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Section 1328(i) requires the court to consider the discharge provisions of §§ 1328(a) through (h) and the fact that incomplete personal residence mortgage payments or a forbearance do not preclude but do not compel a COVID-19 Discharge.See Also Legislation to Watch below. It appears that extension of the new § 1328(i) provision created under the Consolidated Appropriations Acthas been omitted from the current Bill making its way to the President’s desk. BUT AS OF PRESS TIME, THIS IS STILL LEGISLATION.

Section 1328(i) requires the court to consider the discharge provisions of §§ 1328(a) through (h) and the fact that incomplete personal residence mortgage payments or a forbearance do not preclude but do not compel a COVID-19 Dilogscharge.

Notice to Chapter 7 and 13 Trustees Regarding Treatment of Recovery Rebates and Tax Credits for Consumer Bankruptcy Debtors Under the American Rescue Plan Act of 2021

“In Summary – Chapter 7 and 13 trustees should not consider recovery rebates or child tax credits in administering estate assets or calculating disposable income in chapter 13 repayment plans.”

• H.R. 1651: COVID–19 Bankruptcy Relief Extension Act of 2021 – Bill passed the House 3/17

• S. 473: COVID–19 Bankruptcy Relief Extension Act of 2021 – Bill passed Senate 3/24 with Amendment (S.Amend. 1407).

Passed the House with Amendment 3/26 and is expected to be signed by the President on 3/28.

Even during spring break, Judge Brown made time to find two cases of interest regarding lien modification:

• Junior mortgage lienholder not affected by modifications of senior mortgage

• Wholly unsecured junior lien stripped on property awarded to debtor in divorce

National Eviction Ban Is Set to Expire at the End of March – CDC Likely Will Extend I

• Face Masks and Other Personal Protective Equipment to Prevent the Spread of COVID-19 Are Tax Deductible (Nice of the IRS but with current Standard Deductions who does this really help?)

• Tax Day for Individuals Extended to May 17 (From April 15th)

• CFPB Annual Complaint Report Highlights More Than Half-Million Complaints Received in 2020

• CFPB Rescinds Short-Lived Guidance on Dodd-Frank’s Abusiveness Standard

Reminder – March 27 WAS the Deadline to decrease the cap back to $2,725,625, although an extension has been proposed – stay tuned!

• Middle District of FL – Proposed Local Rules Available for Comment
• District of KS – Revised Local Rules effective 3/17/21
• Northern District of IL – Transitioning to NextGen 5/24/21
• District of MD – Transitioning to NextGen 5/10/21
• Eastern District of OK – Transitioning to NextGen 4/1/21 – CM/ECF will be shut down from Thursday 4/1 through 8 am Monday 4/4

Consumer Advisory: Take Action to Protect Your Economic Impact Payment if Your Account Is Overdrawn

• Student Debt “Feels Like Quicksand” Is loan forgiveness the answer?

• An Extremely Important Statistic About Student Debt That Has Never Been Published – Dept. of Education does not actually publish straightforward figures tracking how much money it collects each year. The data the agency releases annually combines the regular principal and interest collections with the massive number of loan consolidation payments borrowers make each year, which doesn’t really tell us how much of their own money Americans are paying toward loans.

• Covid-Related Fraud Has Cost Americans $382 Million

• Class Action Accuses Illinois Debt Collector of Misleading, Illegal Collection Strategies

• Parking While Poor? Complex Says It Tows Cars for Being Unsightly

The client initialed every paragraph of the 19-paged representation agreement, and the appeals court still sanctioned the attorney over the agreement.Turns out, a long agreement and the client’s initials weren’t enough to protect the lawyer from sanctions for unbundling his services. So, what does it take??

The client initialed every paragraph of the 19-paged representation agreement, and the appeals court still sanctioned the attorney over the agreement.Turns out, a long agreement and the client’s initials weren’t enough to protect the lawyer from sanctions for unbundling his services. So, what does it take??

The new $1,400 per person stimulus checks could be garnished for unpaid debts. Why this one but not the previous two?Reconciliation. Reconciliation in this context is a way for Congress to enact legislation on taxes, spending, and the debt limit with only a majority (51 votes, or 50 if the vice president breaks a tie) in the Senate, avoiding the threat of a filibuster, which requires 60 votes to overcome. Because Democrats have 50 seats in the Senate—plus a Democratic vice president—reconciliation is a way to get a tax-and-spending bill to the president’s desk even if all 50 Republicans oppose it.More information:

• CFPB Steps in to Help Shield Consumers from Having Their Stimulus Check Garnished by Creditors – The agency says banks are willing to help consumers who are affected by this issue

• CFPB Encourages Financial Institutions and Debt Collectors to Allow Stimulus Payments to Reach Consumers

• From the Auto Industry: CFPB Wants Stimulus Payments to Go to Consumers, Not Collectors

• H.R. 1651: COVID–19 Bankruptcy Relief Extension Act of 2021 – Bill passed the House 3/17

• S. 473: COVID–19 Bankruptcy Relief Extension Act of 2021 (Bill is only 2 pages long.)

Judge Brown found some cases of interest regarding plan modification:

• For modification purposes, best interests test remains at petition date

• Proposed plan modification could not relitigate confirmation issue

• CARES Act permitted modification of plan when debtor had fallen behind in plan payments before enactment

Coming off the longest economic expansion in U.S. history, Chapter 13 filings were at their lowest levels since 2007. With the country entering a sudden and unanticipated recession in February of 2020, we expected to see Chapter 13 filing rates increase; however, the opposite occurred.

