Introduction This series reviews developments in bankruptcy procedure during 2022. Amendments to 16 rules and one new rule took effect December 1, 2022. Many reflected changes necessitated by the Small Business Reorganization Act of 2019 (SBRA),1 and have been in place in the same or similar form on an interim basis since that legislation took effect.

By James J. Robinson, Chief United States Bankruptcy Judge, Northern District of Alabama Who appoints the standing chapter 13 trustee? The United States Trustee appoints the standing chapter 13 trustee for each judicial district where the UST system is in place, while the court appoints the standing chapter 13 trustee under the Bankruptcy Administrator program. See 11 U.S.C. § 1302...

Background - In re Taggart In 2019, the Supreme Court rendered its opinion in In re Taggart,1 which was the subject of earlier analyses: (1) Is a Finding of Contempt Precluded by a "Good Faith" but Unreasonable Belief that an Action Does Not Violate the Discharge Injunction?; (2) Looking Beyond . . . It looks like you are not signed...

Mortgagee’s failure to disclose payment changes resulting from escrow adjustments and interest rate modifications compels the Court to order mortgagee to credit all undisclosed increases and subject it to sanctions, including attorney’s fees. (Somers) In re Kinderknecht, 2023 WL 320984 (Bankr. D. Kan. January 19, 2023) Case Summary Kyle and Chasity Kinderknecht filed a Chapter 13 petition in December of...

Debtor’s filing application to extend or impose the automatic stay must comply with the service requirements of Rule 7004 as to all creditors or the stay cannot be imposed or extended. (Johnson) In re Hardy, 2022 WL 1196963 (C.D. Cal. April 21, 2022) Case Summary Kimberly Hardy had a long history in consumer bankruptcy. She had filed eight cases, including...

Ninth Circuit Bankruptcy Appellate Panel finds no “eligibility” exception to right to dismiss a Chapter 13 bankruptcy Powell vs TICO Construction (In re Powell) 644 B.R. 181 (9th Circuit BAP, 2022) ISSUE Did the bankruptcy court err in granting Debtor’s motion to dismiss the Chapter 13? RULING No. FACTS This case tests the new “absolute right to dismiss” rule about...

By Elizabeth Gunn, Assistant Attorney General, Virginia Division of Child Support Enforcement, Bankruptcy Specialisti In late April, the federal government began issuing economic impact rebate payments to qualifying individuals under the CARES Act. While the CARES Act specifically identified and exempted the rebate payments from reduction or offset against certain debts including federal taxes and student loans in default, the...

Percentage fees collected by a Chapter 13 trustee prior to confirmation of a Chapter 13 plan must be returned to the debtor by the trustee if Chapter 13 plan is not confirmed. (Ebel) Goodman v. Doll, 2023 WL 216778 (10th Cir. January 18, 2023) Case Summary Daniel Doll filed Chapter 13 in November of 2017. The debtor complied with 11...

The no man’s land between the mortgage due date and late payment is a persistent trouble spot for Chapter 13 practitioners.  For example, are there arrears when the case is filed during the grace period and the payment made before it was late? In Borre, Judge Ronald Sargis of ED CA said no. He held that the payment was not...

The issuance of a subpoena to a Chapter 7 trustee by a third party was subject to the Barton Doctrine and could not be permitted without the parties seeking bankruptcy court consent. (Clarkson) In re Eagan Avenatti, LLP, 2022 WL 630332 (Bankr. C.D. Cal. March 3, 2022) Case Summary Eagan Avenatti, LLP, was the California law firm of the somewhat...