An Argument in Favor of the Mid-Case Audit: B.R. 3002.1 Proposed Changes

If you put your ear to the ground you may hear the rumblings regarding a change to Bankruptcy Rule 3002.1 requiring the institution of a mid-case bankruptcy audit.

This mid-case audit would be like the Notice of Final Cure but would be performed by a trustee’s office in the middle of a pending Chapter 13, rather than at the end, and would still require a response be filed by secured lender.

In my opinion everyone involved would benefit from this proposed change.

As a former Debtors’ Counsel, I can . . .

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Molly Simons

Senior Bankruptcy Counsel, Sottile & Barile Attorneys at Law (Loveland, OH)

Molly Simons has been a licensed attorney since 2008 after graduating from Cleveland-Marshall College of Law, Cleveland State University. With an undergraduate degree in Hospitality Food Service Management from Kent State University, Molly is a unique attorney as she approaches the practice of law with a hospitality background. Client’s satisfaction is of the utmost importance to her. Molly’s primary focus for the first ten years of her practice was consumer Chapter 13 and Chapter 7 Bankruptcy. She joined Sottile & Barile, Attorneys at Law in 2018 and has happily represented creditors in the bankruptcy process ever since.

Molly is licensed in the States of Ohio, Kentucky, and West Virginia and is admitted federally in all federal jurisdictions for Ohio, Kentucky, Indiana, Michigan, Illinois, West Virginia, Colorado and Wisconsin. She is currently the Co-Chair of the Bankruptcy Committee with the Cincinnati Bar Association and was recently accepted to the Attorney Advisory Committee for the Southern District of Ohio 2022-2025 Term.

Perhaps her most important role is that of Mother to her two beautiful children who never fail to keep her super busy and proud.

Critical Case Comment

October 18, 2020

By Henry E. Hildebrand, III, Chapter 13 Trustee (Nashville, TN) There is no requirement to show a change in circumstance in order to modify a Chapter 13 plan pursuant to § 1329. Whaley v. Guillen (In re Guillen), 2020 WL 5015287 (11th Cir. Aug. 25, 2020) (Marcus) Case Summary Rachel Guillen filed a Chapter 13 petition in August of 2015....

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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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From the Editor – Claims

February 9, 2020

By The Honorable William Houston Brown (Retired) Failure to include creditor on matrix not grounds to extend time for proof of claim. The Chapter 13 debtor had timely filed her list of creditors, pursuant to Rule 1007(a), but she failed to include a creditor either on that list or in the schedules, resulting in the creditor not receiving notice of...

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

November 29, 2020

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) PART VI – CONSUMER FORECLOSURE PROCEDURES (CONCLUSION) Introduction In the consumer bankruptcy field, trustees and debtors' counsel often are uncomfortable with the rules in Article 9 of the Uniform Commercial Code (UCC). In this series for the NACTT Academy, we have looked at numerous topics involving the interplay of Article...

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Critical Case Comment–Be Careful What You Stipulate

Henry E. Hildebrand, III

August 14, 2022

Where a stipulation of a settlement of an objection to confirmation provided that a creditor’s claim would be “excepted from discharge pursuant to 11 U.S.C. § 523(a)(6)”, the stipulation would not prevent the discharge of the claim based upon a breach of fiduciary duty, tortious interference with business relations, unfair competition, defamation, and conversion which resulted in a state jury...

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2020 Vision

February 14, 2021

By Jan Sensenich, Chapter 13 Standing Trustee for the District of Vermont I think it was in junior high school when I first started wearing glasses. I remember not liking the idea of having to wear glasses. I thought I could see just fine. As far as I knew, I was seeing what I needed to see. But I also...

Happy Thanksgiving

November 19, 2023

As our ‘thank you’ to our loyal readers, we bring you a completely non-password protected issue! ENJOY.

When the Trustee Gets Subpoenaed

August 15, 2021

By Karin N. Amyx, Staff Attorney to Chapter 13 Trustee Carl Davis (Wichita, KS) Trustees possess a variety of sensitive information that could be useful to litigants in contract disputes, divorce and child custody matters, insurance litigation or criminal prosecution. Additionally, debtors, creditors or third parties may be interested in the trustee’s internal operating procedures or legal position on disputes...

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Passing of Memphis’ Beloved Judge Kennedy

The Academy

December 3, 2023

The Honorable David S. Kennedy, retired Chief U. S. Bankruptcy Judge, Western District of Tennessee, passed away on November 26, 2023.

Chapter 13 No-Look Fees – Additional Thoughts

The NACTT Emeritus Trustees

January 7, 2024

As a follow-up to The Academy’s December 3, 2023, issue, three Emeritus Trustees weighed in. The 12/3/23 issue included Cathy Moran’s Chapter 13 NoLook Fees: The Horns of a Dilemma and Trustee Hildebrand’s Critical Case Comment, You Gotta Fix Your Own Screw-ups, On Your Own Dime. You may also want to take note of comments on each article and add your own. Today, we offer the thoughts of two additional Emeritus Trustees. Thus a follow-up to our follow-up. 😊

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