Claims: Transfers, Address Changes, and Payee Switches – Oh My!

In any given year Chapter 13 Trustees administer 400,000 to 500,000 cases and distribute almost $5 billion to creditors. A critical duty for trustees is to be sure that distributions are correctly delivered to an allowed claimant.

11 USC § 501 governs the filing of a proof of claim and 11 USC § 502 sets forth the requirements for allowance of claims. Fed.R.Bankr.P. 3001 and 3002 speak to form, content, and timing for filing claims. The rules . . .

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The NACTT Emeritus Trustees

Former Chapter 13 Standing Trustees

The NACTT Emeritus Trustee Committee is made up of former Chapter 13 Standing Trustees from all over the country: Michael Joseph, Isabel Balboa, Carl Bekofske, Herb Beskin, Chuck DeHart, Pete Fessenden, Mike Fitzgerald, Nancy Grigsby, Mary Grossman, James Henley, Howard Hu, Jan Johnson, Jeff Kellner, Tom King, Bill Miller, Frank Pees, Jan Hamilton, Denise Pappalardo, George Stevenson, and Robert Wilson.

Critical Case Comment – You Gotta Tell SOMEBODY!

Henry E. Hildebrand, III

December 18, 2022

Where a debtor fails to disclose to the Court or the trustee a forbearance on his mortgage that he was to pay directly, the Court would grant the trustee’s motion to modify to recapture as much as possible of the surplus funds the forbearance generated. (Kenney) In re Ilyev, 2022 WL 2965029 (Bankr. E.D. Va. July 26, 2022) Case Summary...

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Discharging Student Loans Under §523(a)(8)? Don’t Consolidate After Filing!

Scott Waterman, Josh Cohen

November 12, 2023

If you intend to seek to discharge student loans under §523(a)(8), do not consolidate the loans after the case is filed. Prebankruptcy planning is most important if one wishes to discharge student loans. A recent Texas Chapter 7 case highlights the pitfalls if one does not act accordingly. Debtors obtained 27 separate student loans prior to when they filed their...

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“Lien Stripping” Based on Claim Disallowance by Default: Ninth Circuit Clarifies its Rule

June 7, 2020

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Introduction Chapter 13 practitioners certainly do not need to be told that a lender with a mortgage1 on the debtor's principal residence has a special position in a Chapter 13 case. A chapter 13 plan may "modify the rights of holders of secured claims, other than a claim secured only...

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New Judge Appointed

The Academy

June 4, 2023

Honorable Corali Lopez-Castro Appointed Miami’s Newest Bankruptcy Judge

Rule 3002.1 Does Not Justify Punitive Sanctions

September 19, 2021

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) In order for a bankruptcy court to impose sanctions for contempt, Taggart compelsa finding of a violation of a clear and unambiguous order; the bankruptcy court lacks inherent power to issue punitive sanctions under Rule 3002.1. (Jacobs) PHH Mortgage Corporation v. Sensenich, 6 F.4th 503 (2nd Cir. August 2,...

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In re Kaiser Gypsum Co., Inc., 60 F.4th 73 (4th Cir. 2023), pet. for cert. granted, Truck Ins. Exchange v. Kaiser Gypsum Co., Inc., 2023 WL 6780372, (U.S., October 13, 2023).

The Honorable William Houston Brown

October 29, 2023

The Fourth Circuit Court of Appeals held that a plan proposal to create an asbestos trust through Chapter 11 bankruptcy was “insurance neutral,” and the debtor’s insurer was not a party in interest under Code § 1109(b), which contains a noncomprehensive list of parties in interest to a Chapter 11 case. Whether the insurer was a party in interest determined whether...

Small Business Reorganization Act

September 29, 2019

By The Honorable Hannah Blumenstiel Yes, MORE on SBRA. We realize that to attorneys February of 2020 seems a LONG way away but it really isn’t. We are building our library on this important legislation so it is available when YOU are ready for it. In this week’s installation, Judge Blumenstiel, analyzes the legislation. The first two and a half...

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Consumer Bankruptcy Reform Act of 2020 Introduced

December 13, 2020

By Hon. William Houston Brown, Adviser, Academy for Consumer Bankruptcy Education and Margaret A. Burks, Chapter 13 Trustee (Cincinnati, OH) Senator Elizabeth Warren (D. Mass.) and House Judiciary Committee Chairman Jerrold Nadler (D. N.Y.) have introduced the Consumer Bankruptcy Reform Act of 2020. Introduction of the Act is only the beginning of the legislative process, and no action toward enactment...

Critical Case Comment

May 2, 2021

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville) In calculating an above-median income debtor’s projected disposable income, the court may deduct from the debtor’s current monthly income only the expenses as listed in the IRS manual and not the debtor’s actual expenses. (Taylor) In re Rodriguez, 520 B.R. 94 (B.A.P. 9th Cir....

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Conflicting Interpretations: A Chapter 13 Trustee’s Compensation After Pre-Confirmation Dismissal or Conversion* Part 3 of 3

Brittani Bushman

February 13, 2022

(Used with expressed permission from the MI Bankruptcy Journal and the Steven W. Rhodes Consumer Bankruptcy Conference)By Brittani Bushman, Judicial Law Clerk to the Hon. John T. Gregg, United States Bankruptcy Court for the Western District of Michigan B. Illustrative Decisions (Minority Approach) The Bankruptcy Appellate Panel for the Ninth Circuit recently issued a comprehensive unpublished decision adopting the minority...

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