A reverse mortgage, having fallen due as a result of the death of the borrower, is not protected from modification by the borrower’s heirs by virtue of § 1322(c)(2). (Halfenger) In re Sandoval, 2022 WL 982182 (Bankr. E.D. Wis. March 31, 2022) Case Summary Juan Sandoval filed Chapter 13 and proposed a plan which dealt with his principal asset, a...

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) PART III – DELAYED PERFECTION OF SECURITY INTERESTS Introduction Current circumstances (a pandemic and dire economic conditions) portend an onslaught of bankruptcy filings. In the consumer bankruptcy field, trustees and debtors' counsel often are uncomfortable with the rules in Article 9 of the Uniform Commercial Code (UCC). In this space,...

By Mary Viegelahn, Chapter 13 Trustee San Antonio, Texas Although Trustee Viegelahn first produced this list for an ethics panel in 2019, it is a timely heads-up now. This list was gathered from Trustees across the country. Providing ECF credentials to an outside “firm” to allow them to file a bankruptcy for a debtor the attorney has never met or...

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Introduction This year's changes in the Rules of Bankruptcy Procedure are summarized below. They will be followed, in Part 2, by a digest of selected judicial decisions in the past year of interest for their procedural implications. December 1, 2021, Amendments to Bankruptcy Rules 2005, 3007, 7007.1 and 9036 On...

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...

As we observe the growing discussion over the tremendous amount of outstanding student loan debt, several points of clarification might do us well. There are those favoring relief for debtors now unable to pay their student loans. They have proposed various forms of relief, including several forgiveness programs and re-allowing such debts to be discharged in bankruptcy under more usual...

By The Honorable Hannah Blumenstiel Yes, MORE on SBRA. We realize that to attorneys February of 2020 seems a LONG way away but it really isn’t. We are building our library on this important legislation so it is available when YOU are ready for it. In this week’s installation, Judge Blumenstiel, analyzes the legislation. The first two and a half...

The IRS has some good news for taxpayers who are selling their home. When filing their taxes, they may qualify to exclude all or part of any gain from the sale from their income. Here are some things that homeowners should think about when selling a home: Ownership and use To claim the exclusion, the taxpayer must meet ownership and...

The Mississippi Bankruptcy Court in The Huntington National Bank vs. Ashley Mosby, case #21-11614, adversary case #21-1028, on September 1, 2022, denied the bank’s request to declare a debt non-dischargeable because the bank did not rely upon the debtor’s false statement. In this case the Debtor purchased a 2020 Dodge Challenger, financed by the bank, without disclosing she intended to...