RNPM, LLC v. Alvarez (In re Alvarez), 473 B.R. 853, 860–61 (B.A.P. 1st Cir. 2012) (Boroff, Deasy, Bailey)

Applying § 1322(e) and Puerto Rico law, 10% “penalty clause” in mortgage was subject to equitable reduction from $7,600 to $2,000. “[Section] 1322(e) controls the determination of the amount of pre-petition attorney’s fees which may be included in a secured creditor’s mortgage arrearage claim. . . . [Section] 1322(e) permits recovery of attorney’s fees and expenses only if allowed by applicable nonbankruptcy law. . . . [P]enal clauses in Puerto Rico are ‘subject to the principle of moderation’ under Puerto Rico law.”

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Per Capita Bankruptcy Filings Heat Map

November 24, 2019

____________________________ Prior to his appointment as a bankruptcy judge for the District of Utah in September of 2015, Judge Anderson served for seventeen years as the Standing Chapter 13 Trustee for the District of Utah. During this time, he administered over 70,000 Chapter 13 cases. Judge Anderson was elected president of the National Association of Chapter 13 Trustees (NACTT), and...

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From the Editor – Lien Modification

March 28, 2021

By The Honorable William Houston Brown (Retired) Junior mortgage lienholder not affected by modifications of senior mortgage. Under Pennsylvania law, the prepetition modification of terms of the senior mortgage had recapitalized interest and costs already owed but had not created new liabilities. As a result, the junior mortgage holder was not materially prejudiced. The Chapter 13 debtors could avoid the...

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The Continuing Saga of Chapter 13 Trustee Fees in Pre-Confirmation Dismissals

Thomas D. DeCarlo

June 25, 2023

Courts continue to wrestle with the issue of trustee fees in pre-confirmation dismissals. The Bankruptcy Court for the Northern District of Illinois has now weighed in in In re Johnson, 2023 WL 3406597 (Bankr. N.D. Il. 2023). The facts are pretty typical. Debtor filed for Chapter 13. After 8 months and 8 confirmation hearings, the Court granted Trustee’s request for...

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Critical Case Comment–84 Months: Lifesaver or Anchor?

Henry E. Hildebrand, III

February 12, 2023

Section 1329(c), as it currently exists, forecloses the ability of Chapter 13 debtor to modify a confirmed plan to alter the plan payment amount while maintaining an extended plan, previously approved under the CARES Act. (Hanan) In re Nelson, 2022 WL 6795096 (Bankr. E.D. Wis. October 11, 2022) Case Summary Immediately after the onset of the COVID-19 pandemic, Congress sought...

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Ask Ms. Ps & Qs

Nancy B. Rapoport

October 9, 2022

Dear Readers: We are all working at what feels like the speed of light these days. (And if we’re not, then we’re upset that work is too slow. Yes, we feel like Goldilocks—work’s either too busy or not busy enough.) But the wonderful Regina has asked me a question that often relates to someone hitting “send” too soon: “When opposing...

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From the Editor

March 17, 2019

By Wm. Houston Brown, United States Bankruptcy Judge (Retired) Confirmation - Bankruptcy court could not sua sponte object to confirmation. Distinguishing between “self-executing” provisions of the Code and those sections that were not “self-executing,” and discussing Espinosa’s impact on that distinction, District Court held that the bankruptcy court could not sua sponte object to confirmation based on the above- median...

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The Hanging Paragraph – Hanging on Every Word Part 1 of 4

June 14, 2020

By Anthony J. Gomez, CPA, former extern to the Honorable John P. Gustafson, Northern District of Ohio at Toledo I. Cramdown Pursuant to 11 U.S.C. §1325(a)(5)(B) Section 1325(a) sets forth the requirements for a court to confirm a chapter 13 bankruptcy plan. In respect to each secured claim provided for in a plan, 11 U.S.C. §1325(a)(5) provides the following three...

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Critical Case Comment

June 27, 2021

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) It constitutes an unfair discrimination, violative of 11 U.S.C. § 1322(b)(1), for a Chapter 13 plan which would pay more to a student loan than to the remaining general unsecured creditors. (Somers) In re Kane, 603 B.R. 491 (Bankr. C.D. Kan. June 18, 2019) Case Summary Ronald Kane filed...

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Meet One of Our Newest Trustees

January 13, 2019

Jason Wilson-Aguilar was appointed as the Chapter 13 Standing Trustee for Western District of Washington, Seattle Division, effective on October 2, 2018. He replaces retiring K. Michael (Mike) Fitzgerald who served as the Standing Trustee for nearly twenty years. During the ten years prior to his appointment as Trustee, Jason was the Senior Staff Attorney and Legal Department Manager in...

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For Shame

The Academy

June 25, 2023

Litigation Practice Group Lawsuits: 4 Cases to Know (This is the only free article we could find on Litigation Practice Group a/k/a Phoenix Law and disbarred Tony Diab. He has been disbarred from both Nevada and California.)