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December 31, 2018
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Archives |
Avoidance Powers in Chapter 13 – Part 1 of 6
Judge Gustafson kicks off the new year (well, end of the old!) with an excellent six part outline on avoidance powers.
From Credit Slips
A couple of humorous posts we think you will enjoy:
Student Loan Chronicles
- More Than 41,000 Public Service Workers Sought Federal Student Loan Forgiveness – Government Approved 206
Sanctions and Irony and Fraud, Oh My!
- Westerville Lawyer Suspended for Sexual Affair with Client. . . and failing to file a bankruptcy
- Gary Frank Saga Hits New Phase – His firm is sold for a pittance as he faces loan fraud charges
MORTGAGE MATTERS (Not password protected)
Article: US Banks Tighten Credit
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTHCARE IN THE NEWS (Not password protected)
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December 24, 2018
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Archives |
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December 17, 2018
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Archives |
Amendments to Remaining Rules of Procedure Related to Bankruptcy Appeals Effective December 1, 2018
This month saw amendments to 16 bankruptcy rules, as well as a new rule and Appendix in Part VIII. Some of these changes are of more interest to the Chapter 13 community than others and were the subject of analyses by Larry Ahern published here before their December 1 effective date, including Rule 8011, dealing with electronic filing and service.His analyses continue this week with the remaining changes in Part VIII.See also:
- Electronic Filing Comes of Age – Part I: Revised Bankruptcy Rule 5005
- Electronic Filing Comes of Age – Part II: Revised Bankruptcy Rule 8011 and Civil Rule 5
- Late-Filed Secured Claims After the 12/01/2017 Rule Changes
- December 1 Approaches (Again): Home Equity Lenders Get a Break and Other Changes to Rule 3002.1
Give Me Back My Car! Recent Cases Highlight Circuit Split over Whether Failure to Return Repossessed Property Violates the Automatic Stay
“Whether a lender is required to turnover repossessed property immediately after a debtor files a Chapter 13 petition – and whether the failure to return that property is a violation of the automatic stay – is an issue that deeply divides the circuits and may be headed to the Supreme Court for review.”
Cars & Bankruptcy: What You Must Know to Get It Right
Think you know how to handle cars and their loans in the Schedules? Are you sure you are doing it right?“It’s time for a summary and refresher on dealing with car loans in bankruptcy. Somehow, my staff hit a wall this week on what information we needed about cars and car loans. So, here’s my roadmap to cars in bankruptcy.”
From the Courts
Judges: Separation of Powers Protects Bill of Rights
In a new, five-minute video, federal judges offer insights into their thinking about the separation of powers and describe how healthy tensions among the branches have a stabilizing effect on democracy.Current Rules of Practice & Procedure
Detailed information regarding the December 1, 2018, amendment.
In a new, five-minute video, federal judges offer insights into their thinking about the separation of powers and describe how healthy tensions among the branches have a stabilizing effect on democracy.Current Rules of Practice & Procedure
Detailed information regarding the December 1, 2018, amendment.
For Your Blog
Taxpayers Can Now Instantly Get Tax Info on Instagram
The IRS also has their own app, IRS2Go. Taxpayers can use this free mobile app to check their refund status, pay taxes, find free tax help, watch IRS YouTube videos and get IRS Tax Tips by email. Like Instagram, the IRS2Go app is available from the Google Play Store for Android devices, or from the Apple App Store for Apple devices. IRS2Go is available in both English and Spanish.
Sanctions and Irony and Fraud, Oh My!
MORTGAGE MATTERS (Not password protected)
FreddieMac: Rates Dip, Applications Up
FreddieMac: Inventory Short for Years to Come
Credit Slips: 10 Years After the Foreclosure Crisis
MILITARY MATTERS (Not password protected)
Making a PCS Move from Overseas? Your Social Security number and other personal data might be at risk.
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
What’s Under the Tree This Year? Bigger Credit Card Bills – Tax experts warn that changes to IRS withholding tables mean people could get a smaller tax refund — and less money to pay off that holiday spending tab.
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December 10, 2018
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Archives |
Watch the Clock – Timing of Appeals
“A recent decision out of the Sixth Circuit may bring some much needed clarity to the situation.”
American College of Bankruptcy Elects Chapter 13 Trustee Marie Ann Greenberg as a Fellow
“Marie-Ann is one of 36 inductees to this year’s class and joins 12 other Chapter 13 Trustees . . .”
