Effect December 1, 2019

November 25, 2019
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Happy Thanksgiving
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ABI Commission on Consumer Bankruptcy Recommendations – What Does It Mean to Surrender?
“One of the most confusing elements in consumer bankruptcy practice is the effect of electing the option given in § 1325(a)(5)(C) or § 521(a)(2).”Previously published articles:
Collateral Repossessed Pre-Petition
Recommendations Related to Exemptions
Post-Petition Changes in Value
A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability

Per Capita Bankruptcy Filings Heat Map
Click here for the map
Click here for the raw data
Ranking | State | Filings per 1,000 |
1 | Alabama | 5.75 |
2 | Tennessee | 5.47 |
3 | Georgia | 4.43 |
4 | Mississippi | 4.28 |
5 | Nevada | 3.82 |
6 | Illinois | 3.79 |
7 | Indiana | 3.67 |
8 | Arkansas | 3.66 |
9 | Kentucky | 3.56 |
10 | Utah | 3.50 |

From the Supreme Court

Farmers in the News
- Farming Industry Faces Rising Bankruptcy Filings – The number of American farms going bankrupt is up 24 percent over last year.

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

In Case You Missed It. . .December 1 is NEXT Week
New and Revised Bankruptcy Forms
This week Judge Brown breaks down the new and revised bankruptcy forms that you need to be aware of.AND . . . below is a link to a really good article on rule amendments you also need to be aware of . . .
Amendments to the Federal Rules of Bankruptcy Procedure Take Effect December 1, 2019
MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
BY THE NUMBERS (Not password protected)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
November 18, 2019
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Archives |

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

Three Last Things Trustees Should Know About the Small Business Reorganization Act of 2019 – Part V
This week, Larry Ahern continues a report on bankruptcy-related legislation. This Part V concludes his review of issues arising under the new small business subchapter added to Chapter 11, of particular interest to Chapter 12 and 13 trustees.See also our previously published articles:
- Two More Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- The First Thing a Chapter 13 Debtor’s Attorney Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act by Jan Hamilton – Part One, Part Two and Part Three
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Larry Ahern
- H.R. 3311

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

From the Courts
2019 Director’s Awards Presented for Leadership, Excellence, Bravery

From the United States Trustee
Location: District of Guam, Missouri
Application Deadline: November 22, 2019

From the Courts
- Notice of Vacancy for the Position of U.S. Bankruptcy Judge for Southern District of West Virginia at Charleston – Deadline to apply is December 9.

From the IRS



In Case You Missed It. . .
New and Revised Bankruptcy Forms
This week Judge Brown breaks down the new and revised bankruptcy forms that you need to be aware of.AND . . . below is a link to a really good article on rule amendments you also need to be aware of . . .
Amendments to the Federal Rules of Bankruptcy Procedure Take Effect December 1, 2019
MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
BY THE NUMBERS (Not password protected)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
November 11, 2019
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Happy Veteran’s Day We at The Academy thank each |

In honor of Veteran’s Day, we bring you a story from uscourts.gov
Double Duty: Reflections of an Army General and Clerk of Court

New and Revised Bankruptcy Forms
This week Judge Brown breaks down the new and revised bankruptcy forms that you need to be aware of.AND . . . below is a link to a really good article on rule amendments you also need to be aware of . . .
Amendments to the Federal Rules of Bankruptcy Procedure Take Effect December 1, 2019

Memories of a Chapter XIII Trustee

From the Supreme Court
- Argument Preview: Justices to consider when creditors in bankruptcy can appeal orders denying relief from the automatic stay


From the National Consumer Bankruptcy Rights Center
- No Amortization of Tax Refund in W.D. Texas
- Note that Standing Trustee Mary Viegelahn (Vega v. Viegelahn and Diaz v. Viegelahn) is Program Chair for the 2020 NACTT conference in San Diego. Mark your calendar NOW; it’s going to be EPIC!!! July 9-11, 2020. BE THERE!

For the Academic Set

From the United States Trustee
DEADLINE TO APPLY IS NOVEMBER 15, 2019
Solicitation of Applicants to Serve as Subchapter V Trustees

Farmers in the News
- Report: Farm bankruptcies rose 24% over past year, growers increasingly depend on federal aid, programs

Newest Webinar Recording Now Available
The HAVEN Act – Understanding this complicated new law
A comment from one debtor attorney:
“One of the best presentations I have heard in many years. Clear,
concise, relevant, thorough. Excellent materials.”
The HAVEN Act – effective NOW – is a helpful, yet complicated new tool in your arsenal to help veterans get the fresh start offered through bankruptcy.
Chapter 13 Trustee Naliko Markel moderates a one hour discussion between Kristina M. Stanger and Jessica Hopton Youngberg. Both Stanger and Youngberg were members of the ABI Task Force and each has extensive experience in the area of veteran affairs.
AND FOR THOSE WHO JOINED THE LIVE PRESENTATION:
There were many questions regarding the example discussed on Slide #26. Click here for an augmented dissection of the example.

Student Loan Chronicles
- Law Schools with the Highest Student Loan Default Rates – Damned to lifetimes of debt, graduates of these law schools have been defaulting on their student loans.

In Case You Missed It. . .
Hanging Paragraph, Cars for Non-Personal Use, and PMSI
MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
IN THE ‘OH MY’ CATEGORY (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
November 4, 2019
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Archives |

Critical Case Comment

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


Barbara J. Rom Award for Bankruptcy Excellence
The 2019 recipient of the Barbara J. Rom Award for Bankruptcy Excellence given by the Federal Bar Association, Eastern District of Michigan chapter, was awarded to NACTT and Academy member Richardo Kilpatrick. We are honored that Kilpatrick will be a speaker at the 2020 NACTT Conference in San Diego.
The Barbara J. Rom Award for Bankruptcy Excellence honors individuals who have exhibited the highest level of overall excellence in the practice of bankruptcy law. The following criteria are among those considered in making this award: Excellence, civility, sophistication of practice, community involvement, Bar association and Court activity involvement, and pro bono participation.
CONGRATULATIONS RICHARDO!!!!

For Your Blog
Credit Scores Trend Upward After Bankruptcy

From the United States Trustee
Public Notice – Solicitation of Applicants to Serve as Subchapter V Trustees
Announcements are going up, all over the country, for applications to be a Small Business Trustee. Click here for the national, uniform information then scroll to your state for the applicable email address to which submissions should be sent.
DEADLINE TO APPLY IS NOVEMBER 15, 2019

Farmers in the News
Farm Bankruptcies Rise Again

Newest Webinar Recording Now Available
The HAVEN Act – Understanding this complicated new law
A comment from one debtor attorney:
“One of the best presentations I have heard in many years. Clear,
concise, relevant, thorough. Excellent materials.”
The HAVEN Act – effective NOW – is a helpful, yet complicated new tool in your arsenal to help veterans get the fresh start offered through bankruptcy.
Chapter 13 Trustee Naliko Markel moderates a one hour discussion between Kristina M. Stanger and Jessica Hopton Youngberg. Both Stanger and Youngberg were members of the ABI Task Force and each has extensive experience in the area of veteran affairs.
AND FOR THOSE WHO JOINED THE LIVE PRESENTATION:
There were many questions regarding the example discussed on Slide #26. Click here for an augmented dissection of the example.

