Congress’ enactment of differing fees for U.S. Trustee states and Bankruptcy Administrator states violated the uniformity provision of the Bankruptcy Clause of Article I of the Constitution. (Sotomayer) Siegel v. Fitzgerald, 2022 WL 1914098 (S.Ct. June 6, 2022) Case Summary In 2008, the retail chain, Circuit City Stores, filed a Chapter 11 petition. In 2010, Circuit City’sliquidating plan was confirmed...

By Cathy Moran, Esq. (Redwood City, CA) No matter how many hoops the client dutifully jumped through, without adequate inquiry and communication, the bankruptcy attorney was slammed for unbundling his services. The representation agreement at issue excluded representation in any adversary proceeding filed, as do most such agreements, I imagine. The client initialed every paragraph of the 19-paged representation agreement,...

In re Galloway, 2022 WL 1017951 (Bankr. N.D. Ill. April 5, 2022) A Chapter 13 trustee’s final audit and notice of completion of payments is not necessary or a precondition to the court granting a discharge to a debtor who has satisfied the requirements of § 1328. (Judge Thorne) Case Summary Tara Galloway filed a Chapter 13 petition in May...

By The Honorable William Houston Brown (Retired) Limitations period for actions under FDCPA. Construing the statute of limitations for actions against debt collectors under the Fair Debt Collection Practices Act (FDCPA), the Supreme Court held that “absent the application of an equitable doctrine, the statute of limitations in § 1692k(d) begins to run on the date on which the alleged...

A month-to-month residential lease can be assumed and defaults cured in a Chapter 13 plan. (Rucker) In re Mattoon, 2022 WL 2080184 (Bankr. E.D. Tenn. June 9, 2022) Case Summary Sarah Mattoon executed a lease with Open Doors in September of 2019. Several of Ms. Mattoon’s family members lived with her in the rented apartment including her “companion” and her...

By Anthony J. Gomez, CPA, former extern to the Honorable John P. Gustafson, Northern District of Ohio at Toledo V. The Good Faith Requirement The hanging paragraph was enacted to protect creditors. It accomplishes this by prohibiting the bifurcation of certain secured debts that were acquired shortly before the time of filing. Despite a Chapter 13 debtor’s inability to bifurcate...

By William Houston Brown, Adviser, Academy for Consumer Bankruptcy Education, Inc. and Lawrence R. Ahern, III, Brown and Ahern (Nashville, TN) In two February opinions, the Supreme Court addressed issues that appear in bankruptcy cases, one dealing with a common practice of entering nunc pro tunc orders and the other affecting determination of property rights under state law. In a...

(Reprinted with permission.  Bankruptcy Court Liaison Committee Newsletter – Spring 2023 (Northern District of Illinois)) During her tenure as a bankruptcy judge for nearly 24 years, Judge Carol A. Doyle has presided over countless chapter 7, 11, and 13 cases, leaving a lasting impact on the Chicago bankruptcy landscape.  She has been a dedicated and respected member of the bankruptcy...