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September 6, 2021
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Archives |
Escrow 101 – Part 1 of 3
This week we begin a series of articles detailing the ins and outs of escrow analysis. In this Part 1, McCormick looks at RESPA and Reg X, along with initial and annual escrow statements. This is a detailed analysis you will want to not only review but hang on to.
Eviction Ban
Big News of the Week . . .
Supreme Court Blocks Biden Administration’s Eviction Moratorium – “Congress never gave the CDC the staggering amount of power it claims,” a group of landlords argued.
From the Judicial Conference Committee
The Federal Rules of Bankruptcy Procedure (eff. Dec. 1, 2020) govern procedures for bankruptcy proceedings. For many years, such proceedings were governed by the General Orders and Forms in Bankruptcy promulgated by the Supreme Court. By order dated April 24, 1973, effective October 1, 1973, the Supreme Court prescribed, pursuant to 28 U.S.C. § 2075, the Bankruptcy Rules and Official Bankruptcy Forms, which abrogated previous rules and forms. Over the years, the Bankruptcy Rules and Official Forms have been amended many times, most recently in 2020.
- Appellate Rules 2 and 4;
- Bankruptcy Restyled Rules for the 3000 to 6000 Series; Rules 3002.1, 3011, and 8003; and new Rule 9038;
- Official Bankruptcy Forms 101, 309E1, 309E2, and 417A; and new Official Forms 410C13-1N, 410C13-1R, 410C13-10C, 410C13-10NC, and 410C13-10R;
- Civil Rules 15, 72, and new Rule 87; and
- Evidence Rules 106, 615, and 702.
Click here for the current version.
Comments due by 2/16/22.
Eviction Moratorium
Position Opening
- U.S. Bankruptcy Judge – District of South Carolina
- Standing Chapter 13 Trustee – Northern District of Texas (Abilene, Amarillo, Lubbock, San Angelo and Wichita Falls Divisions) – Application due date 9/1/21
- Staff Attorney – Middle District of Alabama – Office of the United States Bankruptcy Administrator– Application due date 9/10/21
From the Courts
- Middle District of NC – Durham Courthouse Closes Permanently
- District of MN – The Honorable William J. Fisher’s chambers and courtroom have moved within the Warren E. Burger Federal Building and United States Courthouse. Judge Fisher is now presiding in Courtroom 2A in St. Paul.Please update the courtroom location when filing motions and notices of hearing related to matters pending before Judge Fisher in St. Paul.
- District of SC – Bar Announcement by Judge Waites
- District of CO – Proposed revisions to Local Rules and Forms
- Middle District of TN – Proposed Local BK Rules (Comments by 8/30/21)
- District of AZ – 9/30/21 Deadline for Submitting Proposed Amendments to the Local Rules
IN CASE YOU MISSED IT . . .
When (or Not) Is the Best Interests of Creditors Test Applicable in a Modified Plan?
While the best interests of creditors test is applicable upon modification of a Chapter 13 plan, post-petition acquired property of the estate is not included in such analysis in that such property would not be property of a Chapter 7 estate.
OF INTERESTS (Not password protected)
Can Ohio Businesses Hurt by COVID-19 Shutdowns Be Able to Make Insurance Claims? Court to Decide . . . A case to watch
MORTGAGES IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
CHAPTER 12 IN THE NEWS (Not password protected)
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August 30, 2021
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Archives |
Escrow 101 – Part 1 of 3
This week we begin a series of articles detailing the ins and outs of escrow analysis. In this Part 1, McCormick looks at RESPA and Reg X, along with initial and annual escrow statements. This is a detailed analysis you will want to not only review but hang on to.
Eviction Ban
Big News of the Week . . .
Supreme Court Blocks Biden Administration’s Eviction Moratorium – “Congress never gave the CDC the staggering amount of power it claims,” a group of landlords argued.
From the Judicial Conference Committee
The Federal Rules of Bankruptcy Procedure (eff. Dec. 1, 2020) govern procedures for bankruptcy proceedings. For many years, such proceedings were governed by the General Orders and Forms in Bankruptcy promulgated by the Supreme Court. By order dated April 24, 1973, effective October 1, 1973, the Supreme Court prescribed, pursuant to 28 U.S.C. § 2075, the Bankruptcy Rules and Official Bankruptcy Forms, which abrogated previous rules and forms. Over the years, the Bankruptcy Rules and Official Forms have been amended many times, most recently in 2020.
- Appellate Rules 2 and 4;
- Bankruptcy Restyled Rules for the 3000 to 6000 Series; Rules 3002.1, 3011, and 8003; and new Rule 9038;
- Official Bankruptcy Forms 101, 309E1, 309E2, and 417A; and new Official Forms 410C13-1N, 410C13-1R, 410C13-10C, 410C13-10NC, and 410C13-10R;
- Civil Rules 15, 72, and new Rule 87; and
- Evidence Rules 106, 615, and 702.
Click here for the current version.
Comments due by 2/16/22.Eviction Moratorium
Position Opening
- U.S. Bankruptcy Judge – District of South Carolina
- Standing Chapter 13 Trustee – Northern District of Texas (Abilene, Amarillo, Lubbock, San Angelo and Wichita Falls Divisions) – Application due date 9/1/21
- Staff Attorney – Middle District of Alabama – Office of the United States Bankruptcy Administrator– Application due date 9/10/21
From the Courts
- Middle District of NC – Durham Courthouse Closes Permanently
- District of MN – The Honorable William J. Fisher’s chambers and courtroom have moved within the Warren E. Burger Federal Building and United States Courthouse. Judge Fisher is now presiding in Courtroom 2A in St. Paul.Please update the courtroom location when filing motions and notices of hearing related to matters pending before Judge Fisher in St. Paul.
- District of SC – Bar Announcement by Judge Waites
- District of CO – Proposed revisions to Local Rules and Forms
- Middle District of TN – Proposed Local BK Rules (Comments by 8/30/21)
- District of AZ – 9/30/21 Deadline for Submitting Proposed Amendments to the Local Rules
IN CASE YOU MISSED IT . . .
When (or Not) Is the Best Interests of Creditors Test Applicable in a Modified Plan?
While the best interests of creditors test is applicable upon modification of a Chapter 13 plan, post-petition acquired property of the estate is not included in such analysis in that such property would not be property of a Chapter 7 estate.
OF INTERESTS (Not password protected)
Can Ohio Businesses Hurt by COVID-19 Shutdowns Be Able to Make Insurance Claims? Court to Decide . . . A case to watch
MORTGAGES IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
CHAPTER 12 IN THE NEWS (Not password protected)
FOR YOUR HEALTH (Not password protected)
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August 23, 2021
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Archives |
Are Your Loyalties Divided?
“Anytime there are two people sitting across from you, you have a conflict of interest.”
One of Attorney Moran’s best! How much thought do you give to the seemingly happily married couple sitting across from you? What is the likelihood of separation or divorce? This concise article looks at the potential conflicts of interest.
When (or Not) Is the Best Interests of Creditors Test Applicable in a Modified Plan?
While the best interests of creditors test is applicable upon modification of a Chapter 13 plan, post-petition acquired property of the estate is not included in such analysis in that such property would not be property of a Chapter 7 estate.
From the Judicial Conference Committee
The Federal Rules of Bankruptcy Procedure (eff. Dec. 1, 2020) govern procedures for bankruptcy proceedings. For many years, such proceedings were governed by the General Orders and Forms in Bankruptcy promulgated by the Supreme Court. By order dated April 24, 1973, effective October 1, 1973, the Supreme Court prescribed, pursuant to 28 U.S.C. § 2075, the Bankruptcy Rules and Official Bankruptcy Forms, which abrogated previous rules and forms. Over the years, the Bankruptcy Rules and Official Forms have been amended many times, most recently in 2020.
- Appellate Rules 2 and 4;
- Bankruptcy Restyled Rules for the 3000 to 6000 Series; Rules 3002.1, 3011, and 8003; and new Rule 9038;
- Official Bankruptcy Forms 101, 309E1, 309E2, and 417A; and new Official Forms 410C13-1N, 410C13-1R, 410C13-10C, 410C13-10NC, and 410C13-10R;
- Civil Rules 15, 72, and new Rule 87; and
- Evidence Rules 106, 615, and 702.
Click here for the current version.
Comments due by 2/16/22.
Oh My Goodness
You HAVE to read this article . . .
This Black Family’s Home Appraisal Grew by $92,000 After They Removed All Signs of Their Race
From the NCLC
Great info from last week . . .
Eviction Moratorium
Position Opening
- Standing Chapter 13 Trustee – Northern District of Texas (Abilene, Amarillo, Lubbock, San Angelo and Wichita Falls Divisions) – Application due date 9/1/21
- Staff Attorney – Middle District of Alabama – CORRECTION. This position is for a staff attorney position in the office of the United States Bankruptcy Administrator for the Middle District of Alabama in Montgomery. We apologize that we erroneously ran this as an opening in the Chapter 13 Trustee’s office – Application due date 9/10/21
Eviction Ban
From the Courts
- District of SC – Bar Announcement by Judge Waites
- District of CO – Proposed revisions to Local Rules and Forms
- Central District of CA – Revised Local Bankruptcy Rules Forms Effective 7/30/21
- Middle District of TN – Proposed Local BK Rules (Comments by 8/30/21)
- District of AZ – 9/30/21 Deadline for Submitting Proposed Amendments to the Local Rules
IN CASE YOU MISSED IT . . .