Student Loan Chronicles
CFPB Announces Action Against Student Loan Debt Relief Operation

In Case You Missed It. . .
As a Halloween Treat, the following article is NOT password protected.
Evidentiary Issues Arising from Attempts to Prove Alleged “Facts” Stated in The Monster Mash

OF INTEREST (Not password protected)
TILL INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
October 28, 2019
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Archives |

As a Halloween Treat, the following article is NOT password protected.
Evidentiary Issues Arising from Attempts to Prove Alleged “Facts” Stated in The Monster Mash


Two More Things Trustees Should Know About the Small Business Reorganization Act of 2019
This week, Larry Ahern continues reporting on bankruptcy-related legislation passed in August. This week, Ahern drills further into the new small business subchapter added to Chapter 11, which will also be of interest to Chapter 12 and 13 trustees and practitioners.See also our previously published articles:
- The First Thing a Chapter 13 Debtor’s Attorney Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act by Jan Hamilton – Part One, Part Two and Part Three
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Larry Ahern
- H.R. 3311

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

From the United States Trustee
Public Notice – Solicitation of Applicants to Serve as Subchapter V Trustees

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

From the CFPB
- Will Supreme Court Decision Threaten CFPB Independence – Or will it bring more accountability?
- CFPB to Host Symposium on November 6 – Live Stream Available

Newest Webinar Recording Now Available
The HAVEN Act – Understanding this complicated new law
A comment from one debtor attorney:
“One of the best presentations I have heard in many years. Clear,
concise, relevant, thorough. Excellent materials.”
The HAVEN Act – effective NOW – is a helpful, yet complicated new tool in your arsenal to help veterans get the fresh start offered through bankruptcy.
Chapter 13 Trustee Naliko Markel moderates a one hour discussion between Kristina M. Stanger and Jessica Hopton Youngberg. Both Stanger and Youngberg were members of the ABI Task Force and each has extensive experience in the area of veteran affairs.
AND FOR THOSE WHO JOINED THE LIVE PRESENTATION:
There were many questions regarding the example discussed on Slide #26. Click here for an augmented dissection of the example.

Student Loan Chronicles
- At 69, She’s Still Paying Off $12,000 of Student Debt — including out of her Social Security checks – About 222,140 Texans ages 60 and older had student loan debt in 2017, carrying a median load of $15,754, according to government data.
- Where Student Loan Debt Hits the Hardest — 2019 Edition

Sanctions and Irony and Fraud, Oh My!
- 3 Arrested in $7 Million Mortgage Fraud that Targeted the Elderly – Distressed homeowners promised foreclosure relief by paying fees and deeding their property over to Grand View Financial
- Why Black Homeowners in Brooklyn Are Being Victimized by Fraud – Deed theft has become a worrisome crime in Brooklyn, targeting rapidly gentrifying communities of color.
- $30M Fraud Scheme Lands Bala Cynwyd Man in Prison – Gary Frank’s major loan fraud scheme helped him get on the boards of the Philadelphia Orchestra and the Philly Pops.

In Case You Missed It. . .
Fourth Circuit Overrules Own Precedent, Holds Certain Primary Residence Claims Can be Crammed Down in Chapter 13 Bankruptcies
MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
HEALTHCARE AND DEBT (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
RETAIL WOES (Not password protected)
October 21, 2019
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Archives |

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


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

From the Editor
Judge Brown was back at his desk this week, reading cases, and brings us four cases of interest relating to claims:

Small Business Reorganization Act…(“SBRA”) – All previously published articles:
- The First Thing a Chapter 13 Debtor’s Attorney Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act by Jan Hamilton – Part One, Part Two and Part Three
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Larry Ahern
- H.R. 3311

From the Courts – Form Changes
Forms effective October 1, 2019On August 26, 2019, the President signed into law the Honoring American Veterans in Extreme Need Act of 2019 (the HAVEN Act) Public Law No. 116-52. The HAVEN Act amended 11 U.S.C. § 101(10A) to exclude from the definition of Current Monthly Income certain payments made under title 10, 37, or 38 of the United States Code in connection with a disability, combat-related injury or disability, or death of a member of the uniformed services.At its September 26, 2019 meeting, the Advisory Committee on Bankruptcy Rules made minor conforming amendments to lines 9 and 10 of Official Forms 122A-1, 122B, and 122C-1 to address the HAVEN Act.Click here for New Form 122C-1Forms Effective December 1, 2019Two bankruptcy forms are on track to go into effect this December.
The proposed change to Official Form 122A-1 adds an instruction to line 14a to remind a debtor that if there is no presumption of abuse, that Official Form 122A-2 should not be filled out or filed.
Director’s Form 1340, Application for Payment of Unclaimed Funds, is a new form issued by the Director of the Administrative Office of the United States that bankruptcy courts may adopt or revise as needed to facilitate requests for unclaimed funds.

From the CFPB
- (Pretty interesting stuff – chapter 13 starts on page 5) Quarterly Consumer Credit Trends – Consumer Bankruptcy, BAPCPA, and the Great Recession

Also from the Courts
- Tampa’s Chief Bankruptcy Judge Sees Many People ‘Get Behind the Financial 8 Ball’ – Caryl E. Delano will serve four years as chief judge of one of the nation’s busiest bankruptcy courts.

There is still time . . . REGISTER NOW

Student Loan Chronicles
Turf War Blocked CFPB From Helping Fix Student Loan Forgiveness Program

For Your Blog
Zombie Debt: How collectors trick consumers into reviving dead debts
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
October 14, 2019
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Archives |

Taxes, Offset, and Mutuality

Small Business Reorganization Act…(“SBRA”)
The First Thing a Chapter 13 Debtor’s Attorney Should Know About the Small Business Reorganization Act of 2019
Larry Ahern continues his reporting on bankruptcy-related legislation passed in the first session of the 116th Congress. This week, he answers the single most frequently asked question from the debtors’ bar about the new small business rules: Could the new law require my client to file before the February 19 effective date?See also:
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act by Jan Hamilton – PART ONE, PART TWO and PART THREE
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Larry Ahern
- H.R. 3311

From the Courts
From the Courts – Form Changes
Forms effective October 1, 2019On August 26, 2019, the President signed into law the Honoring American Veterans in Extreme Need Act of 2019 (the HAVEN Act) Public Law No. 116-52. The HAVEN Act amended 11 U.S.C. § 101(10A) to exclude from the definition of Current Monthly Income certain payments made under title 10, 37, or 38 of the United States Code in connection with a disability, combat-related injury or disability, or death of a member of the uniformed services.At its September 26, 2019 meeting, the Advisory Committee on Bankruptcy Rules made minor conforming amendments to lines 9 and 10 of Official Forms 122A-1, 122B, and 122C-1 to address the HAVEN Act.Click here for New Form 122C-1Forms Effective December 1, 2019Two bankruptcy forms are on track to go into effect this December.
The proposed change to Official Form 122A-1 adds an instruction to line 14a to remind a debtor that if there is no presumption of abuse, that Official Form 122A-2 should not be filled out or filed.
Director’s Form 1340, Application for Payment of Unclaimed Funds, is a new form issued by the Director of the Administrative Office of the United States that bankruptcy courts may adopt or revise as needed to facilitate requests for unclaimed funds.