Judge Wedoff: On Representing Respondents at Supreme Court in Chicago v. Fulton (17-minute substantive and entertaining (I mean, it’s Judge Wedoff!!) interview by Don Swanson)

• Tax Day for Individuals Extended to May 17 (From April 15th)

• IRS Office of Chief Counsel Unveils National Virtual Settlement Days – IRS Office of Chief Counsel has embarked on its most far-reaching Settlement Days program ever, declaring the month of March 2021 (nice of them to announce this on March 18th) as “National Settlement Month.” If you have clients with IRS issues, this may be of interest to you. BUT if we are reading this properly, they would have to participate without counsel.

• New Report Highlights Housing Insecurity and Need for Aggressive Action

• Biden’s CFPB Nominee Puts Loan Servicers, Credit Bureaus on Notice

• Sixth Circuit announced final 5 candidates for Eastern District of Michigan judgeship. They request comments in order to narrow 5 to 3.
• District of Minnesota – Term Law Clerk
• District of Maryland – Term Law Clerk

Reminder – March 27 is the CurrentDeadline to decrease the cap back to $2,725,625, although an extension has been proposed (and passed the House 3/17).

• Middle District of FL – Proposed Local Rules Available for Comment
• District of KS – Revised Local Rules effective 3/17/21
• District of NJ – Zoom Trial Guidelines
• Eastern District of MI – Transitioning to NextGen 6/1/21
• Northern District of IL – Transitioning to NextGen 5/24/21
• District of MD – Transitioning to NextGen 5/10/21
• Eastern District of OK – Transitioning to NextGen 4/1/21 – CM/ECF will be shut down from Thursday 4/1 through 8 am Monday 4/4

• Wheres My Refund? – Check IRS Refund/Stimulus Status

• More than $45 Billion in Rental Assistance Now Available – Here’s What You Need to Know About Applying

• Scammers Are Promising to Get Your Student Loans Forgiven. Be Wary

• Student Loan Forgiveness Changes for Defrauded Borrowers (Brand new info)

• COVID Tax Break Could Open Door to Student Loan Forgiveness. Here’s How It Would Work

• Nebraska Grandmother Sees All of Her Nearly $90,000 in Student Loans Discharged

• Congress May Cancel Student Loans More Than Once

Re: Survey of Bankruptcy Court Procedures for TurnoverDear Fellow Bankruptcy Practitioners:I have been asked to reach out on behalf of the Advisory Committee on Bankruptcy Rules which requests your assistance.As you know, the Supreme Court recently decided City of Chicago v. Fulton which has opened up much discussion regarding current turnover procedures.The Rules Committee would very much like to hear from you. PLEASE take this survey. It is only 3 questions and then asks for a summary as to whether or not your Court has adopted local rules or general orders on this issue. Please specify whether your Court is contemplating or has adopted local rules revisions or general, procedural, or administrative orders allowing a party to seek turnover of estate property under 11 U.S.C. § 542 by motion as suggested in the concurrence of the Supreme Court opinion in City of Chicago v. Fulton.I thank you in advance!!Debra L. Miller, Esq. Chapter 13 Standing Trustee for the Northern District of Indiana

GA Bankruptcy Judge Lowers Boom on Chapter 7 Trustee and Counsel Fees (Chpt 7 case converted to 13)Really. You gotta read this one!

Texas Farmers Tally Up Damage from Winter Storm ‘Massacre’ – The state’s agriculture sector has lost an estimated $600 million or more. Crop and livestock damage could mean shortages and higher prices beyond Texas.

The Fifth Circuit has appointed Jamie Wilson to be a U.S. Bankruptcy Judge in the Southern District of Mississippi, stationed in Jackson. Ms. Wilson will replace retiring Judge Neil Olack and assume her position on July 1st.

• Middle District of Alabama – Trustee’s Staff Attorney – Application deadline 3/24/21
• Northern District of Mississippi – Term Law Clerk to Judge Selene D. Maddox – Application due date 3/12/21
• Eastern District of Wisconsin – Two Law Clerks for Judge Blise – Career Law Clerk; Term Law Clerk
• District of Minnesota – Judgeship – Application due date 3/18/21

• When Subchapter V Management Misbehaves: “For Cause” Expansion of Subchapter V Trustee’s Management Duties

• Subchapter V Reorganizations: A Lifeline for Struggling Small Businesses

• Will Subchapter V’s $7.5 Million Eligibility Limit Be Extended In Time?

• Reminder – March 27 is the Current Deadline to decrease the cap back to $2,725,625, although an extension has been proposed.

• Eastern District of TN – New CM/ECF Dictionary Events for Section 1328(i) Discharge
• Middle District of GA – Amendment to LBR 9013-3 Certificate of Service – Motions
• Middle District of NC – New local form Motion for Entry of Discharge Section 1328(i)) and other issues
• Northern District of OK – New policy regarding motions for relief from stay
• District of OR – Kirsten Wilkinson Selected as Next Clerk of Court
• Northern District of IL – Revised Court-Approved Retention Agreement for cases filed on or after March 15, 2021
• District of SC – Changed Till rate
• District of SC – Revised Conduit Orders (Judges Duncan and Waites)
• Eastern District of OK – Transitioning to NextGen 4/1/21

• CFPB Takes Action Against BrightSpeed and Its Former CEO for Supporting Internet-Based Technical-Support Scams

• CFPB Report Looks at Potential Wave of Housing Challenges

• Didn’t get Economic Impact Payments? Check eligibility for Recovery Rebate Credit

• HUD.gov has a good all-in-one-place resource for homeowners – Special COVID-19 Mortgage Relief for Homeowners with FHA-Insured Single Family Mortgages

