Bankruptcy: A Lesson in Conflicts and Sex with Clients©

By Mark D. Yochum, Professor of Law, Duquesne University School of Law

Over a decade ago, I wrote “When Conflicts Become Crimes: Professionals Representing Parties in Bankruptcy,” 10 J.Bank. L. & Prac. 235 (2001), exploring conflicts in bankruptcy through the story of John Gellene, sent to prison by the Eastern District Court of Wisconsin for failure to disclose connections. The passage of time has not affected the law in the piece. While no spectacular villains of conflicts have arisen to be sent to prison, the courts continue to apply the same jurisprudence, case law, statutes and rules . . .

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.

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...

Members

Tracking Down the Illusive Mortgage Interest Deduction

Cathy Moran

March 10, 2024

Are your clients curing mortgage arrears through their Chapter 13 plan? If so, I’m convinced a mortgage interest tax deduction lurks, unclaimed, in the trustee’s records.

Members

What Defines a Petition Preparer

Henry E. Hildebrand, III

May 26, 2024

A person or entity need not physically prepare a bankruptcy petition for a pro se debtor in order to be a bankruptcy petition preparer, but a debtor must have paid some compensation for the “services” provided.

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

Procedural Enlargement of Claims Bar Date

Jitwan K. Floyd

June 2, 2024

Rule 3002 outlines requirements and offers remedies for untimely claims, giving bankruptcy judges discretion to grant relief. However, creditors should view these exceptions as corrective measures rather than substantial rights.

Members

Ensure You Understand Insurance in Bankruptcy

March 17, 2019

By Cathy Moran, Esq. (Redwood City, CA) Because its treatment varies so, we need to be asking more pointed questions of clients about both insurance policies and the debtor as beneficiary. Unmatured life insurance Starting with exemptions, §522(d)(7) makes an unmatured life insurance policy exempt without limit. So, the insurance element of a policy owned by the debtor is exempt...

Members

Critical Case Comment–Who is Responsible to Address Eligibility Questions?

April 3, 2022

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of TN (Nashville) Bankruptcy Court is under an obligation to examine the eligibility of a debtor to file Chapter 13 even where no party raises a timely, written objection. (Seibel) Preuss v. Perry (In re Perry), 7:20-cv-04617-CS (S.D. N.Y., Sept. 21, 2021) Case Summary Bruce Perry filed...

Members

Critical Case Comment – No POC, No Money

Henry E. Hildebrand, III

April 30, 2023

A secured creditor would not be granted relief from the stay because the motion was based on the creditor’s failure to file a timely proof of claim. (Grant) In re Flores, 2023 WL 2787514 (Bankr. N.D. Ind. March 8, 2023) Case Summary Mr. Flores filed a petition under Chapter 13 proposing to pay Gaeta Auto Sales in full, with interest,via...

Members

Turnover by Motion? How About Under Rule 6008?

February 28, 2021

By Joseph A. Bledsoe, III (“Jody”), Chapter 13 Standing Trustee for the Eastern District of North Carolina (New Bern) In the aftermath of City of Chicago v. Fulton, discussions abound as to whether it is sufficient for a chapter 13 debtor to seek return of his vehicle, repossessed prepetition, via a motion for turnover. Most seem to believe a motion...

Members

Taggart v. Lorenzen: Supreme Court Stakes Out Middle Ground on Contempt Standard for Discharge Injunction Violations, Leaves Clues About Automatic Stay Violations

June 16, 2019

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Introduction – The Taggart Ruling Last year, the Ninth Circuit in In re Taggart1 ruled that an act in violation of the discharge injunction did not empower a court to find a creditor in contempt, if the creditor believed in good faith that the discharge injunction did not apply—even if...

Members