Is 1328(i) Ultimately Terrible for Debtors?

By Ken Siomos, Staff Attorney for Marsha L. Combs-Skinner (Newman, IL)

The December 2020 Consolidated Appropriations Act, 2021, more commonly known as the second covid-19 stimulus bill, contains a few bankruptcy related provisions, but none stood out more with respect to Chapter 13 than the newly created § 1328(i). This provision provides that a court may grant a full 1328(a) discharge to debtors in certain circumstancesi (emphasis added). Cathy Moran, Judge Lundin and Hank Hildebrand have all discussed the potentially broad implications of this subsection – theorizing they may . . .

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Critical Case Comment – If Objection, Arrears Gotta’ Be Equal Monthly Installments

Henry E. Hildebrand, III

March 12, 2023

When a mortgage servicer objects to the plan based on its failure to pay mortgage arrears in equal monthly payments, § 1325(a)(5)(B) requires the debtor to amend to pay the arrears in equal monthly payments. (Hanan) In re Randell, 638 B.R. 104 (Bankr. E.D. Wis. January 19, 2022) Case Summary Ms. Randell proposed a rather conventional Chapter 13 plan, seeking...

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New Federal Guidance on Discharging Student Loans in Bankruptcy Is a Game Changer

Robert B. Branson, Tammy Branson

March 26, 2023

The Justice Department, in partnership with the Department of Education, recently announced new guidelines that loosen the strict application of the “undue hardship” exceptionwhen defending a student loan dischargeability action. This new guidance is a game changer. In the past the Department of Justice narrowly applied the undue hardship exception when defending discharge of student loans to the extent that...

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Dollar Amount Increases in Bankruptcy Code

March 3, 2019

By William Houston Brown, United States Bankruptcy Judge, Retired; Editor/Adviser, The Academy On April 1, 2019, an increase takes effect in those dollar amounts in the Bankruptcy Code that are subject to adjustment every three years.1 The following increases have significance in everything from the eligibility maximums for filing under Chapters 12 and 13 to the debtor’s exemptions. Relevant Official...

May the Chapter 13 Trustee Keep Fees Paid Before Dismissal?

Lawrence R. Ahern, III

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Larry Ahern this week begins a two-part examination of whether a Chapter 13 trustee may retain fees paid without a confirmed plan before dismissal. Part 1 is a detailed analysis of McCallister v. Evans, a recent case accepting the trustee's position considering a division in the caselaw and analyzing in detail the relevant statutes. May the Chapter 13 Trustee Keep...

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Critical Case Comment – Don’t File a Individual Chapter 13 If the Assets Are Owned by an LLC; It Will Cost You – BIG

Henry E. Hildebrand, III

September 25, 2022

Where a debtor and debtor’s counsel initiated a Chapter 13 petition in an effort to halt a foreclosure against property held by the debtor’s LLC, and where the debtor took no steps to correct the filing, sanctions would be imposed against debtor’s counsel. (Grabill) In re Scaccia, 2022 WL 1216284 (Bankr. E.D. La. April 25, 2022) Case Summary Scaccia owned...

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A Look at Setoff and Recoupment as Fourth Circuit Permits IRS to Grab Exempt Overpayment Refund

July 19, 2020

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Introduction In Copley v. United States,1 Chapter 7 debtors attempted to exempt under Virginia law their right to a prepetition federal income tax overpayment refund. After the bankruptcy filing, the IRS set off the overpaid funds to satisfy the debtors' tax liabilities under 26 U.S.C. § 6402. In a matter...

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Meet Another New Trustee

March 8, 2020

Rebecca A. (Becky) Herr was appointed Chapter 13 Standing Trustee for the District of Maryland on October 1, 2019 and maintains her offices in Annapolis. Ms. Herr’s appointment came on the heels of the retirement of Chapter 13 Standing Trustee Nancy Spencer-Grigsby. But Herr is no stranger to NACTT, The Academy, and the Chapter 13 Trustee community. So, let’s start...

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Constitutional Interpretation and State Bankruptcy Laws: Chief Justice Marshall on Sturges v. Crowninshield (1819)

M. Jonathan Hayes

March 31, 2024

Launching a new feature - Supreme Court Corner - Jon Hayes will periodically share a look at a historical bankruptcy case. As the title indicates, Sturges v. Crowninshield looks at state bankruptcy law in the absence of federal law.

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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...

From the Editor

September 20, 2020

By The Honorable William Houston Brown (Retired) Chapter 13 debtor lacked “person aggrieved” standing to appeal objection to trustee’s final report. The bankruptcy court had overruled the debtor’s objection to the trustee’s final report, and debtor’s appeal was dismissed, with the Bankruptcy Appellate Panel finding that debtor lacked “person aggrieved” standing to appeal. Debtor’s objection had not included amount of...

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