From the IRS
2 Million ITINs Set to Expire in 2019
- An ITIN is a tax ID number used by taxpayers who don’t qualify to get a Social Security number. Any ITIN with middle digits 83, 84, 85, 86 or 87 will expire at the end of this year.
New Payment Option Available to Taxpayers in Private Debt Collection Program
- IRS officials announced on 10/8/19 that a new payment option – preauthorized direct debit.
IRS: Sorry, but It’s Just Easier and Cheaper to Audit the Poor
- Congress asked the IRS to report on why it audits the poor more than the affluent. Its response is that it doesn’t have enough money and people to audit the wealthy properly. So it’s not going to.

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

Chapter 13 Trustee Position Opening
Application Due Date: October 18, 2019

REGISTER NOW
Webinar Recording Now Available
How the New MDFL Student Loan Management Program Works


Session Recordings Now Available

Student Loan Chronicles

MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (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)
IN THE ‘I JUST COULDN’T RESIST’ DEPARTMENT (Not password protected)
October 7, 2019
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Small Business Reorganization Act…(“SBRA”) H.R. 3311 – Part Three
“What needs to be in a plan filed in a case under the SBRA? Start with the statute…”Yes, MORE on SBRA. We realize that to attorneys February of 2020 seems a LONG way away but it really isn’t, um, this is OCTOBER! We are building our library on this important legislation so it is available when YOU are ready for it.See also:
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act by Jan Hamilton – PART ONE and PART TWO
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Larry Ahern
- H.R. 3311

Senior Moments

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

Chapter 13 Trustee Position Opening
Application Due Date: October 18, 2019

SAVE THE DATE

There’s Always a Car
Americans Are Taking Out Ridiculously Long Auto Loans
Webinar Recording Now Available
How the New MDFL Student Loan Management Program Works



Farmers in the News
Session Recordings Now Available

Student Loan Chronicles
Student Loan Crisis Driving Racial Wealth Gap

For Your Blog
Taxpayers Should Beware of Property Lien Scam

Sanctions and Irony and Fraud, Oh My!
- Woman Draws Ire of Bankruptcy Judge, Faces Possible Criminal Charges – Milwaukee woman who overcharged low-income people filing for bankruptcy and failed to pay more than $15,000 in fines should face criminal charges, U.S. Bankruptcy Court Judge Beth Hanan said in a recent order.
- FTC Says AdvoCare Will Pay $150 Million Fine for Using Illegal Pyramid Sales Scheme – “There is incredible profit that can be made through infinity,” a top AdvoCare promoter advertised to potential recruits, according to the FTC.
IN CASE YOU MISSED IT. . .
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Johnson Retires By Academy Staff |
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Kellner Retires By Academy Staff |
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A Sappy Farewell to Jeff Kellner as the Dayton Chapter 13 Trustee By The Honorable Guy R. Humphrey, Southern District of Ohio |
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTHCARE IN THE NEWS (Not password protected)
BY THE NUMBERS (Not password protected)
FOR YOUR HEALTH (Not password protected)
September 30, 2019
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Archives |

Small Business Reorganization Act
Yes, MORE on SBRA. We realize that to attorneys February of 2020 seems a LONG way away but it really isn’t. We are building our library on this important legislation so it is available when YOU are ready for it.In this week’s installation, Judge Blumenstiel, analyzes the legislation. The first two and a half pages are of particular importance as she very briefly summarizes the chief take-aways.See also:
- Small Business Reorganization Act by Jan Hamilton – PART ONE and PART TWO
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019
- H.R. 3311

It Takes a Village

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

Term Law Clerk Posting

Johnson Retires

Bankruptcy Judge Receives Award

Farmers in the News
Trump’s Farm Bailout Has Cost Taxpayers More Than Double the Auto Bailout

PACER in the News
A popular link from last week. . . . Judiciary Doubles Fee Waiver for PACER Access to Court Records
Session Recordings Now Available

Student Loan Chronicles
- Here’s Another Way Student Loans Are Screwing You Over, Consumer Advocates Say – According to the Student Borrower Protection Center, a consumer advocacy group, the memo shows that Navient “orchestrated a predatory scheme to place borrowers in high-cost repayment options to boost corporate profits.”


Sanctions and Irony and Fraud, Oh My!
- Special Report: New frontier in health fraud – Genetic tests of the elderly

IN CASE YOU MISSED IT. . .
Tax Projections and the Means Test – Part II
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTHCARE IN THE NEWS (Not password protected)
FOR YOUR HEALTH (Not password protected)
September 23, 2019
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Small Business Reorganization Act…(“SBRA”) H.R. 3311 – Part Two
Part 2 of Trustee Hamilton’s dissection at SBRA looks at the Plan . . . specifically notions to consider before the plan is filed.See also:

Tax Projections and the Means Test – Part II

From the Editor – Avoidance
Judge Brown takes a look at two cases on avoidance. The first one is an important finding.

There’s Always a Car
Driven to Bankruptcy — New Research from the Consumer Bankruptcy Project

Marijuana in the News
Marijuana: Should a Plan “Go up in Smoke” Because a Debtor’s Tenant Operates a Marijuana Establishment?
Medicaid Estate Recovery Program

Farmers in the News

PACER in the News
Judiciary Doubles Fee Waiver for PACER Access to Court Records

CFPB in the News
- CFPB Just Told SCOTUS it’s Unconstitutional – What does that mean for its mission?
Session Recordings Now Available

Student Loan Chronicles
Why You Got Rejected for Student Loan Forgiveness

For Your Blog
Should I Pay Off Mortgage Early?
MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTHCARE IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
FOR YOUR HEALTH (Not password protected)
September 16, 2019
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Small Business Reorganization Act…(“SBRA”) H.R. 3311 – PART ONE
“I do not suggest my thoughts here are anywhere close to exhaustive. . . . Of course, my thoughts may be off mark on one or more items, but the discussions need to start somewhere, so here we go…”See also:

Tax Projections and the Means Test

From the Editor
Judge Brown took a look at 3 cases this week dealing with lien issues:

Marijuana in the News
Bankruptcy Court Tells Debtors They Must Choose Between Bankruptcy or Medical Marijuana

Farmers in the News
New Law Allows More Farmers to Qualify for Bankruptcy, and Some Are Thinking About It
Session Recordings Now Available

