Consumer bankruptcy attorneys in my experience tend to see appeals as a massively expensive undertaking fraught with unfamiliar rules and the threat of sanctions at every turn. That is not the reality. The purpose of this short article is to allay those fears. It’s a fun and satisfying process; dive in says I. Final order You can only appeal a...

The Ninth Circuit has now joined its sister Circuit in holding that the Bankruptcy Code does not permita Chapter 13 Trustee to retain the percentage fees collected on payments that a chapter 13 debtor made pre-confirmation in accordance with 26 U.S.C. §586 but, upon dismissal prior to confirmation of the plan, is obligated to return the fee to the debtor,...

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Introduction In re Taggart In 2019, the Supreme Court in In re Taggart1 ruled that the acts alleged in that case to be in violation of a discharge injunction did not empower the bankruptcy court to find the creditor in contempt. In so holding, the Court ostensibly attempted to strike...

By Wayne Silver, Wayne Silver Law (Redwood City, CA) There you are, client on the witness stand, judge listening intently, story being told on direct exactly the way you prepared her, things going just swimmingly. And then opposing counsel stands and utters those two lovely words…”Objection, hearsay.” Huh? That’s ridiculous, you confidently think to yourself, just as you hear the...

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...

By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division (Toledo, OH) Click here for Part 1 of 6 Click here for Part 3 of 6 Click here for Part 4 of 6 Click here for Part 5 of 6 Click here for Part 6 . . . It looks like you are not signed in...

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...

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) In order for a bankruptcy court to impose sanctions for contempt, Taggart compelsa finding of a violation of a clear and unambiguous order; the bankruptcy court lacks inherent power to issue punitive sanctions under Rule 3002.1. (Jacobs) PHH Mortgage Corporation v. Sensenich, 6 F.4th 503 (2nd Cir. August 2,...

For a system that is supposed to rehabilitate personal finances and set debtors back on their feet, Chapter 13 nationwide is schizophrenic about on- going retirement savings, divided about whether post petition contributions to retirement accounts preclude confirmation of a Chapter 13 plan. Too many courts, in my opinion, come down barring voluntary provisions for old age for the 5...

By The Honorable William Houston Brown (Retired) Undistributed funds returned to debtor upon dismissal. Under § 1327(b)’s vesting requirement, unless a confirmed plan provides otherwise, any undistributed funds held by the trustee at dismissal of the case must be returned to the debtor. Although not necessary to rely on § 347(b)(3), the conclusion on effect of vesting at confirmation was...