Archived - January 2014 - December 2014

• Gomery Testifies In Bankruptcy Court – . . . his bankruptcy protection filing provided a motive to order a hit on Christopher Cooke, a rival attorney . . .
  • Click here for background on this case
• Pennsylvania Disciplinary Board suspends Downtown bankruptcy lawyer

“After 28 years of service as a United States Bankruptcy Judge, including two years in recall status, and a 48 year career in the law, the Honorable Frank J. Otte will retire on December 31, 2014.”

• Click here for All Forms & Fees
• Click here for Bankruptcy Court Fee Schedule

In this article, Attorney Davis has done an outstanding job of outlining the changes to Form 22C which is now two forms. Use of these forms is effective December 1st. For ease of printing, click here for a PDF of this article. This article is an excellent resource for para professionals who work with this, now these, forms every day.

• Form 22C-1
• Form 22C-2
• Old Form 22C

Where the grace period to redeem pawned property expired prior to the filing of the Chapter 13 petition, the property was not property of the estate and the debtor could not treat this claim as a secured claim.

(Not password protected)

• Click here for All Forms & Fees
• Click here for Bankruptcy Court Fee Schedule

(Not password protected)

• CFPB Proposes Expanded Foreclosure Protections – Proposal Would Provide Surviving Family Members and Other Homeowners with Same Protections as Original Borrower
• NCLC Statement on CFPB’s Second Crack at Proposed Mortgage Servicing Rules
• Foreclosure rules would protect struggling homeowners, CFPB says

A second look at cases headed to the Supremes from Academy Supreme Court expert Jonathan Hayes.

Continuing the series developed for attorneys who represent Chapter 13 trustees.Part 10 entitled The Lightning Round is a collection of totally random concepts, terms, laws and doctrines! Included are simple definitions of complicated concepts heard regularly in a bankruptcy context and some broader explanations on stays.

Click here for an interesting Credit Slips post by Jason Kilborn. Sometimes a Bible is more than a Bible.

“You and I understand that affidavits are a way to provide written testimony and that swearing to an affidavit puts a person’s reputation for veracity on the line. But non-law-trained people might not understand that point.”

A gem you will want to have for future reference. Attorney Iskin, expertly and concisely, outlines benefits and potential pitfalls in utilizing social media in your practice.

• See also Ask Ms. Ps & Qs regarding social media policies

“The 11th Circuit determined . . . that because Dewsnup v. Timm only prohibited a Chapter 7 lien strip down situation and did not expressly involve a Chapter 7 lien strip off situation, that the 11th Circuit was not bound by the Supreme Court’s reasoning used in Dewsnup v. Timm . . .”Although a Chapter 7 issue, there are sexy chapter 20 lien strip implications.

Continuing the series developed for attorneys who represent Chapter 13 trustees.Part 9 is entitled: Update On Some Hot §109(e) Debt Limit Issues

Each update is effective April 1, 2015. Each has removed the 720-day delinquency cap.

• Click here for Fannie Mae specific changes.
• Click here for Freddie Mac specific changes.

Staff training and development is an ongoing issue faced by law and trustee offices alike. Click here for an article recently run by Monster.com you may want to share with your staff – People You Shouldn’t Get Close To At Work.The Academy also offers staff development resources in its Staff Training Webinar Library. Topics for every office such as:

• Legal Advice v. Legal Information
• Office Security
• Accuracy
• Conflict Resolution

• NY Family Accused of $20 Million Mortgage Fraud
• Illegal Mortgage Bonuses Uncovered

In this article, Attorney Davis has done an outstanding job of outlining the changes to Form 22C which is now two forms. Use of these forms is effective December 1st. For ease of printing, click here for a PDF of this article. This article is an excellent resource for para professionals who work with this, now these, forms every day.

• Form 22C-1
• Form 22C-2
• Old Form 22C

Trustee Hildebrand has outdone himself – this week we have a duo of CCCs. Two cases, same issue, two outcomes.

Case No. 1: A Chapter 13 trustee is entitled to calculate her commission based on receipts which include payments made toward the trustee’s own commission; the Chapter 13 trustee is entitled to the percentage fee commission on all receipts even when the case is subsequently dismissed.

Case No. 2: A Chapter 13 trustee is not entitled to collect a percentage fee on funds deposited with the trustee where the case is not confirmed and funds are returned to the debtor.

Continuing the series developed for attorneys who represent Chapter 13 trustees. Part 8 is entitled: If You Think You May Be Appealing, Or Appealed….

This week Judge Brown explores another new topic not previously covered here: Reopening Closed Cases. He looks at one Chapter 7 case and one Chapter 13 Case:

• Reopening for purpose of disputing subject matter jurisdiction denied.
• Debtors could reopen case to avoid judgment lien.

• Debts Canceled by Bankruptcy Still Mar Consumer Credit Scores – “Now lawyers with the United States Trustee Program, an arm of the Justice Department, are investigating . . . suspecting the banks of violating federal bankruptcy law by ignoring the discharge injunction . . .”
• Truant Bankruptcy Preparer Feels Wrath of Judge
• How Social Security Denied One Woman The Advice She Deserved
• Woman Taken To ‘Wrong’ Hospital Faces Bankruptcy (an important item for all of us, especially those with elderly parents)

In this article, Attorney Davis has done an outstanding job of outlining the changes to Form 22C which is now two forms. Use of these forms is effective December 1st. For ease of printing, click here for a PDF of this article. This article is an excellent resource for para professionals who work with this, now these, forms every day.

• Form 22C-1
• Form 22C-2
• Old Form 22C

Continuing a bankruptcy primer series developed for attorneys who represent Chapter 13 trustees. Although developed for staff attorneys, this outline serves as a valuable resource for anyone entering the bankruptcy environment or those exposed on a limited basis.Part 7 is entitled: In Chapter 13, Pioneer is Dead of Dysentery.

This five and a half minute YouTube video is well worth your time. Mr. Zadan offers a quick overview of behaviors indicative of lying.

This week Judge Brown explores a new topic not previously covered here: Discharge Injunction

• Attorney fees recovered by creditor after stay relief not prepetition claim covered by discharge.
• Creditor violated discharge injunction by filing proof of claim in subsequent Chapter 13 for debt discharged in Chapter 7.
• Bank’s two letters attempting debt collection violated discharge injunction.
• Enforcement of reaffirmation agreement did not violate discharge injunction.

