Income Driven Repayment Plans in Chapter 13

By Ed Boltz, The Law Offices of John T. Orcutt (Durham, NC)

Income Driven Repayment (IDR) plans for student loans became available to borrowers with the Income Drive Repayment plan in 2009. Subsequent plans, such as Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE), were modeled after it in 2014 and 2015. Payments under these plans are based on 10-15% of the borrower’s household discretionary income,1 without regard to assets, and can be as low as $0.00 a month. Depending on the plan, after 20 or . . .

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City of Chicago v. Fulton And the Turnover Conundrum

January 24, 2021

By Kara K. Gendron, Esquire, Mott & Gendron Law (Harrisburg, PA) The recent Supreme Court decision in City of Chicago v. Fulton1 will change the law in most Circuits. Prior to this case, there was a split among the circuits as to whether the post-petition retention of property taken pre-petition constitutes a violation of the automatic stay under §362(a)(3) of...

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Negotiating Plan Confirmation with Secured Creditors – Issues Involving Balloon Payments and Other Mortgage Loans Subject to Modification Under § 1322(c) – Part 3

November 22, 2020

By David Cox,1 Cox Law Group, PLLC (Lynchburg, VA) III. Providing for the Secured Mortgage Claim, as Modified. A. Does the requirement of § 1325(a)(5)(B)(iii) for equal monthly payments permit the Debtor to propose a balloon payment in the payment of the creditor’s claim? Equal Monthly Payments Required By § 1325(a)(5)(B)(iii) Does NOT Permit Debtor To Propose A Balloon Payment....

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Looking Beyond Taggart: Is the Contempt Standard for a Stay Violation the Same as for a Discharge Injunction Violation?

May 5, 2019

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Background 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 the creditor's belief was...

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Pay Down Debt or Save – Which Should Come First?

Cathy Moran

August 25, 2024

Pay off debt first or start saving now? A question you, as a debtor attorney, are often asked. It’s a debate almost as convoluted as which came first, the chicken or the egg?

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Minding the Post-Confirmation Gate: Creditors Gotta’ Get It Right the First Time

Henry E. Hildebrand, III

June 16, 2024

Although it is easy for a consumer practitioner to skim over decisions relating to Chapter 11, occasionally, a Chapter 11 decision requires attention. This is particularly true when the decision is issued by a Circuit Court of Appeals. Here, compelling circumstances must be demonstrated to justify a post-confirmation amendment to a proof of claim.

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Tax Form 1099 Needs A Closer Look: Chances Are It’s Wrong

April 14, 2019

By William J. Purdy, III, Simmons & Purdy (Soquel, CA) Hundreds of thousands of taxpayers in the past few weeks have looked at or at least thought about, Form 1099-A or Form 1099-C documents they have received. Some arrived in the tax year a debt was allegedly cancelled. Others are issued by financial instructions many years after they should have...

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Plan Modifications and Below Median Debtors

Michael B. Joseph

June 30, 2024

When a below median debtor’s plan is based on best interest of creditor’s test, will future increase in income expose the debtor to a motion to modify to capture increase?

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From the Supreme Court

The Academy

June 18, 2023

Lac Du Flambeau Band of Lake Superior Chippewa Indians et al. v. Coughlin Supreme Court rules in favor of borrower of tribal loan –Chapter 13 stay applies. Justices reject tribal immunity from bankruptcy stay.

Section 302: Joint but Separate

Queneshia Fleming

September 24, 2023

“The ambiguity of § 302 raises the question:are jointly administered cases two separate estates? If jointly administered cases are two separate estates, are trustees doing it wrong?”

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Director’s Awards Recognize 19 Employees for Leadership, Service

The Academy

December 10, 2023

Congratulations to all but specifically the two bankruptcy courts with recognized recipients!