Sanctions and Irony and Fraud, Oh My!
- After Fire, Philadelphia Refinery Paid Executives $4,591,500 in Bonuses while Hundreds Were Laid Off
- Rev. Leon Finney Jr.’S Free Fall – Nonprofits Got Millions in Public Housing Money. Now, He’s Facing Allegations of Fraud and Self-Dealing.
- Chpt 7 but interesting . . .Cochran Testifies at Creditors’ Meeting
- Email Wire Fraud Simple for Criminals to Pull Off – Cost companies $26 billion since 2016, says FBI

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

For Your Blog
How Student Loan Fees Work and What They Cost

In Case You Missed It . . .
Undersecured Short-Term Mortgages May be Crammed Down
MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
HEALTHCARE IN THE NEWS (Not password protected)
FOR YOUR HEALTH (Not password protected)
September 9, 2019
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Undersecured Short-Term Mortgages May be Crammed Down

2019 Legislation Affecting Bankruptcy Practice
Five Things Trustees Should Know About the Small Business Reorganization Act of 2019
This week, Larry Ahern continues a report on bankruptcy-related legislation passed in the first session of the 116th Congress. This installment begins to drill down into the new small business subchapter added to Chapter 11, which will also be of interest to Chapter 12 and 13 trustees and practitioners.
See also:

When $400 Emergency Pushes You Over the Edge

Farmers in the News

The Graying of Debtors
Rising Senior Debt Levels are Concerning Researchers
Session Recording Now Available
At the NACTT 2019 conference, an exceptional panel addressed the ‘graying’ of debtors across the country. Click here* to purchase this 75 minute session featuring Trustee Krispen Carroll, Professor Robert Lawless, William Rule PhD, and Debtor Counsel David Cox.
*Ninth session from the top – a mere $35 for the session.

Student Loan Chronicles
- Americans Are Drowning in $1.5 Trillion of Student Loan Debt – There’s one easy way congress could help
- Congress Promised Student Borrowers a Break. Education Dept. Rejected 99% of Them

Payday Lenders
MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
(But not so fast . . . the language is not so cut and dried. Mark your calendar NOW for the NACTT 2020 conference in San Diego where the HAVEN Act will be explored in detail – JULY 9-11, 2020)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
BY THE NUMBERS (Not password protected)
FOR YOUR HEALTH (Not password protected)
September 2, 2019
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In observance of Labor Day, The Academy brings you an abbreviated/”Greatest Hits” weekly update. This would be a great time to catch up on the 2019 Legislation.

First published 8/19. Bills have now been signed into law.
2019 Legislation Affecting Bankruptcy Practice
This week, Larry Ahern begins a report on bankruptcy-related legislation passed in the first session of the 116th Congress. This Part I summarizes four bills that would amend both business and consumer provisions in the Bankruptcy Code and related statutes. If the legislation becomes law, Part II will drill down into the new small business subchapter added to Chapter 11, which will also be of interest to Chapter 12 and 13 practitioners.

Ditech Bank in the News
See also, Academy Webinar Recording
Ditech – What Consumer Bankruptcy Folks Need to Know
Join experts Tara Twomey and Thad Bartholow in a discussion regarding Ditech consumer claims. You will learn how/where to file claims; the bar date; the entire list of entities involved; why your client may not have received notice and what to do about it; what the proposed plan does and doesn’t say; and more.

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

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

Proposed Amendments Published for Public Comment
- Appellate Rules 3, 6, 42, and Forms 1 and 2;
- Bankruptcy Rules 2005, 3007, 7007.1, and 9036; and
- Civil Rule 7.1.
The comment period is open from August 19, 2019 to February 19, 2020.

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


IN CASE YOU MISSED IT . . .very popular article from last week. . .
Trustee Cannot Require Debtor to Treat Nondischargeable Student Loan Debts in a Separate Class
“In fact, some discrimination is even allowed – as long as it’s not unfair discrimination.”
Be sure to scroll to the end of the article for a surprise!
MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (Not password protected)
August 26, 2019
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Trustee Cannot Require Debtor to Treat Nondischargeable Student Loan Debts in a Separate Class

What to Do with the Dreaded Timeshare?

As reported in March, we are pleased to publish articles written by law students who benefited from the grant money provided by the National Data Center.
The Bankruptcy Moot Court Experience – Duberstein 2019
“. . . I had no idea what I was getting myself into. . . . coach’s question was challenging. It made it seem like the Court siding with my position would bring an end to the financial world as we know it. . . . I diverted and acted like the question had never been asked. And that was it, I was hooked on bankruptcy moot court.”See also:

Farmers in the News

Proposed Amendments Published for Public Comment
- Appellate Rules 3, 6, 42, and Forms 1 and 2;
- Bankruptcy Rules 2005, 3007, 7007.1, and 9036; and
- Civil Rule 7.1.
The comment period is open from August 19, 2019 to February 19, 2020.

From the IRS


Bankruptcy Boot Camp 2019

Sanctions and Irony and Fraud, Oh My!
- Broward Lawyer Suspended by Bankruptcy Judge After ‘Farcical Attempt to Avoid Accountability’ – “Now that the court has looked, it cannot look away,” said a court order by U.S. Bankruptcy Judge John K. Olson, who suspended Pembroke Pines attorney Maite Diaz from his court for allegedly filing unsworn and unverified documents.
- Military Fraudster Sentenced – Man Lied About Military Record to Swindle Donors to His Purported Charity

For Your Blog
Car Payment Trouble? How to turn it around

IN CASE YOU MISSED IT . . .
2019 Legislation Affecting Bankruptcy Practice
MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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FOR YOUR HEALTH (Not password protected)
August 19, 2019
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Win Now, Wreck Later: A Tale of Bankruptcy and Mortgage Servicing

2019 Legislation Affecting Bankruptcy Practice

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

Farmers in the News

Drummond Receives Professionalism Award

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

From the IRS
- Taxpayers with Expiring ITINs Should Renew Them NowNearly 2 million ITINs will expire on December 31, 2019. If your practice is geographically in a high immigration area, you need to read this. Per immigration expert Richard J. Parker, Esq. of Parker, Butte & Lane, P.C. in Portland, Oregon, “They are most commonly used by people who have requested waivers and so do not have work authorization. It would generally be seen as the spouse of a US Citizen so that a joint tax return can be filed.”See also, related article: Not Born in the USA? The Perils of Bankruptcy Filings by Undocumented Persons

Student Loan Chronicles
- ‘Severely Derogatory’: U.S. student debt defaults have ‘grown stunningly’

Student Loan Chronicles Part B
CFPB Settles Lawsuit Against ITT Educational Services
CFPB announced 8/12/19 a proposed settlement with ITT Educational Services, Inc. to resolve the lawsuit which alleges that ITT engaged in unfair and abusive practices in connection with its private loan program in violation of the Consumer Financial Protection Act of 2010.The Complaint, filed in the U.S. District Court for the Southern District of Indiana in 2014, alleges that ITT helped to create private loan programs for students at ITT Technical Institute, the school run by ITT until it filed for bankruptcy and ceased operations in 2016. The Bureau alleges that ITT improperly induced students to take out those loans to pay the tuition amounts not covered by loans or other tuition assistance from the federal government. The Bureau’s complaint also alleges that ITT knew the student borrowers did not understand the terms and conditions of the loans and could not afford them, resulting in high default rates and other negative consequences.
The terms of the proposed stipulated order include, among other things, a judgment against ITT for $60 million and an injunction prohibiting ITT from offering or providing student loans in the future.
In a separate action filed by the Bureau on June 14, 2019, a final stipulated judgment was entered against the entity holding the private loans at issue, Student CU Connect CUSO, LLC. Under the terms of that judgment all collection on such loans must cease, all outstanding loans must be discharged, and all negative credit reporting must be corrected.
See also:
U.S. Regulator Settles Lawsuit Against ITT Educational, Will Not Collect $60 Million

Sanctions and Irony and Fraud, Oh My!


