Notice of Error Regarding Misinformation Given During Phone Call to Mortgage Servicer

There is no special language/verbiage.

Keep is simple.

Stick to one issue per NOE.

Pertinent loan/debtor information – “name, rank, and serial number”

Called bank twice. Tried to get borrower reviewed for FHA Recovery Mod.

Both times I was essentially told that the loan was “too many months delinquent” to be reviewed for FHA Recovery Mod.

I was also told that a modification application was required.

Subject loan is almost 100 months in default.

Request section of guidelines that state how max months delinquent a borrower can be. Of course, guidelines do not have a “cap”.

May also ask for section of guidelines that state an application was required. Again, guidelines do not require application.

May also send a letter/application to loss mitigation department giving them all info necessary to be reviewed for FHA Recovery Mod.

Consumer Bankruptcy Education

The NACTT Academy offers a comprehensive community for bankruptcy professionals seeking to advance their education in consumer bankruptcy.

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) It constitutes an unfair discrimination, violative of 11 U.S.C. § 1322(b)(1), for a Chapter 13 plan which would pay more to a student loan than to the remaining general unsecured creditors. (Somers) In re Kane, 603 B.R. 491 (Bankr. C.D. Kan. June 18, 2019) Case Summary Ronald Kane filed...

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Meet an AO Trustee

February 24, 2019

On June 26, 2017, Bradford W. Caraway was appointed as the Chapter 13 Standing Trustee for the Northern District of Alabama, Southern Division. He replaced D. Sims Crawford who had been appointed as a United States Bankruptcy Judge for the Northern District of Alabama. Trustee Caraway maintains his office in Birmingham. At the time of his appointment as Standing Trustee,...

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ABI Commission on Consumer Bankruptcy – Post-Petition Changes in Value

July 14, 2019

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) One of the issues raised at the public hearings of the Commission concerned Chapter 7 trustees that would not take prompt action to abandon exempt or partially exempt assets but, would retain assets in the hope that there might be equity in the future to sell the asset for...

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Remembrances of a Retired Trustee

October 6, 2019

By Mike Fitzgerald It has been almost one full year since I retired as the Chapter 13 Standing Trustee in Seattle. I am happy to report that my family and I are enjoying ourselves immensely. As retirement grows more comfortable, I find myself looking back with mostly very fond memories at the nineteen years I served as a Trustee, as...

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From the Editor – Eligibility

August 9, 2020

By The Honorable William Houston Brown (Retired) Disputed claim included in calculation of eligibility. The debtor’s case was dismissed for exceeding § 109(e)’s unsecured debt limit, when the debtor had signed $1,092,000 mortgage note but the mortgage was never recorded. The lender filed an unsecured claim for $1.7 million, and the Bankruptcy Appellate Panel agreed with the bankruptcy court that...

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Of Tax Refunds, Exemptions, Setoffs, and Roman Gods

April 18, 2021

By Herbert L. Beskin, Chapter 13 Standing Trustee for the Western District of Virginia (Charlottesville) If you’re looking for a well-written and clear appellate opinion about a much-litigated topic, with a bit of ancient mythology thrown in for good measure, this HUD’s for you. The case is Wood v. U.S. Dept. of Housing & Urban Development (In re Larry and...

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From the Editor – Claims

February 9, 2020

By The Honorable William Houston Brown (Retired) Unreasonable fees for proof of claim. $4,000 fee for private mortgagee’s proof of claim and objection to proposed plan was unreasonable, and creditor was denied recovery of $7,500 attorney fee for responding to debtor’s objection to proof of claim. The Court considered Fannie Mae’s guidelines for maximum fees related to proof of claim...

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How My Law Firm Learned to Stop Leaving Money on the Table Part 1 – Looking at Bankruptcy Cases Differently

Mark C. Leffler

April 17, 2022

Mark Leffler, of the Boleman Law Firm in Virginia and also the current President of the Academy for Consumer Bankruptcy Education, begins a series of articles describing his firm’s development of a broader practice on behalf of consumer debtors. Look for subsequent parts of this series over the next few weeks. My fellow self-described consumer bankruptcy lawyers: you wield more...

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Looking Beyond Taggart: Is the Contempt Standard for a Stay Violation the Same as for a Discharge Injunction Violation?

May 5, 2019

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Background Last year, the Ninth Circuit in In re Taggart1 ruled that an act in violation of the discharge injunction did not empower a court to find a creditor in contempt, if the creditor believed in good faith that the discharge injunction did not apply—even if the creditor's belief was...

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ABI Commission on Consumer Bankruptcy – Recommendations Related to Exemptions

August 11, 2019

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) Exemptions in consumer cases have always presented difficult problems for practitioners and trustees. In a bow to states’ rights, the Bankruptcy Act of 1898 deferred to exemptions created by state law. When BAPCPA was enacted in 2005, Congress continued the practice of allowing each state to “opt out” of...

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