• Social Security Benefits Will Increase by 1.7% in 2015
• 5 Social Security changes coming in 2015

• Nashville Man Indicted For Bankruptcy Fraud
• Mortgage Scam Suspect Arrested Boarding LAX Flight To Afghanistan

The U.S. Trustee Program has updated the Census Bureau’s Median Family Income Data and will apply the updated data to cases filed on or after Nov. 1. Click here for Data Required for Completing Form 22A and Form 22C.

Another offering from the ‘King of Critical Case Comments’ . . . The Federal government’s power to enforce the collection of fines and restitution trumps the statutory protections found in the automatic stay as to both the debtor’s property and property of the estate.

Continuing a bankruptcy primer series developed for attorneys who represent Chapter 13 trustees. Although developed for staff attorneys, this outline serves as a valuable resource for anyone entering the bankruptcy environment or those exposed on a limited basis.Another self-explanatory section title, Part 6 is OH NO! NOT A SECTION ON ETHICS! BLEH! But the good news is that it is only 10 pages!!

Lien stripping caught Judge Brown’s attention this week. He reviews 2 cases – one from the Sixth Circuit and one from the Eighth:

• Third mortgage could be stripped in plan
• Sixth Circuit BAP allows lien stripping in Chapter 20

• U.S. Consumer Watchdog Finds ‘Illegal’ Acts In Mortgage, Student Loans

• Levittown Lawyer Charged With Forging Judge’s Signature
• Banned Municipal Judge, Harold P. Cook, Files For Bankruptcy
  • The back story
• Court Slams Scammer Who Tried To scam FTC
• Not bankruptcy related: Former Zeeland Attorney Spent Almost All of $900,000 Stolen From Clients’ Trust Accounts
• Mortgage Servicer Ocwen Targeted by Complaints

• Social Security Benefits Will Increase by 1.7% in 2015
• 5 Social Security changes coming in 2015

In a 4-3 decision, the Nevada Supreme Court held: (1) That the superpriority portion of an HOA lien enjoys true superpriority status so as to extinguish the first deed of trust upon foreclosure; & (2) An HOA may utilize non-judicial foreclosure.

Other States that should find this case of particular interest: Alaska, Alabama, Colorado, Connecticut, Minnesota, West Virginia

See also:

• Why Homeowners Associations Want To Foreclose On Homes

Continuing the series which brings you, section by section, a bankruptcy primer developed for attorneys who represent Chapter 13 trustees. Although developed for staff attorneys, this outline serves as a valuable resource for anyone entering the bankruptcy environment or those who are only exposed to bankruptcy on a limited basis.

Another self-explanatory section title, Part 5 is Conducting an Effective 341 Meeting.

Judge Brown dissects 2 cases involving conversion and dismissal:

• Fifth Circuit gives undistributed money to creditors on conversion.
• Petition filed in bad faith is cause for dismissal.

• A Harbinger of Things to Come – CFPB Announces First Action For Violations Of New Mortgage Servicing Rules

• Ocwen’s Backdated Letters May Violate Consent Order

• Social Security Benefits Will Increase by 1.7% in 2015
• 5 Social Security changes coming in 2015

In re ASARCO. Fees incurred by a law firm representing a debtor, incurred in connection with defending a fee award, are not compensable as an administrative expense from the debtor’s bankruptcy estate.  Click here to see what a $7 billion fraudulent transfer judgment in a Chapter 11 case means to you as a consumer practitioner.

Continuing the series which brings you, section by section, a bankruptcy primer developed for attorneys who represent Chapter 13 trustees. Although developed for staff attorneys, this outline serves as a valuable resource for anyone entering the bankruptcy environment or those who are only exposed to bankruptcy on a limited basis.The title of Part 4 – Basics of Lien Stripping in Bankruptcy – is self-explanatory. Along with the elucidation, a list of lien stripping cases is included.

For October, Ms. Ps & Qs shares her top ten list of pet peeves. See how her list compares to yours. We’d luv to hear from u! Tell us your peeves. Perhaps adding nose blowing in public to #8 would complete your list.

Back from his travels to NCBJ in Chicago and refocused, Judge Brown looks at 3 cases, 1 on classification and 2 on cure of defaults:

• Separate classification of student loan debt denied
• Debtor’s right to cure is governed by § 1322(b) rather than § 108(b)
• Mortgagee not entitled to default interest rate

In a report released 10/16, the CFPB recommends changes to the Bankruptcy Code. The Executive Summary states: “Policymakers . . . may wish to consider the impact of certain public policies . . . when evaluating steps to improve options for borrowers in distress, including whether changes to the treatment of private student loans in bankruptcy proceedings are reducing incentives for lenders and servicers to help borrowers avoid default.”Beginning on page 28 of the report, the CFPB spells out its recommendations.Click here for the full report.See also:

• CFPB Creates Tools To Help Private Student-Loan Borrowers Get Payment Reductions

In other CFPB matters:

• CFPB Flags Checking Accounts

• Portland Couple Who Won Apology From Nationstar In Foreclosure Case Say It’s Trying To Foreclose Again

Court’s Over: Stair, Longtime Bankruptcy Judge, Retires

“Are the words we use to describe the individuals who have chosen to file bankruptcy harmful to our industry? Think about it . . . in a moment of frustration or superficial wit, have you ever thought to yourself “this is why they are debtors!” or even uttered under your breath “Debtors are so stupid!”? . . . ”

Continuing the series, which brings you, section by section, a bankruptcy primer developed for attorneys who represent Chapter 13 trustees. Not a staff attorney? WAIT, although developed for staff attorneys, this outline serves as a valuable resource for anyone entering the bankruptcy environment. Or those who are only exposed to bankruptcy on a limited basis.Part 3, titled Time Limits For Chapter 13 And Chapter 7 Debtors Receiving A Discharge, includes § 1328(f), § 727(a)(9), § 727(a)(8), § 707(b), § 362(c)(3) and more.

Although Judge Brown was attending the annual NCBJ conference, he penned two case synopsis regarding property of the estate and exemptions:

• New York’s increased homestead exemption applied to debtor after amendment’s effective date.
• Time of sale of residence for purposes of exemption of proceeds.

It’s a small world. Although Samuel J. Dart will be working for Chapter 13 Trustee David Howe, prior to his employment, he found and joined the Academy via word of mouth. Click here to read Sam’s story. Sam, Welcome to the Academy!

• Bankruptcy Court Deemed Too Risky for Marc Dreier, Judge Rules
• Court upholds contempt finding against Tim Blixseth

Chapter 7 Trustee Gugino provides the Academy with a detailed look at cases converted to Chapter 7. As a future resource, this document will be housed in The Toolbox.

