Surrender in Bankruptcy

By Sabrina L. McKinney, Senior Staff Attorney for Chapter 13 Trustee Cleve Reding, Montgomery, AL

Per Merriam –Webster.com ‘surrender’ is a verb and means (1) to agree to stop fighting, hiding, resisting, etc., because you know that you will not win or succeed; (2) to give the control or use of (something) to someone else; (3) to allow something (such as a habit or desire) to influence or control you.

But, as we well know, the understood meaning of a word is often very different . . .

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The Hunt for Deductible Interest – Money Too Often Left on the Table

February 16, 2020

By Cathy Moran, Esq. (Redwood City, CA) One of the mysteries of Chapter 13 is why mortgage lenders don’t send an IRS 1098 for mortgage payments made through a Chapter 13 plan. And without that reminder piece of paper, our clients don’t realize that much of what the trustee pays to mortgage creditors is deductible interest. Miss that deduction and...

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Courts are Expanding the Protections of Bankruptcy Rule 3002.1

Debbie Langehennig, Cameron Kelly

October 9, 2022

As a prerequisite to a claim’s payment, Rule 3002.1 requires certain secured creditors to provide to the trustee and the debtor notice of the full value of the secured creditor’s claim, including any “fees, expenses, and charges” related to the claim. Two bankruptcy courts have demonstrated a willingness to expand the reach of Rule 3002.1’s noticing requirements. These courts generally...

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Section 302: Joint but Separate

Queneshia Fleming

September 24, 2023

“The ambiguity of § 302 raises the question:are jointly administered cases two separate estates? If jointly administered cases are two separate estates, are trustees doing it wrong?”

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Critical Case Comment – Stay Violation: Repossession No, Sale Yes

Henry E. Hildebrand, III

November 6, 2022

Although the retention of collateral validly repossessed prior to the filing of the petition does not violate the stay, the sale of that property does violate the stay and the sale is void. (Bonapfel) In re Rakestraw, 2022 WL 4085881 (Bankr. N.D. Ga. Sept. 6, 2022) Case Summary Ms. Rakestraw filed Chapter 13 on August 12, 2022, listing her ownership...

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Memories of a Chapter XIII Trustee

November 10, 2019

By C. Kenneth Still, Standing Chapter 13 Trustee for the Eastern District of Tennessee, Retired (1968-2015) January 2, 1968, my first day as Trustee for the Eastern District of Tennessee, Southern and Winchester Divisions. I really didn’t know what I was doing or why I wanted the appointment. But there I was, duly appointed and ready to go but where...

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Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy

May 12, 2019

By Robert B. Branson and Tammy Branson, Branson Law PLLC (Orlando, FL) Congress’ goal of bankruptcy is for the honest debtor to get a fresh start. Since most federally guaranteed student loans are nondischargeable, the current outcome is a “false start” instead of a fresh start. Resolving a $1.5 trillion student loan crisis is problematic in that the caselaw was...

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From the Supreme Court

The Academy

June 18, 2023

Lac Du Flambeau Band of Lake Superior Chippewa Indians et al. v. Coughlin Supreme Court rules in favor of borrower of tribal loan –Chapter 13 stay applies. Justices reject tribal immunity from bankruptcy stay.

ABI Commission on Consumer Bankruptcy – Statement of Intention: Deadlines and Consequences

June 23, 2019

By Henry E. Hildebrand, III and Sloan Hastings Section 521(a)(7) requires a chapter 7 debtor to file a statement of intention for “debts secured by the property of the estate.” The debtor must choose to (1) reaffirm the debt, (2) surrender the collateral, or (3) redeem the collateral. Reaffirming the debt contractually binds the debtor to pay the debt even...

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For Shame

The Academy

June 25, 2023

Litigation Practice Group Lawsuits: 4 Cases to Know (This is the only free article we could find on Litigation Practice Group a/k/a Phoenix Law and disbarred Tony Diab. He has been disbarred from both Nevada and California.)

Ms. Ps & Qs

Nancy B. Rapoport

May 15, 2022

Dear Readers: There are some basic truths. One is that when someone says, “hey, watch this!,” the result is likely to involve blood or stitches. Another is that, when an author describes something with the leadoff word, “interestingly,” it often isn’t. And a third is that one shouldn’t mislead bankruptcy judges. In two wonderfully written cases, bankruptcy judges made this...

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