Assumption of Auto Lease in Chapter 7 Requires No Court Approval Says the 9th Circuit: In re Bobka

By Matthew D. Resnik, Resnik Hayes Moradi, LLP (Encino, CA)

In Bobka v. Toyota Motor Credit Corporation (In re Bobka), 968 F.3d 946 (9th Cir. August, 2020), the chapter 7 debtor wanted to retain her leased Toyota. Toyota sent her an "assumption agreement" which she signed and returned to Toyota the day before she received her discharge. By then she was behind on the payments. The debtor later decided to return the Toyota who immediately began "collection efforts" to collect "the overdue balance." The . . .

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Fourth Circuit: Brittner v. Beach Anesthesia

Edward C. Boltz

June 25, 2023

Summary: Brittner filed an adversary proceeding against Beach Anesthesia alleging violations of the automatic stay, but the bankruptcy court (affirmed by the district court) held that she had either failed to establish actual damages or to mitigate damages. The Court of Appeals held that that Brittner needed to satisfy a five-part test to establish a violation of the automatic stay: (1) that a bankruptcy...

Critical Case Comment

Henry E. Hildebrand, III

April 17, 2022

In re Galloway, 2022 WL 1017951 (Bankr. N.D. Ill. April 5, 2022) A Chapter 13 trustee’s final audit and notice of completion of payments is not necessary or a precondition to the court granting a discharge to a debtor who has satisfied the requirements of § 1328. (Judge Thorne) Case Summary Tara Galloway filed a Chapter 13 petition in May...

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From the Editor – Dismissal

August 2, 2020

By The Honorable William Houston Brown (Retired) Marijuana connection required case dismissal. The Chapter 13 debtors owned interests in an entity that was engaged in litigation to recover damages for breach of contract related to growing and selling marijuana, and this connection required dismissal of the case. Continuing administration of the case “would likely require the trustee or the court...

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I Feel A Change Coming On (Song by Bob Dylan, 1964)

January 24, 2021

By Merideth Akers, CPA, PHR, Comptroller for Bradford W. Caraway (Birmingham, AL) The Covid-19 pandemic postponed the 2020 Masters Golf Tournament, originally scheduled for early spring. It was eventually held November 12th through 15th. The winner was Dustin Johnson. Additionally, the 2020 Wimbledon Tennis Tournament was cancelled for the first time since 1945 (due to World War II). For the...

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CARES Act Financial Hardship ‘Laundry List’

April 5, 2020

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) During the free Academy webinar The CARES Act – Impacts on Chapter 13 on April 2, 2020, the panel – Judge Wm. Houston Brown (Retired), Amanda DeBerry and I – referred to the importance of detailing the reasons for modifications or suspensions to be related to financial hardship stemming...

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Critical Case Comment – Fourth Circuit Says Easy-Peasy

Henry E. Hildebrand, III

September 24, 2023

In calculating projected disposable income, 13 debtor may deduct entire mortgage payment notwithstanding amount exceeds the housing allowance as established by the IRS Financial Standards Allowance.

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

January 13, 2019

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...

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Creditors’ Rights and Debtors’ Protections at the Intersection of Consumer Bankruptcy and UCC Article 9

October 25, 2020

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Part V – Consumer Foreclosure Procedures (Continued) Introduction In the world of consumer bankruptcy, trustees and debtors' counsel often are uncomfortable with the rules in Article 9 of the Uniform Commercial Code (UCC). In this space, we have looked at several places where Article 9 meets the Bankruptcy Code. In...

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Critical Case Comment – Frontloading Attorney’s Fees

Henry E. Hildebrand, III

August 6, 2023

Nothing prohibits the confirmation of a Chapter 13 plan which frontloads the payment of attorney’s fees ahead of payments to secured and other creditors.

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Credit Scores Trend Upward After Bankruptcy

November 3, 2019

By Cathy Moran, Esq. (Redwood City, CA) After bankruptcy, credit scores go steadily up, says a 17 year study released by the Consumer Financial Protection Bureau. Got that? Go UP. Every year. Importantly, credit scores start improving the same year that the bankruptcy is filed. Think on that for a moment. How collectors stoke fears about bankruptcy Creditors and their...