Escrow 101 – Part 2 of 3

By Michael J. McCormick, Esq., McCalla Raymer Leibert Pierce, LLC (Roswell, GA)

The Escrow Analysis

For purposes of Regulation X, an escrow analysis is the accounting that a servicer conducts in the form of a trial running balance for an escrow account to:

Determine the appropriate target balances;
Compute the borrower's monthly payments for the next escrow account computation year and any deposits needed to establish or maintain the account; and
Determine whether shortages, surpluses or deficiencies exist.

In general, there are five steps in . . .

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The Proposed Consumer Bankruptcy Reform Act: A Political Analysis

January 17, 2021

By Kevin M. Ball, Eastern Michigan University Senator Warren and Representative Nadler introduced identical legislation entitled the Consumer Bankruptcy Report Act (“CBRA”) late in the 116th Congress. Although the bills died without action at the conclusion of that term, the sponsors have indicated their intent to reintroduce them in the 117th Congress. The legislation would bring major changes to the...

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Conflicting Interpretations: A Chapter 13 Trustee’s Compensation After Pre-Confirmation Dismissal or Conversion* Part 3 of 3

Brittani Bushman

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(Used with expressed permission from the MI Bankruptcy Journal and the Steven W. Rhodes Consumer Bankruptcy Conference)By Brittani Bushman, Judicial Law Clerk to the Hon. John T. Gregg, United States Bankruptcy Court for the Western District of Michigan B. Illustrative Decisions (Minority Approach) The Bankruptcy Appellate Panel for the Ninth Circuit recently issued a comprehensive unpublished decision adopting the minority...

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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

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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

September 20, 2020

By The Honorable William Houston Brown (Retired) Three-month delay in completing bare-bones petition. When the Chapter 13 debtor filed a skeletal petition, her motion for more time to complete schedules, statement and plan was denied, with no cause found for extending time after three-month delay, and show cause hearing was set to determine if case should be dismissed with 180-day...

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The Dangers of Extending a Plan Too Long – Or Alternatively, Why Take as Little Time as Possible

April 26, 2020

By Joseph A. Bledsoe, III, Chapter 13 Standing Trustee for the Eastern District of North Carolina (New Bern) Under section 1113(b)(1)(C) of the CARES Act, upon the request of a debtor, and after notice and a hearing, a plan confirmed may be extended up to 7 years from the date the first payment under the original plan came due if...

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From the Editor – Debtor’s Attorney

May 17, 2020

By The Honorable William Houston Brown (Retired) No attorney fees for Chapter 7 work in converted case. In a case that began as Chapter 7 and converted to Chapter 13, the debtor’s attorney sought fees for work in the Chapter 7 phase under § 330(a)(4)(B) rather than § 330(a)(1). The Court found the better interpretation of § 330(a)(4)(B)’s language “in...

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The Untouchables – Starring Social Security Income

Nicole Noll

March 5, 2023

In a recent opinion, an Ohio bankruptcy court joined the majority of other courts by holding the Code excludes Social Security Act (“SSA”) benefits from disposable income.i The issue was brought before the Court by the Chapter 13 Trustee’s objection to confirmation. The objection to confirmation asserted the Debtors failed to commit all disposable income to their plan and included...

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From the Editor – Claims

October 20, 2019

By The Honorable William Houston Brown (Retired) Claim allowed after reopening of no-asset case. The Chapter 7 case filed as no-asset was reopened after discovery of assets for distribution, and debtors objected to a claim on basis of statute of limitations. Affirming, the Bankruptcy Appellate Panel held that the time to commence action on the claim had been tolled under...

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Claim Preclusion and the Opportunities for Mischief

Cathy Moran

March 27, 2022

I’ve been having nightmares about the 9th Circuit’s decision in Siegel for 20 years. Broad strokes, Siegel (143 F.3d 525 (9th Cir. 1998) holds that a filed claim in a no asset bankruptcy case to which no one objects is entitled to preclusive effect in subsequent litigation by . . . It looks like you are not signed in or...

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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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