Win Now, Wreck Later: A Tale of Bankruptcy and Mortgage Servicing

By Cathy Moran, Esq. (Redwood City, CA)

My Google Alert popped up a lovely win for a Chapter 13 homeowner, but all I could see was the train wreck that lies ahead.

The bankruptcy court ruled that the confirmed (and completed) plan trumped a late-filed mortgage proof of claim.

Payment of the amount provided in the plan cured the prepetition arrearage.

As a debtor attorney, I’m on board so far.

But I doubt . . .

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TMI: Too Much Information

Marie-Ann Greenberg

August 6, 2023

Practice Point: Just because it is an unsecured claim does not mean that it should be ignored. Review all claims for inappropriate violations and disclosure of personal identifiers! Keep track of serial violators for possible use in future requests for contempt and sanctions. With all of the emphasis these days on transparency and the requirement for more and more information...

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9th Circuit BAP: Actually, Absolute Right to Dismiss Means Absolute

Hale Andrew Antico

January 29, 2023

Ninth Circuit Bankruptcy Appellate Panel finds no “eligibility” exception to right to dismiss a Chapter 13 bankruptcy Powell vs TICO Construction (In re Powell) 644 B.R. 181 (9th Circuit BAP, 2022) ISSUE Did the bankruptcy court err in granting Debtor’s motion to dismiss the Chapter 13? RULING No. FACTS This case tests the new “absolute right to dismiss” rule about...

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13 documents by Independence Software – Encrypted and Scans for PII

December 6, 2020

13 documents by Independence Software – Identity theft is a real and constant threat when transmitting information through the Internet. For Trusteeships, using e-mail to receive documents from the debtor bar is insecure, placing sensitive debtor information at risk. Founded in 2011, 13 Documents is unlike other filing systems — it is a complete document management solution for your Trusteeship...

From the Editor – Fair Debt Collection Practices Act

February 2, 2020

By The Honorable William Houston Brown (Retired) Class action certification on predominance. The Eleventh Circuit remanded, finding that the District Court had abused its discretion in refusing to certify a class on a predominance theory for former debtors who had obtained discharge of personal liability on residential mortgages and who asserted violations of the FDCPA by a loan servicer. The...

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For Whom Does the Bell Toll?

October 10, 2021

By Angela M. Scolforo, Staff Attorney to Herbert L. Beskin, Chapter 13 Trustee for the Western District of Virginia Since January 2019 alone there have been about 250 student loan discharge cases decided in the federal courts.1 One site reports that student loan debt in the United States totals $1.73 trillion, across 43.2 million borrowers, and the debt is growing6...

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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...

Chapter 13 Trustee Duties, Powers, And Limitations – Part 3

October 18, 2020

By James J. Robinson, Chief United States Bankruptcy Judge, Northern District of Alabama Can the trustee challenge the debtor’s attorney’s fee? In re Rodriguez Perez, 2018 WL 3655656 (Bankr. D.P.R. 2018). In this case, the chapter 13 trustee asked the bankruptcy court to assess the contract between the debtor and counsel under § 526-528. The trustee alleged that the contract...

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How My Law Firm Learned to Stop Leaving Money on the Table Part 3 – Valuable Lessons Learned in Automatic Stay Litigation

Mark C. Leffler

June 5, 2022

Bankruptcy has been the focus of the Boleman Law Firm’s 30+ year history, but my law partners and I believed it was important for our firm’s long-term health to add a new practice area that would be complimentary to bankruptcy. Even though we were filing almost 250 new Chapter 7 and 13 cases every month before the pandemic, most of...

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Duty to Update Trustee Regarding Changes Post-Plan Confirmation

Daryl J. Smith

April 23, 2023

Is there a duty to inform the trustee about changes post-plan confirmation? Yes. There is an inherent duty for the consumer debtor to update the trustee on any and all material changes, particularly windfalls, post plan confirmation. In a very recent case, In Re Robinson, the United States Trustee moved to dismiss debtor’s chapter 13 case because the debtor received...

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Does Section 1325(b)(1)(A) Hold Your Interest?

Daniel M. Tavera, The Honorable John P. Gustafson

July 9, 2023

When Does The Bankruptcy Code Require The Payment Of Interest On Unsecured Claims In Chapter 13? I. Introduction This article primarily discusses the interpretation and application of § 1325(b)(1)(A) of the Bankruptcy Code in relation to the payment of interest to general unsecured creditors in chapter 13 bankruptcy cases. Section 1325(b)(1)(A) generally states that a court may not approve a chapter...

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