• New Rules for Self-Employed and Gig Workers Applying for PPP Loans Are Out. Here’s What You Need to Know

• Here’s What Taxpayers Should Do If They Have Missing or Incorrect Documents

• Student Loan Cancellation Excluded from New Stimulus Package

• CFPB Nominee Sounds Alarm on Possible ‘Avalanche of Defaults’ After Student Loan Payments Restart

• Why Student Debt Will Keep Rising Despite Loan-Forgiveness Programs Lawmakers Are Proposing in Congress

One of Attorney Moran’s best! Another MUST READ from ConsiderChapter13.org.“That’s until the court in Anzaldo dug into the effect of reaffirmation on credit.”Debtor attorney in this case was not only ‘dinged’ regarding recommending a reaffirmation agreement but also for not having sufficient (in the Court’s mind) information on credit scoring to properly advise his client.AND more info from last week on credit scores:NCLC: The Credit Score Pandemic Paradox and Credit InvisibilityAmericans Are Struggling, But You’d Never Know It from Their Credit Scores

After his participation in ConsiderChapter13.org’s webinar City of Chicago v. Fulton: What SCOTUS Did Not Say, Trustee Bledsoe examined long-standing common practice in the recovery of assets. This is a MUST READ article!“In the aftermath of City of Chicago v. Fulton, discussions abound as to whether it is sufficient for a chapter 13 debtor to seek return of his vehicle, repossessed prepetition, via a motion for turnover. Most seem to believe a motion is not sufficient, but that – if pushed- a debtor will be required to file an adversary proceeding. But, let’s analyze the issue using the same methodology the Justices used in Fulton.”

City of Chicago v. Fulton: What SCOTUS Did Not Say

Without a doubt, one of the best webinars we have ever produced.Chapter 13 Trustee Jody Bledsoe, along with noted attorneys Richard Parker and Tony Sottile, engage in a one-hour presentation on the recent Fulton decision. Our expert panel digs into what the Supreme Court did not rule on in this case. They also drill down into §§ 362 and 542 to look at adversary proceeding vs. motion for turnover.A few comments we received:

• I think you guys have the most quality programming in bankruptcy-centric circles
• Very interesting webinar
• Webinar had some very practical suggestions for dealing with the complications/extra work created by The Supremes
• Excellent

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One of Attorney Moran’s best! Another MUST READ from ConsiderChapter13.org.“That’s until the court in Anzaldo dug into the effect of reaffirmation on credit.”Debtor attorney in this case was not only ‘dinged’ regarding recommending a reaffirmation agreement but also for not having sufficient (in the Court’s mind) information on credit scoring to properly advise his client.

Farm Bankruptcies During 2020 – Filings Drop 7% During 2020, Not Out of the Woods Yet

Durbin, Grassley Introduce Bipartisan Legislation to Extend CARES Act Bankruptcy Relief Provisions ( . . . ‘til March 2022. Oy vey)

• NCLC: The Credit Score Pandemic Paradox and Credit Invisibility

• Americans Are Struggling, But You’d Never Know It from Their Credit Scores

• Middle District of Alabama – Trustee’s Staff Attorney – Application deadline 3/24/21
• Northern District of Mississippi – Term Law Clerk to Judge Selene D. Maddox – Application due date 3/12/21
• Eastern District of Wisconsin – Two Law Clerks for Judge Blise – Career Law Clerk; Term Law Clerk
• District of Minnesota – Judgeship – Application due date 3/18/21
• District of Puerto Rico – Judgeship – Application due date 3/3/21

Director’s Form 4100S is new, in response to the Consolidated Appropriations Act of 2020, which amended Code sections 501 and 502 to provide that creditors under Federally backed mortgages, qualified under the CARES Act and RESPA, and who entered into forbearance agreements with debtors, may file proofs of claim for the deferred forbearance payments, even when the claim would otherwise be untimely. The Code amendment sunsets one year after enactment; therefore, the form itself is proposed to terminate at that time.We noticed this week that many, many Courts have adopted this form.

In response to the economic consequences of the pandemic, the CARES Act increased the eligibility limit for electing to have a small business Chapter 11 governed by subchapter V from $2,725,625 of debt to $7,500,000. The cap is to return to $2,725,625 on March 27, 2021, although an extension has been proposed.Subchapter V candidates with debt between $2,725,625 and $7,500,000 should decide whether to file as soon as possible. The extension is included in the legislation to watch above.

• Southern District of Ohio – Increased No Look Fee
• Western District of Michigan – Attn: Debtor Attorneys – To be considered for increased Fee Memorandum rates, you must certify your attendance at 2020 bankruptcy legal education by completing and submitting Exhibit 6.
• Northern District of Illinois – Revised Court-Approved Retention Agreement for cases filed on or after March 15, 2021
• District of South Carolina – Changed Till rate
• District of South Carolina – Revised Conduit Orders (Judges Duncan and Waites)
• Western District of Pennsylvania – Increase in Loss Mitigation Program Fee Limits
• District of Nevada – Mortgage Modification Program Fee Updates
• Middle District of Florida – Judge Colton Only Chpt 13 Hearing Procedures effect 3/1/21 – IMPORTANT
• District of Minnesota – Proposed Abrogation of Local Rule 1007-4(b) and Proposed New Local Rule and Form 2016-2 regarding disclosure of atty fees in adversaries.
• Northern District of New York – Loss Mitigation Procedures revised to clarify the process for participation when a motion to terminate the automatic stay has been granted as to real property. The revisions to Part V (A) and (B) provide for uniformity in practice across the divisions. Click here for a redline of the revisions.
• Middle District of Georgia – Proposed LBR 9072-1 and Proposed LBR 9073-1 regarding Final Disposition Calendar Procedures
• Middle District of Alabama – Transitioning to NextGen 3/8/21 – ECF will be unavailable from noon on Friday the 5th through 7am Monday
• District of Maryland – Transitioning to NextGen 5/10/21
• Eastern District of Michigan – Transitioning to NextGen 6/1/21

