Rescuing a Troubled Chapter 13: The Unseen Threat

By Cathy Moran, Esq. (Redwood City, CA)

We all get sucked in, at some time, to try and rescue a Chapter 13 bankruptcy case gone bad.

Make sure that you don’t let a bad situation get worse. Get your arms around §109(g).

When only a do-over will do, don’t wait around.

No Payments for Months

The debtor came to me for help when the trustee moved for dismissal for feasibility issues of a long-confirmed plan . . .

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Can a Secured Claim Still “Ride-Through” Bankruptcy Despite BAPCPA? Part 2: Looking Beyond In re Rhodes

Lawrence R. Ahern, III

February 27, 2022

Background A recent Chapter 7 case out of the Bankruptcy Court for the Southern District of California, In re Rhodes,1 addressed reaffirmation in a context that should be of interest to debtor's attorneys. As explained in Part 1, Rhodes points out that the "ride-through" of a debtor's secured debt after a Chapter 7 — which Congress . . . It...

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From the Editor

March 31, 2019

By Wm. Houston Brown, United States Bankruptcy Judge (Retired) Lien Modification - Modification of mortgage on mixed-use property. Reviewing the split of authority on whether a Chapter 13 debtor may modify a mortgage on property used for both business and residential purposes and when the use determination is made, the bankruptcy court adopted the filing date as the appropriate time...

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Bozeman Revisited: The Anti-Modification Clause Chisels Away at Espinosa

Herbert L. Beskin

July 16, 2023

Remember Mort. Corp. of the South v. Bozeman (In re Bozeman), 57 F. 4th 895 (11th Cir. 2023)? That was the recent 11th Circuit case previously reviewed by Lawrence Ahern on this site. It was the Chapter 13 version of The Perfect Storm. The Debtor proposed to pay the principal balance of her mortgage ($17 . . . It looks...

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How My Law Firm Learned to Stop Leaving Money on the Table Part 3 – Valuable Lessons Learned in Automatic Stay Litigation

Mark C. Leffler

June 5, 2022

Bankruptcy has been the focus of the Boleman Law Firm’s 30+ year history, but my law partners and I believed it was important for our firm’s long-term health to add a new practice area that would be complimentary to bankruptcy. Even though we were filing almost 250 new Chapter 7 and 13 cases every month before the pandemic, most of...

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From the Editor – Claims

June 21, 2020

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...

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Critical Case Comment

July 7, 2019

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville) Where a confirmation order of a debtor’s Chapter 12 plan specifically provided for payments to a creditor and the Chapter 12 trustee had supported confirmation of the plan, the trustee would be precluded from seeking to disallow a late-filed claim. Following the plan, the...

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From the Editor – Dismissal

August 2, 2020

By The Honorable William Houston Brown (Retired) Dismissal with 180-day bar affirmed. The debtors had filed eight Chapter 13 cases over eight years, with each dismissed, and in 2019 the spouses filed three more cases. A mortgage creditor moved for relief from the automatic stay and dismissal in each of the cases. The cases were dismissed with a 180-day bar...

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Bulletin: SBRA Postscript, the Definition of Income, and Changes to Section 1113(b)(1)(B) and (C)

March 29, 2020

BULLETIN SMALL BUSINESS REORGANIZATION ACT POSTSCRIPT CARES Act Passed by Senate Increases Eligibility to Small Business Debtors with Aggregate Debts Up to $7,500,000 And Other Changes Early last Thursday morning, the Senate passed a substitute for H.R. 748, called the “Coronavirus Aid, Relief, and Economic Security Act” (the “CARES Act”). The bill passed the House on Friday, and the President...

Cars, Fines, and Chapter 13 in the Windy City

January 12, 2020

By Herbert L. Beskin, Chapter 13 Trustee for the Western District of Virginia (Charlottesville) The Seventh Circuit thought that it had finished dealing with the intersection of cars, fines, Chapter 13, and the City of Chicago when it rendered its decision earlier in 2019 in “Steenes I.” In re Steenes, 918 F.3d 554 . Alas, it was not to be,...

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Critical Case Comment

June 2, 2019

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee If a Chapter 13 debtor does not list a creditor on the creditor matrix when filing the petition and makes no effort to provide supplemental notice to the creditor, the provisions of Rule 3002 allow the extension of time for the creditor to file a...

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