Breaking Down the Flaws in the Arguments Against Interest to Unsecured Creditors Under § 1325(b)

By Ken Siomos, Staff Attorney to Chapter 13 Trustee John H. Germeraad (Springfield, IL)

A significant developing split in Chapter 13 practice exists on the question of whether the disposable income test under § 1325(b) can ever require interest to unsecured creditors. Even in these hyper-polarized political times, there would likely be broad frustration by Americans of all views with the existence of about a dozen conflicting opinions on whether “the value, as of the effective date of the plan..,”i means something different from, “as of the effective date of the plan . . .

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Passing of James J. Barta, Sr.

The Academy

November 12, 2023

It is with sadness that we announce the death of retired U.S. Bankruptcy Judge, James J. Barta, Sr. on Tuesday, November 7, 2023. Judge Barta served as a Bankruptcy Referee in the Eastern District of Missouri beginning in 1978, then a Bankruptcy Judge from 1986 through 2006, including three stints as Chief Judge. Before serving with the Court, Judge Barta...

Turnover by Motion? How About Under Rule 6008?

February 28, 2021

By Joseph A. Bledsoe, III (“Jody”), Chapter 13 Standing Trustee for the Eastern District of North Carolina (New Bern) In the aftermath of City of Chicago v. Fulton, discussions abound as to whether it is sufficient for a chapter 13 debtor to seek return of his vehicle, repossessed prepetition, via a motion for turnover. Most seem to believe a motion...

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Recent Cases Navigate Retirement Account Exemptions

Karen Jolley

February 11, 2024

“Several recent bankruptcy cases have considered the circumstances under which funds held in, derived from, or contributed to a retirement account may be exempt from the bankruptcy estate.”

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How to Manage Unprofessional and Discourteous Attorneys

The NACTT Emeritus Trustees

December 4, 2022

Many have had the unpleasant experience of coping with an ill-mannered and disrespectful opposing counsel. Unnecessary motions are filed and unfounded allegations are asserted. Relief requested has no basis in fact or law. Temperatures rise. The volume of argument is loud. Your staff and you are upset. What to do?We asked the Emeritus Trustees and here are some recommendations: First,...

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Critical Case Comment

June 14, 2020

By Henry E. Hildebrand, III, Chapter 13 Trustee (Nashville, TN) Chapter 13 debtor may exclude from disposable income amounts projected to be paid to an employer sponsored 401(k) where such payments are consistent with pre-filing contributions made to the retirement account. Davis v. Helbling, 2020 WL 2831172 (6th Cir. June 1, 2020) (Larsen) Case Summary In 2017, Camille Davis filed...

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From the Editor – Claims

June 21, 2020

By The Honorable William Houston Brown (Retired) Recordation of divorce judgment created secured claim. In Chapter 13 case, the debtor objected to former spouse’s secured claim, with pre-bankruptcy divorce judgment awarding former marital home to the husband but ordering equalization payments to the wife. No security was mentioned in the judgment, but its recordation created a lien under Wisconsin law....

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How to Build and Strengthen Your Chapter 13 Debtor Practice

The NACTT Emeritus Trustees

July 3, 2022

In these times of fewer case filings, it may be helpful to look at ways that debtor attorneys may build and strengthen their chapter 13 bankruptcy practice. The following are some recommendations and ideas from the Emeritus Trustee Committee:

The Hanging Paragraph – Hanging on Every Word Part 3 of 4

June 28, 2020

By Anthony J. Gomez, CPA, former extern to the Honorable John P. Gustafson, Northern District of Ohio at Toledo Click here for Part 1 Click here for Part 2 IV. The Hanging Paragraph’s effect on Interest Rates When the hanging paragraph is applicable, creditors are entitled to the full value of their secured claims as . . . It looks...

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Is a CARES Act Stimulus Payment Exempt?

April 26, 2020

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN) Introduction Since April 1, 2020, many unemployed people in the United States have begun to receive "a recovery benefit" in the amount of $1,200.1 These payments, under the CARES Act2 stimulus program, were intended to provide some relief to suffering Americans. However, the most financially distressed Americans, perhaps with existing,...

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Max’s Knowledge Nugget

Max Gardner

November 13, 2022

Question: May a servicer charge to generate a payoff quote? Answer: 1026.36(c)(3) Payoff statements. In connection with a consumer credit transaction secured by a consumer's dwelling, a creditor, assignee or servicer, as applicable, must provide an accurate statement of the total outstanding balance that would be required to pay the consumer's obligation in full as of a specified date. The...

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