From the IRS
Strong Passwords Help Protect Accounts Against Cybercriminals
- Passwords like – “uE*s3P%8V)” – are out. Longer, personal phrases people can remember – for example, SunWalkRainDrive – are now preferred.
Employers Should Be Aware of W-2 Scam, Protect Employee Information
Farms in the News
Student Loan Chronicles
- She Took Out $20,000 In Loans For Her Son’s College – Then he went blind
Sanctions and Irony and Fraud, Oh My!
- After Microsoft Complaints, Indian Police Arrest Scammers at 26 Call Centers – Indian police raid 26 call centers, make 63 arrests
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Housingwire.com: Affordability vs Inventory
Article: In a Down Mortgage Lending Market, Subprime Stays Positive – Transunion reports rise in subprime originations
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
Verdict Is In: Food Stamps Put Poor Kids on Path to Success – Long-term evidence starting in the 1960s now shows that government support in childhood reduces the need for welfare in adulthood.
FOR THE ACADEMIC SET (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
Millennials are Killing Countless Industries — but the Fed says it’s mostly just because they’re poor
America Is Poorer Than It Thinks — Statistics don’t quite capture the extent of U.S. poverty. A new measure could change that.
US HEALTH CARE (Not password protected)
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December 3, 2018
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Archives |
Late-Filed Secured Claims After the 12/01/2017 Rule Changes
“Attorneys for debtors and creditors need to be aware of the law and customs in their local jurisdictions.”
Eastern District of Wisconsin Bankruptcy Appoints Judge
Congratulations Katherine Maloney Perhach who was the chair of Quarles & Brady’s Financial Institutions Litigation Practice Group and a leader of the firm’s Financial Services Industry Team.
Farms in the News
- Penny for Your Corn? Stingy trade-war aid irks U.S. farmers
From the National Consumer Bankruptcy Rights Center
For Your Blog
- When to Contact Your Student Loan Servicer – Sometimes borrowers need to be proactive about reaching out to their servicer
IN THE NEWS (Not password protected)
The Problem with Charitable Giving – Taxpayers should not have to subsidize rich people’s donations.
MORTGAGE MATTERS (Not password protected)
Article: The Other Housing Crisis: Cities where home prices are low because people have left
Article: A Tale of Two Fishers: Unsettling Ohio’s ‘Well-Settled Law’ on the Proper Statute of Limitations for Mortgage Foreclosure Actions
Article: Buying and Selling a Home Will Become More Difficult in 2019 – Affordability to diminish
Article: 5 Ways You Might Be Committing Mortgage Fraud – It carries a penalty of up to 30 years in jail or $1 million in fines.
OF INTEREST (Not password protected)
Protect Small Businesses from Predatory Lenders – Small business lending remains largely unregulated in the U.S., with no consistent requirements for clear disclosure of terms and interest rates.
Small New England City Was on the Verge of Bankruptcy – Now It’s a Turnaround Success Story
FOR THE ACADEMIC SET (Not password protected)
From Harvard.edu: Regulating Bankruptcy Bonuses (Chapter 11 issue)
DEBT AND THE ECONOMY (Not password protected)
General Motors, Sears and Toys R Us: Layoffs across America highlight our shredding financial safety net
US HEALTH CARE (Not password protected)
Overdoses, Bedsores, Broken Bones: What happened when a private-equity firm sought to care for society’s most vulnerable
FOR YOUR HEALTH (Not password protected)
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November 26, 2018
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Archives |
And much much more . . .
Critical Case Comment
When Chapter 7 debtors’ counsel bifurcated services and “factored” the fees due for post-petition services and failed to adequately disclose the arrangement, the attorney violated § 329; the business of “factoring” of obligations owed to debtors’ counsel constituted an impermissible splitting of fees.
Electronic Filing Comes of Age – Part II: Revised Bankruptcy Rule 8011 and Civil Rule 5
Absent contrary Congressional action, this December will see amendments to 16 bankruptcy rules, as well as a new rule and Appendix in Part VIII. Some of these changes will be of less interest to the Chapter 13 community than others. Larry Ahern has selected four that are most significant in Chapter 13 and has analyzed them for the Academy, starting with amended Rule 3002.1. He continued with amended Rule 5005, which imposes new, mandatory electronic-filing rules.Now, in Part II of this analysis of the electronic filing changes, he addresses parallel changes in Part VIII and the civil rules.Click here for Part I
Passing of Bankruptcy Judge
Federal Bankruptcy Judge Hon. Laurel E. Babero Dies in Courthouse
From Our Friends at Credit Slips
Congratulations to Former Slipster and (Congresswoman-Elect) Porter!