IN CASE YOU MISSED IT . . .
Score One for the United States Bankruptcy Court in the Service of the African America Community
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August 12, 2019
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Score One for the United States Bankruptcy Court in the Service of the African America Community

Don’t forget to complete your NACTT Indy Evaluation
NACTT Indianapolis EVALUATION TIME – Attention NACTT Indy Attendees: Your Voice is Important
Thank you for your recent participation at the NACTT Indianapolis Seminar! We value your opinion. Please take a few moments to complete this evaluation. Your feedback is important to us and will assist in planning the 2020 San Diego Seminar. We look forward to seeing you there next year. Mark your calendar NOW – July 8-11, 2020.Click Here To Let Your Voice Be Heard

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

ABI Commission on Consumer Bankruptcy – Recommendations Related to Exemptions
NEW – Commission Member Hildebrand continues looking individually at the recommendations of the Commission.“Applying that convoluted mechanism, debtors get to assert the exemptions of the state in which they reside or, in several jurisdictions that did not ‘opt out’ of the federal exemptions, unless the debtor has moved to that jurisdiction within two years of filing of the bankruptcy petition.”
See also previous recommendations:
Post-Petition Changes in Value
A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability

Farmers in the News

Important CFPB Settlement
“Clearly and Prominently:” Consumer Debt Settlement Disclosures in Wake of CFPB v. Freedom Debt Relief

Student Loan Chronicles

Sanctions and Irony and Fraud, Oh My!
- CFPB and the New York A.G. Settle with Debt Collection Group Douglas MacKinnon, Northern Resolution Group, LLC, Enhanced Acquisitions, LLC, Delray Capital, LLC, and Mark Gray

For Your Blog
- Judges Explain Rule of Law, Why It Matters
What does the rule of law mean, and how does it affect our daily lives?This five minute “Court Shorts” video, explains how fair and consistent adherence to the law protects our rights and well-being in everyday situations like buying a breakfast sandwich, reading mail, and investing in the stock market. Definitely not our ‘normal’ For Your Blog option but a short, interesting reminder of why ‘the Rule of Law’ is important.

IN CASE YOU MISSED IT . . .
Forced Vesting by Any Other Name – Just Might Work
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
August 5, 2019
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Forced Vesting by Any Other Name – Just Might Work

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

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

Hot Off the Press – Judgment and Memorandum Opinion
Mortgage servicer was not required to specifically state on its proof of claim that it was servicing the loan on behalf of Freddie Mac. Nor was it necessary for there to be a specific endorsement of the Note or an assignment of the Mortgage to Freddie Mac. The servicer was in physical possession of the Note with an affixed endorsement in blank, and was therefore the holder of a negotiable instrument under the Alabama Uniform Commercial Code. Accordingly, the servicer had standing to file a proof of claim in the Debtors’ Chapter 13 case and to enforce the Note. Furthermore, the post-petition assignment of the Mortgage was not a violation of the automatic stay or an avoidable transfer. Moreover, under Eleventh Circuit law, the Debtors did not have standing to challenge the assignment of their Mortgage.
The Court further found that the Debtors (i) failed to establish by competent evidence that the servicer made any misrepresentations either pre-petition or during the post-petition loan modification process regarding the servicer’s ability to foreclose, (ii) failed to establish that the servicer’s proof of claim was materially defective, and (iii) failed to establish that their loan modification agreement was unenforceable.

Stop and Smell the . . . Well, Corn


Farmers in the News
- House Passes Chapter 12 Farmer Bankruptcy Relief Bill – Bipartisan bill raises debt limit cap to $10 million.
- Farm Loan Delinquencies and Bankruptcies Are Rising – Farm Bankruptcy Filings Rise 13%
- Trump’s $16 Billion Farm Bailout Designed to Help Farmers Hit in Trade War – But report says it will make rich farmers richer.

Safe Deposit Boxes
- Unclaimed Property (a second article about safe deposit boxes and how they become unclaimed property in states’ coffers)

An Oldie But a Goodie – Original Publication 12/9/18
Watch the Clock – Timing of Appeals

From the National Consumer Bankruptcy Rights Center

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

Sanctions and Irony and Fraud, Oh My!
- Facebook Lost Control of Our Data. Now paying record $5 billion fine

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

IN CASE YOU MISSED IT . . .
A Well-Deserved Thank You to Attorneys Who Represent Debtors . . .
Ordinary Heroes Deliver Second Chances with Bankruptcy
“With your help, a mother or father can enjoy their child’s soccer game without fear that a tow truck might show up at the game and take their car, or show up at their door when they have guests or a myriad of other embarrassing situations.”
Be sure to check-out the NEW comments at the end of this article.
MORTGAGES AND DEEDS OF TRUST (Not password protected)
BY THE NUMBERS (Not password protected)
OF INTEREST (Not password protected)
IN THE NEWS (Not password protected)
RETAIL UPDATE (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
July 29, 2019
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A Well-Deserved Thank You to Attorneys Who Represent Debtors . . .
Ordinary Heroes Deliver Second Chances with Bankruptcy

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

Meet A Newish Trustee

From the IRS
IRS Attempting to Collect on Virtual Currency

From the Judiciary

Student Loan’ify
New Bankruptcy Program Seeks to Help People Saddled with Student Debt; 2.4 Million Floridians Owe $85.5 Billion
Save the Date: September 25, 1:00 eastern WEBINARSee also:

From the Courts
- In case you missed this . . . United States Department of Justice Executive Office for United States Trustees Report to Congress: Criminal Referrals by the United States Trustee Program Fiscal Year 2018

From the National Consumer Bankruptcy Rights Center
City Did Not Violate Stay by Failing to Rescind Warrant

Student Loan Chronicles

MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
RETAIL UPDATE (Not password protected)
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July 22, 2019
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Due to the Annual NACTT Conference, Shout Out to NACTT Indianapolis Attendees. |
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NEW – Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 2 of 5