Ms. Ps & Qs
Ms. Ps & Qs has a great answer for us: What should you do when your “Spidey sense” tells you that your client might have diminished capacity?
OF INTERESTS (Not password protected)
MORTGAGES IN THE NEWS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
CHAPTER 12 IN THE NEWS (Not password protected)
FOR YOUR HEALTH (Not password protected)
Try This: 17 Exercises to Relieve Upper Back Pain, Neck Pain, and More These are REALLY easy – you don’t have to do all 17, just pick the ones you like best. And you only need to do them for MINUTES a day. Some you can even do at your desk!
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August 16, 2021
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Archives |
When the Trustee Gets Subpoenaed
“. . . debtors, creditors or third parties may be interested in the trustee’s internal operating procedures or legal position on disputes pending in bankruptcy court or other forums. Trustees can certainly be subpoenaed but are there limits on issuance and compliance?”
Ms. Ps & Qs
Ms. Ps & Qs has a great answer for us: What should you do when your “Spidey sense” tells you that your client might have diminished capacity?
From the National Consumer Law Center
Eviction Moratorium
From the CFPB
- CFPB Issues Interpretive Rule on Certain Mortgage and Disclosure Timing Requirements for the 2021 Juneteenth Federal Holiday – Because the Juneteenth National Independence Day Act was signed into law two days before the newly created holiday on June 19, many participants in the mortgage industry reported being unsure of how to treat the day for purposes of regulatory compliance. . . . For rescission of closed-end mortgages and TILA-RESPA Integrated Disclosures, whether June 19, 2021, counts as a business day or federal holiday depends on when the relevant time period began. If the relevant time period began:
- On or before June 17, 2021, then June 19 was a business day.
- After June 17, 2021, then June 19 was a federal holiday.
Position Opening
- Standing Chapter 13 Trustee – Northern District of Texas (Abilene, Amarillo, Lubbock, San Angelo and Wichita Falls Divisions) – Application due date 9/1/21
- Trustee’s Staff Attorney – Middle District of Alabama
Eviction Ban
Student Loans Chronicles
- Senate Judiciary Committee Hearing on Student Loans and Act Introduced by Senators Durbin and Cornyn
By William Houston Brown, Adviser, Academy for Consumer Bankruptcy Education, Inc.
- Pause on Student Loan Payments Extended Through January (Not password protected)
From the Courts
- District of CO – Proposed revisions to Local Rules and Forms
- Central District of CA – Revised Local Bankruptcy Rules Forms Effective 7/30/21
- District of NV – Judge Beesley Retirement Announcement
- Middle District of TN – Proposed Local BK Rules (Comments by 8/30/21)
- District of AZ – 9/30/21 Deadline for Submitting Proposed Amendments to the Local Rules
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Proposed Amendments- Appellate Rules 2 and 4;
- Bankruptcy Restyled Rules for the 3000 to 6000 Series; Rules 3002.1, 3011, and 8003; and new Rule 9038;
- Official Bankruptcy Forms 101, 309E1, 309E2, and 417A; and new Official Forms 410C13-1N, 410C13-1R, 410C13-10C, 410C13-10NC, and 410C13-10R;
- Civil Rules 15, 72, and new Rule 87;
- New Criminal Rule 62; and
- Evidence Rules 106, 615, and 702.
IN CASE YOU MISSED IT . . .
Absolute Right to Dismiss? Sixth Circuit Says “Yes”
“Does a Debtor have a right to dismiss a Chapter 13 case where Debtor has been acting in bad faith?”
IN THE NEWS (Not password protected)
OF INTERESTS (Not password protected)
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August 9, 2021
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Archives |
Who Gets the Trustee’s Fee?
An important new decision out of the 9th Circuit BAP wherein a Chapter 13 trustee is not compelled to return the percentage fee taken from a Chapter 13 case when the case is dismissed prior to confirmation.
Senate Judiciary Committee Hearing on Student Loansand Act Introduced by Senators Durbin and Cornyn
“The proposed Act . . . would strike current section 523(a)(8), replacing it with the same undue hardship provision for educational benefits or loans made, insured or guaranteed by governmental units or nonprofit institutions, or in the alternative such loans would be dischargeable ten years after the first payment on the loan became due.”
See also:
Thoughts on Student Loans and the FRESH Start Act
Absolute Right to Dismiss? Sixth Circuit Says “Yes”
“Does a Debtor have a right to dismiss a Chapter 13 case where Debtor has been acting in bad faith?”
Federal Housing Administration Extends Single Family Eviction Moratorium
July 30, 2021,announcement extends the eviction moratorium through September 30 for foreclosed borrowers and other occupants and notes expiration of the foreclosure moratorium on July 31.
From the CFPB
Just out . . . CFPB Issues Interpretive Rule on Certain Mortgage and Disclosure Timing Requirements for the 2021 Juneteenth Federal Holiday – Because the Juneteenth National Independence Day Act was signed into law two days before the newly created holiday on June 19, many participants in the mortgage industry reported being unsure of how to treat the day for purposes of regulatory compliance. . . . For rescission of closed-end mortgages and TILA-RESPA Integrated Disclosures, whether June 19, 2021, counts as a business day or federal holiday depends on when the relevant time period began. If the relevant time period began:
- On or before June 17, 2021, then June 19 was a business day.
- After June 17, 2021, then June 19 was a federal holiday.
From the IRS
Paid Leave Credit Available for Providing Leave to Employees Caring for Individuals Obtaining or Recovering from a COVID-19 Immunization (This could be applicable to YOU or your clients)
Eviction Ban
As evidenced by the below sample articles, evictions, or not, are all over the place . . .
AACER U.S. Bankruptcy Statistics and Trends
This interactive map displays cumulative U.S. bankruptcy filings by state for Chapter 7, Chapter 11 and Chapter 13 cases. Filings include both commercial and non-commercial (individual consumer) bankruptcy petitions.
For Your Blog
- Housing Insecurity Media Toolkit – Easy to share information. For example, this handout: For Landlords – Squeezed between missed rental income and bills you owe? Help is available And there are many others. Check it out.
From the Courts
- District of Rhode Island – Courts closed 8/9 for Victory Day
- Bankruptcy Filings Plunged to Lowest Number Since 1985
- District of NV – Judge Beesley Retirement Announcement
- Middle District of TN – Proposed Local BK Rules (Comments by 8/30/21)
- District of AZ – 9/30/21 Deadline for Submitting Proposed Amendments to the Local Rules
- Northern District of OK – Scheduled to go live on NextGen 9/21
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Proposed Amendments- Appellate Rules 2 and 4;
- Bankruptcy Restyled Rules for the 3000 to 6000 Series; Rules 3002.1, 3011, and 8003; and new Rule 9038;
- Official Bankruptcy Forms 101, 309E1, 309E2, and 417A; and new Official Forms 410C13-1N, 410C13-1R, 410C13-10C, 410C13-10NC, and 410C13-10R;
- Civil Rules 15, 72, and new Rule 87;
- New Criminal Rule 62; and
- Evidence Rules 106, 615, and 702.
IN CASE YOU MISSED IT . . .
Critical Case Comment
In a dismissed but reinstated case, should the bar date be extended for the benefit of creditors? “Once again, . . . case demonstrates to creditors that if you snooze, you lose.”
OF INTERESTS (Not password protected)
MORTGAGES IN THE NEWS (Not password protected)
Important from last week . . .Fact Sheet: Biden Administration Announces Additional Actions to Prevent Foreclosures
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
Can Foot Shape Reveal Your Personality Type? (This article starts out with some fun info but later it reveals some things that could answer questions about foot pain.)
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August 2, 2021
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Archives |
Assessable Yet Not Assessed Taxes Could Cost You a Malpractice Claim
“Barnes was a Chapter 11. What relevance does it have in Chapter 13? Just this: it reminds us that the assessable taxes are an undeconsidered invitation to malpractice . . .”
Critical Case Comment
In a dismissed but reinstated case, should the bar date be extended for the benefit of creditors? “Once again, . . . case demonstrates to creditors that if you snooze, you lose.”
Federal Housing Administration Extends Single Family Eviction Moratorium
Today’s (7/30/21) announcement extends the eviction moratorium through September 30 for foreclosed borrowers and other occupants and notes expiration of the foreclosure moratorium on July 31.
Final Mortgage Servicing Rule
- CFPB Confirms Effective Date for Debt Collection Final Rules – CFPB announced that two final rules issued under the Fair Debt Collection Practices Act (FDCPA) will take effect as planned, on November 30, 2021. The CFPB issued a proposal in April 2021 that, if finalized, would have extended the effective dates to January 29, 2022. The CFPB has now determined that such an extension is unnecessary. Following this announcement, the CFPB will publish a formal notice in the Federal
From the IRS
Paid Leave Credit Available for Providing Leave to Employees Caring for Individuals Obtaining or Recovering from a COVID-19 Immunization (This could be applicable to YOU or clients)
From NCBRC
Just For Our Military
VA Partial Claim Program – This is new. Have you heard of it?
The VA Partial Claim Payment is a temporary program that is intended to assist Veteran borrowers specifically impacted by the COVID-19 pandemic to resume making their regular (pre-COVID) mortgage payments after exiting forbearance. VAPCP will only be available from July 27, 2021 through October 28, 2022.
Sub Chapter V
Eviction Ban
For Your Blog
- So, this is different . . .Housing Insecurity Media Toolkit – Easy to share information. For example, this handout: For Landlords – Squeezed between missed rental income and bills you owe? Help is available. And there are many others. Check it out.
