By Tammy E. Stickley and Francis J. DiCesare, Staff Attorneys for Margaret A. Burks, Esq. Chapter 13 Standing Trustee (Cincinnati, OH) In a media age in which people expect to be told when “spoilers” are ahead, this summary needs no such warning. Courts have little patience for debtors who surrender collateral – especially real estate – then oppose the foreclosure...

By Jay S. Jump, CEO, CertificateofService.com (Pasco, WA) My guess is you initially saw the title of this article and promptly pressed right on past it. Who needs to learn how to properly address an envelope? You didn’t spend three years in law school plus all that money in student loans to address an envelope! But, If the purpose of...

When Does The Bankruptcy Code Require The Payment Of Interest On Unsecured Claims In Chapter 13? I. Introduction This article primarily discusses the interpretation and application of § 1325(b)(1)(A) of the Bankruptcy Code in relation to the payment of interest to general unsecured creditors in chapter 13 bankruptcy cases. Section 1325(b)(1)(A) generally states that a court may not approve a chapter...

In a recent case out of South Carolina, rather than a debtor seeking sanctions against a creditor, it was the creditor’s counsel who sought sanctions against counsel for a Chapter 13 debtor in an adversary proceeding. Ruling on a Motion for Sanctions in James Defoe v. Winyah Surgical Specialists, P.A. doing business as Winyah Surgical Specialists (In re Defoe), 632...

Background - In re Taggart In 2019, the Supreme Court rendered its opinion in In re Taggart,1 which was the subject of earlier analyses: (1) Is a Finding of Contempt Precluded by a "Good Faith" but Unreasonable Belief that an Action Does Not Violate the Discharge Injunction?; (2) Looking Beyond . . . It looks like you are not signed...

By Leo G. Spanos, Senior Staff Attorney to Martha G. Bronitsky, Chapter 13 Trustee, Northern District of California (Oakland Division) Courts around the country are split on whether property acquired post-chapter 13 confirmation remains property of the estate or vests in the debtor for all purposes absent contrary language in the plan or confirmation order under 11 U.S.C. § 1327(b).1...

Kristina Stanger is an attorney and shareholder at Iowa’s Nyemaster Goode, P.C. She is also a combat-experienced Lieutenant Colonel in the Iowa Army National Guard. She is currently one of Iowa’s highest ranking females and is the Chief of Plans and Operations for the Iowa Army National Guard. Jessica Hopton Youngberg is Senior Staff Attorney for Veterans Legal Services in...

When case converts from Chapter 13 to Chapter 7, the Chapter 7 trustee is not limited to the valuation of the debtor’s home as stated on the original schedules and may capture the increase in equity resulting from the property’s appreciation. (Dales) In re Adams, 2022 WL 2079725 (Bankr. W.D. Mich. June 9, 2022) Case Summary Matthew and Katherine Adams...

By Wm. Houston Brown, United States Bankruptcy Judge (Retired) Confirmation - Debtors could not deduct ownership costs for vehicle secured by non-purchase money lien. The above-median debtors claimed ownership deduction of $497 from projected disposable income, when the title loan payments on the vehicle were only $66.67. The difference in these amounts meant unsecured creditors could receive $25,819.80 over the...

By Angela M. Scolforo, Staff Attorney to Herbert L. Beskin, Chapter 13 Trustee (Charlottesville, VA) In Hurlburt v. Black,1 the en banc Fourth Circuit Court of Appeals overturned its prior decision in Witt,2 and held that Bankruptcy Code § 1322(c)(2) authorizes modification of some home mortgage loans through bifurcation and cram down. This enables debtors to cram down home mortgage...