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
CoreLogic: Mortgage Delinquencies at 12 Year Low
Black Knight: Mortgage Rates Cut Eligible Borrowers in Half
OF INTEREST (Not password protected)
Not So High on Bankruptcy – Limited Options for Medical Marijuana Companies Facing Insolvency
DEBT AND THE ECONOMY (Not password protected)
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November 19, 2018
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Archives |
Electronic Filing Comes of Age – Part II: Revised Bankruptcy Rule 8011 and Civil Rule 5
Absent contrary Congressional action, this December will see amendments to 16 bankruptcy rules, as well as a new rule and Appendix in Part VIII. Some of these changes will be of less interest to the Chapter 13 community than others. Larry Ahern has selected four that are most significant in Chapter 13 and has analyzed them for the Academy, starting with amended Rule 3002.1. He continued with amended Rule 5005, which imposes new, mandatory electronic-filing rules.Now, in Part II of this analysis of the electronic filing changes, he addresses parallel changes in Part VIII and the civil rules.Click here for Part I
Federally Funded Slaving
This Article presents a new frame of reference for thinking about the federal government’s complicity in supporting the domestic slave trade in the antebellum United States. While scholars have accounted for several methods of such support, they have failed to consider how federal bankruptcy legislation during the 1840s functionally created a system of direct financial grants to slave traders in the form of debt discharges. Relying on a variety of primary sources, including manuscript court records that have not been systematically analyzed by any published scholarship, this Article shows how the Bankruptcy Act of 1841 enabled severely indebted slave traders to reconstruct their financial lives and thus return to the business of enslaving black men, women, and children. Knowing this legal history gives us a richer understanding of the federalization of American slavery and its role in the development of the nation’s economy.
Congratulations Judge Kornreich
From the IRS
Tax Reform Affects If and How Taxpayers Itemize Deductions
The tax reform law made the following changes to itemized deductions that can be claimed on Schedule A for 2018:
- Limit on overall itemized deductions suspended
- Deduction for state and local income, sales and property taxes modified
- New dollar limit on total qualified residence loan balance
- Deduction for home equity interest modified
- Limit for charitable contributions modified
- Deduction for casualty and theft losses modified
- Miscellaneous itemized deductions suspended
Vocabulary Word of the Week
“Overbiffing” is the Latest Outrage in Debt Collection
From the National Consumer Bankruptcy Rights Center
For Your Blog
How to Outlast a Job You Hate Until You Can Retire
IN THE NEWS (Not password protected)
Important Wins on Behalf of Debt Collection Industry – Hinshaw & Culberston LLP team analyzes precedent in several court cases on the FDCPA and FCRA, including collection of nontraditional debts, safe harbor language and more.
Average Utah Payday Loan Interest Rate Rises to Nearly 528% Annually — Double what loan sharks charged in the ‘60s
MORTGAGE MATTERS (Not password protected)
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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November 12, 2018
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Archives |
Electronic Filing Comes of Age – Part I: Revised Bankruptcy Rule 5005
Absent contrary Congressional action, this December will see amendments to 16 bankruptcy rules, as well as a new rule and Appendix in Part VIII. Some of these changes will be of more interest to the Chapter 13 community than others.Larry Ahern’s analyses for the Academy started with amended Rule 3002.1. He continues this week with amended Rule 5005 – imposing new, mandatory electronic-filing rules. In Part II of this analysis of the electronic filing changes, he will address parallel changes in Part VIII and the civil rules.
A Few Supreme Court Bankruptcy Decisions That May Be Helpful To Know By Name – Part 2 of 2
In this two-part series, Judge Gustafson has pulled together a resource you will want to be able to put your hands on later!Click here for Part 1
From the National Consumer Bankruptcy Rights Center
IN THE NEWS (Not password protected)
Chicago Considers Wiping Away Old Ticket Debt for Motorists Who File for Chapter 7 Bankruptcy – Proposal is intended to discourage drivers from filing Chapter 13, but it does nothing to change onerous payment plans for motorists who don’t file at all.
MORTGAGE MATTERS (Not password protected)
Article: Interest Up, Applications Down
Article: Zombie Foreclosure Homes Down
OF INTEREST (Not password protected)
IRA Contribution Limit Lifted for the First Time in Six Years (a popular link from last week – worth running again)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
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November 5, 2018
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Archives |
A Few Supreme Court Bankruptcy Decisions That May Be Helpful To Know By Name – Part 1 of 2
In this two-part series, Judge Gustafson has pulled together a resource you will want to be able to put your hands on later!
