By Beverly M. Burden, Standing Chapter 13 Trustee (Lexington, KY) An unscheduled creditor without notice of the bankruptcy case was denied an extension of time to file a proof of claim pursuant to Bankruptcy Rule 3002(c)(6)(A) in a recent opinion from the Eastern District of Kentucky. In the case of In re Fryman,1 the debtor did not include creditor Kentucky...

By Henry E. Hildebrand, III, Standing Chapter 13 Trustee for the Middle District of TN (Nashville) A creditor may request an extension of time to file a claim under Rule 3002, F.R.B.P. only where the conditions of that rule have been fully satisfied; the filing of a defective list of creditors does not permit an extension of the time for...

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

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) Section I. Student Loans, Part II – Suggested Regulatory and Judicial Changes In our last installment of the Academy Report on the ABI Commission on Consumer Bankruptcy we dealt with the ABI Commission’s suggested statutory modifications which could address some of the problems facing borrowers confronted with substantial student...

It has long been a vexing question for Trustees and attorneys alike: do Debtors have to disclose assets acquired post-petition? In a lengthy and well-documented opinion, Chief Bankruptcy Court Judge John Waites of South Carolina has presented his take on this issue and concluded, with some important exceptions, that they do not. The case is In re Thomas L. Boyd,...

SMALL BUSINESS REORGANIZATION ACT POSTSCRIPT #2 Recommendation of Technical Amendment to Repair Flaw in CARES Act Attempt to Increase Small Business Eligibility under SBRA Introduction In a bulletin published March 30, the Academy announced enactment on March 27 of the "Coronavirus Aid, Relief, and Economic Security Act" (the "CARES Act"),1 and that the Act (applying only to cases commenced on...

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) It constitutes an unfair discrimination, violative of 11 U.S.C. § 1322(b)(1), for a Chapter 13 plan which would pay more to a student loan than to the remaining general unsecured creditors. (Somers) In re Kane, 603 B.R. 491 (Bankr. C.D. Kan. June 18, 2019) Case Summary Ronald Kane filed...

By The Honorable William Houston Brown (Retired) Sanctions for including foreclosed property in petition. On creditor’s motion, sanctions for attorney fees and costs were awarded against Chapter 13 debtor’s attorney for scheduling as property of estate real property that had been foreclosed and on which debtor’s redemption period had expired. Under Rule 9011(c), a safe harbor letter from the creditor...