CFPB Sues Libre by Nexus, Claiming Company Offers Predatory Bonds to Vulnerable Immigrants

• Eighth Circuit Continues Trend of Discharging Student Loan Debt

• New Rules Make It Easier for Struggling Student Loan Borrowers to Access PPP Loans

• 5 Things to Know About Current Repayment Flexibilities and Your Federal Student Loans

• Big Student Loan Debt is Not a ‘Harvard, Yale and Penn’ Problem

• Navient Solutions & The High Bar to Involuntary Bankruptcy Petitions

• Millions Are Hounded for Debt They Don’t Owe. One Victim Fought Back, With a Vengeance This is not a typical debt collector story. It reveals an atypical scam, the depths of which you need to have a passing knowledge of.

• Former Hershey Man Sentenced for Bankruptcy Fraud and Money Laundering

• Former Bankruptcy Petition Preparer Entered Plea of Guilty

The Chapter 13 Business Model

The next in our series “Chapter 13 – It’s Good to Have a Plan” is a poignant, personal story of a debtor attorney in response to the recent desire to modify the Bankruptcy Code based upon perceptions that debtors’ attorneys get rich off the backs of minorities by inordinately steering minorities toward Chapter 13.“The banker asked whether I could then expect a regular, monthly payment at confirmation. I chuckled and replied that while I kept track of what I would get paid, I might not see a penny for many years, if at all.”

Larry Ahern has previously reported on bankruptcy-related legislation passed in 2019 and amended in response to the COVID-19 pandemic. This week, he returns to the subject and focuses on a much-needed patch in the treatment of small business debtors’ leases under the Consolidated Appropriations Act, 2021 (“CAA”).

Although written for Californians, the issue is national. Simply replace the acronym EDD for your state’s unemployment entity.Many taxpayers believe any form 1099 writ from on high. They figure such forms are unchallengeable, immutable, all powerful, and require full and docile submission. Poppycock. In the Great Recession, banks issued millions of Forms 1099-A and 1099-C that were inspired fiction. Many taxpayers attached the erroneous forms to their tax returns and using a well drafted Plain Paper Attachment, explained why the forms were wrong and the potential tax increase was short circuited right then and there!See also: Massive Fraud Slows Legitimate Unemployment Claims, State Says

The next in our series “Chapter 13 – It’s Good to Have a Plan” is a poignant, personal story of a debtor attorney in response to the recent desire to modify the Bankruptcy Code based upon perceptions that debtors’ attorneys get rich off the backs of minorities by inordinately steering minorities toward Chapter 13.“The banker asked whether I could then expect a regular, monthly payment at confirmation. I chuckled and replied that while I kept track of what I would get paid, I might not see a penny for many years, if at all.”

• White House Fact Sheet: Biden Administration Announces Extension of COVID-19 Forbearance and Foreclosure Protections for Homeowners

• Politico: Biden Extends Foreclosure Moratorium and Mortgage Forbearance Through June

• Milwaukee Lawyer Named as Bankruptcy Judge
  • Click here for press release

• Student-Loan Discharges in Bankruptcy and Public Education for Kids with Disabilities

• Amicus Brief: McCoy Student Debt Bankruptcy Discharge

“. . . by looking to modern U.S. bankruptcy law’s first forebear, the 1841 Bankruptcy Act, which Congress enacted in response to the depressed economic conditions following the Panic of 1837. That legislation created a judicially administered system that nationalized bankrupts’ assets, some of which featured prominently in the business of slavery.”

Director’s Form 4100S is new, in response to the Consolidated Appropriations Act of 2020, which amended Code sections 501 and 502 to provide that creditors under Federally backed mortgages, qualified under the CARES Act and RESPA, and who entered into forbearance agreements with debtors, may file proofs of claim for the deferred forbearance payments, even when the claim would otherwise be untimely. The Code amendment sunsets one year after enactment; therefore, the form itself is proposed to terminate at that time.

James E. Shapiro was a bankruptcy court judge for the Eastern District of Wisconsin from 1986 to September of ’96 when he was elevated to Chief Judge. He served as Chief Judge for four years and retired from the court on December 31, 2012. He passed away Feb. 5, 2021 at the age of 90.

In response to the economic consequences of the pandemic, the CARES Act increased the eligibility limit for electing to have a small business Chapter 11 governed by subchapter V from $2,725,625 of debt to $7,500,000. The cap is to return to $2,725,625 on March 27, 2021 (unless extended).Subchapter V candidates with debt between $2,725,625 and $7,500,000 should decide whether to file as soon as possible.

How are Bitcoin Created? An illustrated guide to bitcoin mining, blockchains, and the “minting” process of cryptocurrency’s most popular coin.

