July 10, 2020, the CFPB released a report examining recent trends in debt settlement and credit counseling. Many Americans struggle with their debts, especially during times of crisis. Today’s report documents changes over time in how consumers have used these debt relief options for unsecured debt. Using the Bureau’s Consumer Credit Panel (CCP), a nationally representative sample of approximately five...

By Daniel M. Tavera, Law Clerk to the Honorable John P. Gustafson, U.S. Bankruptcy Court for the Northern District of Ohio (Toledo) Objections to claims may generally be served on the claimant by first-class mail to the person designated to receive notices on the most recent proof of claim for the creditor. This simplifies the service for claim objections for...

By Chris Hawkins, Bradley Arant Boult Cummings LLP (Birmingham, AL) The Consumer Financial Protection Bureau (CFPB) published its debt collection final rule in the Federal Register on November 30, 2020, revamping the Fair Debt Collection Practices Act (FDCPA) for the first time since its enactment in 1977. Despite written comments submitted by several industry groups requesting clarity in areas where...

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville) Chapter 13 debtor may include a provision in the Chapter 13 plan that only estimates the duration of the plan and, absent an objection, such provision would cause the debtor’s plan to terminate and the debtor receive a discharge when the claims have been...

By Cathy Moran, Esq. (Redwood City, CA) Clouds of uncertainty have hovered over Chapter 13 debtors who find that they need to sell appreciated property before the case is over. Does appreciation occurring after filing go to creditors on the theory that the appreciation is property of the estate? Or does the vesting of property at confirmation entitle the debtor...

Is there a duty to inform the trustee about changes post-plan confirmation? Yes.  There is an inherent duty for the consumer debtor to update the trustee on any and all material changes, particularly windfalls, post plan confirmation.  In a very recent case, In Re Robinson, the United States Trustee moved to dismiss debtor’s chapter 13 case because the debtor received...

Small business owners, self-employed people, and some wage earners should look into whether they should make estimated tax payments this year. Doing so can help them avoid an unexpected tax bill and possibly a penalty when they file next year. Everyone must pay tax as they earn income. Taxpayers who earn a paycheck usually have their employer withhold tax from...

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) While the best interests of creditors test is applicable upon modification of a Chapter 13 plan, post-petition acquired property of the estate is not included in such analysis in that such property would not be property of a Chapter 7 estate. (Somers) In re Taylor, 2021 WL 3118824 (Bankr....

Spending every dollar they make, and then some, is often how our Chapter 13 clients got into financial trouble. Yet Chapter 13, as practiced, validates the practice of continuing to spend 100% of each month’s income during the life of the plan. In doing so, we, as a society, squander the chance to use Chapter 13 to teach new budgeting...