In re Lazaro: Non-Monetary Default and § 1322(b)(5)

Can a debtor provide for a non-debtor’s loan under § 1322(b)(5) even if the plan does not address a non-monetary default on the claim? In re Lazaro suggests the answer may be “yes.” In that case, the Court held not only that the Debtor’s plan could provide to cure a monetary default on a loan taken out by the Debtor’s father but also that the plan could ignore a due-on-sale clause in the mortgage in doing so.

It helped that the asserted non-monetary default was longstanding . . .

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James M. Davis

Staff Attorney

James M. Davis is a staff attorney in the office of Henry E. Hildebrand, III, the Chapter 13 Standing Trustee for the Middle District of Tennessee. Mr. Davis is a graduate of Johns Hopkins University in Baltimore, Maryland, and the William and Mary School of Law in Williamsburg, Virginia.

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By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division (Toledo, OH) Click here for Part 1 of 6 Click here for Part 3 of 6 Click here for Part 4 of 6 Click here for Part 5 of 6 Click here for Part 6 . . . It looks like you are not signed in...

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From the Editor – Claims

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By The Honorable William Houston Brown (Retired) Failure to include creditor on matrix not grounds to extend time for proof of claim. The Chapter 13 debtor had timely filed her list of creditors, pursuant to Rule 1007(a), but she failed to include a creditor either on that list or in the schedules, resulting in the creditor not receiving notice of...

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Is an Unemployment Compensation Payment Exempt?

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Henry E. Hildebrand, III

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Thomas D. DeCarlo

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Critical Case Comment

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By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville) Chapter 7 debtor may successfully discharge student loan obligations by satisfying the basic holding of Brunner v. N.Y. State Higher Education Servs. Corp. rather than satisfying the judicial gloss added by subsequent decisions. Rosenberg v. N.Y. State Higher Education Servs. Corp., 2020 WL 130302...

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Ashley Baxter Curry

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Constitutional Interpretation and State Bankruptcy Laws: Chief Justice Marshall on Sturges v. Crowninshield (1819)

M. Jonathan Hayes

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Launching a new feature - Supreme Court Corner - Jon Hayes will periodically share a look at a historical bankruptcy case. As the title indicates, Sturges v. Crowninshield looks at state bankruptcy law in the absence of federal law.

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