Does Outsourcing BK Ed Counselors Increase Client Risk and Attorney Liability?

By Robert D. Manning, PhD, President, DebtorWise Foundation, www.debtorwise.org

THE SHARP DECLINE IN BANKRUPTCY ED FEES

One of the interesting “hall” discussions during the NACBA conference focused on the declining cost of Debtor Education courses and the shrinking number of nonprofit BK Ed providers. With the sharp fall in bankruptcy filings over the last two years (largely due to the dramatic reduction in lending to “less than stellar” borrowers since the Great Recession), bankruptcy firms—large and small—have sought to cut client costs including . . .

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From the Editor – Curing Default

October 27, 2019

By The Honorable William Houston Brown (Retired) Debtor could cure default beyond 60 months. Agreeing with In re Klaas, 858 F.3d 820 (3d Cir. 2017), bankruptcy court had discretion to permit debtors to cure plan default, allowing a reasonable grace period beyond the 60 months of confirmed plan. Dismissal of the case for plan default was not required under §...

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Critical Case Comment – How Much Is It Worth – Then/Now?

Henry E. Hildebrand, III

January 22, 2023

On a trustee’s motion to modify a confirmed Chapter 13 plan, Court required debtor to commit funds to unsecured creditors based upon the previously undisclosed equity generated from post-petition sale of property. (Warren) In re Croniser, 2022 WL 3639413 (Bankr. E.D. N.C. August 23, 2022) Case Summary Duane Croniser filed a voluntary petition under Chapter 13 in January of 2020....

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Claims Secured by Personal Property

Pamela Simmons-Beasley

June 18, 2023

Chapter 13 in the Bankruptcy Code (1978 as amended) marks the first time that virtually all secured debts can be somewhat altered in a bankruptcy without getting the specific agreement of security holders. Real benefit is provided to the debtors who have personal property with secured loans due. Concepts including the automatic stay preventing enforcement or perfection of a security...

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Can a Secured Claim Still “Ride-Through” Bankruptcy Despite BAPCPA? – Part 1 In re Rhodes Says, “Let Me Count the Ways”

Lawrence R. Ahern, III

January 30, 2022

Background A recent Chapter 7 case out of the Bankruptcy Court for the Southern District of California, In re Rhodes,1 addresses reaffirmation in a context that is very significant and should be of interest to all debtor's attorneys. It points out that the "ride-through" of a debtor's secured debt in Chapter 7—which Congress tried to eliminate in 2005—still exists. In...

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Critical Case Comment– Reverse Mortgage May be Modified

Henry E. Hildebrand, III

May 22, 2022

A reverse mortgage, having fallen due as a result of the death of the borrower, is not protected from modification by the borrower’s heirs by virtue of § 1322(c)(2). (Halfenger) In re Sandoval, 2022 WL 982182 (Bankr. E.D. Wis. March 31, 2022) Case Summary Juan Sandoval filed Chapter 13 and proposed a plan which dealt with his principal asset, a...

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New Payment Option Available to Taxpayers in Private Debt Collection Program

October 13, 2019

IRS officials announced on 10/8/19 that a new payment option has been added to the private debt collection program to make it easier for those who owe to pay their tax debts. Taxpayers now can choose the convenient option of a preauthorized direct debit to make one payment or a series of payments toward their federal tax debt. With direct...

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Does Section 1325(b)(1)(A) Hold Your Interest?

Daniel M. Tavera

July 9, 2023

When Does The Bankruptcy Code Require The Payment Of Interest On Unsecured Claims In Chapter 13? I. Introduction This article primarily discusses the interpretation and application of § 1325(b)(1)(A) of the Bankruptcy Code in relation to the payment of interest to general unsecured creditors in chapter 13 bankruptcy cases. Section 1325(b)(1)(A) generally states that a court may not approve a chapter...

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The Long Reach of R. 3002.1

Cathy Moran

August 20, 2023

What are the consequences of a secured lender’s failure to comply with R. 3002.1 in a prior case when the debtor files again? Significant, it seems. . . . since their attorney said he “didn’t see the need” to do so. [Can you guess, now, how this comes out?]

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Credit Scores Trend Upward After Bankruptcy

November 3, 2019

By Cathy Moran, Esq. (Redwood City, CA) After bankruptcy, credit scores go steadily up, says a 17 year study released by the Consumer Financial Protection Bureau. Got that? Go UP. Every year. Importantly, credit scores start improving the same year that the bankruptcy is filed. Think on that for a moment. How collectors stoke fears about bankruptcy Creditors and their...

Trustee May Use Any Law Available to Avoid a Transfer

March 17, 2019

By Herbert L. Beskin, Chapter 13 Trustee for the Western District of Virginia (Charlottesville) *Special thanks to Gretchen D. Holland for editing this article. Facts In Vieira v. Gaither (In re Gaither), Bankr. D. S.C., # 18-01317-dd, Adv. Pro. 18 80040-dd, Chapter 7 case; 11/30/18 opinion (Duncan); 2018 Bankr. LEXIS 3816, the Debtors’ son died in an aviation accident in...

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