• See also this ConsiderChapter13.org resource from 2016: Bitcoins and Bankruptcy By Phil Lamos, Chief Legal Counsel, Office of the Chapter 13 Trustee (Cleveland, OH)

• Middle District of Florida – Judge Colton Only Chpt 13 Hearing Procedures effect 3/1/21 – IMPORTANT
• District of Minnesota – Proposed Abrogation of Local Rule 1007-4(b) and Proposed New Local Rule and Form 2016-2 regarding disclosure of atty fees in adversaries.
• Northern District of New York – Loss Mitigation Procedures revised to clarify the process for participation when a motion to terminate the automatic stay has been granted as to real property. The revisions to Part V (A) and (B) provide for uniformity in practice across the divisions. Click here for a redline of the revisions.
• Middle District of Georgia – Proposed LBR 9072-1 and Proposed LBR 9073-1 regarding Final Disposition Calendar Procedures
• Middle District of Alabama – Transitioning to NextGen 3/8/21
• District of Maryland – Transitioning to NextGen 5/10/21
• Eastern District of Kentucky – NextGen went into effect over the weekend

CFPB Investigating Venmo’s Funds Transfer and Debt Collection Policies

• Your clients need to know this . . . Lost a Job or Income? Don’t lose access to key tax credits – Earned Income Tax Credit and the Child Tax Credit.

• Taxpayers Must Report Gig Economy Income on Their Tax Return

• Student Debt Crisis Hits Black Borrowers Hardest – These debtors say Biden’s plan to tackle it isn’t enough

• Schumer, Warren Push for $50K in Student Debt Cancellation After Biden Balks

• Confirmed: Biden’s Extension of Student Loan Freeze Will Continue to Count Towards Loan Forgiveness

• Meet Student Loan Borrowers Refusing to Pay Their Debt, Hoping Biden Will Forgive It

• Legal Malpractice Claim Accrued When Debtors Denied Discharge

• Hedge Fund Founder Pleads Guilty to Bankruptcy Fraud in Connection with Neiman Marcus Bankruptcy

In order to “eliminate abusive debt collection practices by debt collectors . . .”, the Fair Debt Collection Practices Act (“FDCPA”) bars debt collectors from using any “false, deceptive, or misleading representation or means in connection with the collection of any debt . . .” 15 U.S.C. § 1692e.Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part 1 of 2

“Before the murder of George Floyd, I thought I understood institutional racism. I did not deny that it existed, and I knew it was a terrible thing. I believed that by supporting politicians who called for social reforms aimed at correcting institutional racism, I was doing my part.”

In December and January Law360 ran a series of free articles entitled Judges on Race. While they are all very good, we want you to particularly note Judge Donald’s article: With unconscious biases deeply embedded in the court system, judges must take steps to guard against the power and influence of stereotypes during jury selection, evidence admissibility hearings, bail proceedings and other areas of judicial decision making, says Sixth Circuit Judge Bernice Donald.The National Association of Chapter Thirteen Trustees is pleased to announce that The Honorable Bernice Donald will be the keynote speaker at its summer conference (hopefully) in Washington, D.C. Mark your calendar now for July 7-10 for an in person or virtual seminar.

Before Brown v. Board of Education there was Autherine Lucy.

“. . . by looking to modern U.S. bankruptcy law’s first forebear, the 1841 Bankruptcy Act, which Congress enacted in response to the depressed economic conditions following the Panic of 1837. That legislation created a judicially administered system that nationalized bankrupts’ assets, some of which featured prominently in the business of slavery.”

This Friday, February 19th – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific

Join Chapter 13 Trustee Jody Bledsoe along with noted attorneys Rich Parker and Tony Sottile in a one-hour presentation on the recent Fulton decision. Our expert panel will dig into what the Supreme Court did not rule on in this case. They will also drill down into Sections 362 and 542.

Can’t attend on Friday? It is ConsiderChapter13.org’s practice to record all webinars. Although we offer live webinars FREE, access to the recordings is a benefit of subscription. Only $275/year for access to ALL of the resources! Click her to subscribe.

(If you are a solo practitioner and have been impacted by the pandemic, contact us for a discount.)

Note the fine print regarding forbearances – three-month extension only applies to those already in a forbearance by 2/28/21 and it is not an automatic extension – one must request it.

In response to the economic consequences of the pandemic, the CARES Act increased the eligibility limit for electing to have a small business Chapter 11 governed by subchapter V from $2,725,625 of debt to $7,500,000. The cap is to return to $2,725,625 on March 27, 2021 (unless extended).Subchapter V candidates with debt between $2,725,625 and $7,500,000 should decide whether to file as soon as possible.

Recent Legislation January 2021Join The Honorable William H. Brown (retired), and Chapter 13 Trustees Henry Hildebrand and Debra Miller in a one hour discussion regarding consumer bankruptcy implications of the Bankruptcy Administration Improvement and Consolidated Appropriations Acts, along with some thoughts on pending legislation.New Information: During the webinar Trustee Miller mentioned a not yet available Director’s Form – several of you have emailed asking for it. The form has now been released: Supplemental Proof of Claim for CARES Forbearance Claim

NCLC is partnering with Consumer Reports to hold credit reporting agencies accountable for errors and need your help.At least one in four of us probably has an error in our credit report. And the COVID-19 financial crisis has made that bad situation even worse.Can you check your credit report for errors, and let Consumer Reports know what you find? You’ll be a key part of a groundbreaking Consumer Reports’ people-powered research project, where thousands of consumers like you use their credit report to finally hold these powerful credit agencies accountable.