A very popular article from last week . . .
Unscheduled Creditor May Not File a Late Proof of Claim
Unscheduled creditor without notice of the bankruptcy case was denied an extension of time to file a proof of claim pursuant to Bankruptcy Rule 3002(c)(6)(A).More from this author:
Tips and Traps: Issuing A Subpoena for Bank Records

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

Trustee May Use Any Law Available to Avoid a Transfer

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

From the UST

For Your Blog
Successful Side Hustlers Share Their Best Secrets

Sanctions and Irony and Fraud, Oh My!
- (A popular link from last week) This Is Where Robocalls Are Coming From (And Where They Are Targeting)

IN CASE YOU MISSED IT . . .
Court Supervised Student Loan Modification
“The Order provides for use of online software to assist Debtors with student loan repayment options.”See also original article: Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy
Watch for a webinar on this topic in September!!
July 15, 2019
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Unscheduled Creditor May Not File a Late Proof of Claim

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

ABI Commission on Consumer Bankruptcy – Post-Petition Changes in Value
Another issue concerns Chapter 7 trustees who would not take prompt action to abandon exempt or partially exempt assets but, would retain assets in the hope that there might be equity in the future to sell the asset for the full lien amount and exemption. In doing so, the trustee delays the debtor’s ability to use the asset as part of the fresh start.
See also previous recommendations:
A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability


From the Courts
- United States Department of Justice Executive Office for United States Trustees Report to Congress: Criminal Referrals by the United States Trustee Program Fiscal Year 2018

Chapter 12/Farmers in the News
- House Judiciary Committee Advances Farmer Bankruptcy Assistance – Bill expands debt cap to be covered under Chapter 12 bankruptcy to $10 million.

From the National Consumer Bankruptcy Rights Center
Debt for Overpayment of DSO Not Itself DSO

Student Loan Chronicles
Broken Promises: Teachers Sue U.S. Over Student Loans That Weren’t Forgiven

For Your Blog
- Secrets to Credit Score Success – How to keep track of your score, get it as high as possible—and keep it that way

Sanctions and Irony and Fraud, Oh My!
- Biggest Complaints About Debt Collectors – 6 ways a debt collector may be breaking the law
- Struggling to Pay Student Loans? You could be targeted by scammers

IN CASE YOU MISSED IT . . .
Court Supervised Student Loan Modification
“The Order provides for use of online software to assist Debtors with student loan repayment options.”
See also original article: Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
RETAIL UPDATE (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
July 8, 2019
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Critical Case Comment

Court Supervised Student Loan Modification
“The Order provides for use of online software to assist Debtors with student loan repayment options.”
See also original article: Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy

ABI Commission on Consumer Bankruptcy – A Chapter 7 Trustee’s Sale of Encumbered Property
The Commission heard from several individuals and attorneys that related tales of Chapter 7 trustees negotiating a “carve out” with a lienholder on the debtor’s real property when there was no equity available in the property. This article addresses the Commission’s recommendations regarding prevention of such “carve out.”
Click here to register for the NACTT conference
See also:
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability

From the United States Courts
Judiciary Creates Public User Group for PACER

Farmers in the News
- Relief Urged for Family Farmers Facing Bankruptcy – Legislation would ease process of reorganizing debt through Chapter 12 bankruptcy rules.
Don’t register – just show up for the Chapter 12 conference July 15-16 in Indianapolis. Click here for more information.

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

Student Loan Chronicles
- Student Loan Borrowers with Cancer Are Supposed to Get a Break from Their Bills. That’s not happening – More than nine months after the law took effect, borrowers still can’t get the cancer deferment.

For Your Blog
- Student Debt Relief Phone Calls: Playing nice or simply scams?
- Savvy Senior: Can a debt collector take my Social Security benefits?


IN CASE YOU MISSED IT . . .
What IS a Principal Residence?
IN THE NEWS (Not password protected)
HEALTHCARE AND DEBT (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
RETAIL UPDATE (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
July 1, 2019
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Happy Independence Day |

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

What IS a Principal Residence?

From the United States Courts
Judiciary Creates Public User Group for PACER

ABI Commission on Consumer Bankruptcy – Judicial Estoppel
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability

Farmers in the News
Ohio Farmland Underwater – Big Trouble for Corn Industry

OLD Cases
See also previous Academy article:
I Win. I Win. Trustee Holds Record for Having the Oldest Open Chapter 13 Case
By Helen M. Morris, on April 7th, 2019

Student Loan Chronicles

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

IN CASE YOU MISSED IT . . .
The Brunner Student Loan Hardship Test: Alive and Well in The Big Apple
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
(free access to Academy subscribers)
DEBT AND THE ECONOMY (Not password protected)
IN THE TECH DEPARTMENT (Not password protected)
How do you measure up??
June 24, 2019
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The Brunner Student Loan Hardship Test: Alive and Well in The Big Apple

Marijuana in Bankruptcy
That Didn’t Take Long: Ninth Circuit’s Cannabis Bankruptcy Decision in Garvin v. Cook Invs. NW is Challenged
By Gretchen D. Holland, Standing Chapter 13 Trustee for the Greenville/Spartanburg Division of South CarolinaAlthough this article is about a Chapter 11 case, it has Chapter 13 implications because the confirmation requirement that a plan be “proposed in good faith and not by any means forbidden by law” is identical in both chapters.

In the Trenches: Secrets to Settlement – Competency in the Courtroom Part 3 of 3

ABI Commission on Consumer Bankruptcy – Statement of Intention: Deadlines and Consequences

Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability

From the National Consumer Bankruptcy Rights Center
A big decision from the 7th Circuit . . .

Reverse Mortgages in the News
- USA Today Blasts Reverse Mortgages, Industry Fights Back – Trade association says reporters jumbled the facts, skimmed over rule changes

Sanctions and Irony and Fraud, Oh My!
- SEC, FBI Reportedly Investigating Live Well Financial Collapse – Creditors’ court documents say authorities are looking into defunct lender and its CEO
- Quicken Loans Agrees to Pay $32.5 Million to Resolve FHA Loan Allegations with DOJ – Mediation finally brings 4-year battle over False Claims Act violations to an end
- Amid Fraud Case, A Bevy of Brooklyn Properties End Up in Bankruptcy Court – Two accused fraudsters and a mysterious real estate investor are linked in a recent series of Chapter 11 filings

Student Loan Chronicles

For Your Blog
Millions of ITINs Set to Expire in 2019; IRS Says Renew Early to Prevent Refund Delays

IN CASE YOU MISSED IT . . .
No Take Backs – Critical Case Comment
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
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MILITARY MATTERS (Not password protected)
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June 17, 2019
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Shout Out to the GREAT folks at Even with the rain, it was a great conference. |

Critical Case Comment

Supreme Court Stakes Out Middle Ground on Contempt Standard for Discharge Injunction Violations, Leaves Clues About Automatic Stay Violations

In the Trenches: Secrets to Settlement – Competency in the Courtroom Part 2 of 3

About the Judiciary
- Public Notice Asking for Comments: Potential Reappointment of Judge Laurel Myerson Isicoff as Chief U.S. Bankruptcy Judge for Florida Southern District