Although a great reference tool, the article does not address the issue of whether the debtor or creditors receive money held by the Chapter 13 trustee at post-confirmation conversion since this is an issue not directly involving the Chapter 7 trustee. However, click below to see what two circuits, split on the issue, have held.

• Click here for a summary of the Third Circuit decision.
• Click here for a summary of the Fifth Circuit decisions.

Beginning last week and continuing for the next 17 weeks, the Academy will bring you, section by section, a bankruptcy primer developed for attorneys who represent Chapter 13 trustees. Not a staff attorney? WAIT, although developed for staff attorneys, this outline serves as a valuable resource for anyone entering the bankruptcy environment. Or those who are only exposed to bankruptcy on a limited basis.

Part 2, titled Bankruptcy Law and Rules, includes jurisdiction, venue, an overview and structure of the Code and Rules, adversary proceedings, discovery, preferences, fraudulent transfers, strong-arm powers, discharge and dischargeability.

Judge Brown’s attention is on claims:

• Non-debtor spouse has claim for equitable distribution of marital property when parties were in prepetition divorce proceeding.
• Chapter 13 debtor was not “prevailing party” under California law for purposes of recovering attorney fees for claim objection.
• Inconsistency on proof of claim negated prima facie validity and preemption of state law.
• Amended proof of claim was unfairly prejudicial to other creditors.

• Why Pot Companies Can’t File For Bankruptcy
• Judge Denies Bankruptcy Protection To Denver Marijuana Business
• Marijuana Bankruptcy? Think Again
• Weeding Out Marijuana From Bankruptcy Proceedings: The Intersection Between State Laws Legalizing Marijuana and Federal Bankruptcy Law

• Lawyer Disbarred For Gambling Away Funds
• Miami Foreclosure Rescue Scam
• Prison For “Real Housewives” Star
• Former Owner Of Mortgage Lending Company Charged With Bank Fraud
• Not bankruptcy related but of obvious interest to conference goers, Marriott Fined $600,000 for Blocking Its Customers’ Wi-Fi
• Not bankruptcy related but sure to provide a chuckle . . . Companies Settle Charges Over Bogus Weight-Loss Claims for Caffeine-Infused Underwear

For the next 18 weeks (yep, 18) the Academy will bring you, section by section, a bankruptcy primer developed for attorneys who represent Chapter 13 trustees. Not a staff attorney? WAIT, although developed for staff attorneys, this outline serves as a valuable resource for anyone entering the bankruptcy environment. Or those who are only exposed to bankruptcy on a limited basis.Thank you, now Judge Gustafson, for sharing another invaluable resource.

• Congratulations Judge Norman – Chapter 13 Trustee Jeffrey P. Norman Appointed to Bench

 

• Bankruptcy Court to Hold Ceremony for Retiring Judge
  Click here for more from Judge James K. Coachys

 

Discharge and dischargeability are Judge Brown’s focus this week:

• Debt owed to husband’s ex-wife and her attorney was not domestic support obligation.
• Failure to comply with divorce obligations was willful and malicious injury.
• Sale of counterfeit watches was willful and malicious injury to trademark owner.
• Landlords committed willful and malicious injury by eviction.
• Marital settlement agreement’s obligation to hold spouse harmless from credit card debt gave rise to implied indemnity right for purposes of § 523(a)(15).

• Click here for the 2014 Bankruptcy Filings Through June 30th

• A long time coming, disbarred atty sentenced to 7 months/fined $82k. Click here for the backstory
• Two California Judges Sanctioned For Sex In Chambers (NOT Bankruptcy Judges – thank goodness)
• Bankruptcy Judge Says Felon’s Name Must Stay on Scoreboard
• U.S. Bank Refunding $48 Million To Customers

In re Stewart: When a below-median income debtor establishes good cause permitting the extension of a Chapter 13 plan beyond 36 months, the debtor must commit all projected disposable income to the plan for the entire term of the plan.

Click here for the Proposed Rules
Click here for the Proposed Plan Form

Click here to order the 90 minute discussion presented during the NACTT 2014 Annual Seminar

This article describes continued procedural problems – i.e. homeowner’s escrowed insurance premiums not forwarded to insurance company. (Not password protected)

This week Judge Brown takes a look at three cases, each with a different focus.

• Chapter 7 Issue: Debt Relief Agency did not provide reasonably equivalent value to debtor.
• Conversion: Earnings of individual Chapter 11 debtor revert to debtor on conversion to Chapter 7.
• Postpetition Property of Estate: Inheritance received more than 180 days postpetition included in property of estate.

Just for Fun: Judge Cole is involved with a foundation called Just The Beginning. As part of the foundation’s website, there are some really interesting documents:

• From Slavery to the Supreme Court Online Exhibit
• African American Firsts
• Asian American Firsts
• Latino Firsts
• Native American Firsts

See also:

• Supreme Court Accepts Cert in Wellness Int’l Net-Work, Ltd v. Sharif
• Bellingham: And the Supreme Court Punts
• Stern v. Marshall: Making Life Harder for Chapter 13 Trustees?

“Let’s spend this month talking about planning . . . the times, they are a’changing . . .”Have a question for Ms. Ps & Qs? Click here to submit your question – you may remain anonymous.

Judge Brown takes a hard look at Brunner – then and now.

This week Judge Brown takes a look at two Chapter 7 issues – Means Test and Priority Claims:

• Means Test: Nondischageable student loans are not priority debts for means test.
• Means Test: Current monthly income includes pay earned in six-month look-back, even though received afterwards.
• Means Test: Ability to pay 24% to unsecured established cause for dismissal.
• Priority Claims: Payment of priority, nondischargeable tax did not subrogate debtors to rights of tax authority.

• Federal Action Against Payday Loans Picks Up
• ‘Real Housewives’ Star Puts Home Up For Sale Just Before Sentencing
• Couple Indicted on 10 Felony Counts of Theft and Fraud

Judge Brown looks at the effect of Clark on state law exemptions, state law restrictions on exemptions of retirement funds, transfers to spouses under divorce decree or QDRO, and much much more.

See also: An Inherited IRA is Not a ‘Retirement Fund?’ Not a Problem, ‘Trust’ Me

. . . “But still outstanding is the question of what § 1325(b) requires a debtor to pay to general unsecured creditors when, due to a Hamilton v. Lanning change, their applicable commitment period features months of negative projected disposable income followed by months of positive projected disposable income. . . .”

