United Student Aid Funds, Inc v. Espinosa, 560 U.S. ---, 130 S.Ct. 1367 (2010) • NACTT Academy

United Student Aid Funds, Inc v. Espinosa, 560 U.S. —, 130 S.Ct. 1367 (2010)

By Professor M. Jonathan Hayes

Issue: Is “an order [confirming a chapter 13 plan] that confirms the discharge of a student loan debt in the absence of an undue hardship finding or an adversary proceeding, or both, … a void judgment for Rule 60(b)(4) purposes”?

Holding: No

Justice Clarence Thomas for a unanimous court,

This chapter 13 debtor’s plan proposed to pay only the principle on a student loan and provided that the remainder, the accrued interest, would be discharged upon payment of the principle. No adversary proceeding was commenced and the court was not asked to . . .

It looks like you are not signed in or registered! This content is only available to members.

Or Sign In Below:

No Author Biography has been linked to this Article.

U.S. Trustee Fee Unconstitutional

The Honorable William Houston Brown

June 12, 2022

On June 6, the Supreme Court’s unanimous opinion in Siegel v. Fitzgerald1 held that the increase in U.S. Trustee fees in Chapter 11 cases violated the uniformity requirement of the Constitution’s Bankruptcy Clause,2 because the fee increase in 2017 only applied to in the U.S. Trustee districts and didn’t apply to the Bankruptcy Administrator districts in Alabama and North Carolina....

Critical Case Comment – Repeat: No Fee Splitting

Henry E. Hildebrand, III

October 23, 2022

A referral fee by retained special counsel paid to debtor’s attorney violates the prohibition in § 504 in that it constitutes an unauthorized splitting of attorney’s fees. (Williamson) In re Davis, 638 B.R. 198 (Bankr. M.D. Fla. March 31, 2022) Case Summary Four years after Lisa Davis filed her Chapter 13 petition, she was involved in an auto accident resulting...

Members

Tips and Traps: Issuing A Subpoena for Bank Records

March 10, 2019

By Beverly M. Burden, Chapter 13 Trustee (Lexington, KY) I recently had to issue subpoenas to banks to get the records of a non-debtor (long story involving an attorney’s mishandling of escrowed funds held on behalf of a chapter 13 debtor). Here are some tips for others like me who do not often need to use subpoenas. These tips apply...

Members

Critical Case Comment– Absolute Right to Dismiss But Not the End of the Story

Henry E. Hildebrand, III

December 5, 2021

Although a Chapter 13 debtor has the absolute right to voluntarily dismiss her Chapter 13 case, even after a motion to convert is filed, the Court retains the rights to impose restrictions on the dismissal. (Waites) In re Brittany Frances Minogue, 2021 WL 4453589 (Bankr. D. S.C. September 29, 2021) Summary Brittany Minogue filed a voluntary petition under Chapter 13...

Members

Ask Ms. Ps & Qs

Nancy B. Rapoport

November 12, 2023

Cathy Moran’s article Bankruptcy Lawyer Must Have Otherworldly Powers raised an interesting issue: what should a lawyer do when a client calls and says, “what the heck IS this [notice, letter, order, whatever] that I just got?” Professor Rapoport’s take on this issue is not at all what you would expect. She puts the responsibility squarely on . . .

Members

Barking Up the Wrong Tree: A Canine Conundrum

Robert G. Drummond

May 5, 2024

“ . . . creditor couldn’t fetch a break. . . . Court first found that the state court judgment was void because it was entered after the discharge order. . . . also found the creditor in contempt of the discharge injunction.”

Members

Of Grace Periods and Mortgage Payments

Cathy Moran

January 23, 2022

The no man's land between the mortgage due date and late payment is a persistent trouble spot for Chapter 13 practitioners. 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 in default...

Members

Critical Case Comment – Fee Wars: The Battle Over Debtor Attorney Compensation

Henry E. Hildebrand, III

March 31, 2024

Debtors’ attorney’s fees can be calculated as a percentage of the presumptively reasonable “no-look” fee for cases involuntarily dismissed prior to confirmation and is an allowed administrative claim which can be paid under § 1326(a)(2).

Members

Critical Case Comment

February 24, 2019

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville) It was impermissible and contrary to the provisions of the Bankruptcy Code for the bankruptcy clerk to enter an order which dismissed a Chapter 13 case based only upon the trustee’s certification that the debtor did not make a timely first payment. (Duncan). No...

Members

In the Greatest Hits Department . . .

The Academy

May 26, 2024

Staff Attorney Jeff Leforce brought us this case back in January of 2022 . . . When is Enough, Enough? Pro Se Dismissed with Extended Prejudice (and Violates Bar)

Members