Withdrawal of Timely Filed Claims…What’s a Trustee to Do?

By Marsha M. Brown, Staff Attorney to Chapter 13 Trustee Douglas W. Neway (Jacksonville, FL)

What happens when a creditor files a timely, allowed claim, the Trustee commences disbursement on the claim, but the creditor has a change of heart and subsequently withdraws its claim?!? Are those disbursements prior to the withdrawal appropriate? Should the Trustee make the creditor refund the monies? Does there need to be an order approving the funds previously disbursed? As disconcerting as it may be, this article will provide no answers because it seems there are no “firm” answers as to this issue . . .

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Avoidance Powers In Chapter 13 – Part 2 of 6

January 6, 2019

By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division (Toledo, OH) Click here for Part 1 of 6 Click here for Part 3 of 6 Click here for Part 4 of 6 Click here for Part 5 of 6 Click here for Part 6 . . . It looks like you are not signed in...

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Critical Case Comment

February 3, 2019

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of TN (Nashville) Where a Chapter 13 plan provides that a mortgage payment will be paid “outside the plan,” the plan does not “provide for” the mortgage payment and, accordingly, the discharge under § 1328 is not applicable to the mortgage obligation. Dukes v. Suncoast Credit Union, 909...

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Critical Case Comment – Watch for Opportunities to Bifurcate Home Mortgage Claims

Henry E. Hildebrand, III

August 21, 2022

Where a Chapter 13 plan treats a claim as secured only by the debtor’s mobile home under § 506 and not real property, the effect of a notice of fees, costs and charges is irrelevant. (Coleman) In re White, 2022 WL 2826531 (Bankr. S.D. Ga. July 19, 2022) Case Summary Shalonda White filed a Chapter 13 petition in July of...

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Here’s What Taxpayers Should Consider When Determining If They Need to File

February 3, 2019

As people prepare to file their taxes, there are things to consider. They will want to determine if they need to file and the best way to do so. For tax year 2018, all individual taxpayers will file using the new Form 1040. Forms 1040A and 1040EZ are no longer available. Taxpayers who previously filed these forms will now file...

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.

Critical Case Comment – Post-Petition/Pre-Conversion Equity

Henry E. Hildebrand, III

July 30, 2023

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville) Post-petition, pre-conversion equity that accrues in a debtor’s residence during the pendency of a Chapter 13 plan is property of the estate in the Chapter 7 estate following conversion. (Hastings) Goetz v. Weber (In re Goetz), 651 B.R. 292 (8th Cir. BAP, June 1,...

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Demystifying Bankruptcy Appeals

M. Jonathan Hayes

September 11, 2022

Consumer bankruptcy attorneys in my experience tend to see appeals as a massively expensive undertaking fraught with unfamiliar rules and the threat of sanctions at every turn. That is not the reality. The purpose of this short article is to allay those fears. It’s a fun and satisfying process; dive in says I. Final order You can only appeal a...

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CFPB Proposes Changes to HMDA Rules

May 5, 2019

The CFPB (Bureau), May 2, 2019, issued a Notice of Proposed Rulemaking (NPRM), which proposes to raise the coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit under the Home Mortgage Disclosure Act (HMDA) rules. The NPRM would provide relief to smaller lenders from HMDA’s data reporting requirements, and would clarify partial exemptions...

Critical Case Comment – 3002.1 and Reverse Mortgages

Henry E. Hildebrand, III

January 23, 2022

Requirements and remedies in Rule 3002.1 apply to reverse mortgages as well as conventional mortgages; while discharge of Chapter 13 plan does not discharge a mortgage obligation treated pursuant to § 1325(b)(5), the court may prohibit prospective use of a nondisclosed obligation as grounds for a default. (Waites) In re Legare-Doctor, 2021 WL 5712149 (Bankr. D. S.C. Dec. 1, 2021)...

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Taxes, Offset, and Mutuality

October 13, 2019

By Cathy Moran, Esq. (Redwood City, CA) Bankruptcy lawyers are accustomed to evaluating the dischargeability of taxes when deciding when to file a client's bankruptcy case. But as we approach the end of the tax year, a client’s current year tax situation becomes another moving part in the “when do we file” analysis. In the simplest situation, the client owes...

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