This week Judge Brown is thinking about two issues:

• Applicable Commitment Period
• Best Interests of Creditors Test

• Glenolden man charged with stealing from clients facing mortgage foreclosure
• How a Chattanooga payday lender avoided prosecution in Tennessee
• Foreclosure Scam Artist Gets 35 Years
• Foreclosure Collectors Being Sued

From the March 31st update . . . From time to time the question arises as to whether a bankruptcy trustee, who happens to also be a lawyer, is ethically prohibited from directly communicating with debtors regarding issues in their bankruptcy. Trustee Sensenich adds this ‘go-to’ answer to the Academy’s Toolbox.

From April 20, 2014 . . . In February, the Academy re-published (with permission) Attorney Jacobs’ Bankruptcy Law Network article The Debt and the Lien: Two Completely Different Problems as a client hand-out. The article was so popular, we asked Mr. Jacobs to re-write, as a piece for the Academy’s Toolbox. Discharge of Debt Does Not, Necessarily, Remove Secured Lien is now a permanent resource under Definitions in The Toolbox.

From January of this year . . . Attorney Lamos adds another excellent ‘definition’ piece to the Academy’s growing Toolbox. “Section 1325(a)(5)(A) of the Bankruptcy Code states that a plan shall be confirmed if, among many other conditions, the secured creditors have “accepted” the plan. But how does a secured creditor “accept” a plan?”

See also: Critical Case Comment – United Student Aid Funds, Inc. v. Espinosa

Lee v. Walro:  “To determine what portion of a tax refund, payable jointly to a debtor and a debtor’s non-filing spouse, is property of a Chapter 7 estate, the Court must apply the ‘separate filings rule’ and analyze what each taxpayer would have received had they filed separate tax returns.” Click here for more . . .

• Debt Collector Sentenced to Over 14 Years in Prison
• Chapter 7 Bankruptcy Trustee Draws Complaint

“This case was initiated as a class action suit in district court not bankruptcy court. However, debtors’ counsel could still potentially use this case involving correspondence sent to their clients.” Click here for more on this FDCPA case.

Where bankruptcy, estate planning and probate meet . . . “In this article, I hope to familiarize bankruptcy practitioners with an option likely to become common advice for those clients who have substantial retirement funds.”For more on Clark, click here.

During these hot summer days, Judge Brown in thinking about Property of the Estate and Exemptions; four distinct cases in synopsis format are below:

• Social Security Act protects benefits
• Interest in retirement plan received through marital dissolution decree was exempt
• New objection period only for those amended exemptions
• Debtor-husband not entitled to wildcard exemption in inheritance of debtor-wife

Judge White, 94, died Tuesday, August 5, 2014. Click here for obituary . . .

• CFPB Takes Action Against Amerisave Mortgage – Mortgage Firm to Pay $19.3 Million
• Houston Trustee Rightly Removed for Billing Big Easy Trip
• HUD Fines Freedom Mortgage Over Discrimination Claims
• Justice Dept. announces nearly $17 billion settlement with Bank of America
• Countrywide’s Mozilo Said to Face U.S. Suit Over Loans
• NY Attorney General Settles Action against Law Firm Collecting on Payday Loans
• Judge Lynn Hughes Removes Bankruptcy Trustee Over Family Trip to New Orleans

The Wellness case will likely be known, at least informally, as Bellingham II as it deals with the issue of consent of parties where the Bankruptcy Court has no proper authority to issue a final judgment. Oral argument will likely be in December this year. Click here for more . . .

See also:

• Predictions on Bellingham – An Eyewitness Account
• Bellingham: And the Supreme Court Punts

HEY!* You really need to read this article. ‘Exceptional’ is the best word to describe both the article and the opinion referenced.

“How many times have you wanted to reach across the table at a deposition and strangle the opposing counsel? You know that you can’t, in part because strangulation violates the ethics rule that says you can’t commit criminal acts, and in part because there’s no good way to bill your client for the time you’ll spend dealing with the criminal justice system.”

*See Endnote #9

For more on this case see:

• Biglaw Firm Ordered To Make A Video Apologizing For Discovery Abuses
• Biglaw Firm Throws Even Bigger Hissy Fit

• Section 547(c)(8) threshold applied.
• Judgment lien avoidable against debtor’s interest in entireties property.

It appears that Crawford v. LVNV Funding has created quite a buzz. Click here and scroll to the bottom of the article for an interchange of interesting comments. (You will want to read from the last comment on the page, then UP.)

Description for original Critical Case Comment first published 8/4/14: “Filing of a proof of claim in a Chapter 13 case to collect a debt that is stale under the state’s statute of limitations violates the Fair Debt Collection Practices Act and subjects the claimant to sanctions.”

• Debt Collectors Settle with FTC Concerning Multiple Federal Law Violations
• Erie-Area Bankruptcy Lawyer Loses Appeal Over ‘Sociopath’ Remark

The following cases are interesting but not bankruptcy related.

• Disbarred Lawyer Gets 70-Month Prison Sentence
• Living Trust Flimflam gets PA Lawyer Disbarred
• Disbarred ‘Prince of Torts’ Could be on the Hook for at Least $25 Million

A favorite Academy author brings readers a light-hearted explanation of the continued financial woes of Argentina. This feature is NOT password protected.”That’s because Argentina has defaulted on her debts, again. According to The Economist, this marks the eighth time Argentina has tried to dance her way out of debt.”

• Undistributed funds in confirmed case are property of creditors
• Attorney-fee case in bad faith
• Case properly dismissed for failure to comply with credit counseling
• Case properly dismissed for bad faith

• Straw Buyer Schemer Arrested
• Paralegal Jailed For Fraud
• Jessamine Woman Sentenced to 7 Years For Bankruptcy/Social Security Fraud
• Local Payday Loan Store Violates Law

See also:

• Three Charged in $18.5 Million Mortgage Modification Scheme
• June HAMP Application Activity by Servicer
• SIGTARP Quarterly Report

• IRS Summertime Tax Tip – Job Hunting Expenses

Crawford v. LVNV Funding – Filing of a proof of claim in a Chapter 13 case to collect a debt that is stale under the state’s statute of limitations violates the Fair Debt Collection Practices Act and subjects the claimant to sanctions.

