In June of 2017 Michele T. Hatcher was appointed Chapter 13 Standing Trustee for the Northern District of Alabama, Northern Division. Ms. Hatcher replaces retiring Trustee Michael Ford. She maintains her office in the quaint Southern town of Decatur which is nicknamed “The River City” because it is on the banks of Wheeler Lake, along the Tennessee River. Prior to...

Chapter 13 plan which provided a specific amount to be cured on a reverse mortgage under § 1322(b)(5) would be controlled by the specific term of the plan provision and not by the larger proof of claim filed by the creditor. (Baer) In re Edelstein, 2022 WL 16730027 (Bankr. N.D. Ill. November 7, 2022) Case Summary The Edelsteins filed Chapter...

By The Honorable William Houston Brown (Retired) Objection to proof of claim barred by preclusion. The Chapter 13 debtor objected to Wells Fargo’s proof of claim in an adversary proceeding that alleged the note had been procured by fraud and was unenforceable; but the debtor had previously litigated those and other issues in the state court. Preclusive effect of the...

Confirmation of a “sale” plan (proposing the sale of the debtor’s principal residence) depends upon how quickly the sale will be consummated, milestones established, and consequences for failing to meet those deadlines; a plan that makes payments to the mortgage company under a “sale” plan may not modify the rights of the mortgagee but if care is taken to comply...

My life in 1982 was in a bit of turmoil. I had recently gotten married and was working as in-house counsel for a regional furniture retailer. My position included a lot of collection work – beating up on debtors in state and bankruptcy courts. I was not unhappy but I was not comfortable with my work – it was clear...

Insurance proceeds generated due to a totaled car treated under the “hanging paragraph” of 1325(a) covers the entire claim; interest, however, is not recalculated even though it was a higher rate than the interest paid under the plan. (Hanan) In re Pagan, 638 B.R. 887 (Bankr. E.D. Wis. Jan. 24, 2022) Case Summary Bankruptcy judges have been overheard saying that...

For many of the consumer debtors my firm represents, the primary purpose of filing bankruptcy is to save their home or other real estate from being foreclosed upon by their mortgage servicer. We help those debtors file and comply with chapter 13 plans that propose to resolve their defaulted mortgages in a variety of ways, which might include curing pre-petition...