Duty to Disclose Substantial and Unanticipated Changes in Debtor’s Financial Condition

In the case of In re Ilyev, 17-12987-KHK (Bankr. E.D. VA July 26, 2022), Judge Kenney granted the Chapter 13 Trustee’s motion to modify the plan to require the Debtor to repay some of the $29,250 of disposable income he retained by not making his mortgage payments during an 18-month Covid forbearance.

The Debtor never disclosed to the Trustee, or the Court, that he obtained a mortgage deferral for 18 months, until he filed a “Motion to Approve Proposed Covid-19 Payment Deferral” after not making his mortgage payments . . .

It looks like you are not signed in or registered! This content is only available to members.

Or Sign In Below:

Angela M. Scolforo

Staff Attorney for Chapter 13 Standing Trustee Herbert L. Beskin (Charlottsville, VA)

Angela M. Scolforo is the Standing Chapter 13 Trustee for the Western District of Virginia. She was appointed in 2023, after serving as Herb Beskin’s Staff Attorney for 18 years. She has spoken on seminar panels in Virginia and nationally and enjoys learning from and interacting with her peers. Before the Fourth Circuit Court of Appeals she successfully briefed and argued Virginia v. Webb, 908 F.3d 941 (4^th Cir. 2018)(denying the ability for creditors to garnish funds held by the trustee). For 20 years she served as the Town Attorney for Gordonsville, Virginia. The mother of seven children and fifteen grandchildren, she is called Mom, Miss Angela, Grams, and Grandma Chocolate. She graduated from the University of Virginia School of Law in 1998, and received a B.A. in English from the College of the Holy Cross in 1987. A past Chairman of the Bankruptcy Section of the Virginia State Bar, she served on the Bankruptcy Section Board from 2009 through 2016.

The Student Loan Solution

Henry E. Hildebrand, III

October 16, 2022

Recently, news stories, political pundits, social media outlets and the talking heads have become keenly aware of the growing danger imposed by burgeoning student loan debt and the economic chaos it has caused and will continue to cause. Although the crisis appears to dominate our cell phones and news feeds, bankruptcy professionals involved in consumer bankruptcy matters are fully aware...

Amending or Modifying that Chapter 13 Plan? Don’t be Pedantic, Just Do It!

Jeffrey Bruzek

August 11, 2024

“The obvious struggle for the Court will be the effort to balance their definition of modify, with their passing comments on a debtor’s ability to change their plans during the case.”

Members

What Does the Bankruptcy Code Say About Interest and Unsecured Debts

Hale Andrew Antico

March 24, 2024

“. . . the law is so clear that of course it's not allowed. However, some courts have twisted themselves into pretzels to create a creditor right to postpetition unmatured interest.” The article explores this not so simple issue by examining relevant sections of the Bankruptcy Code and case law from various circuit courts.

Members

Meet Another New Trustee

January 20, 2019

On October 1, 2018, Dynele L. Schinker-Kuharich was appointed as a Chapter 13 Standing Trustee for the Northern District of Ohio. She maintains her offices in Canton. Ms. Schinker-Kuharich replaces retiring Toby Rosen who served in this position for 30 years. Prior to her appointment as a Standing Chapter 13, Schinker-Kuharich was on the panel of Chapter 7 Trustees for...

Members

Supreme Court Corner: Does Equitable Estoppel Apply in a Fraudulent Conveyance Action?

M. Jonathan Hayes

July 7, 2024

Bailey v. Glover 1874 - When the trustee is required to bring an action to avoid a fraudulent conveyance within two years of the bankruptcy filing, does the active concealment of the transfer by the debtor and the transferees toll the running of the two-year statute of limitations to bring the action?

Members

SCOTUS Rules Insurer Is Party in Interest, Reversing Fourth Circuit

The Academy

June 9, 2024

Reversing the Fourth Circuit, SCOTUS rules insurer is Party in Interest. Although an 11 there are possible implications in the context of Chapter 13.

National Guard and Reservists Debt Relief Extension Act of 2023

The Academy

December 31, 2023

The National Guard and Reservists Debt Relief Extension Act of 2023 (H.R. 3315) enacted on December 19, 2023 extends for an additional four years the existing exemption from the means test for qualifying reservists and National Guard debtors who are called to active duty or to perform a homeland defense activity for not less than 90 days. See 11 U.S.C. § 707(b)(2)(D)(i). A debtor...

Critical Case Comment – Objection to Entire Housing Allowance Overruled

Henry E. Hildebrand, III

March 3, 2024

This is a potential BIGGIE . . . Where a Chapter 13 debtor incurs one relatively small expense covered by the IRS Local Standards, the debtor is entitled to deduct from CMI the entire allowance to calculate Projected Disposable Income.

Members

13 documents by Independence Software – Encrypted and Scans for PII

December 6, 2020

13 documents by Independence Software – Identity theft is a real and constant threat when transmitting information through the Internet. For Trusteeships, using e-mail to receive documents from the debtor bar is insecure, placing sensitive debtor information at risk. Founded in 2011, 13 Documents is unlike other filing systems — it is a complete document management solution for your Trusteeship...

Buy Now/Pay Later – When the Bill Comes Due

Neil Lloyd Enmark

October 22, 2023

This quick read has something for everyone. “The services are convenient for consumers and probably encourage impulse buying.” More from this author: Post-Confirmation Property & Income Changes

Members