• Debt limits are not jurisdictional and are subject to waiver
• Debtor ineligible when credit counseling completed after petition filed

• Study from Urban Institute: 1 in 3 Americans with a Credit File Has Debt Reported in Collections
• Article: Past-Due Debt Prevalent Across US/South Highest
• Study: Recession Trends
• Article: New York Times and TIME Magazine Discuss New RSF Research
• Article: The Great Recession Has Halved the Typical American Family’s Wealth

• CFPB & 13 State A.G.s Obtain About $92 Million In Debt Relief For Servicemembers Harmed By Predatory Lending Scheme – Rome Finance and Owners Permanently Banned from Consumer Lending After Deceiving About 17,000 Servicemembers and Other Consumers
• Article: Predatory Lenders Target Servicemembers

Next IRS Nationwide Tax Forum Is Set for National Harbor – Click here for more info . . .

• Surcharge of exemption violated § 522(k)
• Turnover to trustee not restricted to property of estate at time motion filed
• Sale of Texas homestead
• Exception from normal judicial estoppel

“The Bankruptcy Court held that because Frost did not reinvest the $23,000.00 in proceeds which were spent on medical bills and a vehicle, he had re-characterized the proceeds as nonexempt property – required to be paid into Frost’s Chapter 13 plan. The Fifth Circuit affirmed this holding.”

• CFPB, Federal Trade Commission and States Announce Sweep Against Foreclosure Relief Scammers – CFPB Files Suits for Operations that Used Deception and False Promises to Collect More than $25 Million in Illegal Fees from Distressed Homeowners
• NCLC Reviews the Agency’s Top Consumer Protection Hits and Next Steps

Detroit Bankruptcy Judge Steven Rhodes’ Rock Band The Indubitable Equivalents Prepares For Vermont Gig

“Dear Readers: This month, let’s talk about fees.” Another great offering from Ms. Ps & Qs.

Don’t forget, if you have a question for Ms. Ps & Qs, send it to us by utilizing the Contact Us feature in the toolbar above.

Judge Waldron is back with another must read . . . “This article acknowledges that parties in family law proceedings terminating a marriage do consider debt in their universe of concerns.”

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

This week, the conclusion to Judge Waldron’s look at marital dissolution intertwined with bankruptcy.

Ms. Scott looks at 2 recent Ninth Circuit decisions. “Both decisions allowed debtors to discharge student loan debt.”

“While there have been many recent articles in multiple bankruptcy publications, . . . , this is not such an endeavor. Rather, this will examine how we got here and some of the political and economic issues related to what has rightly been called the student loan crisis.”

“Undistributed funds held by a Chapter 13 trustee at the time a debtor converts to a Chapter 7 should thereafter be distributed to creditors in accordance with the plan in place at the time the funds were received.”

This week, the conclusion to Judge Waldron’s look at marital dissolution intertwined with bankruptcy.

• Attorney fee award against IRS was based on litigation cost statute
• Multiple filings not cause for in rem relief
• Stay annulment reversed
• Effect of defective mailing address

In perfect timing for this week’s NACTT annual conference in Chicago, Trustee Burden brings us a practical tool we can all benefit from. A ‘how to’ on taking notes with smart devices.

Chico, California’s Ken Baker succumbed to kidney failure – Memorial Service July 11^th

• NCLC Advocates Applaud Rule Clarifying Mortgage Rights of Heirs; Urge Further Action
• CFPB Takes Action Against Ace Cash Express For Pushing Payday Borrowers Into Cycle Of Debt – ACE to Pay $10 Million for Using Illegal Debt Collection Tactics to Pressure Consumers Into Debt Traps

“This kind of multi-factored test is quite common and rarely results in consistency; these tests are incredibly subjective and vague. This is the problem with the Code’s drafting.”See also articles on student loans in the news:

• Interest Rates Rising Modestly on Student Loans
• The Stupidity of Student Debt

Discharge and Dischargeability is Judge Brown’s topic this week:

• Court had authority under Rule 9011
• Debtor did not require court approval of special counsel

• “Thank You, SCOTUS; It’s About Time!”: Supreme Court Grants Cert to Decide Meaningful Stern v. Marshall Questions
• Bankruptcy Proceedings: Dare We Hope for Some Clarity on Stern?
• Did The Supreme Court Finally Explain Marathon And Stern? Executive Benefits’ Impact on Bankruptcy Court Jurisdiction
• Supreme Court Hits New Low: Only 30% Have Confidence in Justices

• NM Supreme Court: Exorbitant Payday Loans Violate State Law – 2 1,000% Interest Rate Companies To Pay Back Customers
• Idaho Payday Loan Act Protections Effective July 1
• What We All Can Learn from the Military’s Payday Loan Problem

“Wells Fargo Bank, N.A. v. Scantling . . . Court answered the Chapter 20 lien strip question that had previously vexed the lower courts, and had created division and district splits. . .”

Where debtors have made all payments to the trustee as required by their plan but failed to maintain “conduit” payments to the mortgage creditor, the debtors did not make all payments under their plan and their case should be dismissed.

Discharge and Dischargeability is Judge Brown’s topic this week:

• Late-filed state income tax returns qualified as “returns” for discharge
• State’s Single Business Tax of defunct company was nondischargeable excise tax in former officer’s case
• Creditors justifiably relied under § 523(a)(2)(A)
• Imputing agent’s fraud requires that debtor knew or should have known of agent’s fraud

“This voluntary program will be a step to help protect taxpayers during the 2015 filing season,” said IRS Commissioner John Koskinen.

Another SCOTUS decision . . . “The Supreme Court focused on the meaning of ‘retirement funds;’ therefore, the reach of the Clark opinion to state exemptions that use that term is open to question.”

. . . “having lost its value, money may no longer be the root of all evil; credit having taken its place.”

Discrimination is Judge Brown’s topic this week:

• Former debtor not protected in political appointment

• Attorney apologizes for potentially fake document in DECA case

Are proceeds of post-confirmation stay violations property of estate? Brief of Appellee – Crouser v. BAC Home Loans – Court affirmed in an unpublished opinion.

“The Supreme Court made one thing perfectly clear in its 9-0 ruling on In re Bellingham. It doesn’t always reverse the Ninth Circuit.”Click here for the Opinion . . .

Executive Benefits Insurance Agency v. Arkison (In re Bellingham) 2014 WL 2560461 (S.Ct. June 9, 2014) (Thomas)”When a bankruptcy court is called upon to adjudicate a “core” matter, as defined by the statute, as to which the bankruptcy court is not given Constitutional authority to decide per Stern v. Marshall, 564 U.S. ______, 131 S.Ct. 2594 (2011), the statute will be construed to treat such matters as “non-core” subject to de novo review by an Article III court.”See also Credit Slips: Stern II, now time for Stern III While Prof. Pottow’s comments are minimal, the blogged comments under the article are worth the glance.

