Critical Case Comment – Ignoring 3002.1 Will Cost You • NACTT Academy

Critical Case Comment – Ignoring 3002.1 Will Cost You

Mortgagee’s failure to disclose payment changes resulting from escrow adjustments and interest rate modifications compels the Court to order mortgagee to credit all undisclosed increases and subject it to sanctions, including attorney’s fees. (Somers) In re Kinderknecht, 2023 WL 320984 (Bankr. D. Kan. January 19, 2023)

Case Summary

Kyle and Chasity Kinderknecht filed a Chapter 13 petition in December of 2017. The plan proposed post-petition direct monthly payments to Golden Belt Bank, the holder of the first mortgage.

Six months after confirmation, Golden Belt Bank filed a motion . . .

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Henry E. Hildebrand, III

Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville)

Henry E. Hildebrand, III has served as Standing Trustee for Chapter 13 matters in the Middle District of Tennessee since 1982 and as Standing Chapter 12 Trustee for that district since 1986. He also is of counsel to the Nashville law firm of Belcher Sykes Harrington, PLLC. Mr. Hildebrand graduated from Vanderbilt University and received his J.D. from the National Law Center of George Washington University. He is a fellow of the American College of Bankruptcy and the Nashville Bar Foundation. He is Board Certified in consumer bankruptcy law by the American Board of Certification and serves on its faculty committee. He is Chairman of the Legislative and Legal Affairs Committee for the National Association of Chapter 13 Trustees (NACTT). He is on the Board of Directors for the NACTT Academy for Consumer Bankruptcy Education, Inc. and is an adjunct faculty member for the Nashville School of Law and St. Johns University School of Law. In addition, he served as a commissioner to the American Bankruptcy Institute’s Commission on Consumer Bankruptcy.

Federal District Court Affirms Decision that Residential Loan Modification Does Not Alter Lien Priority in Pennsylvania

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By Scott Waterman, Standing Chapter 13 Trustee Eastern District of Pennsylvania (Reading) Citing Pennsylvania law, a Federal District Court in In re Hamilton (Hamilton v. Pennsylvania Housing Finance Agency), ___ B.R. ____ (E.D. Pa. 2020) refused to apply the equitable subordination doctrine to reorder the priority of mortgages after the first mortgage lender granted the debtors a loan modification prior...

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New Judge Appointed

The Academy

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Cathy Moran

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The no man’s land between the mortgage due date and late payment is a persistent trouble spot for Chapter 13 practitioners. For example, are there arrears when the case is filed during the grace period and the payment made before it was late? In Borre, Judge Ronald Sargis of ED CA said no. He held that the payment was not...

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2022 Bankruptcy Procedure Year in Review: Revised Statute and Rules and Selected Cases – Part 2 Rules Related to SBRA

Lawrence R. Ahern, III

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Henry E. Hildebrand, III

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When (or Not) Is the Best Interests of Creditors Test Applicable in a Modified Plan?

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By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) While the best interests of creditors test is applicable upon modification of a Chapter 13 plan, post-petition acquired property of the estate is not included in such analysis in that such property would not be property of a Chapter 7 estate. (Somers) In re Taylor, 2021 WL 3118824 (Bankr....

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The NACTT Emeritus Trustees

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Check Out the Dissent

Henry E. Hildebrand, III

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Chapter 13 plan proposing to pay nondischargeable student loans under § 1325(b)(5) cannot be confirmed unless the plan proposes to devote all disposable income to the plan or all unsecured claims (including the student loans) are paid in full.

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Johnson Retires

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By Academy Staff Jan P. Johnson served as a Chapter Standing 13 Trustee for the Eastern District of California, Sacramento Division, from 1998 to September 30, 2019. Prior to this appointment, he served as Chapter 13 Standing Trustee for the District of Puerto Rico from 1989 where he was responsible for over 25,000 cases. He was also appointed as Standing...