Weeding Out Marijuana From Bankruptcy Proceedings: The Intersection Between State Laws Legalizing Marijuana and Federal Bankruptcy Law

By Brian T. Cumings, Graves, Dougherty, Hearon and Moody (Austin, TX)

Until relatively recently, using or selling or even possessing marijuana was subject to criminal charges in all 50 states. Colorado and Washington have now made it permissible under state law to use marijuana recreationally. Numerous states have made provisions in state law for permitting medicinal marijuana.1

However, cannabis remains a Schedule I controlled substance under the Controlled Substances Act, making it a federal crime to use, sell, or possess marijuana.

Among other things, this means that financial institutions must either refuse . . .

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From the Editor

March 24, 2019

By Wm. Houston Brown, United States Bankruptcy Judge (Retired) Discharge - Paying more than original loan balance would be undue hardship. The 59-year old debtor employed in aging and disability services couldn’t maintain a minimal living standard without discharge of substantial portion of student loan debt. The Court identified factors included in “minimal standards” in modern American society and found...

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Practice Pointers for Arguing Motions

December 6, 2020

By William Sawyer, Chief U.S. Bankruptcy Judge for the Middle District of Alabama (Montgomery) (Used with permission. Court News and Views, Volume 18, October 2020) Lawyers who practice regularly in bankruptcy court invariably make many appearances at motion dockets. This article provides practice pointers to lawyers who do not practice often in this Court to familiarize them with our procedures...

U.S. Trustee Fee Unconstitutional

The Honorable William Houston Brown

June 12, 2022

On June 6, the Supreme Court’s unanimous opinion in Siegel v. Fitzgerald1 held that the increase in U.S. Trustee fees in Chapter 11 cases violated the uniformity requirement of the Constitution’s Bankruptcy Clause,2 because the fee increase in 2017 only applied to in the U.S. Trustee districts and didn’t apply to the Bankruptcy Administrator districts in Alabama and North Carolina....

Critical Case Comment – $67k Windfall to Debtors. Fraudulent??

Henry E. Hildebrand, III

April 24, 2022

In re Frank, 638 B.R. 463 (Bankr. D. Colo. 2022) A Chapter 13 trustee’s request to dismiss a Chapter 13 case upon discovery of an undisclosed asset held by the debtor cannot be granted after the debtor completes payments under the plan. (Brown) Case Summary John and Jessica Frank filed a Chapter 13 petition on April 8, 2018. Prior to...

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Taxes & Timing: Calculating Outcomes for Bankruptcy Debtors

Cathy Moran

December 19, 2021

Bankruptcy lawyers regularly evaluate the dischargeability of taxes when deciding when to file a client’s bankruptcy case. At base, the 3 year rule, the 2 year rule, and the 240 day rule routinely drive timing of a bankruptcy. But as we approach the end of the tax year, a client’s current year tax situation becomes another moving part in the...

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Cyber Security – You Are The Weakest Link

Naliko Markel

February 19, 2023

At the NACTT 2023 Mid-Year Trustee Meeting in January the presentation that resonated the most with me was one about the dark web. The presenter, Mark Lanterman (CTO Computer Forensic Services), said something that haunts me still: your biggest security risk is your people. Mind blown. We spend so much time, energy, and resources on physical security and network security,...

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Advising Consumer Clients About Credit Scoring – Some Questions

The Honorable William Houston Brown, Cathy Moran

September 10, 2023

“We have observed consumers who seem to be focused principally on their credit scores, . . . rather than focusing on . . . a more critical immediate focus on their balance sheets . . .”

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Why Chapter 13 Is a Good Idea: Outcomes and Measures of Success

The NACTT Emeritus Trustees

September 17, 2023

Recently Upsolve printed an article titled: “Why is Chapter 13 Probably A Bad Idea” by Jonathan Petts, July 27, 2023. In a nutshell the article says an unsuccessful Chapter 13 can leave you in worse financial shape. Further it states that it costs more than Chapter 7 and is less likely to be successful. Additional points by Upsolve are: Chapter...

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Critical Case Comment– Reverse Mortgage May be Modified

Henry E. Hildebrand, III

May 22, 2022

A reverse mortgage, having fallen due as a result of the death of the borrower, is not protected from modification by the borrower’s heirs by virtue of § 1322(c)(2). (Halfenger) In re Sandoval, 2022 WL 982182 (Bankr. E.D. Wis. March 31, 2022) Case Summary Juan Sandoval filed Chapter 13 and proposed a plan which dealt with his principal asset, a...

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Did Congress Mean What It Said in Section 1328(i)?

April 25, 2021

By Pardis Akhavan, Resnik Hayes Moradi LLP (Encino, CA) The bankruptcy court in In re Ritter, 2021 WL 864092 (Bkrtcy C.D. Cal, 2021)(J. Tighe),denied debtors’ motion for an immediate discharge under Section 1328(i) ruling that Congress apparently did not intend that a chapter 13 debtor who obtains a loan modification should also receive a discharge, on that basis alone at...

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