• Middle District of Georgia – Proposed LBR 9072-1 and Proposed LBR 9073-1 regarding Final Disposition Calendar Procedures
• Northern and Southern Districts of Mississippi – ChapMobile app now available – To download the app, go to the Apple App Store or Google Play App Store and search for “chapmobile”
• Northern District of Georgia – Northern District of Georgia Bankruptcy Court is interested in your input in planning how to conduct hearings when it returns to normal operations post-pandemic. Please complete survey by 2/16/21.
• Eastern District of Michigan – Notice Regarding Updated System Banner – Although we only saw this notice on one court’s website, it is probably the policy for all CM/ECF users – the message: You Are Being Recorded
• Middle District of Alabama – Transitioning to NextGen 3/8/21
• Eastern District of Kentucky – Transitioning to NextGen 2/22/21
• District of Maryland – Transitioning to NextGen 5/10/21

Judgeship Positions

• Western District of Texas – San Antonio – Application due date 2/26/21
• District of Minnesota – Application due date 3/18/21
• District of Puerto Rico – Application due date 3/3/21

• Confirmed: Biden’s Extension of Student Loan Freeze Will Continue to Count Towards Loan Forgiveness

• What this Stimulus Update Means for Student Loan Cancellation

Attorney Siomos focuses on how 1328(i) can hurt debtors.“The December 2020 Consolidated Appropriations Act, 2021, more commonly known as the second covid-19 stimulus bill, contains a few bankruptcy related provisions, but none stood out more with respect to Chapter 13 than the newly created § 1328(i).”See also:

• Never Let a Good Crisis Go to Waste: The Bankruptcy Amendments in the Consolidated Appropriations Acts of 2021
• Chapter 13 Discharge Expanded by COVID Relief Legislation

In order to “eliminate abusive debt collection practices by debt collectors . . .”, the Fair Debt Collection Practices Act (“FDCPA”) bars debt collectors from using any “false, deceptive, or misleading representation or means in connection with the collection of any debt . . .” 15 U.S.C. § 1692e.Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part 1 of 2

Attorney Siomos focuses on how 1328(i) can hurt debtors.“The December 2020 Consolidated Appropriations Act, 2021, more commonly known as the second covid-19 stimulus bill, contains a few bankruptcy related provisions, but none stood out more with respect to Chapter 13 than the newly created § 1328(i).”

See also:

• Never Let a Good Crisis Go to Waste: The Bankruptcy Amendments in the Consolidated Appropriations Acts of 2021
• Chapter 13 Discharge Expanded by COVID Relief Legislation

On 1/29/21 ConsiderChapter13.org hosted its first webinar of the year with many to come. All webinars are free if viewed live; however, access to the webinar recordings are a benefit of subscription to ConsiderChapter13.org. Not a subscriber? Click here to join now.

The Recording of “Recent Legislation January 2021” is now available.

Join The Honorable William H. Brown (retired), and Chapter 13 Trustees Henry Hildebrand and Debra Miller in a one hour discussion regarding consumer bankruptcy implications of the Bankruptcy Administration Improvement and Consolidated Appropriations Acts, along with some thoughts on pending legislation.

• USDA Suspends Debt Collections, Foreclosures, Other Activities on Farm Loans Due to COVID-19  In place “until further notice.”

• Cadillac Area Farmers Glad 2020 Over, Nervous About 2021
  

• Judge Lisa G. Beckerman Appointed

• U.S. Attorney Announces Appointment of Civil Division Deputy Chief David S. Jones to Serve as Bankruptcy Judge in Manhattan
  • Southern District of New York – David S. Jones Appointed as a United States Bankruptcy Judge for the Southern District of New York in Manhattan

• Business Aid: For eligible employers, paid sick and family leave credits have been extended for leave taken through March 31- IRS Updates FAQs on Paid Sick Leave Credit and Family Leave Credit

• Northern District of Georgia – Bankruptcy Court interested in input in planning how to conduct hearings when it returns to normal operations post-pandemic. Please complete survey by 2/16/21.
• District of Maryland – Transitioning to NextGen 5/10/21
• District of Oregon – On February 1, the court will implement a new calendar program (CHAP) that will affect how hearings are scheduled
• Eastern District of Michigan – Notice Regarding Updated System Banner – Although we only saw this notice on one court’s website, it is probably the policy for all CM/ECF users – the message: You Are Being Recorded
• Middle District of North Carolina – Standing Order re Ch 13 Notices Rule 2002(h)
• District of Nevada – Administrative Order 2021-01 – Order Adopting Chapter 13 Presumptive Attorney’s Fees Guidelines
• Middle District of Alabama – Transitioning to NextGen 3/8/21
• Eastern District of Kentucky – Transitioning to NextGen 2/22/21

Judgeship Positions

• Western District of Texas – San Antonio – Application due date 2/26/21
• District of Minnesota – Application due date 3/18/21
• District of Puerto Rico – Application due date 3/3/21

Chapter 13 Standing Trustee

• District of South Carolina, Columbia Division – Application due date 2/19/21

• Struggling During the Pandemic? COVID-19 Financial Relief and Protections Extended (Not a great title – this article spells out all the deadlines as of 2/1/21 – i.e. no payment on federally backed student loans until 10/1/21; evictions for renters stayed until 4/1/21; FHA or USDA backed loans 4/1/21; etc.

• Acting Director David Uejio Issues Warning: CFPB Will Take Aggressive Action with Regard to COVID-19

• Here Are Reasons Taxpayers Should File a 2020 Federal Tax Return – And Why E-File Is Best

• Educators Can Now Deduct Out-Of-Pocket Expenses for COVID-19 Protective Items

• Education Dept. Orders Navient to Refund $22.3 Million in Decade-Old Student Loan Scandal

• Biden Extends Student Loan Payment Deferrals Until October

• Biden Supports Cancelling Student Debt, Expresses Openness to Executive Action
  (There are lots of articles out there on this topic – bottom line seems to be two proposals: (1) $10k per borrower forgiven if via executive order; (2) $50k per borrower forgiven if via law (a/ka/ the ever looming “Act of Congress”).)