Student Loans Chronicles
- Discharge Student Loans in Bankruptcy? Courts Disagree — But Reform Could Be Coming
From the Courts
- Middle District of TN – Return to in-person hearings/trials 9/7/21
- Eastern District of KY – Return to in-person hearings/trials 9/1/21
- Middle District of FL – New Local Rules – Click HERE to view a memorandum from Judge Lori V. Vaughan summarizing the changes.
- District of NM – Form change for chapter 13 fee applications
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Northern District of OK – Scheduled to go live on NextGen 9/21
- Northern District of GA – CM/ECF will be unavailable beginning Friday, August 6, 2021 @ 5:00pm/EST until GANB is live on Next/Gen on Monday, August 9, 2021.
IN CASE YOU MISSED IT . . .
Critical Case Comment
An important new case regarding ‘student’ loans. Are private educational loans automatically excepted from discharge by § 523(a)(8)?
MORTGAGES IN THE NEWS (Not password protected)
Local Black Homebuyers Twice as Likely to Be Denied Loans – Here’s what could help. (While this article is specific to the Dayton, OH, area, seems to be a good amount of information that covers the nation.)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTHCARE IN THE NEWS (Not password protected)
Medical Debt Was Cut Nearly in Half in States that Expanded Medicaid – Non-expansion states saw a much smaller drop in new medical debt over the same period.
FOR YOUR HEALTH (Not password protected)
9 Things You Can Clean with Vinegar – Nontoxic, eco-friendly vinegar is a multipurpose cleaning solution that’s also great at killing bacteria (and it’s really cheap!!)
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July 26, 2021
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Archives |
“Stripping” Residential Mortgages and the Effect of 11 U.S.C. § 1111(b) – Part 2 Eleven Eleven What?
This week, Larry Ahern concludes his two-part review of “lien stripping.” The initial focus of his analysiswas to explore recent legislation that makes it easier for some individuals, especially farmers or small business owners, to modify residential mortgages, with special emphasis on the Small Business Reorganization Act of 2019. He also made some suggestions for tactics to consider before and during bankruptcy. He now concludes with an analysis of whether and how subsection 1111(b) may reinforce the residential lender’s position in a case under subchapter V of Chapter 11 and recent cases that have struggled over the issue.
Click here for Part 1 Strategies in Modification of Residential Mortgages
Critical Case Comment
An important new case regarding ‘student’ loans. Are private educational loans automatically excepted from discharge by § 523(a)(8)?
Beyond Professional Ethics
Continuing with our quarterly series directed to staff, Mr. Akers, very eloquently speaks to everyone – attorneys, trustees, CPAs, PHRs, Paraprofessionals, and clerical staff – from the new hire to the 30 year veteran employee.
“Being truthful is a valuable ethic that can actually help work be completed more quickly and in a quality manner.”
Just For Our Military
VA Partial Claim Program – This is new. Have you heard of it?
The VA Partial Claim Payment is a temporary program that is intended to assist Veteran borrowers specifically impacted by the COVID-19 pandemic to resume making their regular (pre-COVID) mortgage payments after exiting forbearance. VAPCP will only be available from July 27, 2021 through October 28, 2022.
Sub Chapter V
A Guide to the Small Business Reorganization Act of 2019
Judge Bonapfel has again edited/supplemented his SBRA materials as of July 12, 2021. Click here for the entire Guide
Position Vacancies
Judgeship – Eleventh Circuit Seeks Applications for Bankruptcy Judge for the Middle District of Florida at Jacksonville – Application Deadline July 30, 2021
Student Loans Chronicles
From the Courts
- Middle District of TN – Return to in-person hearings/trials 9/7/21
- Eastern District of KY – Return to in-person hearings/trials 9/1/21
- Middle District of FL – New Local Rules – Click HERE to view a memorandum from Judge Lori V. Vaughan summarizing the changes.
- District of NM – Form change for chapter 13 fee applications
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Northern District of GA – CM/ECF will be unavailable beginning Friday, August 6, 2021 @ 5:00pm/EST until GANB is live on Next/Gen on Monday, August 9, 2021.
- Middle District of LA – CM/ECF will be unavailable fromThursday, July 22, 4:00pm until Next/Gen is live on Monday, July 26, 2021 at 8:00am.
IN CASE YOU MISSED IT . . .
The Importance of Using the Latest Master Mailing List for Serving Your Bankruptcy Documents
“If the Court does not have jurisdiction, then the orders it issues are ineffective as to the relief requested. Your client will not be happy about that. Nor will the Court. Of course, the creditor will be ever in your debt for ensuring that they were not bound to the order by the Bankruptcy Court.”
MORTGAGES IN THE NEWS (Not password protected)
Share of Mortgage Loans in Forbearance Decreases to 3.5% (1.75 million in forbearance plans)
IN THE NEWS (Not password protected)
Bankruptcy in the Northern District of Texas and Attorneys’ Fees (Chpt 13 case you are probably going to want to read!)
OF INTEREST (Not password protected)
House Judiciary Committee Announces Series of Hearings on Bankruptcy Reforms (The first one, which is next week, is on Chpt 11)
DEBT AND THE ECONOMY (Not password protected)
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July 19, 2021
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Archives |
A Review of Residential Mortgage “Stripping,” Recent Developments and the Effect of 11 U.S.C. § 1111(b) – Part 1 Strategies in Modification of Residential Mortgages
This week Ahern begins a two-part review of the power of an individual to alter the terms of a residential mortgage, among other liens. The primary focus of his analysis is to explore recent legislation that makes it easier for some individuals, especially farmers and small business owners, to modify residential mortgages, with special emphasis on the Small Business Reorganization Act of 2019 (SBRA). He makes some suggestions for small business debtors to consider before and during bankruptcy and will conclude in Part 2 with a description of the arcane topic of subsection 1111(b).
The Importance of Using the Latest Master Mailing List for Serving Your Bankruptcy Documents
“If the Court does not have jurisdiction, then the orders it issues are ineffective as to the relief requested. Your client will not be happy about that. Nor will the Court. Of course, the creditor will be ever in your debt for ensuring that they were not bound to the order by the Bankruptcy Court.”
Regarding the Judiciary
- Recalled Bankruptcy Judge – Eastern District of Michigan Recalls Judge Thomas J. Tucker
Sub Chapter V
A Guide to the Small Business Reorganization Act of 2019
Judge Bonapfel has again edited/supplemented his SBRA materials as of July 12, 2021. Click here for the entire Guide – FREE.
The title page indicates the sections in which material revisions and additions occur.Eviction Ban
Final Mortgage Servicing Rule
On June 23, 2020, the CFPB published an Interim Final Rule regarding loss mitigation requirements during the COVID-19 emergency.
On June 28, 2021, they issued the 2021 Mortgage Servicing COVID-19 Final Rule
Click here for an Executive Summary
Click here for an Unofficial Redline
From JDSupra: Detailed Breakdown of the CFPB’s COVID-19 Mortgage Servicing Final Rule
A popular item from last week. . .
Foreclosure Ban
From NCBRC
Position Vacancies
Judgeship – Eleventh Circuit Seeks Applications for Bankruptcy Judge for the Middle District of Florida at Jacksonville – Application Deadline July 30, 2021
From the Courts
- Middle District of FL – New Local Rules – Click HERE to view a memorandum from Judge Lori V. Vaughan summarizing the changes.
- District of NM – Form change for chapter 13 fee applications
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Northern District of GA – CM/ECF will be unavailable beginning Friday, August 6, 2021 @ 5:00pm/EST until GANB is live on Next/Gen on Monday, August 9, 2021.
- Middle District of LA – CM/ECF will be unavailable fromThursday, July 22, 4:00pm until Next/Gen is live on Monday, July 26, 2021 at 8:00am.
IN CASE YOU MISSED IT . . .
The Kill Switch and The Stay
“There are not many reported bankruptcy decisions regarding the use of kill switches.”
More from this author:
MORTGAGES IN THE NEWS (Not password protected)
SUBCHAPTER V (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
‘Long COVID’: More than a quarter of COVID-19 patients still symptomatic after 6 months, 55% of ‘Long COVID’ sufferers reported fatigue, 25% had shortness of breath, and 26% had symptoms of depression
JUST FOR FUN (Not password protected)
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July 12, 2021
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Archives |
The Kill Switch and The Stay
“There are not many reported bankruptcy decisions regarding the use of kill switches.”
More from this author:
Critical Case Comment
A prior servicer of a mortgage claim subsequently transferred to another servicer could be held liable if the transferor servicer provided inadequate or incorrect information to the transferee.
Appointment of New Bankruptcy Judge
The Honorable Jamie A. Wilson has been appointed as bankruptcy judge in the Jackson office of the United States Bankruptcy Court for the Southern District of Mississippi. Judge Wilson has been assigned all active cases previously assigned to retired United States Bankruptcy Judge Neil P. Olack.
Final Mortgage Servicing Rule
On June 23, 2020, the CFPB published an Interim Final Rule regarding loss mitigation requirements during the COVID-19 emergency.