Lest Ms. Ps & Qs gets overshadowed by SCOTUS, click here, for an ethics article which speaks to ALL of us. Ms. Ps & Qs has outdone herself, again, with a thoughtful and well-researched look at stress and its relation to ethical conduct.

The Editor looks at modification this week:

• Decision certified to Fifth Circuit on whether above-median debtor may receive discharge prior to completion of 60-month plan
• Postconfirmation modified plan not required to comply with projected disposable income test.

• Another Judge Expresses Concerns About Pittsburgh Bankruptcy Lawyer  (You may have to answer a marketing question in order to read this article.)

“To determine what portion of a tax refund, payable jointly to a debtor and a debtor’s non-filing spouse, is property of a Chapter 7 estate, the Court must apply the ‘separate filings rule’ and analyze what each taxpayer would have received had they filed separate tax returns.” Click here for more . . .

“. . . That got me thinking about the judicial experience of the other Justices.” . . . Click here for more.

Discharge is what Judge Brown is thinking about this week:

• Ineligibility for loan restructure supported § 523(a)(8) undue hardship.
• Marital relationship did not constitute express or technical trust for purposes of § 523(a)(4).
• False pretense in settlement justified § 523(a)(2) exception.

• Attorney Babcock Experiences Setback in Home Foreclosure Fight (Atty Babcock’s response to suspension)

See also Academy Brief Bank: Trustee’s Appeal of Court’s Calculation of Disposable Income re: Business Expenses Deducted From CMI or to Obtain CMI

“Although the decision in Michigan v. Bay Mills Indian Community was a victory for the tribe (which was resisting a state lawsuit over the tribe’s illegal casino), the Court’s reasoning demonstrates that tribal-affiliated payday lenders are not above the law.”  (Not password protected.)

Judge Brown brings us several topics of differing issues this week:

• Trustee was “person acting under” officer of United States for removal of suit
• Disposable Income: Step up payments required after completion of 401(k) loan
• Disposable Income: Payments on stripped mortgage were part of projected disposable income
• Effect of Confirmation: Disputed claim “provided for” by plan

• Disbarred Lawyer Accused of Cheating Client of $54,000, Pleads Not Guilty
• Attorney Disbarred For Taking $100K From Client Days Before She Died

Elizabeth Vaughan is back in the news. We first met Ms. Vaughan last year . . .Click here for more.

“Dated February 12, 1771, it is a memorandum signed by the creditors who attended the meeting of creditors at the Turk’s Head Tavern. (Unlike old English indentures, this document is short and easy to read.)”

• Dallas Bankruptcy Attorney Pleads Guilty to Felony Offense

Lien Stripping is on the mind of the Editor this week:

• Court could not strip lien on tenancy by entirety
• Debtor ineligible for discharge could not cram down lien
• Untimely proof of claim did not void lien
• For lien stripping, petition date proper time to value property and determine senior lien

• CFPB Supervision Report Highlights Risky Practices In Nonbank Markets (i.e. Payday lenders) – Return More than $70 Million to 775,000 Consumers

Ms. Ps & Qs brings us practical advice for behavior both in and out of the courtroom and if you’re thinking you don’t need to read it, yes, YOU do! “If one mantra in bankruptcy is ‘disclose, disclose, disclose,’ another one is ‘tone, tone, tone.’ . . . Your stress level will decrease if you start with the assumption that the other side is neither stupid nor evil.”

As a result of the webinar Why Your Clients Should Consider Chapter 13, more questions were submitted than could be answered in a single webinar. Our panelists are diligently working to answer these questions. Here, they answer two more questions generated from the webinar: (1) Is it 7 years from filing or from discharge? (2) Are people finding they can get around the 910 day restriction by saying car titled to the debtor was bought for another person’s use, not the debtor’s use.*Responses were prepared prior to Gustafson’s judicial appointment.

This week’s installation From the Editor includes one case on a spouse’s income being considered for abuse purposes and a plethora of cases on discharge – all Chapter 7 issues.

U.S. Department of Justice announced an enforcement action against Sallie Mae, the largest servicer of federal and private student loans, which was found to be systematically violating the legal rights of U.S. servicemembers.

Vesting, re-vesting, at confirmation, if not at confirmation then when??? Attorney Bruce looks at case law showing the importance of vesting timing.

The Staff Attorney to former Chapter 13 Trustee Philip A. Geddes was appointed as the Standing Chapter 13 Trustee for the Northern Division of the Northern District of Alabama on April 16, 2014. Congratulations Mike! Click here for more . . .

The conclusion of Judge Gustafson’s “Windfalls” outline addresses The Tyler Decision. We hope you have enjoyed this extensive outlineClick here for Part 1
Click here for Part 2
Click here for Part 3
Click here for Part 4
Click here for Part 5*This outline was written and submitted prior to Gustafson’s judicial appointment.

“These call center data security issues in the Philippines are most worrisome. They raise serious questions regarding the potential liability of U.S. bankruptcy attorneys for possible damages sustained by their clients who may suffer from identity fraud and telephone ‘scams’ as a result of recommending a low-cost BK Ed provider that outsources its credit counseling and business support services to a call center in the Philippines.”

This week, Judge Brown looks at 3 cases pertaining to property of the estate and exemptions:

• Annuity purchased through rollover from tax-exempt IRA remained exempt.
• Annuity claimed as exempt was still in estate until time to object to exemptions expired, with analysis of stay relief.
• Lack of timely objection to exemption did not prevent trustee asserting higher than scheduled value of entireties property.

• CFPB Spotlights Mortgage Debt Challenges Faced By Older Americans – CFPB Issues Advisory about Managing Mortgage Debt in Retirement
• CFPB Proposes Rule To Promote More Effective Privacy Disclosures – Rule Would Benefit Companies That Limit Consumer Data-Sharing

As a result of Why Your Clients Should Consider Chapter 13, more questions were submitted than could be answered in a single webinar. Our panelists are diligently working to answer all of your questions. Here, we begin publishing the first in a series of answers. This week, student loan issues are addressed.  As a gift from the authors, this article is NOT password protected.

