In re Osborn, BK11-41944-TJM, 2012 WL 246301, at *5 (Bankr. D. Neb. Jan. 26, 2012) (Mahoney)

Providing inaccurate expense information so that schedules would show reduced disposable income was bad faith, but case not dismissed because debtor would then be imprisoned for failure to pay support. “Ms. Eads is not interested in having [the debtor’s] case dismissed so that he can be sent to jail for failing to obey the state court order. She is interested in receiving payments that he is obligated to pay. The best way to assure him that he is not going to jail and to assure her that she will receive the payments is to let him remain in Chapter 13 and file an amended plan that reflects the truth on the amended schedules and provides for payment of his divorce decree obligations.”

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Critical Case Comment – And There is Also Blanco

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By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville) Rule 3002.1 gives the Bankruptcy Court authority to impose sanctions, including punitive sanctions, as part of the rules-granted authority to award “other appropriate relief.” (Rodriguez) Blanco v. Bayview Loan Servicing LLC (In re Blanco), 2021 WL 4190170 (Bankr. S.D. Tex. September 14, 2021) Case...

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Recently, the Emeritus Trustees (“ETC”) commented on “How to Manage Incompetent, Unprepared, and Negligent Bankruptcy Counsel”. We now turn to ETC to share their collective wisdom when addressing the issues raised by incompetent, unprepared and unreasonable creditor counsel. CREDITOR ATTORNEY REPRESENTATION ISSUES Several ETC Trustees list the following as problematical during their tenure. Attorney claims lack of authority from creditor...

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The NACTT Emeritus Trustees

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