On June 28, 2021, they issued the 2021 Mortgage Servicing COVID-19 Final Rule
Click here for an Executive Summary
Click here for an Unofficial Redline
From JDSupra: Detailed Breakdown of the CFPB’s COVID-19 Mortgage Servicing Final RuleFrom NCBRC
Positions Open
Judgeship – Eleventh Circuit Seeks Applications for Bankruptcy Judge for the Middle District of Florida at Jacksonville – Application Deadline July 30, 2021
Student Loans Chronicles
From the Courts
- District of South Carolina – New Law Clerk for Judge Waites
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Southern District of MS – The Honorable Neil P. Olack will retire on 6/30/21
- Northern District of GA – CM/ECF will be unavailable beginning Friday, August 6, 2021 @ 5:00pm/EST until GANB is live on Next/Gen on Monday, August 9, 2021.
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
Critical Case Comment
In awarding attorneys’ fees in a Chapter 13 case, a court is not limited to establishing the fee by use of the lodestar method; fees for services rendered should be based on the reasonable and customary fees charged by other attorneys performing the same or similar work.
IN THE NEWS (Not password protected)
SUBCHAPTER V (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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July 5, 2021
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Archives |
Happy Birthday America |
 |
Due to the holiday, we bring you an abbreviated update.
But we did want you to know that the
FINAL Mortgage Servicing Rule is out
Final Mortgage Servicing Rule
On June 23, 2020, the CFPB published an Interim Final Rule regarding loss mitigation requirements during the COVID-19 emergency.
On June 28, 2021, they issued the 2021 Mortgage Servicing COVID-19 Final Rule
Click here for an Executive Summary
Click here for an Unofficial Redline
From JDSupra: Detailed Breakdown of the CFPB’s COVID-19 Mortgage Servicing Final Rule
Very popular item from last week
Student Loans and the Supreme Court
- That’s a Brunner, Man. Supreme Court Declines to Revisit Overly Rigid Standard for Discharge of Student Loans in Bankruptcy
Positions Open
- Judgeship – Eleventh Circuit Seeks Applications for Bankruptcy Judge for the Middle District of Florida at Jacksonville – Application Deadline July 30, 2021
- Chapter 12 Trusteeship – Western, Middle and Eastern Districts of Louisiana – Application Deadline July 7
- Term Law Clerk Northern District of Mississippi – Application Deadline July 9
From the Courts
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Southern District of MS – The Honorable Neil P. Olack will retire on 6/30/21
IN CASE YOU MISSED IT . . .
Critical Case Comment
It constitutes an unfair discrimination, violative of 11 U.S.C. § 1322(b)(1), for a Chapter 13 plan which would pay more to a student loan than to the remaining general unsecured creditors. (Somers) In re Kane, 603 B.R. 491 (Bankr. C.D. Kan. June 18, 2019)
OF INTEREST (Not password protected)
Bankruptcy Filing Blocks Foreclosure Auction of Historic Lenox Mansion (Really cool house if you are into history.)
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
7 Drinks for Lowering Blood Pressure (Okay, some of these taste like crap BUT there are recipes that may make them more palatable! Overall a really helpful article.)
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June 28, 2021
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Critical Case Comment
It constitutes an unfair discrimination, violative of 11 U.S.C. § 1322(b)(1), for a Chapter 13 plan which would pay more to a student loan than to the remaining general unsecured creditors. (Somers) In re Kane, 603 B.R. 491 (Bankr. C.D. Kan. June 18, 2019)
Remember, Landlords Are Sacred Cows in Bankruptcy
“ . . . most common complaint is the landlord. These days the callers tell me they are a few months behind on the rent.”
Phil Lamos – Humble Sage
We at ConsiderChapter13.org are deeply saddened by the loss of one of our own. Phillip D. Lamos was a quiet, humble man. He loved his family, loved the law, and loved to serve others.
Student Loans and the Supreme Court
- That’s a Brunner, Man. Supreme Court Declines to Revisit Overly Rigid Standard for Discharge of Student Loans in Bankruptcy
Foreclosure Ban Extended
Biden Renews Foreclosure Ban One Last Time – Foreclosure, eviction protections to remain in place through the end of July
ACT 12 (Association of Chapter 12 Trustees)
ACT 12 has a really cool new website. Not only a new website but they have just posted a video – Intro to Chapter 12. Check it out!!
NACTT LIVE! July 7-10 – Still time to register with no late fee!!
Don’t Miss the Fun – Register NOW
Click here for the Program
Click here for the In-Person Registration NOW!
Not yet ready/can’t travel, the conference is being offered virtually.
“Business Day”
CFPB Issues Statement on Juneteenth Bill Truth in Lending Act Issue (You need to read this one . . . regarding“business day” under Regulation Z)
Positions Open
- Chapter 12 Trusteeship – Western, Middle and Eastern Districts of Louisiana – Application Deadline July 7
- Term Law Clerk Northern District of Mississippi – Application Deadline July 9
Student Loan Chronicles
From the Courts
- District of South Carolina – New Law Clerk for Judge Waites
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Southern District of MS – The Honorable Neil P. Olack will retire on 6/30/21
- District of MN – Tricia Pepin Selected as Next Clerk of the Bankruptcy Court
- District of MN – Proposed Changes to Chapter 13 Plan
- Northern District of GA – Nancy Whaley appointed Interim Trustee for cases formerly assigned to Mary Ida Townson
Sanctions and Irony and Fraud, Oh My!
- Omega Insurance Surrogacy Scandal Surpasses $6M in Claims – Yes, the victims were insured. But no, the insurance policy is not paying covered claims.
IN CASE YOU MISSED IT . . .
List It or Lose It: When Actual Knowledge Isn’t Enough
To actually effect abandonment of unadministered assets in a bankruptcy case, the asset in question must appear on Schedule A/B.
IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Fannie Mae and Freddie Mac State Borrower Assistance Map through March 31, 2021 (cool, interactive map with lots of info)
OF INTEREST (Not password protected)
Executory or Not Executory? That is the Question – NJ Bankruptcy Court Rules That Court-Ordered Specific Performance Renders a Contract Non-Executory
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
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June 21, 2021
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List It or Lose It: When Actual Knowledge Isn’t Enough
To actually effect abandonment of unadministered assets in a bankruptcy case, the asset in question must appear on Schedule A/B.
Helping Our Clients Stay Afloat and Get Past the Covid-19 Tsunami
The article discusses some of the tactics available, including bankruptcy, that can be used by business owners, especially restaurateurs, who have been negatively impacted by governmental shutdowns this past year due to Covid-19. First published on CorporateLiveWire, May 2021
Retired Judge Passes Away
NACTT ANNUAL CONFERENCE LIVE! July 7-10
D.C. IS OPEN!! The program is phenomenal. BE THERE!
Along with the trial skills presentations and the ever popular Case Law Update, Keeping the Home and Paying the Mortgage Creditor won’t be just another mortgage panel – it will be cutting edge with information you will hear first at NACTT!
For anyone who is not yet ready/can’t travel, the conference is being offered via live stream and/or recordings.
Click here for the LIVE Registration NOW!
Judge Retires
U.S Bankruptcy Court Judge Robert Kressel Retires After Nearly 40 Years of Service
Click here for more information on Judge Kressel
New Judge Announced
Fourth Circuit Selects Pamela W. McAfee as Bankruptcy Judge for the Eastern District of North Carolina
Click here for more information on McAfee
Free On-Line Seminar
U.S. Trustee for the Western District of Michigan and Chapter 13 Trustee Barbara Foley are pleased to present a free seminar for the benefit of the Bar of the Western District of Michigan on July 19th.
From the Courts
- Delaware Bankruptcy Bench Is at Full Strength with Addition of Judge Craig Goldblatt
- Southern District of MS – The Honorable Neil P. Olack will retire on 6/30/21
- District of MN – Tricia Pepin Selected as Next Clerk of the Bankruptcy Court
- District of MN – Proposed Changes to Chapter 13 Plan
- Western District of MI – Administrative Order 2021-2 Regarding Interim Amendment of LBR 4001-1(b) and Deemed Waiver of Time Limits Under 11 U.S.C. Section 362(e)(1)
- Northern District of GA – Nancy Whaley appointed Interim Trustee for cases formerly assigned to Mary Ida Townson
- Western District of VA – New Local Rule regarding dismissal of certain adversaries
- District of MN – New Local Rules – Click here for red-lined version
- District of AZ – Transitioning to NextGen June 28th. Downtime starting Thursday, June 24, at 5:00pm through Monday, June 28, at 8:30am (MST)
For Your Blog
More Than a Third of Volunteers in a Consumer Reports Study Found Errors in Their Credit Reports – Here’s how to find and fix mistakes and avoid paying for a ‘free’ report
Sanctions and Irony and Fraud, Oh My!
- Choctaw County Man Accused of Lying About Purple Heart Admits Fraud: Alleged Scheme Cost Government More Than $800,000
IN CASE YOU MISSED IT . . .
Objections to Claims: Two of These Creditors Are Not Like the Others
This exceptional article is a case summary of In re Nicolaus and how it is helpful in determining proper service under 3007(a)(2)(A)(i). Attorney Tavera also discusses amendments to 3007(A)(2)(A)(ii) that become effective 12/1/2021.
IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Mortgage Lenders Loosened Credit Standards in May – Numbers are consistent with an uptick in mortgage rates and a downturn in applications
OF INTEREST (Not password protected)
From NCBRC: Arizona District Court Addresses Eligibility for Exemptions (Chapter 7 case)
From NCBRC: Law Firm and Counsel Joint and Severally Liable for D/C Injunction Violation (Chapter 7 case)
DEBT AND THE ECONOMY (Not password protected)
U.S. Household Wealth Jumps to Record $136.9 Trillion, Fed Says (Could the headlines be any worse for those in the consumer bankruptcy industry!!)