Academy Board Member and Chapter 13 Standing Trustee Beverly Burden provides members with two new additions to the Academy Toolbox, sub-heading Debtor Attorney:

• Agreement For Chapter 13 Bankruptcy Services (Retainer Agreement)
• Checklist For Drafting A Retainer Agreement For Chapter 13 Clients

Only two parts left . . . Part 5 of Judge Gustafson’s “Windfalls” outline continues by ‘Talking Turkey About The Chapter 13 Trustee’s Dilemma With Post-Petition Windfalls – Conversion, Dismissal, Early Payoffs, Etc.’

Click here for Part 1
Click here for Part 2
Click here for Part 3
Click here for Part 4

This week, Judge Brown looks at 4 cases pertaining to avoidance actions:

• Chapter 13 debtor had standing for avoidance of attorney’s lien on homestead.
• Chapter 7 trustee’s abandonment did not deprive court of jurisdiction to hear § 522(f) lien avoidance.
• Chapter 13 debtors had authority to bring avoidance action.
• Lien avoidance and domestic support obligation.

• Boxer, Schumer: Reverse Mortgage Companies Threatening Heirs of Deceased Homeowners With Foreclosure Unless They Pay More Than Legally Required
• Why Thousands of Homeowners are Getting Money For Mortgage Abuses They Never Suffered
• Two Giant Banks, Seen as Immune, Become Targets
• Why Only One Top Banker Went to Jail for the Financial Crisis
• Detroit man accused of filing tax returns for the dead sentenced to 2 1/2 years in prison
• Former Westmoreland Clerk Charged With Altering Mortgage Records To Hide Pending Foreclosure

• IRS Seeks Applications for the Internal Revenue Service Advisory Council

Ms. Ps & Qs brings another fascinating case all should be aware of. “You all know about the importance of ‘wet’ signatures, right? . . . Lessons? Wet signatures are important. Following local rules are important. And blaming others for your mistakes? Not a great idea.”

9th Circuit BAP Reverses Bankruptcy Court in Drummond v. Luedtke (In re Luedtke).

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Drummond v. Luedtke (In re Luedtke) provides additions to the Academy’s Brief Bank:

• Drummond Appellant Brief
• Luedtke Appellee Brief
• Drummond Appellant Reply Brief

Part 4 of Judge Gustafson’s “Windfalls” outline continues by answering the questions:

• What About Other Substantial Assets Acquired Post-Petition?
• If The Debtor Is Judicially Estopped – Is The Chapter 13 Trustee?

Click here for Part 1
Click here for Part 2
Click here for Part 3

*This outline was written and submitted prior to Gustafson’s judicial appointment.

This week, Judge Brown looks at 4 cases pertaining to claims:

• Untimely claim basis for disallowance but not lien avoidance, and stay relief motion was not informal proof of claim.
• Failure to provide notice of correct cure amount required disallowance of claim.
• State law did not make debt unenforceable for purposes of § 502(b)(1).
• Insufficient notice justified allowance of late-filed claim.

A Qualitative Study of Mandatory Debtor Financial Education by Assistant University of Denver Sturm College of Law Professor Michael D. Sousa

• In Memory of Leonard M. Rosen

Pliler v. Stearns (In re Pliler): Joining the Sixth, Eighth, Ninth, and Eleventh Circuits, the Fourth Circuit held that above-median debtors, even with zero or negative disposable income on Form 22C, must remain in Chapter 13 for 60 months to ensure they repay creditors the maximum they can afford.

Part 3 of Judge Gustafson’s “Windfalls” outline continues looking at The Duty To Disclose Post-Petition Causes Of Action, specifically Consequences For The Debtor Where A Cause Of Action Is Not Disclosed.Click here for Part 1
Click here for Part 2

This week, Judge Brown looks at 3 cases pertaining to the automatic stay:

• No stay relief to pursue dischargeable claim.
• Debtor wife bound by in rem relief in husband’s prior case.
• Creditor entitled to reopen case to determine if tax sale void.

Favorite Academy author John P. Gustafson was appointed as United States Bankruptcy Judge for the Northern District of Ohio. He took the oath of office on Tuesday, April 8. John served as Chapter 13 Trustee for the Northern District of Ohio, Western Division for almost 7 years. Prior to being appointed Trustee, he served as Staff Attorney to Trustee Anthony B. DiSalle for 4 years. As regular ConsiderChapter13.org readers know, he is a prolific author. He has been an active member of the National Association of Chapter 13 Trustees and serves on the Board of Directors of The Academy. He enjoys kayaking, running, bicycling, gardening and juggling – even though he says he does none of them well. He and his wife, Annette, are school-year empty-nesters this year as their son, Matthew, completes his first year of college at Ohio State University, where he is majoring in water polo and some school stuff. CONGRATULATIONS John, um, Judge!

In February, the Academy re-published (with permission) Attorney Jacobs’ Bankruptcy Law Network article The Debt and the Lien: Two Completely Different Problems as a client hand-out. The article was so popular, we asked Mr. Jacobs to re-write, as a piece for the Academy’s Toolbox. Discharge of Debt Does Not, Necessarily, Remove Secured Lien is now a permanent resource under Definitions in The Toolbox.

• Eight Facts About Penalties for Filing and Paying Late
• What your clients may ask you: Qualifying for a Health Insurance Coverage Exemption

“Replacement value” standard of § 506(a)(2) applies when a Chapter 13 debtor surrenders a vehicle under § 1325(a)(5)(C).

Part 2 of Judge Gustafson’s “Windfalls” outline looks at The Duty to Disclose Post-Petition Causes of Action

*On Tuesday, April 8th, ‘our’ Trustee Gustafson took the oath becoming a United States Bankruptcy Judge for the Northern District of Ohio. CONGRATULATIONS Judge! John served as the Chapter 13 Trustee for 7 years. Mr. Gustafson is a prolific author and avid outdoorsman.

This week, Judge Brown looks at two separate issues:

• Reopening Cases – Appeal of denial of reopening dismissed for lack of standing.
• Fair Debt Collection Practices Act – FDCPA claim may arise from communication to debtor.

• CFPB Orders Bank of America to Pay $727 Million in Consumer Relief For Illegal Credit Card Practices

• Lawyer’s ‘Tactic’ in Bankruptcy Cases Draws Judge’s Ire
• Erie Judge Weighs Sanctions for Bankruptcy Lawyer

• Ten Facts about Amended Tax Returns
• IRS Debunks Frivolous Tax Arguments
• Four Tips If You Can’t Pay Your Taxes on Time
• IRS Intensifies Work on Identity Theft and Refund Fraud; Criminal Investigation Enforcement Actions Underway Across the Nation

Enjoy Part 1 of Trustee Gustafson’s latest outline. His look at post-petition causes of action, inheritances and windfalls begins with a section called: Property Acquired After The Filing of The Chapter 13 Case: The Different Approaches.