From the Editor
This week Judge Brown looks at three distinct cases. One each on turnover, valuation, and postpetititon debt:
Passing of Long Time Nashville Attorney
After a hard-fought battle, James Alan Flexer, ‘Jimmy’ to those who knew him, succumbed to pancreatic cancer on Monday, October 29th. Jimmy was a very well-known, beloved bankruptcy attorney in the Middle Tennessee area. Flexer Law, PLLC, has been among the top Chapter 13 filers for many many years. Jimmy will be sorely missed.
There’s Always a Car
For Your Blog
Student Loan Chronicles
- FTC Accuses SoFi of Lying about Loan Savings in Misleading Ads – Online lender allegedly overinflated savings claims on student loan refinances
Sanctions and Irony and Fraud, Oh My!
- Federal Jury Convicts Woman For Running $1 Million Car Loan Scheme – Kimberlie Flemings and co-conspirators defrauded 15 credit unions and three banks.
IN THE NEWS (Not password protected)
Chicago City Clerk Calls for Reforms of Vehicle Sticker Program – Anna Valencia proposed creating city sticker options so low-income drivers can afford to be in compliance and avoid costly tickets.
MORTGAGE MATTERS (Not password protected)
Article: Who to Blame for Housing Slump
Article: Homeowners Staying Longer
Article: Risk Shift from Banks to Servicers
OF INTEREST (Not password protected)
Happy Halloween to FCRA Defendants in Wisconsin: Court Rules that the Courts, not CRAs, are Charged with Resolving Legal Disputes
Bankruptcy Attorney Rule 9011 Sanctions – Halloween Edition (Chpt 11 issue)
DEBT AND THE ECONOMY (Not password protected)
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October 29, 2018
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Archives |
Post-Confirmation Property & Income Changes
“If you represent Chapter 13 Debtors, you will eventually have a case where the Debtor does not promptly tell you they received substantial property or additional income after the plan has been confirmed. When the Chapter 13 Trustee learns about this, they will try to increase the dividend to unsecured claims, and you will have to decide what to do.”
From the Editor
This week’s cases from The Academy Editor look at claims and the Fair Debt Collection Practices Act.
From the Courts
Tuesday, Oct. 30 Livestream Hearing: Proposed Changes to Judicial Conduct Code and Rules
Click here for more information
Click here for Executive Summary
From the National Consumer Bankruptcy Rights Center
For Your Blog
Student Loan Chronicles
IN THE NEWS (Not password protected)
MO Top Court: Consumer Lender Can’t Rewrite Arbitration Clause to Avoid Class Action (Not a bankruptcy case but one you might want to be aware of)
MORTGAGE MATTERS (Not password protected)
OF INTEREST (Not password protected)
Mortgage Assignee Claims: Hang on to that Promissory Note (Chpt 11 case)
MILITARY MATTERS (Not password protected)
The Military Moves Hundreds of Thousands of Families Each Summer. Many of Them Don’t Go Well
BY THE NUMBERS (Not password protected)
Child-Care Costs Just Hit New High – New study calculates the annual average cost to send one kid to day care
DEBT AND THE ECONOMY (Not password protected)
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October 22, 2018
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Archives |
Tragic Passing of Southern Gentleman
“He was a good man and that is how I will remember John Talton.” David Peake, NACTT President.
December 1 Approaches (Again): Home Equity Lenders Get a Break and Other Changes to Rule 3002.1
Absent contrary Congressional action, this December will see amendments to 16 bankruptcy rules, as well as a new rule and Appendix in Part VIII. Some of these changes will be of more interest to the Chapter 13 community than others. Larry Ahern’s analyses start this week with amended Rule 3002.1.Looking ahead, before the effective date he will analyze amended Rule 5005 – imposing new, mandatory electronic-filing rules – in another article for the Academy.
From the Editor
After a brief absence, Judge Brown is back with his case synopsis. This week he looks at discharge in three Chapter 13 cases.
More Tragedy Hits Bankruptcy World
From Our Friends at Credit Slips
CFPB “Abusive” Rulemaking?
For Your Blog
Student Loan Chronicles
- Public Service Loan Forgiveness Is Looking Pretty Bleak, But Maybe You Don’t Need To Worry – The approval rate can’t remain at 1 percent forever… can it?
Sanctions and Irony and Fraud, Oh My!