THIS IS JUST FUNNY (Not password protected)
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June 14, 2021
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Critical Case Comment
In awarding attorneys’ fees in a Chapter 13 case, a court is not limited to establishing the fee by use of the lodestar method; fees for services rendered should be based on the reasonable and customary fees charged by other attorneys performing the same or similar work.
Objections to Claims: Two of These Creditors Are Not Like the Others
This exceptional article is a case summary of In re Nicolaus and how it is helpful in determining proper service under 3007(a)(2)(A)(i). Attorney Tavera also discusses amendments to 3007(A)(2)(A)(ii) that become effective 12/1/2021.
Passing of a Legend
C. Kenneth Still was a legend. Always with Barbara at this side, he epitomized qualities I think we all seek—honesty, diligence, kindness, and patience. He was a great mentor and a quick wit, and I miss him already.
NACTT ANNUAL CONFERENCE LIVE!
The National Association of Chapter 13 Trustees is incredibly proud to announce that its annual conference in our nation’s capital will be presented LIVE. Yes, LIVE – as in attendees actually in the audience and speakers actually on the stage – July 7-10.
The program is phenomenal – click here to check it out.
Wanna head back to live court with better trial skills? THREE hours of trial skills at no additional cost! Not interested in how to properly introduce evidence, Don’t Forget Me! has you covered. A panel of the best of the best discussing a myriad of issues – confirmation, post-confirmation, and even post-discharge along with vesting and more.
Of course, for anyone who is not yet ready/can’t travel, the conference is being offered via live stream and/or recordings.
Click here for the LIVE Registration NOW!
Free On-Line Seminar
U.S. Trustee for the Western District of Michigan and Chapter 13 Trustee Barbara Foley are pleased to present a free seminar for the benefit of the Bar of the Western District of Michigan.
Then & Now: Rucker ‘At Home’ As New Federal Bankruptcy Judge
In April, the Eighth Circuit Court of Appeals appointed Fayetteville attorney Bianca Rucker to a 14-year term as Arkansas’ newest federal bankruptcy judge.
Webinar Recording Now Available
Credit Union Issues in Chapter 13
Join an esteemed panel for a detailed discussion regarding the nuances of working with credit union loans in Chapter 13 cases. Panel includes: The Honorable Brian Lynch, Bankruptcy Judge, Western District of Washington; Chapter 13 Standing Trustee Beverly Burden, Eastern District of Kentucky; and Miles D. Monson, Monson Law Firm, Beaverton, Oregon. Atty Monson regularly represents credit unions.
The webinar is available free to all active subscribers to ConsiderChapter13.org. Not a subscriber? JOIN NOW.
Position Postings
Trusteeship
- Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21
- Southern District of Texas, Brownsville, Corpus Christi and McAllen Divisions – Application deadline 6/22/21
Law Clerk
Student Loan Chronicles
From the Courts
- U.S. Judicial Conference Urges Senate to Back Security Funding
- Western District of MI – Administrative Order 2021-2 Regarding Interim Amendment of LBR 4001-1(b) and Deemed Waiver of Time Limits Under 11 U.S.C. Section 362(e)(1)
- Northern District of GA – Nancy Whaley appointed Interim Trustee for cases formerly assigned to Mary Ida Townson
- Western District of VA – New Local Rule regarding dismissal of certain adversaries
- District of MN – New Local Rules – Click here for red-lined version
- District of OR – Implementation of new calendar system (CHAP) will occur on May 24
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- District of AZ – Transitioning to NextGen June 28th. Downtime starting Thursday, June 24, at 5:00pm through Monday, June 28, at 8:30am (MST)
IN CASE YOU MISSED IT . . .
A Consideration of Employer Required COVID-19 Vaccinations
In a recent edition of The NACTT Quarterly, Trustee McCarty looks in detail at the legalities of employers requiring employees to receive vaccinations.
Special thank you to NACTT and The NACTT Quarterly, May/June/July 2021, Vol. 33, No. 3.
IN THE NEWS (Not password protected)
From Credit Slips: Bankruptcy Filing Rates Not Rising, May Go Lower
MILITARY MATTERS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
The Cost of Caregiving: When Financial and Emotional Stress Compound (If these numbers are true, definitely makes one have second thoughts about taking a leave of absence to care for an ill loved one.)
Workers Are Gaining Leverage Over Employers Right Before Our Eyes (Free article from the New York Times but you may have to create an account – it’s easy, just email address and password – no other questions.)
DEBT AND THE ECONOMY (Not password protected)
Evictions at Kentucky Trailer Park Highlight Ohio Valley’s Lack of Affordable Housing (A must read for anyone who has, perhaps, lost touch with the Chapter 13 client base.)
IN THE FAMILY VACATION DEPARTMENT (Not password protected)
Vacation Meal Planning Made Easy (A nifty website with multiple features including a potluck planner, a sign-up app for taking meals to a convalescing friend, and vacation meal planning help – it’s pretty cool.)
HEALTH AND WELLNESS (Not password protected)
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June 7, 2021
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Measuring Success in Chapter 13: Five Years Later
“Five years ago, I wrote an article for this publication,‘Measuring Success in Chapter 13,’ where I criticized some media and academics for repeating an outdated and misleading statistic about the success of chapter13 cases.”
It appears this statistic is STILL being quoted. Here, Judge Lynch sets the record straight.
A Consideration of Employer Required COVID-19 Vaccinations
In a recent edition of The NACTT Quarterly, Trustee McCarty looks in detail at the legalities of employers requiring employees to receive vaccinations.
Special thank you to NACTT and The NACTT Quarterly, May/June/July 2021, Vol. 33, No. 3.
NACTT ANNUAL CONFERENCE LIVE!
The National Association of Chapter 13 Trustees is incredibly proud to announce that its annual conference in our nation’s capital will be presented LIVE. Yes, LIVE – as in attendees actually in the audience and speakers actually on the stage – July 7-10.
The program is phenomenal – click here to check it out.
Of course, for anyone who is not yet ready/can’t travel, the conference is being offered via live stream and/or recordings.
Click here for the LIVE Registration NOW!
Conflict Avoidance
Understanding your colleagues and/or co-workers, and even yourself, can help ease conflicts.
Does it drive you crazy when people don’t honor ‘your’ time? Or, are you confused when you are ONE MINUTE late and someone is really ticked off about it!
Understanding personality types can help people described in either of these questions. Meeting Time is a short, easy read but a GREAT reminder that we are all different.
Passing of Big Picture Thinker
Joseph L. Cosetti, Bankruptcy Court Judge Who Also Served as Pittsburgh Treasurer for 7 Years
Passing of Stuart Gold
Long-time respected member of the New Jersey bankruptcy bar and adjunct professor passed away 5/30.
Webinar Recording Now Available
Credit Union Issues in Chapter 13
Join an esteemed panel for a detailed discussion regarding the nuances of working with credit union loans in Chapter 13 cases. Panel includes: The Honorable Brian Lynch, Bankruptcy Judge, Western District of Washington; Chapter 13 Standing Trustee Beverly Burden, Eastern District of Kentucky; and Miles D. Monson, Monson Law Firm, Beaverton, Oregon. Atty Monson regularly represents credit unions.
The webinar is available free to all active subscribers to ConsiderChapter13.org. Not a subscriber? Join NOW.
From the IRS
Looking Ahead: How the American Rescue Plan Affects 2021 Taxes: Part 1 and Part 2 (Not sure how much this matters but it appears there is money your clients could be leaving on the table – even EITC for people who don’t have children.)
A popular item from 5/24 – 6 Million Tax Returns Are ‘In Suspension’ at the IRS, and That’s Preventing Many Families from Receiving Valuable Tax Credit
On the CFPB
Position Postings
Trusteeship
- Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21
- Southern District of Texas, Brownsville, Corpus Christi and McAllen Divisions – Application deadline 6/22/21
Law Clerk
From the Courts
- District of MN – New Local Rules – Click here for red-lined version
- Western District of VA – Reopening of in-person hearings (Beginning to see a lot of these!!)
- Eastern District of TN – Resumption of Handwritten Signature Requirement – Note that this is happening across the country – be sure to check your local rules.
- District of SC – Best Wishes to Andrew Powell and Agnes Babb – (Powell will serve as the staff attorney for new chapter 13 trustee, Annemarie Mathews.)
- District of OR – Implementation of new calendar system (CHAP) will occur on May 24
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- District of AZ – Transitioning to NextGen June 28th. Downtime starting Thursday, June 24, at 5:00pm through Monday, June 28, at 8:30am (MST)
For Your Blog
IN CASE YOU MISSED IT . . .
Bankruptcy Court Broadly Interprets “Engaged in Business” Requirement for Subchapter V Eligibility
This week, Larry Ahern revisits the SBRA, as modified by the CARES Act, and examines In re Ikalowych, an opinion interpreting debtors’ eligibility for subchapter V of Chapter 11 in a way that could make Chapter 11 accessible for more debtors who are “engaged in commercial or business activities.”
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
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May 31, 2021
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As we remember those who have served, we at
ConsiderChapter13.org are taking a much needed break.
We hope that you will take this opportunity to catch up on the
many excellent articles and/or webinars for which
you’ve been trying to find time.
We are already working on an exciting new update for June 7th.
