Pump the Brakes: Bad Faith Debtors Are Not Gaming the System

By Kathryne M. Shaw,1 Boleman Law Firm, P.C. (Virginia Beach, VA)
Click here for Part 2
The bankruptcy system requires good faith on the part of a debtor in exchange for the promise of a fresh start, and responsible members of the bankruptcy bar constantly work to ensure that no one “games” this powerful system. So, how does a debtor who gets caught violating numerous rules of the court and demonstrating repeated examples . . .

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.

Bankruptcy Court Strikes Back: Awarding $825,940.55 in Sanctions for Bad Faith Filing

M. Jonathan Hayes

March 24, 2024

Bankruptcy Court in Texas awards sanctions of $825,940.55 for bad faith filing and prosecution of a proof of claim. (Yes it’s an 11 but still, $825k!)

Members

Bankruptcy Protections Limited for Repeat Filers

January 13, 2019

By William H. Brown, Academy Editor & Advisor The First Circuit held that under § 362(c)(3)(A), upon the repeat filing by Chapter 7, 11 or 13 debtors within one year of dismissal of a prior pending case, the automatic stay terminates entirely on the 30th day after filing of the subsequent case as to the debtor, property of the debtor...

Members

Private Collection Agencies – What You and Debtors Need to Know

November 17, 2019

Taxpayers who are contacted by a private collection agency on behalf of the IRS might have questions about the program. These taxpayers can visit IRS.gov to find answers to questions they might have. In fact, to better help these taxpayers, the IRS recently updated the private debt collection pages on IRS.gov. These updates added more information for taxpayers whose case...

Sanctions in South Carolina

Ashley Baxter Curry

December 12, 2021

In a recent case out of South Carolina, rather than a debtor seeking sanctions against a creditor, it was the creditor’s counsel who sought sanctions against counsel for a Chapter 13 debtor in an adversary proceeding. Ruling on a Motion for Sanctions in James Defoe v. Winyah Surgical Specialists, P.A. doing business as Winyah Surgical Specialists (In re Defoe), 632...

Members

Locked Out: Blocked Mortgage Portals May Be Violation of the Stay

Kara K. Gendron

November 10, 2024

A new case has shed light on a common practice by mortgage companies -- denying Chapter 13 debtors access to online payment portals. This case brought to the forefront a significant issue for Chapter 13 debtors across the country—the need for accessible payment methods that allow them to stay current with their mortgage payments and successfully complete their repayment plans.

Members

Court Review of Fee Applications in Chapter 13: One Judge’s Perspective

August 16, 2020

By Hon. Brian Lynch, Bankruptcy Judge, WAWB “[T]he bankruptcy court has a duty to review fee applications, notwithstanding the absence of objections by the United States trustee (“UST”), creditors, or any other interested party….” In re Busy Beaver Bldg. Ctrs., Inc., 19 F.3d 833, 841 (3d Cir. 1994). In Chapter 13 cases this role is critical because in this judge’s...

Members

Critical Case Comment–84 Months: Lifesaver or Anchor?

Henry E. Hildebrand, III

February 12, 2023

Section 1329(c), as it currently exists, forecloses the ability of Chapter 13 debtor to modify a confirmed plan to alter the plan payment amount while maintaining an extended plan, previously approved under the CARES Act. (Hanan) In re Nelson, 2022 WL 6795096 (Bankr. E.D. Wis. October 11, 2022) Case Summary Immediately after the onset of the COVID-19 pandemic, Congress sought...

Members

Is Nunc Pro Tunc Really Sunk?

December 20, 2020

By James M. Davis, Staff Attorney to Chapter 13 Standing Trustee Henry E. Hildebrand, III (Nashville, TN) Bankruptcy Courts take determinations from the Supreme Court seriously. And rightfully so. But sometimes, some bankruptcy courts are guilty of reading too much into the Court’s statements. The latest example is the soul searching around “nunc pro tunc” (“now for then”) orders. Earlier...

Members

Ask Ms. Ps & Qs

Nancy B. Rapoport

August 7, 2022

Dear Readers: When a judge issues a 28-page opinion sanctioning a lawyer, usually that means that the lawyer has done so many things wrong that he or she has caused the judge to roll up his or her respective sleeves (probably shirt-sleeves, although the image of robe-sleeves also works for me) to deal with the mess. And in Shiheiber v....

Members

Vesting of Property in the Debtor Cuts Off Creditor’s Rights, Ninth Circuit Says

January 26, 2020

By Cathy Moran, Esq. (Redwood City, CA) Clouds of uncertainty have hovered over Chapter 13 debtors who find that they need to sell appreciated property before the case is over. Does appreciation occurring after filing go to creditors on the theory that the appreciation is property of the estate? Or does the vesting of property at confirmation entitle the debtor...

Members