See also:

When Chapter 13 Debtors Receive Windfalls Part 1 of 3; Part 2 of 3; Part 3 of 3

This week, Judge Brown focuses on Attorney Fees and Issues:

• Out of state firm, and local counsel, representing debtors failed to provide adequate representation.
• Plan paying debtor’s attorney before mortgage not confirmable.

• New Law Offers Special Tax Option for Philippines Relief Donations; Cash Contributions Until April 14 Can Be Claimed On 2013 Returns

From time to time the question arises as to whether a bankruptcy trustee, who happens to also be a lawyer, is ethically prohibited from directly communicating with debtors regarding issues in their bankruptcy. Trustee Sensenich adds this ‘go-to’ answer to the Academy’s Toolbox.

This week, Judge Brown focuses on Dismissal and Conversion:

• Failure to disclose personal injury lawsuits grounds for conversion.
• Failure to file required documents and tax returns supported dismissal.
• Credit counseling received on date of petition was timely and dismissal denied.

• IRS Warns of New Email Phishing Scheme Falsely Claiming to be from the Taxpayer Advocate Service

“Looking just to the plain language of Sections 1322(b)(5) and 1328, and throwing out pre-conceived notions of what is permitted, it looks like the Rogers court got this right.”

Trustee Gustafson’s outline on the protection of trustees concludes with miscellaneous, rarities and exceptions – from the Noerr-Pennington Doctrine to privity defenses for staff attorneys. Click here for Part V . . .Click here for Part I. . .
Click here for Part II . . .
Click here for Part III . . .
Click here for Part IV . . .

This week, Judge Brown focuses on Property of Estate and Exemptions:

• Profit-sharing plan was not exempt.
• Section 1306(a) extends timeline for inclusion in properly of estate.
• Section 522(o) applied to lien.

In 2009, Attorney Goering wrote a historical perspective on Chapter 13. It is just as interesting today as it was then. Click here for a look at the origins of the Bankruptcy Code.

“All of us know that emails are discoverable under most circumstances, and yet, you’d be surprised by how many lawyers (and, yes, law professors) put the most damning things in emails.”At some point in their career, you can be certain that each of the indicted Dewey & LeBeouf attorneys said, ‘Oh, I’ll never make that mistake’ but they did. Click here for Ms. Ps & Qs’ March article on ethics and sound decision making.

Part 4 of Trustee Gustafson’s outline looks at situations where trustees may lack the legal protections they normally enjoy.   Click here for Part IV . . .

Click here for Part I. . .
Click here for Part II . . .
Click here for Part III . . .

This week, Judge Brown focuses on Avoidance Actions:

• Trustee may avoid entire charitable contribution, if it exceeds 15% of gross annual income.
• Chapter 13 debtor lacked derivative standing.
• Trustees had constructive record notice of mortgages.
• Trustee could defensively assert avoidance power after expiration of statutory time to file complaint.

“It is very important for a company to know whether its workers are employees or independent contractors.” This article could apply to you as a small business owner or to your clients.

• For your clients: Free Tax Help for Military Families

• For you: IRS Encourages Small Employers to Check Out Small Business Health Care Tax Credit: With business tax-filing deadlines fast approaching, the IRS encourages small employers that provide health insurance coverage to their employees to check out the small business health care tax credit and then claim it if they qualify.

Although a Chapter 7 case, the holding and reasoning of the Court is important for Chapter 13 cases . . . opinion contains significant reminders about the limits of the bankruptcy court’s authority, as well as lessons about how the bad result might be avoided in future cases.

See also: Scalia Throws Bankruptcy Surcharging To The Mat

Part 3 of Trustee Gustafson’s outstanding outline on the legal doctrines that protect bankruptcy trustees.  This week’s installment looks at the legal defense which provides the primary protection that all bankruptcy trustees rely upon in doing their jobs: Quasi-Judicial Immunity.   Click here for Part III . . .

Click here for Part I . . .
Click here for Part II . . .

This week, Judge Brown focuses on 3 cases involving claims issues:

• Chapter 7 debtor lacked standing to appeal from order finding no standing to seek claim disallowance
• Interest rate on tax lien certificate determined under state law
• Attorney fees for debtor’s children qualified as domestic support obligation

• Ten Things to Know about the Taxpayer Advocate Service

• Average Tax Refund So Far This Year: $3,034

How does a case about late filed tax returns have an impact on student loan debts? Click here for a ‘must read’ from Trustee Anderson. Copeland v. Fink (In re Moore) has a lot to say.

How does a case about late filed tax returns have an impact on student loan debts? Click here for a ‘must read’ from Trustee Anderson. Copeland v. Fink (In re Moore) has a lot to say.

The continuation of Trustee Gustafson’s outstanding outline on the Barton Doctrine. This week’s installation covers: How To Use The Barton Doctrine To Defend A Trustee and When The Plaintiff Actually Seeks Leave Of The Bankruptcy Court To Sue.

Click here for Part I.

This week, Judge Brown focuses on two cases involving postconfirmation modification:

• Decline in value did not permit modification and stripping of junior lien
• No categorical bar to postconfirmation surrender and reclassification, but lack of good faith prevented modification.

PACER lets you select a mobile option but the experience isn’t ideal – can’t save username, password, difficult to enter case numbers, and the cost – oy vey. Matthew Zorn, an attorney at a large New York law firm, decided to do something about that. He wrote a useful and beautifully designed app that he calls DkT – free and can access PACER for federal appellate, district and bankruptcy courts. DkT (pronounced Docket) allows split screen view and batch downloading.

• Appellate Court Finds Blixseth Accusations Against Bankruptcy Judge Unfounded
• Bankruptcy Petition Preparer Gets Sentenced To Nearly 4 Years In Prison

“The policy behind the Barton Doctrine has been described in various ways. Most simply, the Barton Doctrine allows bankruptcy courts to retain greater control over administration of the estate.” Click here for Part I.

In re Knorr: Child care expenses may only be permitted as reasonable and necessary expenses if they are necessary to provide for a taxpayer’s health and welfare or the production of income; court can permit debtor a year to come into compliance with the IRM’s obligation to trim unnecessary expenses.

Judge Brown looks at one case in which separate classification of student loan debt did not unfairly discriminate.