Judge Gustafson and Daniel Tavera explore “Who Benefits” from work done in a Chapter 13 case, and they suggest that the title of this piece comes from an old-time radio show – “Yours Truly, Johnny Dollar” – one of the most popular radio shows in its day. It was a five-part show called “The Cui Bono Matter.” To hear a...

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of TN (Nashville) Where a Chapter 13 plan provides that a mortgage payment will be paid “outside the plan,” the plan does not “provide for” the mortgage payment and, accordingly, the discharge under § 1328 is not applicable to the mortgage obligation. Dukes v. Suncoast Credit Union, 909...

Insurance proceeds generated due to a totaled car treated under the “hanging paragraph” of 1325(a) covers the entire claim; interest, however, is not recalculated even though it was a higher rate than the interest paid under the plan. (Hanan) In re Pagan, 638 B.R. 887 (Bankr. E.D. Wis. Jan. 24, 2022) Case Summary Bankruptcy judges have been overheard saying that...

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of Tennessee (Nashville) Section 506(d) does not allow the voiding of a lien when the underlying claim, filed by the debtor, has been disallowed; when notice is provided to a corporation it must be addressed to the individual who holds the office of an officer, manager, or general...

Previously the Emeritus Trustees (“ETC”) were asked to comment on “How to Manage Unprofessional and Discourteous Attorneys”. We now turn to ETC to share their collective wisdom when addressing the issues raised by incompetent, unprepared, and negligent bankruptcy counsel. Chapter 13 Trustees are required to administer cases in accordance with the duties set forth in 11 U.S.C. Sec. 1302 and...

Can a debtor provide for a non-debtor’s loan under § 1322(b)(5) even if the plan does not address a non-monetary default on the claim? In re Lazaro suggests the answer may be “yes.” In that case, the Court held not only that the Debtor’s plan could provide to cure a monetary default on a loan taken out by the Debtor’s...

By Cathy Moran, Esq. (Redwood City, CA) After the pandemic, when the economy lurches back into motion, bankruptcy lawyers will confront a clutch of troubled Chapter 13 cases. In the face of disruption, distress, and the unknown, we'll be called on to guide clients forward, in one direction or another. Let's review the questions we'll need to answer in order...

By The Honorable William Houston Brown (Retired) Dismissal with 180-day bar affirmed. The debtors had filed eight Chapter 13 cases over eight years, with each dismissed, and in 2019 the spouses filed three more cases. A mortgage creditor moved for relief from the automatic stay and dismissal in each of the cases. The cases were dismissed with a 180-day bar...

By James J. Robinson, Chief United States Bankruptcy Judge, Northern District of Alabama When do the trustee’s duties end, and who gets the money? Harris v. Viegelahn, 135 S. Ct. 1829 (2015). This opinion of the unanimous Court requires the trustee to return to the debtor undistributed plan payments—originating from wages earned postpetition—on hand at a good-faith, post-confirmation conversion rather...