Who Gets the Money Per the Third Circuit

By The Honorable William Houston Brown (Retired)

Funds held by trustee at conversion to Chapter 7 must be returned to debtor. The Third Circuit, with a dissent, held that plan payments not yet distributed to creditors and held by the trustee at the time of conversion to Chapter 7 must be returned to the debtor, in the absence of bad faith. Funds had accumulated in the trustee’s hands after stay relief had been granted to allow foreclosure, but the debtor had not modified the confirmed plan to reduce plan payments. The Circuit concluded that § 348 . . .

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Comparison of Annual Change in Chapter 13 Case Filings During the Beginnings of the 2008 and the 2020 Recessions

March 21, 2021

By The Honorable Kevin R. Anderson, United States Bankruptcy Court for the District of Utah Coming off the longest economic expansion in U.S. history, Chapter 13 filings were at their lowest levels since 2007. With the country entering a sudden and unanticipated recession in February of 2020, we expected to see Chapter 13 filing rates increase; however, the opposite occurred....

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Tips and Traps: Issuing A Subpoena for Bank Records

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By Beverly M. Burden, Chapter 13 Trustee (Lexington, KY) I recently had to issue subpoenas to banks to get the records of a non-debtor (long story involving an attorney’s mishandling of escrowed funds held on behalf of a chapter 13 debtor). Here are some tips for others like me who do not often need to use subpoenas. These tips apply...

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The Academy

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These virtual 341 meetings via Zoom will be implemented on a rolling basis through early 2024. YEP, this means you, y’all, all y’all, you guys, and yoos guys. Doesn’t matter if you have been doing 341’s via telephone for 100 years . . . it’s ZOOM as soon as implemented in your district. For Debtor Atty’s, this may require having clients...

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By Judge Michael A. Fagone & Career Law Clerk Ciera S. Dye 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.i Neither the Bankruptcy Code nor...

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Why Junk the Whole System When Minor Remedies Would Suffice?

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By Shannon Garrett, Esq. (Topeka, KS) As a Debtor’s bankruptcy practitioner, I was encouraged to see Senator Warren’s proposed reform plan. Bankruptcy is one of the few areas where bipartisan support and action are possible, and being a fan of the current structure, I welcome the reform as a chance to make a good system better. Chapter 7 and Chapter...

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New Judge Appointed

The Academy

June 4, 2023

Honorable Corali Lopez-Castro Appointed Miami’s Newest Bankruptcy Judge

Critical Case Comment – How Many Cats?

Henry E. Hildebrand, III

August 7, 2022

Even though the Chapter 13 debtor’s 36 cats were property of the estate, the county animal control office could pursue possession of the cats and resulting disposition (by way of adoption). (Hagenau) In re Karen Mitchell-Smith, 2022 WL 2195466 (Bankr. N.D. Ga. June 17, 2022) Case Summary Sometime in 2021, Henry County Animal Control took possession of 36 cats that...

Still Trying to Apply Taggart: Fourth Circuit Vacates Beckhart v. Newrez, LLC

Lawrence R. Ahern, III

May 15, 2022

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The Hanging Paragraph – Hanging on Every Word Part 2 of 4

June 21, 2020

By Anthony J. Gomez, CPA, former extern to the Honorable John P. Gustafson, Northern District of Ohio at Toledo III. Applying the Hanging Paragraph a. Application of the Hanging Paragraph – Timing of Debt In order for the hanging paragraph to apply, the debt must be secured by a purchase money security interest (“PMSI”) in either: 1) a motor vehicle...

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