• 33 States Go After Ocwen/PHH Mortgage Over Servicing Fees

• Roslyn Financier Admits to Neiman Marcus Bankruptcy Fraud

• WA Launches Investigation Into 200,000 Missing Cows at Center of Easterday Bankruptcy, Legal Fight (headline pretty much says it all – couldn’t resist running a story on 200,000 missing cows!!!)

• Ex-Pasadena Lawyer Faces Sentencing for Fraud Crime of `Desperation’

DON’T SKIP THIS ONE JUST BECAUSE YOU THINK YOU KNOW WHO OUR CLIENTELE IS!“I would argue that for the Debtors living in poverty, Trustees need to take a more panoramic approach and be mindful of the issues impacting individuals in extreme poverty. On the face of the petition and schedules, it may certainly appear some Debtors are making bad choices.”Additional recommended reading:

• Nickel And Dimed: On (Not) Getting By In America
• On The Clock
• The Working Poor

Debtor owed $13,000 to Dort Federal Credit Union on a car loan. The confirmed plan called for her to repay the loan directly to DFCU at the contract interest rate of 15%. The Trustee challenged this provision on two grounds.

The Geraci firm takes a different approach in looking at Fulton.“Chapter 13 practitioners are urged to examine this decision more closely because the holding in Fulton is quite narrow: . . .”See also:
City of Chicago v. Fulton And the Turnover Conundrum
By Kara K. Gendron, Esquire, Mott & Gendron Law (Harrisburg, PA)Click here for the Opinion

DON’T SKIP THIS ONE JUST BECAUSE YOU THINK YOU KNOW WHO OUR CLIENTELE IS!“I would argue that for the Debtors living in poverty, Trustees need to take a more panoramic approach and be mindful of the issues impacting individuals in extreme poverty. On the face of the petition and schedules, it may certainly appear some Debtors are making bad choices.”Additional recommended reading:

• Nickel And Dimed: On (Not) Getting By In America
• On The Clock
• The Working Poor

• District of Oregon – On February 1, the court will implement a new calendar program (CHAP) that will affect how hearings are scheduled
• Eastern District of Michigan – Notice Regarding Updated System Banner – Although we only saw this notice on one court’s website, it is probably the policy for all CM/ECF users – the message: You Are Being Recorded
• Middle District of North Carolina – Standing Order re Ch 13 Notices Rule 2002(h)
• Northern District of Georgia – Public Notice Regarding Reassignment of Judge Homer Drake Cases
• Middle District of North Carolina – Sandy Davis is Judge Aron’s new Courtroom Contact – her number is 336-358-4028
• District of Nevada – Administrative Order 2021-01 – Order Adopting Chapter 13
  Middle District of Alabama – Transitioning to NexGen 3/8/21
• Eastern District of Kentucky – Transitioning to NextGen 2/22/21

Judgeship Positions

• Western District of Texas – San Antonio – Application due date 2/26/21
• District of Minnesota – Application due date 3/18/21
• District of Puerto Rico – Application due date 3/3/21

Chapter 13 Standing Trustee

• District of South Carolina, Columbia Division – Application due date 2/19/21
• Northern District of Illinois, Eastern Division – Application due date 2/5/21

• CFPB, Muzzled Under Trump, Prepares to Renew Tough Industry Oversight

• Supervisory Highlights COVID-19 Prioritized Assessments Special Edition – This 28-paged Special Edition inform of observations in its prioritized assessment supervisory work conducted last year after the sudden onset of the COVID-19 pandemic – focused on assessing risks to consumers resulting from the pandemic.

• Biden’s Plan to Fix Student Loans Puts Spotlight on Debt Cancellation and Easier Bankruptcies

• 5 Things Student Loan Cancellation Won’t Do

• Calabasas Real Estate Developer Indicted for Bankruptcy Fraud – Mark Handel was indicted for fraud, money laundering, and falsely testifying under oath.

• KC-Area Payday Lender Pleads Guilty to Bankruptcy Fraud

• Judge Wants Payday Loan Firm to Pay $132.5M to Victims (same case as above)

• Many Military Vets Turned Away for COVID-19 Vaccine Because They Make too Much Money (Oh My!)

Another great, practical piece from Board Member Cathy Moran: “Bankruptcy debtors with delinquent utility bills got a measure of protection from interruption in their service under an amendment to the Bankruptcy Code in the omnibus spending bill enacted December 27, 2020.”

Another great, practical piece from Board Member Cathy Moran: “Bankruptcy debtors with delinquent utility bills got a measure of protection from interruption in their service under an amendment to the Bankruptcy Code in the omnibus spending bill enacted December 27, 2020.”

This week we launch the first in a new, ongoing series of articles directed to staff – particularly staff of trustees’ offices but many of the lessons conveyed will transfer to support staff of any office type.

“Every Trusteeship has encountered unexpected change during the past year.”

On October 1, 2019, John G. Jansing was appointed Chapter 13 Standing Trustee for the Southern District of Ohio at Dayton. John took over from Jeff Kellner, who retired and moved to New Hampshire.