From the National Consumer Bankruptcy Rights Center
Rooker-Feldman Bars Motion to Vacate

Positions Open
Location: Eastern District of California (primarily Sacramento and Modesto) and District of Nevada
Application Due Date: June 21, 2019Chapter 7 Trusteeship Open
Location: District of New Jersey, primarily in the Newark and Camden Vicinages
Application Due Date: June 30, 2019


Student Loan Chronicles

For Your Blog

IN CASE YOU MISSED IT . . .
Substantial Contribution Claims
“Statutes ought to be construed, if possible, so that no clause, sentence, or word shall be superfluous, void, or insignificant.”The second issue at hand in this year’s Duberstein moot court problem involves a matter of statutory interpretation—specifically, whether §503(b) of the Bankruptcy Code allows a creditor to recover costs and expenses incurred in making a substantial contribution to the bankruptcy estate in a case under chapter 7.See also: Passive Retention: A Creditor’s Right or an Act to Exercise Control?
As reported in March, we are pleased to publish articles written by law students who benefited from the grant money provided by the National Data Center.
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
June 10, 2019
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In the Trenches: Secrets to Settlement – Competency in the Courtroom Part 1 of 3

Substantial Contribution Claims

By John Andreasen and Patrick Lombardi, Law Students at the University of Illinois College of Law and Duberstein Moot Court Team MembersAs reported in March, we are pleased to publish articles written by law students who benefited from the grant money provided by the National Data Center.

From the IRS
All Taxpayers Should Plan Ahead for Natural Disasters
- Update emergency plan
- Create electronic copies
- Document valuables

Farmers in the News
Auctioneers have an up-close view of the pain behind the dairy crisis. They see no sign of better times to come.There is still time to register for the Chapter 12 conference July 15-16. Click here for more information.

ABI Commission on Consumer Bankruptcy – Definition of “Tax Return” for Purposes of Nondischargeability

Report – Introduction
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees

From the Supreme Court
Supreme Court Declines to “Vaporize” Licensee’s Rights Under Rejected Trademark License Agreement


Sanctions and Irony and Fraud, Oh My!
- Workers Left With No Paychecks – Bankrupt Dexter Book Manufacturer Sold
- Contractor Loses License, Files Bankruptcy — Again. Customers say they were ripped off.

Student Loan Chronicles
- High-Earning Millennials Have a Surprising Student Debt Problem – You might think that HENRYs (High Earners, Not Rich Yet) would be doing just fine after college, but they’re in serious debt just like most other new grads. In fact, in some ways, they face a few added challenges.


IN CASE YOU MISSED IT . . .
Surrender of Collateral in a Plan- What Is the Court to Do if the Debtor Doesn’t Follow Through?
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
June 3, 2019
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Critical Case Comment

Surrender of Collateral in a Plan- What Is the Court to Do if the Debtor Doesn’t Follow Through?

New Bankruptcy Judge Appointed to Bench
See also: Honorable Andrea K. McCord (from 2018)

Bankruptcy Judge Appointed to District Seat

ABI Commission on Consumer Bankruptcy – Definition of “Tax Return” for Purposes of Nondischargeability

Report – Introduction
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees

From the Supreme Court


Sanctions and Irony and Fraud, Oh My!
- CFPB Claims Debt Collection Firm Forster & Garbus Robo-Sued Thousands on Behalf of Citibank, Discover, Others – Attorneys allegedly reviewed cases for only minutes before signing off on lawsuits

Student Loan Chronicles
- Black Borrowers More Likely to Fall Behind on Student Debt – Federal Reserve report highlights extent of debt burden on minority communities
- Can Data Ward Off College Debt? – There’s a Push to Show Which Majors Pay Off

IN CASE YOU MISSED IT . . .
A Confirmed Plan with a Marijuana Wrinkle
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
RETAIL WOES (Not password protected)
FOR YOUR HEALTH (Not password protected)
May 27, 2019
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In Memory of All Who Gave All |
(In observance of Memorial Day, we bring you an abbreviated updated.)

Supreme Court Agrees to Revisit Finality of Orders in Bankruptcy
This week, Larry Ahern addresses the May 20 writ of certiorari in Ritzen Group, Inc. v. Jackson Masonry, LLC (In re Jackson Masonry, LLC), in which the Supreme Court is to decide whether an order denying relief from the automatic stay is “final.” Ahern considers the broader context in which the federal judiciary struggles with finality in bankruptcy proceedings.
Hildebrand headed to the Supreme Court . . . no, not that one . . . in a fun twist to those of us in the consumer bankruptcy world, the next generation – Henry E. “Ned” Hildebrand, IV – represents Jackson Masonry.

Postpetition Borrowing by a Consumer Debtor in Chapter 13
“Although our Nation’s bankruptcy laws are uniform, chapter 13 practice in our Nation’s bankruptcy courts varies to a significant extent in the different judicial districts. One example of this variation is the treatment of postpetition borrowing by a consumer debtor in chapter 13.”
In this Part 1, Judge Fagone and Ciera Dye outline the statutory framework as well as the caselaw.
In this Part 2, Judge Fagone and Ciera Dye look at policy considerations.

Behind on the ABI Commission articles, take this opportunity to catch up.
ABI Commission on Consumer Bankruptcy – Dischargeability of Homeowner Association Fees
As most of you know, the ABI Board of Directors charged the Consumer Commission with recommending improvements to the consumer bankruptcy system which could be “implemented within its existing structure.”In this installment, Trustee Hildebrand looks at suggested changes in dealing with HOA fees.
“While HOA fees and assessments serve a valid purpose, when a debtor seeks to obtain a fresh start, often HOA fees can become a substantial obstacle to that goal.”
At the Indianapolis NACTT meeting (July 16-19), a panel of Commissioners will explore recommendations that directly affect Chapter 13 practice. Click here to register for the NACTT conference.
See also:
Report of the ABI’s Commission on Consumer Bankruptcy
Report – Introduction
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation

Student Loan Chronicles
- What’s Scarier Than Student Loans? Welcome to the World of Subprime Children – Income share agreements sound like a better deal than today’s student loans, but what will they do to society?

