Cases That Caught My Eye

By John Gustafson, Chapter 13 Trustee for the Northern District of Ohio, Western Division

More cases have caught my eye for Cases That Caught My Eye! It’s getting too cold for the beach, so feel free to print this out as bathroom reading.

* * * * * * *

In Leitch, the Eight Circuit BAP held that Health Savings Accounts (“HSAs”) are not exempt under the Bankruptcy Code’s federal exemptions. See, Leitch v. Christians (In re Leitch), 494 B.R. 918 (8th Cir. BAP 2013). And, it appears they are not exempt under the laws of most states . . .

It looks like you are not signed in or registered! This content is only available to members.

Or Sign In Below:

No Author Biography has been linked to this Article.

Courts Continue to Fill in the Gaps on the Interplay of Bankruptcy and the FDCPA

March 7, 2021

By Chris Hawkins, Bradley Arant Boult Cummings LLP (Birmingham, AL) The Consumer Financial Protection Bureau (CFPB) published its debt collection final rule in the Federal Register on November 30, 2020, revamping the Fair Debt Collection Practices Act (FDCPA) for the first time since its enactment in 1977. Despite written comments submitted by several industry groups requesting clarity in areas where...

Members

Critical Case Comment – If Objection, Arrears Gotta’ Be Equal Monthly Installments

Henry E. Hildebrand, III

March 12, 2023

When a mortgage servicer objects to the plan based on its failure to pay mortgage arrears in equal monthly payments, § 1325(a)(5)(B) requires the debtor to amend to pay the arrears in equal monthly payments. (Hanan) In re Randell, 638 B.R. 104 (Bankr. E.D. Wis. January 19, 2022) Case Summary Ms. Randell proposed a rather conventional Chapter 13 plan, seeking...

Members

Duty to Disclose Substantial and Unanticipated Changes in Debtor’s Financial Condition

Angela M. Scolforo

December 11, 2022

In the case of In re Ilyev, 17-12987-KHK (Bankr. E.D. VA July 26, 2022), Judge Kenney granted the Chapter 13 Trustee’s motion to modify the plan to require the Debtor to repay some of the $29,250 of disposable income he retained by not making his mortgage payments during an 18-month Covid forbearance. The Debtor never disclosed to the Trustee, or...

Members

Critical Case Comment–The Not DSO POC

Henry E. Hildebrand, III

June 5, 2022

The bankruptcy rights of an ex-member of anunmarrieddomestic couple, now separated are not the same as those of an ex-spouse; the language of a domestic arbitration can clearly dictate if property is vested in the ex or is a simple money judgment. (Hamilton) In re Harshaw, 2022 WL 533701 (7th Cir. February 23, 2022) Case Summary Donald Harshaw was married...

Members

Assumption of Auto Lease in Chapter 7 Requires No Court Approval Says the 9th Circuit: In re Bobka

May 9, 2021

By Matthew D. Resnik, Resnik Hayes Moradi, LLP (Encino, CA) In Bobka v. Toyota Motor Credit Corporation (In re Bobka), 968 F.3d 946 (9th Cir. August, 2020), the chapter 7 debtor wanted to retain her leased Toyota. Toyota sent her an "assumption agreement" which she signed and returned to Toyota the day before she received her discharge. By then she...

Members

Meet a New AND Newish Trustee

The Academy

March 27, 2022

Krista M. Preuss was appointed as the Chapter 13 Standing Trustee for the Southern District of New York on February 1, 2018. She succeeded Jeffrey Sapir after his retirement. On October 1, 2021, she was appointed as the Chapter 13 Standing Trustee for the Eastern District of New York, succeeding Marianne DeRosa upon her retirement. Yep, two trusteeships. Can you...

When The Marital Community Doesn’t Get a Bankruptcy Discharge

Cathy Moran

November 13, 2022

Community property works differently in bankruptcy. I probably don’t have to tell you that. On the issue of assets and debts, community property is pretty straightforward. All of the community property comes into the estate upon the commencement of a bankruptcy case, even when only one spouse files. §541(a)(2). Every creditor with a right to be paid from the community...

Members

Progeny of Taggart: In re Gravel and Newrez, LLC v. Beckhart

September 12, 2021

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Introduction In re Taggart In 2019, the Supreme Court in In re Taggart1 ruled that the acts alleged in that case to be in violation of a discharge injunction did not empower the bankruptcy court to find the creditor in contempt. In so holding, the Court ostensibly attempted to strike...

Members

Bankruptcy Courts Grapple with the “COVID-19 Discharge” – Appendix A

April 18, 2021

Bankruptcy Courts Grapple with the “COVID-19 Discharge” APPENDIX A 11 U.S.C. § 1328 Discharge (Text added by CAA, effective: December 27, 2020 and subject to one-year sunset, appears in italics.) (Mandatory and precatory directions to the court, critical to the statutory analysis in In re Ritter, appears in bold.) (a) Subject to subsection (d), as soon as practicable after completion...

Members

Critical Case Comment – Five Theories of Post-Confirmation Property Treatment

Henry E. Hildebrand, III

February 26, 2023

In examining the effect of vesting of property of the estate at confirmation of a Chapter 13 plan, bankruptcy court examines the impact of five different theories on how post-confirmation property is to be treated, settling on the “Estate Replenishment Theory,” but does not decide if the debtors can receive the proceeds. (Fenimore) In re Marsh, 2023 WL 215263 (Bankr....

Members