Reasonable Fees and/or Questionable Attorney

By Marsha M. Brown, Staff Attorney to Chapter 13 Trustee Douglas W. Neway (Jacksonville, FL)

We talk about it daily - emailing issues back and forth as to what is reasonable and what is not. Should every Court have a basic reasonable fee structure or should every attorney be required to file an application to prove the reasonableness of his/her fees. What should be considered as part of those fees and what shouldn’t?

Usually we can work it out and come to an agreement. But, sometimes the parties can’t agree and the Court has to weigh . . .

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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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6 Steps to Ethical Unbundling of Bankruptcy Representation

March 21, 2021

By Cathy Moran, Esq. (Redwood City, CA) No matter how many hoops the client dutifully jumped through, without adequate inquiry and communication, the bankruptcy attorney was slammed for unbundling his services. The representation agreement at issue excluded representation in any adversary proceeding filed, as do most such agreements, I imagine. The client initialed every paragraph of the 19-paged representation agreement,...

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From the Editor – Fair Debt Collection Practices Act

February 2, 2020

By The Honorable William Houston Brown (Retired) Punitive damages reduced for FDCPA and RESPA violations. The mortgage servicer violated FDCPA, RESPA and the Illinois Consumer Fraud and Deceptive Business Practices Act by treating account as delinquent after Chapter 13 debtor had cured arrears, brought account current and obtained discharge. The servicer mistakenly marked the Chapter 13 case as dismissed rather...

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The New DOJ/DOE Guidance for Student Loan Bankruptcy Litigation: Promising Early Results

Honorable Brian D. Lynch

March 17, 2024

“The problem in the past for student loan borrowers in bankruptcy has been that hardship discharge litigation has been complex, expensive and arbitrary. . . . The new guidance has simplified the process.”

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How to Pay for Bankruptcy When You’re Flat Broke

June 14, 2020

By Cathy Moran, Esq. (Redwood City, CA) One of the cosmic ironies of our legal system is that it costs money to file bankruptcy. Bankruptcy gets you out of debt only if you have the money to file. The costs of bankruptcy include the filing fee collected by the court; the required credit counseling; and, if you’re smart, an experienced...

Critical Case Comment – Discharged Junior in 7 Survives in 13

October 17, 2021

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville) While in personam liability of a junior mortgage on the debtor’s residence is discharged by a Chapter 7, the lien survives and constitutes an allowed unsecured claim in the debtor’s subsequent Chapter 13 case. In re Hopper, 2021 WL 3435445 (Bankr. E.D. N.Y. Aug....

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Is a CARES Act Stimulus Payment Exempt?

April 26, 2020

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN) Introduction Since April 1, 2020, many unemployed people in the United States have begun to receive "a recovery benefit" in the amount of $1,200.1 These payments, under the CARES Act2 stimulus program, were intended to provide some relief to suffering Americans. However, the most financially distressed Americans, perhaps with existing,...

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The Gambling Debtor – What is a Chapter 13 Trustee to Do?

Stacey A. O’Stafy

January 28, 2024

Gambling was one of the earliest forms of entertainment, likely pre-dating recorded human history and before man invented minted currency. . . . gambling alone is not evidence of bad faith! Another article on this topic: If You’re Gonna Bet the Farm, Maybe Play Against the House

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Small Business Reorganization Act…(“SBRA”) H.R. 3311 – PART ONE

September 15, 2019

By Jan Hamilton, Chapter 13 Standing Trustee (Topeka, KS) “I do not suggest my thoughts here are anywhere close to exhaustive. . . . Of course, my thoughts may be off mark on one or more items, but the discussions need to start somewhere, so here we go…” See also: 2019 Legislation Affecting Bankruptcy Practice – Overview

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Here’s What Taxpayers Should Know About Making 2019 Estimated Tax Payments

August 18, 2019

Small business owners, self-employed people, and some wage earners should look into whether they should make estimated tax payments this year. Doing so can help them avoid an unexpected tax bill and possibly a penalty when they file next year. Everyone must pay tax as they earn income. Taxpayers who earn a paycheck usually have their employer withhold tax from...