Why Chapter 13 Is a Good Idea: Outcomes and Measures of Success

Recently Upsolve printed an article titled: “Why is Chapter 13 Probably A Bad Idea” by Jonathan Petts, July 27, 2023.

In a nutshell the article says an unsuccessful Chapter 13 can leave you in worse financial shape. Further it states that it costs more than Chapter 7 and is less likely to be successful. Additional points by Upsolve are: Chapter 13 has a failure rate of 67%, Chapter 13 may worsen finances, it is a myth that you get to keep your stuff, and it is also a myth that Chapter 13 usually . . .

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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, Robert Wilson and Mike Meyer.

CARES Act Financial Hardship ‘Laundry List’

April 5, 2020

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) During the free Academy webinar The CARES Act – Impacts on Chapter 13 on April 2, 2020, the panel – Judge Wm. Houston Brown (Retired), Amanda DeBerry and I – referred to the importance of detailing the reasons for modifications or suspensions to be related to financial hardship stemming...

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Passing of Sitting Chief Judge

The Academy

December 3, 2023

District of Idaho Announces Passing of Chief Bankruptcy Judge Joseph M. Meier

New Judge Appointed

The Academy

June 18, 2023

Appeals Court Names Erie Lawyer as Newest Bankruptcy Judge – John C. Melaragno has been named the new judge for the Erie Division of U.S. Bankruptcy Court for the Western District of Pennsylvania

Fond Farewell to Danny O’Brien

The Academy

September 25, 2022

Dear Danny, We know that you would not want a tribute – it’s simply not who you are. But we couldn’t let this moment pass without acknowledging how admired and respected you are. We will all miss you and are better for having known you. You are a stellar example of what all humanity should strive to be. As a...

While Chapter 7 Filings Continue to Decline, Chapter 13 Filings are Trending Slightly Upward

Kevin R. Anderson

April 24, 2022

Recent headlines noted that March 2022 saw a 33.5% increase in bankruptcy filings over February. This could suggest the coming swell in bankruptcy cases anticipated since the start of the COVID pandemic. However, bankruptcy professionals recognize that consumer filings always spike in March (see chart). This phenomenon is usually attributed to the tendency to avoid filing in January and February...

Members

Critical Case Comment – Swackhammer Smackdown

Henry E. Hildebrand, III

July 2, 2023

In order to modify a plan confirmed under Chapter 12 pursuant to § 1229, the movant must demonstrate that there was a substantial change in circumstances that is sufficient to justify modification of a plan. (Norton) Farm Credit Services of America PCA v. Swackhammer, 2023 WL 3591920 (8th Cir. BAP May 23, 2023) Case Summary The Swackhammers were farmers who...

Think Beyond the Means Test

Cathy Moran

July 31, 2022

It started as a means test question: could emergency medical expenses be deemed non consumer debt. It ended up as a step back to get the bigger picture. Well seasoned bankruptcy counsel brought the fact pattern to a list serve of colleagues. The prospective debtors’ income in a small consulting corporation is declining, his health crisis raises not only income...

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Can a Secured Claim Still “Ride-Through” Bankruptcy Despite BAPCPA? – Part 1 In re Rhodes Says, “Let Me Count the Ways”

Lawrence R. Ahern, III

January 30, 2022

Background A recent Chapter 7 case out of the Bankruptcy Court for the Southern District of California, In re Rhodes,1 addresses reaffirmation in a context that is very significant and should be of interest to all debtor's attorneys. It points out that the "ride-through" of a debtor's secured debt in Chapter 7—which Congress tried to eliminate in 2005—still exists. In...

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CFPB Announces Action Against Monster Loans, Lend Tech Loans, and Associated Student Loan Debt-Relief Companies

January 19, 2020

January 9, 2020, the Bureau filed suit against several companies and individuals involved in offering student loan debt-relief services for allegedly obtaining consumer reports illegally, charging unlawful advance fees, and engaging in deceptive conduct. The Bureau’s action is against a mortgage lender called Chou Team Realty, LLC, which does business as Monster Loans (Monster Loans); an allegedly sham mortgage brokerage...

Sua Sponte Sanctions Held to Higher Standard

Cathy Moran

January 14, 2024

9th Cir. BAP erected high bar for sanctions. And, interestingly, at the heart of the BAP’s decision was the very fact that BAP decisions are not binding.

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