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Article: 2018 Mortgage Fraud Report
Article: Wall Street Loves These Risky Loans
FreddieMac: Increased Mortgage Rates Will Slow Purchase
OF INTEREST (Not password protected)
Our Court Not Good Enough? Why a Chicago business icon filed bankruptcy in New York
MILITARY MATTERS (Not password protected)
BY THE NUMBERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
Consumer Delinquencies Remain Stable in Second Quarter – Bank card delinquencies remain below 15-year average and consumers’ overall financial health is “excellent,” according to American Bankers Association economist.
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October 15, 2018
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Archives |
Circuit Split???
Is a Finding of Contempt Precluded by a “Good Faith” but Unreasonable Belief that an Action Does Not Violate the Discharge Injunction?
The Ninth Circuit’s Taggart rule says a good faith belief that a discharge injunction does not apply to a creditor’s actions precludes a finding of contempt. In a September 7 decision, that Circuit’s BAP applied the rule to a stay violation. This week, Larry Ahern reviews the decisions, together with one by the First Circuit, and considers whether there is a circuit split on this issue.
Critical Case Comment
Unless a Chapter 13 debtor has articulated a specific need to use a tax refund for a reasonable and necessary expense, post-petition tax refunds must be turned over to the Chapter 13 trustee to be distributed to creditors.
From the IRS
New 100% Depreciation Deduction Benefits Business Taxpayers
Tax reform legislation passed in December 2017 includes changes that allow businesses to write off most depreciable business assets in the year they place them in service.
Artificial Intelligence is Here
AI-Based Credit Scores Will Soon Give One Billion People Access to Banking Services
Alternative credit scores — using data, in part, from customers’ smartphones — will be migrating from emerging economies to the U.S.
For Your Blog
- Stanford Analyzed 292 Retirement Strategies – Here’s What Its Experts Determined Is Best
Sanctions and Irony and Fraud, Oh My!
OF INTEREST (Not password protected)
In Case of Fire, File a Claim (Chpt 11 case but good reminder to creditors to FILE A CLAIM)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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October 8, 2018
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Archives |
Dismiss Absent a Hearing? Not so Fast
“ . . . So, in the E.D.N.C, unless a debtor requests a dismissal, or explicitly agrees to one, there will be a hearing, even with respect to an otherwise uncontested motion.”
Civil vs. Criminal Standard of Proof
Court explores evidence of willful intent under 11 U.S.C. § 523(a)(1)(B) and finds debtor innocent based on civil standard of proof. Taxes discharged.
Interested in more on discharging taxes? Check out Morgan King’s Tax Practice Library Plus. Includes The 3-Volume Tax Practice Library; The 7.5 hr. Tax Discharge Recorded Webinar; and one hour of consultation with Morgan King
IRS Issues Guidance on Changes to Business Expense Deductions for Meals, Entertainment
. . . eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation.
The Supreme Court
From the National Consumer Bankruptcy Rights Center
- Debtor Wins Battle of the Code Sections: Exemption vs Set-Off
In Congress
ABA Supports Chapter 7 Bankruptcy Changes
Click here for the text of H. R. 3553Click here for Testimony of Ariane Holtschlag for ABI Commission Before the Subcommittee on Regulatory Reform, Commercial and Antitrust Law House Committee on the Judiciary
Farmers in the News
Drought-Stricken Farmers/Ranchers Have More Time to Replace Livestock
Farmers/ranchers forced to sell livestock due to drought may get extra time to replace the livestock and defer tax on any gains from the forced sales.
See also: In Debt and Out of Options, Thousands of Dairy Farmers Turn to GoFundMe for Bailout
For Your Blog
- Mark Cuban: ‘If you use a credit card, you don’t want to be rich’
Student Loan Chronicles
- Debt Collection May Change for Student Loan Borrowers – U.S. Department of Education plans to rework how debt collection agencies interact with borrowers
- Unpaid Student Loan Debt Threatens Readers’ Wages – More than a third of federal student loan borrowers age 65 and older are in default, one report found.
MORTGAGE MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
Downward Mobility: Where Middle-Class Kids are Worse Off than their Parents
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October 1, 2018
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Archives |
Ask Ms. Ps & Qs
This case involves someone who lacks imagination when it comes to cursing (or, as we Texans say, cussin’). . . . the attorney was looking a seventh (!) sanction in the eye for telling one of her associates that her litigation strategy was to eff someone and give him “an [effing] hard time.”Note: Don’t miss Endnote #4!