IN CASE YOU MISSED IT . . .
How Guarantors Can Escape Tax on Soured Debt

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May 20, 2019
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A Confirmed Plan with a Marijuana Wrinkle

How Guarantors Can Escape Tax on Soured Debt on Soured Debt
Tax lawyer Bill Purdy and Cathy Moran shared a client with a small interest in a failed corporation with a huge SBA loan. Could our client escape the tax consequences should we be able to settle his liability on a million dollars in unpaid loan. Was the client looking at a million dollars of cancellation of debt income? Here’s the marvelous result that Bill’s caper through the IRS regs returned.
See also: Tax Form 1099 Needs A Closer Look: Chances Are It’s Wrong

ABI Commission on Consumer Bankruptcy – Dischargeability of Homeowner Association Fees
As most of you know, the ABI Board of Directors charged the Consumer Commission with recommending improvements to the consumer bankruptcy system which could be “implemented within its existing structure.”
In this installment, Trustee Hildebrand looks at suggested changes in dealing with HOA fees.
“While HOA fees and assessments serve a valid purpose, when a debtor seeks to obtain a fresh start, often HOA fees can become a substantial obstacle to that goal.”
At the Indianapolis NACTT meeting (July 16-19), a panel of Commissioners will explore recommendations that directly affect Chapter 13 practice. Click here to register for the NACTT conference.
See also previous articles:
Report of the ABI’s Commission on Consumer Bankruptcy
Report – Introduction
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation

Ditech in the News
- Mortgage Borrowers Win Protection in Ditech Bankruptcy, Ditech Fights Back – New York court must rule on Ditech’s objection
See also: Webinar: Ditech – What Consumer Bankruptcy Folks Need to Know

From the UST
Multiple Chapter 7 Trustees Wanted

From the IRS
Tax Tips for Taxpayers to Consider When Selling Their Home

From the CFPB
CFPB Gearing Up to Further Relax HMDA and Possibly Other Rules

Farmers in the News
- Illinois Farmer to Trump on China Trade War: “Farmers are the ones that are taking it on the jaw”

Student Loan Chronicles
- Who’s at Fault for Student-Loan Defaults? – For-profit colleges enroll 10 percent of US students but account for 50 percent of student-loan defaults. And low-income students are hit the hardest.
- U.S. Stepping Up Enforcement on Delinquent Student Loans – Treasury collections totaled $2.9 billion in fiscal 2018; Even more recovered in first six months of current fiscal year

IN CASE YOU MISSED IT . . .
Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy

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May 13, 2019
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Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy


Postpetition Borrowing by a Consumer Debtor in Chapter 13 – Part 2 of 2

ABI Commission on Consumer Bankruptcy – Remedies for Discharge Violation
“ . . . the Consumer Commission has sought to balance the interests of the creditors in obtaining clearance before they engage in any particular conduct, with the interests of debtors seeking to enforce the discharge injunction.”At the Indianapolis NACTT meeting (July 16-19), a panel of Commissioners will explore recommendations that directly affect Chapter 13 practice. Click here to register for the NACTT conference.
See also previous articles:
Report of the ABI’s Commission on Consumer Bankruptcy
Report – Introduction
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes

A Day in the Life of a Chapter 13 Trustee
“I was recently asked to expound on a ‘Day in the Life of a Chapter 13 Trustee.’ . . . so here goes.”As part of Trustee Burks’ article, she shares a treasure you may not have seen before . . . ‘Effective Communication Guide.’ It’s a very useful document. Please share it with your Judges especially those who believe they cannot speak to you. They CAN on procedural issues.

From the UST
Location: Eastern District of Virginia, primarily Norfolk/Newport News Divisions
Application Due Date: May 31, 2019
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Indiana U.S. Bankruptcy Trustee Appointed as Interim Trustee in Region Including Georgia

From the IRS
Taking Care of Business: Recordkeeping for Small Businesses

From the CFPB
- CFPB Proposes New HMDA Rules – New rules would increase reporting threshold for mortgages

Farmers in the News

Student Loan Chronicles
- Good News for Most Student-Loan Borrowers: Interest Rates Are Going Down – The 2019-2020 academic year marks the first time in three years the rates on federal loans are set to decrease
- Consumer Reports: Student loan forgiveness programs


For Your Blog

IN CASE YOU MISSED IT . . .
Looking Beyond Taggart: Is the Contempt Standard for a Stay Violation the Same as for a Discharge Injunction Violation?
The Ninth Circuit’s In re Taggart decision, previously analyzed by Larry Ahern, was argued before the Supreme Court on April 24. This week, Larry looks to the Sixth Circuit’s recent “good faith” decisions in In re Nicole Gas Production, Ltd. and In re Wohleber and considers whether the outcome of Taggart may also inform the standard for contempt arising from a stay violation.
Click here for a summary of Taggart v. Lorenzen
Click here for Oral argument transcripts — Taggart v. Lorenzen
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JUST FOR FUN (Not password protected)
May 6, 2019
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Postpetition Borrowing by a Consumer Debtor in Chapter 13 – Part 1 of 2
“Although our Nation’s bankruptcy laws are uniform, chapter 13 practice in our Nation’s bankruptcy courts varies to a significant extent in the different judicial districts. One example of this variation is the treatment of postpetition borrowing by a consumer debtor in chapter 13.”In this Part 1, Judge Fagone and Ciera Dye outline the statutory framework as well as the caselaw.

Looking Beyond Taggart: Is the Contempt Standard for a Stay Violation the Same as for a Discharge Injunction Violation?
The Ninth Circuit’s In re Taggart decision, previously analyzed by Larry Ahern, was argued before the Supreme Court on April 24. This week, Larry looks to the Sixth Circuit’s recent “good faith” decisions in In re Nicole Gas Production, Ltd. and In re Wohleber and considers whether the outcome of Taggart may also inform the standard for contempt arising from a stay violation.Click here for a summary of Taggart v. Lorenzen
Click here for Oral argument transcripts — Taggart v. Lorenzen

ABI Commission on Consumer Bankruptcy – Student Loans – Suggested Regulatory and Judicial Changes
In this, the newest, article regarding the ABI Commission, Hildebrand states:“ . . . , recognizing that effectuating statutory modifications entails an extremely long, grueling and difficult process, made suggestions for non-statutory modifications by regulation and by case law. . . . Commission recommended that the U.S. Department of Education promulgate very clear rules as to the position the Department would take when confronted with an assertion that the repayment of a student loan would work an undue hardship under 523(a)(8).”
At the Indianapolis NACTT meeting (July 16-19), a panel of Commissioners will explore recommendations that directly affect Chapter 13 practice. Click here to register for the NACTT conference.
See also previous articles:
Report of the American Bankruptcy Institute’s Commission on Consumer Bankruptcy
ABI Commission on Consumer Bankruptcy – Introduction
ABI Commission on Consumer Bankruptcy – Student Loans – Suggested Statutory Changes

From the UST
Chapter 7 Trustees WantedApplication due date for all 3 is: May 17, 2019
- Northern District of New York, primarily in the Utica/Binghamton/Syracuse Division
- Western District of New York, primarily in the Rochester Division
- District of Connecticut, in the Bridgeport/Hartford/New Haven Divisions

On the IRS
Six Things Taxpayers Should Know About the Sharing Economy and Their Taxes

From the CFPB
CFPB Proposes Changes to HMDA Rules

Student Loan Chronicles

Sanctions and Irony and Fraud, Oh My!

For Your Blog
Done with Taxes This Year? Use 2018 Return to Get 2019 Withholding Right

IN CASE YOU MISSED IT . . .A Hot Case. Hot Off the Press.
Are Direct Payments by Debtor on Mortgage Considered Payments “Under the Plan” for Purposes of Discharge?
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