Duty to Update Trustee Regarding Changes Post-Plan Confirmation

Is there a duty to inform the trustee about changes post-plan confirmation?

Yes. There is an inherent duty for the consumer debtor to update the trustee on any and all material changes, particularly windfalls, post plan confirmation. In a very recent case, In Re Robinson, the United States Trustee moved to dismiss debtor’s chapter 13 case because the debtor received nearly $80,000 from an insurer after a fire on one of her properties. Instead of reporting receipt of the proceeds to the trustee, the debtor expended most of them toward . . .

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Daryl J. Smith

Senior Staff Attorney

Daryl J. Smith is the Chapter 13 Trustee in Western Louisiana, Shreveport. Smith, previously served as a senior staff attorney to the Chapter 13 case Trustee for Western Tennessee, Memphis, for almost a decade. Prior to practicing in the area bankruptcy law, Smith was an assistant district attorney for the State of Mississippi in which he tried 36 jury trials to verdict. He is a member of the National Association of Chapter 13 Trustees (NACTT) and the American Bankruptcy Institute (ABI). Smith has been a guest speaker and published author on various panels in bankruptcy and finance. Some of his awards include the National Conference of Bankruptcy Judges (NCBJ), Honorable Cornelius Blackshear Presidential Fellow. American Bankruptcy Institute’s ABI 40 under 40. Smith earned a Bachelor of Science in Political Science at Murray State, and later earned a Doctor of Jurisprudence at Mississippi College School of Law.

Legal Aid and Who Are Our Chapter 13 “Customers”

January 31, 2021

By Rachel Jones, Staff Attorney to Chapter 13 Standing Trustee Chris Micale, Western District of Virginia (Roanoke) The events of 2020 have had a devastating impact on the very low-income population. The working poor are struggling, particularly those working in sectors such as hospitality and tourism. State and Federal funding and local programs such as food banks and community action...

2022 Bankruptcy Procedure Year in Review: Revised Statute and Rules and Selected Cases Part 9 More from the Supreme Court: MOAC Mall Holdings LLC v. Transform Holdco LLC

Lawrence R. Ahern, III

May 14, 2023

Introduction This series reviews developments in bankruptcy procedure during the past year.One new rule and amendments to 16 rules took effect December 1, 2022. Many reflected changes necessitated by the Small Business Reorganization Act of 2019 (SBRA), and had been in place in the same or similar form on an interim basis since that legislation took effect.

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Critical Case Comment – But It’s a GOLF CART!

Henry E. Hildebrand, III

November 20, 2022

A golf cart is a motor vehicle and may be exempted by a Chapter 7 debtor under state law. (Loyd) In re Smith, 2022 WL 3023209 (Bankr. W.D. Okla. July 28, 2022) Case Summary Bobby Smith filed a Chapter 7 petition and listed his golf cart as an exempt asset under Oklahoma law because it was a “motor vehicle.” The...

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Reasonable Fees and/or Questionable Attorney

May 17, 2020

By Marsha M. Brown, Staff Attorney to Chapter 13 Trustee Douglas W. Neway (Jacksonville, FL) We talk about it daily - emailing issues back and forth as to what is reasonable and what is not. Should every Court have a basic reasonable fee structure or should every attorney be required to file an application to prove the reasonableness of his/her...

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Critical Case Comment – “Extraordinary” Key to Set Aside Dismissal

Henry E. Hildebrand, III

November 13, 2022

Chapter 13 debtor must demonstrate extraordinary circumstances to justify the extraordinary relief of setting aside or “reconsidering” an order dismissing a Chapter 13 case. (Cary) In re Canas, 2022 WL 10707000 (Bankr. D. Ma. October 18, 2022) Case Summary Nelson and Annemarie Canas filed a Chapter 13 petition in August of 2019. The debtors immediately fell behind on their proposed...

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Extensions of CARES Act Provisions By COVID-19 Bankruptcy Relief Extension Act of 2021

April 4, 2021

The CARES Act, Public Law 116-136 had amended several parts of the Bankruptcy Code, but included sunset provisions terminating March 27, 2021. The COVID-19 Bankruptcy Relief Extension Act of 2021, H.R.1651, passed by the House and Senate and signed by the President on March 27, 2021, extended some provisions for another year. Section 1113 of the CARES Act had amended...

Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 5 of 5

August 11, 2019

By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division Click here for Part 1 Click here for Part 2

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Critical Case Comment – 10th Circuit Says No Default Cures After Month 60

October 24, 2021

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) Chapter 13 debtor cannot submit missed payments to the trustee after the 60-month term of the plan has ended in an effort to cure defaults in the plan. (Bacharach) Kinney v. HSBC Bank USA, N.A., 5 F.4th 1136 (10th Cir. July 23, 2021) Case Summary Margaret Kinney filed a...

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We Love You Dan (“Stingray”) Brunner!!

October 1, 2023

Dan grew up in Spokane, Washington, and graduated from Gonzaga University in 1966 with a BA in political science. After finishing his undergraduate degree, Dan entered active duty in the United States Army. He was stationed in Korea from 1967 to 1968 where he commanded a HAWK missile battery. Dan retired from the United States Army in 1994 with the...

Critical Case Comment

March 28, 2021

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) Section 1328(i) requires the court to consider the discharge provisions of §§ 1328(a) through (h) and the fact that incomplete personal residence mortgage payments or a forbearance do not preclude but do not compel a COVID-19 Discharge. (Tighe) In re Ritter, 2021 WL 864092 (Bankr. C.D. Cal. March 5,...

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