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May 24, 2021
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Archives |
Bankruptcy Court Broadly Interprets “Engaged in Business” Requirement for Subchapter V Eligibility
This week, Larry Ahern revisits the SBRA, as modified by the CARES Act, and examines In re Ikalowych, an opinion interpreting debtors’ eligibility for subchapter V of Chapter 11 in a way that could make Chapter 11 accessible for more debtors who are “engaged in commercial or business activities.”
What the FICO? Reaffirming Doesn’t Help My Credit Score?
The fact that reaffirmation decisions are subject to more variables doesnot mean attorneys can just “go along” with Debtors – at least under Anzaldo, debtors’ attorneys need to stay informed and have a sound basis for signing off on the “attorney certification”.
See also:
Reaffirmations Impose Impossible Demands on Bankruptcy Counsel
Chapter 13 Trustee Change
Annemarie B. Mathews to replace retiring chapter 13 standing trustee Wm. Keenan Stephenson, Jr.
New Paper from Yale Law Review
Grifters take advantage of situations, latching on to others for benefits they do not deserve. Bankruptcy has many desirable benefits, especially for mass tort defendants. Bankruptcy provides a centralized proceeding for resolving claims, making it a forum of last resort for many companies to aggregate and resolve mass tort liability. For the debtor-defendant, this makes sense. A bankruptcy court’s tremendous power represents a well-considered balance between debtors who have a limited amount of money and many claimants seeking payment. (Seems to be more Chapter 11 related.)
On the CFPB
- CFPB Takes Action Against Debt-Settlement Company DMB Financial for Charging Consumers Unlawful Fees – Proposed Settlement Would Require DMB to Pay $5.4 Million to Consumers
Position Postings
Trusteeship
Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21
Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21
Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
Law Clerk
E.D. of Michigan – Application deadline 5/28/21
Northern District of OH
From the Courts
- Eastern District of TN – Resumption of Handwritten Signature Requirement – Note that this is happening across the country – be sure to check your local rules.
- District of OR – Implementation of new calendar system (CHAP) will occur on May 24
- Northern District of OK – Court and Federal Building closed Friday, May 28, in observance of the Tulsa Race Massacre
- Districts of WA – Washington State Legislature Significantly Amends Homestead Law Effective May 12, 2021
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Eastern District of MI – Notice Regarding Disclosure for Domestic Support in Chapter12
- Northern District of IL – Transitioning to NextGen 5/24/21
For Your Blog
FEMA Offers Financial Assistance for COVID-Related Funeral Expenses
The Benefits Division would like to make sure all are aware that under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 and the American Rescue Plan Act of 2021, FEMA is providing financial assistance for COVID-19 related funeral expenses incurred after January 20, 2020. This assistance is available to any eligible individuals, not just federal employees.
IN CASE YOU MISSED IT . . .
Tell the Story
“. . . until judges develop an appreciation about how hard the consumer practice is, we will continue to be underpaid.”
(Be sure to note the reinforcing comment from a Bankruptcy Judge at the end of this article.)
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
As the Pandemic Recedes, Small Businesses Face a New Plague: Debt Collectors – Creditors may have held off collecting unpaid debts but rest assured, they’ll want to get paid.
MILITARY MATTERS (Not password protected)
Government Promised to Forgive Military Members’ Student Loans After 10 Years of Service — It’s only worked for 124 of them
HEALTH AND WELLNESS (Not password protected)
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May 17, 2021
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Tell the Story
“. . . until judges develop an appreciation about how hard the consumer practice is, we will continue to be underpaid.”
From the Editor – Claims
This week, Judge Brown, takes a look at four cases, each dealing with a claims issue.
Legislation Update
- A Trump Rule Paved the Way for Predatory Lending – Window to Reverse It Is Closing (Good background story written just prior to Senate vote)
New Paper from Yale Law Review
Grifters take advantage of situations, latching on to others for benefits they do not deserve. Bankruptcy has many desirable benefits, especially for mass tort defendants. Bankruptcy provides a centralized proceeding for resolving claims, making it a forum of last resort for many companies to aggregate and resolve mass tort liability. For the debtor-defendant, this makes sense. A bankruptcy court’s tremendous power represents a well-considered balance between debtors who have a limited amount of money and many claimants seeking payment. (Seems to be more Chapter 11 related.)
Illinois Judge Retires
Position Postings
Trusteeship
Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21
Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21
Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
Law Clerk
United States Bankruptcy Court for the E.D. of Michigan
From the Courts Extra
Northern District of OK – Court and The Federal Building shall be closed for business on Friday, May 28, 2021, in observance of the Tulsa Race Massacre
From the Courts
- Districts of WA – Washington State Legislature Significantly Amends Homestead Law Effective May 12, 2021
- Eastern District of MI – Notice Regarding Disclosure for Domestic Support in Chapter12
- Eastern District of MO – How to be Successful in Bankruptcy Court
- District of SC – Summary of Recent Changes to Local Rule 9013-4 and Other Recent Guidance (Judge Waites)
- Southern District of FL – Guidelines for Preparing, Submitting and Serving Orders (completely changed)
- District of CO – Increase in Presumptively Reasonable Fee Allowance
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Eastern District of MI – Transitioning to Next Gen 6/1/21
- Northern District of IL – Transitioning to NextGen 5/24/21
IN CASE YOU MISSED IT . . .
Bankruptcy Court Finds Jurisdiction to Hear Discharge-Injunction Violation Class Action
This week, Larry Ahern examines In re Ajasa, an opinion rendered in a nationwide class action based on alleged discharge-injunction violations. Larry clarifies the relatively narrow but important jurisdictional issue addressed in this case, explains the outcome and concludes with an observation about one of its broader implications. Look for other discussions of discharge violations, debt reporting and class actions in this space.
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
Releasing the Social Animal Back Into the Wild – It’s time for a confession: some of us are slightly terrified of transitioning back to doing business in person. (A fun and thought provoking read.)
DEBT AND THE ECONOMY (Not password protected)
One Big Question About the Dramatically Lower US Credit Card Debt – In data released Wednesday from the New York Fed, credit card balances shrunk by $49 billion, compared to the last quarter.
Unemployed Americans Thought They’d Receive Benefits Until September – Now that aid is in jeopardy (This article does a pretty good job of showing both sides of this issue.)
MILITARY MATTERS (Not password protected)
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May 10, 2021
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Assumption of Auto Lease in Chapter 7 Requires No Court Approval Says the 9th Circuit: In re Bobka
In Bobka v. Toyota, the chapter 7 debtor wanted to retain her leased Toyota. Toyota sent her an “assumption agreement” which she signed and returned to Toyota the day before she received her discharge. . . . The debtor later decided to return the Toyota who immediately began “collection efforts”. .
Bankruptcy Court Finds Jurisdiction to Hear Discharge-Injunction Violation Class Action
This week, Larry Ahern examines In re Ajasa, an opinion rendered in a nationwide class action based on alleged discharge-injunction violations. Larry clarifies the relatively narrow but important jurisdictional issue addressed in this case, explains the outcome and concludes with an observation about one of its broader implications. Look for other discussions of discharge violations, debt reporting and class actions in this space.
The Biggest News of the Week
CARES Act Financial Hardship ‘Laundry List’
During the Academy webinar The CARES Act – Impacts on Chapter 13 on April 2, 2020, the panel – Judge Wm. Houston Brown (Retired), Amanda DeBerry and Henry Hildebrand – referred to the importance of detailing the reasons for modifications or suspensions to be related to financial hardship stemming from the COVID-19 pandemic. The bankruptcy section of the CARES Act does not detail what would constitute a coronavirus related financial hardship. The statute only says: “the debtor is experiencing or has experienced a material financial hardship due, directly or indirectly, to the coronavirus disease (COVID-19) pandemic” . . .
In this article, Hildebrand outlines what constitutes a pandemic related financial hardship.
In the “Just Plain Interesting” Category
Registration for Online Event
Federal Bankruptcy Judge to Keynote PuLSE Forum on Bankruptcy & Poverty May 25th, 4:30-6:00 Central
On the CFPB
- Making Ends Meet Series: Consumer Use of Payday, Auto Title, and Pawn Loans – In a new report in the CFPB’s Making Ends Meet series, we find that consumers who use a payday, auto title, or pawn loan in one year are often still using that type of loan a year later. Some users of these services have lower cost credit available on credit cards, while others lack access to traditional credit. Among payday, auto title and pawn loan borrowers who experience significant financial shocks, the costs of these shocks often exceed other possible sources of funds.
Two important items from last week . . .
- CFPB Delays Mandatory Compliance Date for General Qualified Mortgage Final Rule from July 1, 2021 to October 1, 2022
Sub Chapter V
A Guide to the Small Business Reorganization Act of 2019
Judge Bonapfel has again edited/supplemented his SBRA materials. Click here for the entire Guide – FREE.
The supplemental materials are in Part XV and is designed as a “pocket part.”
As with the previous supplement, this version contains a new chapter, Chapter XV, which supplements the original text and the previous supplement in Chapter XIV. Except for some editorial revisions, the original text and Chapter XIV are unchanged.
Eviction Ban
- Federal Judge Vacates CDC’s Nationwide Eviction Moratorium (But it doesn’t really change anything.)
