ABI Commission on Consumer Bankruptcy – A Chapter 7 Trustee’s Sale of Encumbered Property

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN)

The Commission heard from several individuals and attorneys that related tales of Chapter 7 trustees negotiating a “carve out” with a lienholder on the debtor’s real property when there was no equity available in the property. The way this works is that when property came into a Chapter 7 estate with an underwater first mortgage but also with a totally unsecured second mortgage, the trustee would approach the first mortgage holder and request the opportunity to sell the property if the first mortgage would agree to . . .

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Department of Justice Guidance on Discharging Federal Student Loans in Bankruptcy Expanded to Include FFEL and Perkins Loans

Scott Waterman, Josh Cohen

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Henry E. Hildebrand, III

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An interesting decision – one we would like for you to weigh in on. Did the Judge get it right? Is this a win for Creditors? Is this yet another case that requires more work from Debtors’ Counsel? Let us hear from you.

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Henry E. Hildebrand, III

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In determining the appropriate “present value” factor to be added to the payment of a secured claim in a Chapter 12, the Court should look at the “riskless” treasury rate rather than the “prime rate” before enhancing it with a risk factor. (Ebinger) Farm Credit Services of America v. Topp, 2022 WL 2981590 (S.D. Iowa, July 19, 2022) Case Summary...

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Fraud Imputed to Partner – Bartenwerfer v. Buckley

The Honorable William Houston Brown

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Henry E. Hildebrand, III

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Even though the Chapter 13 debtor’s 36 cats were property of the estate, the county animal control office could pursue possession of the cats and resulting disposition (by way of adoption). (Hagenau) In re Karen Mitchell-Smith, 2022 WL 2195466 (Bankr. N.D. Ga. June 17, 2022) Case Summary Sometime in 2021, Henry County Animal Control took possession of 36 cats that...

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Kellner Retires

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By Academy Staff Jeffrey M. Kellner graduated from THE Ohio State University in 1975. Between then and entering law school, Jeff worked in Montana for the park service. He graduated from Capital University College of Law in 1985. After law school, he worked for two years as a law clerk for Judge Calhoun in Columbus, OH. He then went to...