• District of Nevada – Administrative Order 2021-01 – Order Adopting Chapter 13 Presumptive Attorney’s Fees Guidelines
  Middle District of Alabama – Transitioning to NexGen 3/8/21
• Eastern District of Kentucky – Transitioning to NextGen 2/22/21
• Middle District of Alabama – New 11 U.S.C. 1328(i) Discharges new local form, not a 9007 motion.
• District of Minnesota – Congratulations to recipients of the Judge Nancy C. Dreher Pro Bono Distinguished Service Award: Attorneys Peter Greenlee, Yvonne Michaud Novak and Dennis Ryan
• Southern District of Mississippi – Bankruptcy filings for 2020 down 31.5% over prior year

Judgeship Positions

• District of Minnesota – Application due date 3/18/21
• District of Puerto Rico – Application due date 3/3/21
• Middle District of Florida at Orlando and Jacksonville – Application due date 2/1/21
• Eastern District of Tennessee – Application deadline extended to 1/29/21

Chapter 13 Standing Trustee

• District of South Carolina, Columbia Division – Application due date 2/19/21
• Northern District of Illinois, Eastern Division – Application due date 2/5/21

• FTC Commissioner Rohit Chopra to be Named CFPB Director – A Strong Consumer Advocate and Aggressive Law Enforcer

• CFPB Sues 1st Alliance Lending, LLC and Its Principals for Alleged Unlawful Mortgage Lending Practices

• Tricare Fraud ‘Mastermind’ Sentenced to 18 Years in Prison

• Former In-House Lawyer Coughing Up $3.5 Million For ‘Systemic’ Scam

• North Texas Woman Sentenced to Federal Prison for Bankruptcy Fraud Scheme

• Owner of Online Payday Loan Company Pleads Guilty to Bankruptcy Fraud

• More Than Half of Ohioʼs Pandemic Unemployment Assistance Claims Have Been Flagged for Fraud

• Former Stamp Farms Owner Sentenced to Prison, Ordered to Pay $23M in Restitution

• Many Military Vets Turned Away for COVID-19 Vaccine Because They Make too Much Money

“This memorandum provides a brief description of the reasons that the legislation is likely to fail and proposes that the Chapter 13 trustees best chance to defeat the legislation comes from aligning themselves with other interests opposed to its passage.”

On January 14, 2021, the Supreme Court held in City of Chicago v. Fulton, 592 U.S. _____ (2021), that “mere retention” of estate property after the filing of a bankruptcy petition does not violate § 362(a)(3) of the Bankruptcy Code. Essentially, in order to recover property from a repossessing creditor, turnover under § 542 would be required. Watch for more about the opinion and its ramifications coming soon.Click here for the Opinion

In the consumer bankruptcy field, practitioners are often uncomfortable with the rules in UCC Article 9. Ahern has written a series for the Academy, designed to review Article 9’s rules related to consumer transactions. This week, he concludes his review of Article 9’s rules related to consumer transactions with an essential analysis of penalties imposed on creditors for violations of rules regulating their exercise of remedies.Click here for Part I Click here for Part II Click here for Part III Click here for Part IV Click here for Part V Click here for Part VI

“This memorandum provides a brief description of the reasons that the legislation is likely to fail and proposes that the Chapter 13 trustees best chance to defeat the legislation comes from aligning themselves with other interests opposed to its passage.”

Bill modifies administrative provisions related to the bankruptcy trustee system. Specifically: (1) provides for the distribution of bankruptcy fees made to the U.S. Trustee System Fund for the costs of administering payments and trustee compensation, (2) establishes the Chapter 7 Trustee Fund and associated fees, and (3) extends the temporary office of bankruptcy judges in specified judicial districts.

• Trump Extends 25 Temporary Bankruptcy Court Judgeships

• Eastern District of Kentucky – Transitioning to NextGen 2/22/21
• Western District of Kentucky – Welcome new judge – Honorable Charles R. Merrill
• Northern District of Oklahoma – Policy Regarding Relief from Stay During the COVID-19 Crisis

• Recovery Rebate Credit – No Double Dipping – this credit is ONLY for folks who did NOT receive their stimulus payments ($1,200 and $600)

• All Taxpayers Now Eligible for Identity Protection PINs

Judgeship Positions

• Middle District of Florida at Orlando and Jacksonville – Application due date 2/1/21
• Eastern District of Tennessee – Application deadline extended to 1/29/21

Chapter 13 Standing Trustee

• Northern District of Illinois, Eastern Division – Application due date 2/5/21

 

 

• Congress Approves $25 Billion in Rental Assistance. Here’s How to Apply

• Notice: If You Are a Former Member of Members 1st Federal Credit Union Who Was Charged Overdraft Fees between March 29, 2015 and January 14, 2019, and who had closed their accounts prior to January 14, 2019, You May Be Eligible For Benefits Under a Class Action Settlement.

• Millions of Taxpayers Will Receive Their Second Economic Impact Payments by Debit Card
  • SPREAD THE WORD: The EIP Stimulus Payment Prepaid Card: Not a Scam; How to Avoid Fees

On January 14, 2021, updates were made on Google servers which affected the display of Hearing and 341 Calendars for the ChapMobile App. Although the main display of the hearing and 341 calendars will not produce data, the Search functions within these areas will produce results. This is a national problem, but the Judiciary has isolated the issue and has adjusted the ChapMobile App code to match the changes made by this Google update. The Judiciary will be deploying an updated ChapMobile App to the Apple and Google App Stores as soon as possible. We anticipate the new app will be released by the App Stores in the next few days. Users will receive the update via their devices.

Judge Brown looks at the “Stimulus Bill”

“Consumer bankruptcy issues are addressed in Title X of the Act, section 1001, which amends Bankruptcy Code § 541(b)’s exclusions from property of the estate, adding subsection 11 for certain coronavirus relief, defined as “recovery rebates made under section 6428 of the Internal Revenue Code.” . . . Section 1001 also amends Bankruptcy Code § 1328 to add subsection (i)(1), . . .”

“While several of the bankruptcy provisions are to be expected – such as excluding stimulus payments made under the Internal Revenue Code from being considered property of the estate or disposable income – the law creates, for a one-year period, a substantial modification in § 1328 . . .”