In re Lazaro: Non-Monetary Default and § 1322(b)(5)

Can a debtor provide for a non-debtor’s loan under § 1322(b)(5) even if the plan does not address a non-monetary default on the claim? In re Lazaro suggests the answer may be “yes.” In that case, the Court held not only that the Debtor’s plan could provide to cure a monetary default on a loan taken out by the Debtor’s father but also that the plan could ignore a due-on-sale clause in the mortgage in doing so.

It helped that the asserted non-monetary default was longstanding . . .

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James M. Davis

Staff Attorney

James M. Davis is a staff attorney in the office of Henry E. Hildebrand, III, the Chapter 13 Standing Trustee for the Middle District of Tennessee. Mr. Davis is a graduate of Johns Hopkins University in Baltimore, Maryland, and the William and Mary School of Law in Williamsburg, Virginia.

Ninth Circuit BAP Says§ 523(a)(15) Includes §§ 523(a)(2), (4) and (6) in Chapter 7

M. Jonathan Hayes

January 28, 2024

Does § 523(a)(15) include claims by a spouse against the other spouse for fraud etc, i.e., §§ 523(a)(2), (4) and (6), in a chapter 7 case?

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Judicial Year in Review 2021: Part 3 – Selected Cases under Parts IV-VII of the Federal Rules of Bankruptcy Procedure

Lawrence R. Ahern, III

December 5, 2021

Introduction Following Part 1's review of the December 1, 2021 changes in the Federal Rules of Bankruptcy Procedure, and Part 2's digest of selected judicial decisions of interest for their procedural import . . . It looks like you are not signed in or registered! This content is only available to members. Join Now Or Sign In Below: Username or...

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Rule 3002.1, Contempt and Sanctions – How a Lender Can Create a Mess

Thomas D. DeCarlo

October 16, 2022

The facts in In re DeWitt, 2022 WL 4588320 (Bankr. S.D. Ohio 2022), are a bit “unusual”. Debtor filed Chapter 13 to reinstate her mortgage. The mortgage was “non-escrowed” and Debtor was required to pay property taxes directly. Surprisingly, she did not pay her property taxes. The first time, the Lender paid the property taxes but decided not to pursue...

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An Open Thank You Letter to NACTT – Reflections from a New(er) Trustee: My First Two Years

March 7, 2021

By Dynele Schinker-Kuharich, Chapter 13 Standing Trustee (Canton, OH) I vividly remember getting the call that I was to be appointed as a Standing Chapter 13 Trustee (effective October 1, 2018). I was so honored, and humbled, and excited. At the time I was a panel Chapter 7 Trustee, but my heart had always been in Chapter 13. As corny...

Special Counsel 101: Getting Paid and Protecting Clients

Nicole P. Novak

May 1, 2022

The Bankruptcy Code imposes many duties on attorneys. One such duty requires attorneys to disclose compensation for services in contemplation of, or in connection with a bankruptcy case.1 Debtor attorneys know to disclose their fees at the start of the case. Attorneys that forget to timely file a compensation disclosure typically receive a gentle reminder to do so. However, in...

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Johnson Retires

September 29, 2019

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...

From the Editor – Claims

February 9, 2020

By The Honorable William Houston Brown (Retired) Unreasonable fees for proof of claim. $4,000 fee for private mortgagee’s proof of claim and objection to proposed plan was unreasonable, and creditor was denied recovery of $7,500 attorney fee for responding to debtor’s objection to proof of claim. The Court considered Fannie Mae’s guidelines for maximum fees related to proof of claim...

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City of Chicago v. Fulton And the Turnover Conundrum

January 24, 2021

By Kara K. Gendron, Esquire, Mott & Gendron Law (Harrisburg, PA) The recent Supreme Court decision in City of Chicago v. Fulton1 will change the law in most Circuits. Prior to this case, there was a split among the circuits as to whether the post-petition retention of property taken pre-petition constitutes a violation of the automatic stay under §362(a)(3) of...

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FDIC and OCC Proposals Threaten Expansion of Predatory Lending

January 19, 2020

Two new proposals from the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) could make it easier for payday and other high-cost lenders to use banks as a fig leaf, allowing online lenders to offer predatory loans at interest rates that are prohibited under state law. Online lenders have become increasingly bold in...

2 Million ITINs Set to Expire in 2019; To Avoid Refund Delays Apply Soon

October 13, 2019

Taxpayers with expiring Individual Taxpayer Identification Numbers (ITINs) can get their ITINs renewed more quickly and avoid refund delays next year by submitting their renewal application soon, the Internal Revenue Service said 10/10/19. An ITIN is a tax ID number used by taxpayers who don’t qualify to get a Social Security number. Any ITIN with middle digits 83, 84 ....

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