Member Articles

In the fall of 2021, Michael McCormick provided subscribers with an EXCELLENT, expository, seven-part outline on mortgage escrow. This information is still relevant today.

Debtors’ attorney’s fees can be calculated as a percentage of the presumptively reasonable “no-look” fee for cases involuntarily dismissed prior to confirmation and is an allowed administrative claim which can be paid under § 1326(a)(2).

While some circuits differ, statutory interpretation suggests similar treatment for secured and unsecured claims regarding interest disallowance, unless context dictates otherwise. Attorney Siomos brings subscribers a follow-up to last week’s article.

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.

Eighth Circuit, like the Ninth, has ruled that when Chapter 13 cases are converted to Chapter 7, any increase in a debtor's home value beyond exemptions and liens becomes part of the Chapter 7 estate. See also: Critical Case Comment – Post-Petition/Pre-Conversion Equity

“. . . the law is so clear that of course it's not allowed. However, some courts have twisted themselves into pretzels to create a creditor right to postpetition unmatured interest.” The article explores this not so simple issue by examining relevant sections of the Bankruptcy Code and case law from various circuit courts.

Bankruptcy Court in Texas awards sanctions of $825,940.55 for bad faith filing and prosecution of a proof of claim. (Yes it’s an 11 but still, $825k!)

“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.”

“In response to Cathy Moran’s article from last week: Tracking Down the Illusive Mortgage Interest Deduction, I have a few questions to raise-“

“ . . . practice and procedure accomplishing the lien strip have been slow to evolve since 2017. . . . in the jurisdictions that opted out of usage of the Form 113 Plan, multiple iterations for lien stripping and release are found.”