Chapter 13 debtor must demonstrate extraordinary circumstances to justify the extraordinary relief of setting aside or “reconsidering” an order dismissing a Chapter 13 case. (Cary) In re Canas, 2022 WL 10707000 (Bankr. D. Ma. October 18, 2022) Case Summary Nelson and Annemarie Canas filed a Chapter 13 petition in August of 2019. The debtors immediately fell behind on their proposed...

By Wayne Silver, Wayne Silver Law (Redwood City, CA) There you are, client on the witness stand, judge listening intently, story being told on direct exactly the way you prepared her, things going just swimmingly. And then opposing counsel stands and utters those two lovely words…”Objection, hearsay.” Huh? That’s ridiculous, you confidently think to yourself, just as you hear the...

Lloyd T. Kraus was appointed as a Chapter 13 Standing Trustee for the Eastern District of Texas on August 1, 2019. While Kraus loves his job, he would much rather still be serving as a staff attorney to his best friend and mentor John Talton. Talton was tragically killed in a traffic accident in October of 2018. Kraus received his...

By Leo G. Spanos, Senior Staff Attorney to Martha G. Bronitsky, Chapter 13 Trustee, Northern District of California (Oakland Division) Courts around the country are split on whether property acquired post-chapter 13 confirmation remains property of the estate or vests in the debtor for all purposes absent contrary language in the plan or confirmation order under 11 U.S.C. § 1327(b).1...

By Marsha M. Brown, Staff Attorney to Chapter 13 Trustee Douglas W. Neway (Jacksonville, FL) We talk about it daily - emailing issues back and forth as to what is reasonable and what is not. Should every Court have a basic reasonable fee structure or should every attorney be required to file an application to prove the reasonableness of his/her...

Employers who provide paid family and medical leave to their employees might qualify for a credit that can reduce the taxes they owe. It’s called the employer credit for family and medical leave. Here are some facts about the credit to help employers find out if they might be able to claim it. To be eligible, an employer must: Have...

By Gretchen Holland, Standing Chapter 13 Trustee for the Greenville/Spartanburg Division of South Carolina The hanging paragraph of § 1325(a)(9) prevents bifurcation of a PMSI claim if the collateral securing it was purchased within certain time periods prepetition. A 910-day limitation applies to motor vehicles acquired for the debtor’s personal use. A one-year limitation applies to all other PMSI collateral,...

By Anthony J. Gomez, CPA, former extern to the Honorable John P. Gustafson, Northern District of Ohio at Toledo III. Applying the Hanging Paragraph a. Application of the Hanging Paragraph – Timing of Debt In order for the hanging paragraph to apply, the debt must be secured by a purchase money security interest (“PMSI”) in either: 1) a motor vehicle...

By The Honorable William Houston Brown (Retired) Claim allowed after reopening of no-asset case. The Chapter 7 case filed as no-asset was reopened after discovery of assets for distribution, and debtors objected to a claim on basis of statute of limitations. Affirming, the Bankruptcy Appellate Panel held that the time to commence action on the claim had been tolled under...

By The Honorable William Houston Brown (Retired) Undistributed funds returned to debtor upon dismissal. Under § 1327(b)’s vesting requirement, unless a confirmed plan provides otherwise, any undistributed funds held by the trustee at dismissal of the case must be returned to the debtor. Although not necessary to rely on § 347(b)(3), the conclusion on effect of vesting at confirmation was...