- Emergency Bans on Evictions and Other Tenant Protections Related to Coronavirus (Even in light of the CDC’s order, some states are allowing evictions to proceed – this website has a nifty list by state of who is doing what. Updated 5/5/21)
Position Postings
Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
From the Courts
- Eastern District of MO – How to be Successful in Bankruptcy Court
- District of SC – Summary of Recent Changes to Local Rule 9013-4 and Other Recent Guidance (Judge Waites)
- District of ND – Beginning May 3, Court will file digital audio recordings of oral orders and rulings from the bench, allowing the public to access them through PACER
- Southern District of FL – Guidelines for Preparing, Submitting and Serving Orders (completely changed)
- District of CO – Increase in Presumptively Reasonable Fee Allowance
- District of NM – New Plan and Local Rule Effective 5/1/21
- Middle District of GA – New Local Rules
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Eastern District of MI – Transitioning to Next Gen 6/1/21
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
For Your Blog
IN CASE YOU MISSED IT . . .
Parker, HOA, and Sanctions – Multiple Thrills to a Bankruptcy Lawyer’s Heart
“. . . stamping the payment demands as “For Information Only” didn’t save the day for the HOA.”
IN THE NEWS (Not password protected)
April 2021 New Bankruptcy Filings Continue Steady Increase Over COVID Lows (Ahhhh, what a lovely headline!)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
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May 3, 2021
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Archives |
Parker, HOA, and Sanctions – Multiple Thrills to a Bankruptcy Lawyer’s Heart
“. . . stamping the payment demands as “For Information Only” didn’t save the day for the HOA.”
Critical Case Comment
In calculating an above-median income debtor’s projected disposable income, the court may deduct from the debtor’s current monthly income only the expenses as listed in the IRS manual and not the debtor’s actual expenses.
Registration for Online Event
Federal Bankruptcy Judge to Keynote PuLSE Forum on Bankruptcy & Poverty May 25th, 4:30-6:00 Central
On the CFPB
- CFPB Delays Mandatory Compliance Date for General Qualified Mortgage Final Rule from July 1, 2021 to October 1, 2022
Hunstein v. Preferred Collection & Mgmt. Services, Inc.
Sub Chapter V
A Guide to the Small Business Reorganization Act of 2019
Judge Bonapfel has again edited/supplemented his SBRAmaterials. Click here for the entire Guide – FREE.
The supplemental materials are in Part XV and is designed as a “pocket part.”
As with the previous supplement, this version contains a new chapter, Chapter XV, which supplements the original text and the previous supplement in Chapter XIV. Except for some editorial revisions, the original text and Chapter XIV are unchanged.
From the IRS
Popular item from last week Why Tax Refunds Are Taking Longer Than Usual (Article starts out somewhat elementary but then provides some useful information.)
From NCBRC
Debtor Loses the Battle but Wins the War – Confirmed plan binds county tax creditor even though plan did not provide for the interest claimed in its post-confirmation proof of claim where the county had notice of the plan and failed to object to confirmation. In re Bird, 624 B.R. 841 (Bankr. N.D. Ill., Feb. 2, 2021) (case no. 1:17-bk-2072).
Debtor May Avoid County Tax Foreclosure Sale – County’s tax sale of debtor’s farm was avoidable as constructively fraudulent under section 548, where debtor was insolvent at the time of the title transfer and the tax debt was substantially less than fair market value of the property. DuVall v. County of Ontario, No.19-20179, Adv. Proc. No. 19-2011 (Bankr. W.D. N.Y. Feb. 18, 2021).
Eviction Ban
- Emergency Bans on Evictions and Other Tenant Protections Related to Coronavirus (Even in light of the CDC’s order, some states are allowing evictions to proceed – this website has a nifty list by state of who is doing what. Updated 4/26/21)
Position Postings
Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
Term Law Clerks – District of Colorado
From the Courts
- District of SC – Summary of Recent Changes to Local Rule 9013-4 and Other Recent Guidance (Judge Waites)
- District of ND – Beginning Monday, May 3, 2021, the United States Bankruptcy Court for the District of North Dakota will file digital audio recordings of oral orders and rulings from the bench, allowing the public to access these recordings online through the Public Access to Court Electronic Records (PACER)
- Southern District of FL – Guidelines for Preparing, Submitting and Serving Orders (completely changed)
- District of CO – Increase in Presumptively Reasonable Fee Allowance
- District of NM – New Plan and Local Rule Effective 5/1/21
- Middle District of GA – New Local Rules
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
For Your Blog
- Federal Aid to Renters Moves Slowly, Leaving Many at Risk – Congress allocated $25 billion in December and another $21 billion in March to help people who fell behind on rent during the pandemic. Little has reached landlords or tenants.
- Information for Student Loan Borrowers – Principal and interest payments on federally held student loans are automatically suspended through September 30, 2021.
Sanctions and Irony and Fraud, Oh My!
Student Loan Chronicles
- Student-Loan Borrowers Are Battling for Relief Even after Biden’s Administration Canceled $2.3 Billion: ‘We were taken advantage of’
IN CASE YOU MISSED IT . . .
Did Congress Mean What It Said in Section 1328(i)?
“Had Congress intended the Court’s inquiry to end at the consideration of only the bare statutory prerequisites of section 1328(i), it would have used the constraining ‘shall,’ as it has in other subsections of § 1328, rather than the discretionary ‘may.’”
IN THE NEWS (Not password protected)
Experian’s Credit Freeze Security is Still a Joke (Could also be a topic for your blog)
From Justia: Francis v. Desmond, No. 19-9011 (1st Cir. 2021)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Credit Scores, and the End of Mortgage Forbearance – Experts discussed the future of credit scores and the specter of policy changes
OF INTEREST (Not password protected)
SUBCHAPTER V (Not password protected)
HEALTH AND WELLNESS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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April 26, 2021
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Did Congress Mean What It Said in Section 1328(i)?
“Had Congress intended the Court’s inquiry to end at the consideration of only the bare statutory prerequisites of section 1328(i), it would have used the constraining ‘shall,’ as it has in other subsections of § 1328, rather than the discretionary ‘may.’”
I’ve Looked at Clouds from Both Sides Now
(Song by Joni Mitchell – first recorded by Judy Collins in 1968)
“Either side can find themselves in egregiously stressful circumstances.”
Last Week Tonight
Bankruptcy: Last Week Tonight with John Oliver (HBO) [HD] (Video) (Of course this is comical but also accurate.)
See also:
Sub Chapter V
A Guide to the Small Business Reorganization Act of 2019
Judge Bonapfel has again edited/supplemented his SBRAmaterials. Click here for the entire Guide – FREE.
The supplemental materials are in Part XV and is designed as a “pocket part.”
As with the previous supplement, this version contains a new chapter, Chapter XV, which supplements the original text and the previous supplement in Chapter XIV. Except for some editorial revisions, the original text and Chapter XIV are unchanged.
From the IRS
- Why Tax Refunds Are Taking Longer Than Usual (Article starts out somewhat elementary but then provides some useful information.)
From the National Consumer Law Center
Eviction Ban
- Emergency Bans on Evictions and Other Tenant Protections Related to Coronavirus (Even in light of the CDC’s order, some states are allowing evictions to proceed – this website has a nifty list by state of who is doing what. Updated 4/20/21)
Position Postings
Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
Trusteeship – Eastern District of Pennsylvania – Application deadline 4/30/21
Term Law Clerks – District of Colorado
Term Law Clerks – Northern District of Indiana DISTRICT Court
Paid Internship – District of Kansas – Applications are being accepted for a paid internship for a college junior or senior in the new Model Intern Diversity Pilot Program – internship starts in June.
From the Courts
- Southern District of FL – Guidelines for Preparing, Submitting and Serving Orders (completely changed)
- District of CO – Increase in Presumptively Reasonable Fee Allowance
- District of NM – New Plan and Local Rule Effective 5/1/21
- Middle District of GA – New Local Rules
- District of Columbia – Comment Invitation – Plan and New Local Rule
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
Student Loan Chronicles
- Information for Student Loan Borrowers – Principal and interest payments on federally held student loans are automatically suspended through September 30, 2021.
IN CASE YOU MISSED IT . . .
Of Tax Refunds, Exemptions, Setoffs, and Roman Gods
“If you’re looking for a well-written and clear appellate opinion about a much-litigated topic, with a bit of ancient mythology thrown in for good measure, this HUD’sfor you.” (waka waka!)
IN THE NEWS (Not password protected)
Credit Scores, and the End of Mortgage Forbearance – Experts discussed the future of credit scores and the specter of policy changes
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Here It Is: A Bill to Help First-Time Homebuyersrs – But it’s not a tax credit, and conditions limit how many people will qualify
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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April 19, 2021
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Of Tax Refunds, Exemptions, Setoffs, and Roman Gods
“If you’re looking for a well-written and clear appellate opinion about a much-litigated topic, with a bit of ancient mythology thrown in for good measure, this HUD’sfor you.” (waka waka!)
Bankruptcy Courts Grapple with the “COVID-19 Discharge”
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 the “COVID-19 Discharge,” created temporarily by the Consolidated Appropriations Act, 2021 (“CAA”), in light of recent decisions from the Bankruptcy Courts in California and South Carolina.
New Judge Appointed
On April 6 J. Kate Stickles was sworn in as the newest judge of the United States Bankruptcy Court for the District of Delaware. Judge Stickles becomes the latest judge to join the Delaware Bankruptcy Court since Judges John T. Dorsey and Karen B. Owens were sworn onto the bench in 2019.
New Term of the Week
What the heck is blockchain?
From Epiq: The Future of Blockchain and eDiscovery: What Should the Legal Industry Expect? (Not specific to Chapter 13 – If you don’t care what bitcoin is, you probably won’t care about blockchain.)
