Bankruptcy and appellate courts in increasing numbers are considering whether it is appropriate for debtors filing for Chapter 7 relief and attorneys representing them to enter into bifurcated fee agreements. It has been recognized that one of the reasons that debtors may decide to file Chapter 13 rather than Chapter 7 is that attorneys require payment of the Chapter 7...

Mention keeping time records to a bankruptcy lawyer and you’re likely met with expressions of utter revulsion. All too many assert that the major appeal of being a bankruptcy lawyer is precisely that they don’t have to keep time. Between flat fee deals with clients, and no look fees in Chapter 13, they feel liberated from the clock and the...

Introduction In In re Village Apothecary, Inc.,1 the Sixth Circuit last month reduced an attorney's fees by half, where the professional's services were not "successful." The results obtained (or, actually, the lack of results) justified cutting the fees of attorneys for a Chapter 7 trustee by 50%. Why It Matters to Chapter 13 People This analysis of the implications of...

Community property works differently in bankruptcy. I probably don’t have to tell you that. On the issue of assets and debts, community property is pretty straightforward. All of the community property comes into the estate upon the commencement of a bankruptcy case, even when only one spouse files. §541(a)(2). Every creditor with a right to be paid from the community...

By Kathryne M. Shaw,1 Boleman Law Firm, P.C. (Virginia Beach, VA) Click here for Part 2 The bankruptcy system requires good faith on the part of a debtor in exchange for the promise of a fresh start, and responsible members of the bankruptcy bar constantly work to ensure that no one “games” this powerful system. So, how does a debtor...

“Does wearing these horizontal stripes make me look fat?” My wife, Becky, tells me that clothes with horizontal stripes make one look broad or fat. However, wearing clothes with vertical stripes create the illusion of making one look tall or slim. Smart fashion designers design clothing that creates the illusion that people are something they are not. I must confess...

By The Honorable William Houston Brown (Retired) Debt buyer was debt collector under FDCPA. The Ninth Circuit agreed with the Third Circuit that an entity purchasing consumer debts qualified as a debt collector under the Act, 15 U.S.C. § 1692(a)(6), even though it outsourced the actual debt collection activity. McAdory v. M.N.S. & Assoc., LLC, 952 F.3d 1089 (9th Cir....

There is no special language/verbiage. Keep is simple. Stick to one issue per NOE. Pertinent loan/debtor information – “name, rank, and serial number” Called bank twice. Tried to get borrower reviewed for FHA Recovery Mod. Both times I was essentially told that the loan was “too many months delinquent” to be reviewed for FHA Recovery Mod. I was also told...

By The Honorable William Houston Brown (Retired) Debtors’ attorney fees not authorized under Equal Access to Justice Act (EAJA). Although the Chapter 13 debtors had prevailed before the Ninth Circuit, In re Sisk, 962 F.3d 1133 (9th Cir. 2020), their application for attorney fees as prevailing parties under EAJA was denied. That Act did not authorize awards of attorney fees...

Dear Readers: There are some basic truths. One is that when someone says, “hey, watch this!,” the result is likely to involve blood or stitches. Another is that, when an author describes something with the leadoff word, “interestingly,” it often isn’t. And a third is that one shouldn’t mislead bankruptcy judges. In two wonderfully written cases, bankruptcy judges made this...