If A Purpose Would Be Served: The Trustee’s Role In Objecting To Claims

By Phil Lamos, Chief Legal Counsel, Office of the Chapter 13 Trustee, Craig Shopneck, Cleveland, Ohio

Section 1302 of the Bankruptcy Code says that the Trustee shall object to “improper” proofs of claim, “if a purpose would be served.” But how can the Trustee make the determination that a proof of claim is improper? And when would objecting to a proof of claim serve a purpose? The answers to these questions go hand in hand when deciding whether or not to object to a proof of claim.

Absent the cooperation of the debtor, the Trustee can only determine . . .

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Honorable Kevin R. Anderson, U.S. Bankruptcy Court District of Utah

April 7, 2019

Prior to his appointment as a bankruptcy judge for the District of Utah in September of 2015, Judge Anderson served for seventeen years as the Standing Chapter 13 Trustee for the District of Utah. During this time, he administered over 70,000 Chapter 13 cases. Judge Anderson was elected president of the National Association of Chapter 13 Trustees (NACTT), and he...

“Stripping” Residential Mortgages and the Effect of 11 U.S.C. § 1111(b) – Part 2 Eleven Eleven What?

July 24, 2021

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN) Wonk Alert This Part 2 wraps up some suggestions about how the parties to residential mortgages may avoid or minimize problems in the structuring and administration of these loans, with a discussion of subsection 1111(b) of Bankruptcy Code.1 This discussion may seem arcane, as indeed many experienced Chapter 11 practitioners...

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Laudable, Shortsighted, and Vague: The CDC’s Eviction Moratorium

October 18, 2020

By Riley F. Tunnell, Esq., Godwin Bowman PC (Dallas, TX) The COVID-19 pandemic is not the product of a single cause. So, our remedial efforts must address a myriad of causes and rapidly developing effects. The CDC believes that delaying the onset of the mass-eviction to a time when we may be better able to manage this virus is a...

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Department of Justice Guidance on Discharging Federal Student Loans in Bankruptcy Expanded to Include FFEL and Perkins Loans

Scott Waterman, Josh Cohen

October 29, 2023

“FFEL and Perkins loans are different than other federally backed student loans as these are owned by private lenders, but guaranteed by the government.”

2022 Bankruptcy Procedure Year in Review: Revised Statute and Rules and Selected Cases Part 9 More from the Supreme Court: MOAC Mall Holdings LLC v. Transform Holdco LLC

Lawrence R. Ahern, III

May 14, 2023

Introduction This series reviews developments in bankruptcy procedure during the past year.One new rule and amendments to 16 rules took effect December 1, 2022. Many reflected changes necessitated by the Small Business Reorganization Act of 2019 (SBRA), and had been in place in the same or similar form on an interim basis since that legislation took effect.

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Diane Cipollone

The Academy

March 6, 2022

Diane Cipollone is an attorney and a qualified expert on mortgage servicing and loan origination matters. While Diane no longer provides expert testimony, she continues to consult with consumer attorneys; trains attorneys, court mediators, housing counselors and fair housing advocates on foreclosure prevention guidelines and federal mortgage regulations; and mentors pro bono attorneys and non-profit housing counselors. She has presented...

9th Circuit BAP: Actually, Absolute Right to Dismiss Means Absolute

Hale Andrew Antico

January 29, 2023

Ninth Circuit Bankruptcy Appellate Panel finds no “eligibility” exception to right to dismiss a Chapter 13 bankruptcy Powell vs TICO Construction (In re Powell) 644 B.R. 181 (9th Circuit BAP, 2022) ISSUE Did the bankruptcy court err in granting Debtor’s motion to dismiss the Chapter 13? RULING No. FACTS This case tests the new “absolute right to dismiss” rule about...

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Passing of the Honorable Randall L. Dunn

The Academy

June 25, 2023

Retired United States Bankruptcy Judge Randall (Randy) Lawson Dunn, District of Oregon, died at home on June 7, 2023.

Less Than 100% Dividend Can a Chapter 13 Plan be Paid off Early?

April 21, 2019

By Stacey A. O’Stafy, Staff Attorney, Office of the Chapter 13 Trustee Faye D. English (Columbus, OH) An above median Chapter 13 debtor settles a workers’ compensation claim and wants to use the exempt settlement proceeds1 to pay off her 100% dividend plan in month 38 – can she? In this simple scenario, the answer is yes. Pursuant to 11...

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Critical Case Comment – Time is of the Essence

Henry E. Hildebrand, III

May 21, 2023

Chapter 13 plan cannot be modified to treat a priority claim as general unsecured after the time for reconsideration of the order has passed. (Easterbrook) Matter of Terrell, 39 F.4th 888 (7th Cir. July 12, 2022) Case Summary The Terrells’ Chapter 13 plan proposed a classification to pay the State of Wisconsin in full as a priority claim because, they...

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