Eviction Ban
- Emergency Bans on Evictions and Other Tenant Protections Related to Coronavirus (Even in light of the CDC’s order, some states are allowing evictions to proceed – this website has a nifty list by state of who is doing what.)
Position Postings
Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
Trusteeship – Eastern District of Pennsylvania – Application deadline 4/30/21
Term Law Clerks – District of Colorado
Term Law Clerks – Northern District of Indiana DISTRICT Court
Paid Internship – District of Kansas – Applications are being accepted for a paid internship for a college junior or senior in the new Model Intern Diversity Pilot Program – internship starts in June.
Fair Credit Reporting Act
From the Courts
- District of CO – Increase in Presumptively Reasonable Fee Allowance
- District of NM – New Plan and Local Rule Effective 5/1/21
- Middle District of GA – New Local Rules
- District of Columbia – Comment Invitation – Plan and New Local Rule
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Southern District of FL – New Student Loan Program Effective 5/3/21
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
- Central District of CA – Transitioning to NextGen 4/26/21 – CM/ECF will be down from noon on Thursday, 4/22 until 9:00 a.m. Monday 4/26
For Your Blog
- $1,400 Stimulus Checks Can Be Garnished for Unpaid Debts. Some states are working to prevent that
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
Federal Payments for Foster Care and Adoption Assistance in Bankruptcy
If a Chapter 13 Debtor has adopted a child who is eligible for assistance under Title IV-E of the Social Security Act, should those funds which were received in the six months prior to filing the petition be included in the Official Form 122C–1 Chapter 13 Statement of Current Monthly Income?
MORTGAGES AND DEEDS OF TRUST (Not password protected)
U.S. Foreclosure Activity Continues to Increase Despite Government Moratorium (Article contains some interesting statistics you may not have seen before.)
Federal Housing Finance Agency: Foreclosure Prevention, Refinance and FPM Report – January 2021 (Published: 4/16/2021)
CFPB Issues Warning to Mortgage Servicers (Refers to the April 1 warning but this article is very concise – if you are in the mortgage service industry and have ignored their warning, this is a short article you should read.)
OF INTEREST (Not password protected)
SUBCHAPTER V (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
What Does Your Sleeping Position Say About Your Personality and Health? (This is more for fun than real information.)
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April 12, 2021
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Federal Payments for Foster Care and Adoption Assistance in Bankruptcy
If a Chapter 13 Debtor has adopted a child who is eligible for assistance under Title IV-E of the Social Security Act, should those funds which were received in the six months prior to filing the petition be included in the Official Form 122C–1 Chapter 13 Statement of Current Monthly Income?
Finally, Some Good News, Well At Least in Our Business
- March Total Bankruptcy Filings Increase 39% from Previous Month; First Quarter Bankruptcies Down 40% from 2020
But Then There is a Flip Side
From Credit Slips: Bankruptcy Filings Are Still Super Low–Don’t Believe the Headlines
Extension of CARES Act Provisions
- Extensions of CARES Act Provisions By COVID-19 Bankruptcy Relief Extension Act of 2021 – H.R.1651 – No longer legislation but actual law, signed by the President 3/27/21.
Bankruptcy Study by Foohey, Lawless and Thorne
As with The Bill proposed last year, many aspects of this study will be controversial.At base it says nothing negative about Chapter13 other than people’s financial problems don’t fit neatly into either Chapter 7 or Chapter 13thus is supportive of the proposed bankruptcy-a-la-carte bill. The study seems to come down emphatically that much of what drives people to seek bankruptcy has to do with societal inequities and the lack of a functioning safety net.
See also:
Foreclosure Ban
- From Housingwire: CFPB Proposes Foreclosure Ban until 2022 – Amending Regulation X to give servicers and homeowners more time to work through options
- Does CFPB Have Authority to Postpone Foreclosures? Proposal may force servicers to violate covenants of investors who bought the loan
Another ‘Good News’ Headline Only Consumer Bankruptcy Attorneys will Appreciate
Risky Borrowers Are Falling Behind on Car Payments (Wall Street Journal Subscriber Only Article – Below is the free blurb)
More subprime borrowers are missing monthly payments on their cars and trucks, pointing to an uneven economic recovery. Some 10.9% of subprime borrowers with outstanding auto loans or leases were more than 60 days past due in February, up from 10.7% in January and 8.7% a year prior, according to credit-reporting firm TransUnion. It marked the sixth consecutive month-over-month increase and the highest level in monthly data going back to January 2019.More than 9% of subprime auto borrowers were more than 60 days past due in the fourth quarter, the highest quarterly figure in data going back to 2005.
Not Password Protected on the Same Topic:
From SCOTUS
For those keeping an eye on the mortgage issue in Jones v. U.S. Bank, N.A., U.S., No. 20-1064, cert. denied 4/5/21.
Eviction Ban
- Emergency Bans on Evictions and Other Tenant Protections Related to Coronavirus (Even in light of the CDC’s order, some states are allowing evictions to proceed – this website has a nifty list by state of who is doing what.)
- ‘The Exact Wrong Time:’ Evictions resume (in Hamilton County, Ohio) as pandemic-triggered mortarium is put in doubt
Positions Open
Judgeship
- Middle District of Florida – Application deadline 6/7/21
Trusteeship
- Eastern District of Pennsylvania – Application deadline 4/30/21
From the IRS
- Treasury/IRS Provide Guidance on Tax Relief for Deductions for Food or Beverages from Restaurants – Businesses can temporarily deduct 100% beginning Jan. 1, 2021 (Save those receipts!)
- IRS Extends Additional Tax Deadlines for Individuals to May 17 – Time to make contributions to IRAs and health savings accounts extended to May 17
- Click here for Previous Announcement
- IRS Reminds Taxpayers to Make April 15 Estimated Tax Payment (In case there was any question – paperwork deadlines are extended but NOT payment!)
Taxation
See also Academy Resource:
From the Courts
- Middle District of GA – New Local Rules
- District of Columbia – Comment Invitation – Plan and New Local Rule
- Middle District of FL –Judge Jennemann has announced her retirement effective 2/22
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Southern District of FL – New Student Loan Program Effective 5/3/21
- Middle District of FL – Proposed Local Rules Available for Comment
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
- Central District of CA – Transitioning to NextGen 4/26/21 – CM/ECF will be down from noon on Thursday, 4/22 until 9:00 a.m. Monday 4/26
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
- Bankruptcy Judge Grants Extra Time to Probe Zayat’s Finances – Judge overseeing Ahmed Zayat’s Chapter 7 ordered trustee will have through Apr. 30 to pore over financial documentation to make sure the allegedly insolvent owner and breeder of Triple Crown champ American Pharoah isn’t hiding assets.
IN CASE YOU MISSED IT . . .
The “Snapshot” Rule – Part 2: When is the Rule Not Determinative?
In Part 1, Larry Ahern summarized recent cases and considered how and why the circuits are more consistently finding the petition date to be determinative of the exempt status of assets (the “snapshot” rule). In this Part 2, he asks when the rule might not apply in different circumstances.
IN THE NEWS (Not password protected)
Most Big Debt Collectors Backed Off During Pandemic – Little-Known Sherman Financial Filed More Collection Lawsuits After Lockdowns Began
OF INTEREST (Not password protected)
For FDCPA Litigators, New Lessons on Standing – Whether you represent FDCPA plaintiffs or defendants, recent decisions provide new insight on how standing issues may affect your case.
Supreme Court Takes a Chainsaw to the TCPA (Same case reported last week but different article.)
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
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April 5, 2021
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Archives |
Extensions of CARES Act Provisions By COVID-19 Bankruptcy Relief Extension Act of 2021
H.R.1651 – No longer legislation but actual law, signed by the President 3/27/21.
The “Snapshot” Rule – Part 2: When is the Rule Not Determinative?
In Part 1, Larry Ahern summarized recent cases and considered how and why the circuits are more consistently finding the petition date to be determinative of the exempt status of assets (the “snapshot” rule). In this Part 2, he asks when the rule might not apply in different circumstances.
United States Trustee Program Alert
In case you missed this last week . . .
“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.”
Tax on Unemployment Benefits Your Client Never Received – How to Fight Back Against Scams
Although written for Californians, this is a huge, national issue. Simply replace the acronym EDD for your state’s unemployment entity.
See also:
From SCOTUS
Eviction Ban
- Federal Eviction Moratorium Extended Just 2 Days Before Expiration (Extended thru June of this year)
From the IRS
- IRS Extends Additional Tax Deadlines for Individuals to May 17 – Time to make contributions to IRAs and health savings accounts extended to May 17
- Click here for Previous Announcement
From the CFPB
- CFPB Rescinds Series of Policy Statements to Ensure Industry Complies with Consumer Protection Laws (Pertains to mortgages, credit reporting, credit cards and prepaid cards)
Subchapter V
Debt limit cap extended to March 27, 2022.
From the Courts
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Southern District of FL – New Student Loan Program Effective 5/3/21
- Middle District of FL – Proposed Local Rules Available for Comment
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
- Central District of CA – Transitioning to NextGen 4/26/21 – CM/ECF will be down from noon on Thursday, 4/22 until 9:00 a.m. Monday 4/26
Student Loan Chronicles
Coronavirus and Forbearance Info for Students, Borrowers, and Parents – Updated 3/30/21
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
Critical Case Comment
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.
MORTGAGES AND DEEDS OF TRUST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
