Separately Classifying Student Loans in Chapter 13

We originally ran this item in May to give you a heads up of what was coming. July is almost here . . . Starting July 1st, Chapter 13 debtors in Federal Student Loan IDR plans will receive IDR credit for each month they make their bankruptcy plan payments, without needing to separately classify their student loans.

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In re Evans: Disgorging Chapter 13 Trustee Fees in Cases Dismissed Prior to Confirmation

March 15, 2020

By Jen Grondahl Lee, Jen Lee Law, Inc. (San Ramon, CA) When is a collected fee not a collected fee? When the statutes authorizing payment to the standing Chapter 13 trustee do not provide clear guidance on when that fee is paid and/or earned. The most recent case on this issue is In re Evans (Bankr. Idaho 2020).1 In a...

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From the Editor – Lien Modification

March 28, 2021

By The Honorable William Houston Brown (Retired) Junior mortgage lienholder not affected by modifications of senior mortgage. Under Pennsylvania law, the prepetition modification of terms of the senior mortgage had recapitalized interest and costs already owed but had not created new liabilities. As a result, the junior mortgage holder was not materially prejudiced. The Chapter 13 debtors could avoid the...

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Surprise Sanctions: Case Highlights Critical Need for Due Process in Fee Reductions

Henry E. Hildebrand, III

June 2, 2024

Due process requires that before a Court imposes a reduction of unopposed attorney’s fees, notice and an opportunity to be heard is required.

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Critical Case Comment

Henry E. Hildebrand, III

April 17, 2022

In re Galloway, 2022 WL 1017951 (Bankr. N.D. Ill. April 5, 2022) A Chapter 13 trustee’s final audit and notice of completion of payments is not necessary or a precondition to the court granting a discharge to a debtor who has satisfied the requirements of § 1328. (Judge Thorne) Case Summary Tara Galloway filed a Chapter 13 petition in May...

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Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part II: Thomas v. Midland Funding, LLC

February 7, 2021

By Mark C. Leffler, Boleman Law Firm, PC, Richmond, Hampton, and Va. Beach, Virginia In order to “eliminate abusive debt collection practices by debt collectors . . .”, the Fair Debt Collection Practices Act (“FDCPA”) bars debt collectors from using any “false, deceptive, or misleading representation or means in connection with the collection of any debt . . .” 15...

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Ordinary Heroes Deliver Second Chances with Bankruptcy

July 28, 2019

By Robert (Bob) Schuman, Owner/Managing Broker, Network Financial Group I’m a mortgage broker. In that role, I see close up the immense relief that a homeowner feels when they file Chapter 13. They are no longer forced to deal with collection calls and a multitude of letters that are aggressive and intimidating, threatening to take their car, foreclose on their...

Critical Case Comment – Listing a Debt “Just in Case”

Henry E. Hildebrand, III

October 29, 2023

An interesting decision – one we would like for you to weigh in on. Did the Judge get it right? Is this a win for Creditors? Is this yet another case that requires more work from Debtors’ Counsel? Let us hear from you.

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Done with Taxes This Year? Use 2018 Return to Get 2019 Withholding Right

May 5, 2019

Millions of taxpayers filed a 2018 tax return in the last few weeks, making now a prime time for everyone to consider whether their tax situation came out as they expected. If it didn’t, they can use their recently finished 2018 return and the IRS Withholding Calculator to do a Paycheck Checkup and adjust their withholding. Checking and then adjusting...

Critical Case Comment – You Can’t Have Your Cake and Eat it Too

Henry E. Hildebrand, III

December 10, 2023

An over-median Chapter 13 debtor, in calculating projected disposable income, may deduct the higher of the projected plan payment for secured debts or the IRS allowance, but the debtor may not deduct the higher payment under the original contract.

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Division of Marital Property During a Chapter 13 Bankruptcy

Michael B. Joseph

November 5, 2023

“The focus of this article is to review some of the issues faced in cases with pending state court marital property division proceedings.”

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