Critical Case Comment
When Chapter 7 debtors’ counsel bifurcated services and “factored” the fees due for post-petition services and failed to adequately disclose the arrangement, the attorney violated § 329; the business of “factoring” of obligations owed to debtors’ counsel constituted an impermissible splitting of fees.
In Congress
ABA Supports Chapter 7 Bankruptcy Changes
Click here for the text of H. R. 3553
Click here for Testimony of Ariane Holtschlag for ABI Commission Before the Subcommittee on Regulatory Reform, Commercial and Antitrust Law House Committee on the Judiciary
There’s Always a Car
Farmers in the News
Sanctions and Irony and Fraud, Oh My!
- U.S. Trustee Program Reaches $5 Million Settlement with Citibank to Protect Debtors in Bankruptcy – Settlement Addresses Robo-Signing in Tens of Thousands of Bankruptcy Cases
Student Loan Chronicles
- Help or Hardship? – Income-Driven Repayment in Student-Loan Bankruptcies
- There’s Supposed to Be a Student Loan Forgiveness Program for Public Servants – So Far, It’s Rejected Almost Every Applicant
MORTGAGE MATTERS (Not password protected)
US Census: Home Sales Up After 2 Month Decline
FreddieMac: Inventory and Affordability Affecting Sales
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
American Credit Scores Hit a Record High – The bad news is bank card, mortgage and auto loan debt are all flashing red.
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September 24, 2018
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Archives |
Making Amends in Chapter 13: Why Davis Should Cause You to Take Action
“. . . Such was the case in a recent unpublished opinion out of the Sixth Circuit Court of Appeals, a case in which a debtor’s failure to list a civil rights cause of action in her Chapter 13 plan effectively robbed her of the opportunity to ever have the merits of her claim heard.”
What is Feasibility and Why does it Matter?
This article discusses how feasibility has been interpreted by the courts and is intended to aid parties to chapter 13 proceedings – counsel for debtors, counsel for creditors, and chapter 13 trustees– better understand this concept.
In Congress
- New Bill Would Finally Tear Down Federal Judiciary’s Ridiculous Paywall – A Republican member of Congress wants free public access to judicial records.
From the Courts
Proposed Amendments Published for Public Comment
- Bankruptcy Rules 2002, 2004, 8012
- Comment period closes February 15, 2019
Military Matters
Combat-Injured Disabled Veterans May Be Due Refund
The IRS is alerting certain veterans that they may be due a credit or refund. This is a result of the Combat-Injured Veterans Tax Fairness Act passed in 2016. It affects veterans who received disability severance payments after January 17, 1991, and included that payment as income.
American Farmers Are in Crisis
Falling prices and a trade war mean small farmers are struggling to stay afloat
For Your Blog
Sanctions and Irony and Fraud, Oh My!
- Cyber Crooks Try to Divert Direct-Deposit Paychecks into Their Accounts – According to the latest alert from the FBI, cyber criminals have been targeting online payroll accounts at school districts, universities, hospitals and commercial airway transportation.
Student Loan Chronicles
- What the Proposed Borrower Defense Rules Mean – The Trump administration is trying to delay an Obama-era policy meant to boost protections for defrauded students.
IN THE NEWS (Not password protected)
Delinquent Property Tax Procedures: To Stay or Not to Stay – In response to repeated requests for comfort orders, the Bankruptcy Court for the Middle District of Florida issued a district wide administrative order confirming that the automatic stay did not apply to the post-petition sale of tax certificates for delinquent property taxes owed on property owned by a debtor in bankruptcy.
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
What’ll Spark the Next Crisis? Here’s One Candidate – Lenders to subprime corporate borrowers are dropping their guard.
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September 17, 2018
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Archives |
Section 522(f) Avoidance of Liens on Co-Owned Property
In an August decision, the Tenth Circuit held that, when avoiding liens under § 522(f), and when the debtor owns only a partial interest in exempt property, you start with that interest and allocate senior liens proportionately. This is now the majority view at the circuit level.This week, Larry Ahern reviews how the calculation works and describes the Tenth Circuit’s decision.
Is There a Light in the Farm Economy?
- Mark your calendar now for the Chapter 12 Conference July 15 and 16, 2019 in Indianapolis
Judge Issues
- Third Circuit Begins Search for Temp Judges on Del. Bankruptcy Court – The U.S. Court of Appeals for the Third Circuit has begun its search for two temporary bankruptcy judges in Delaware, nearly 10 months after Congress passed legislation to provide reinforcement for one of the busiest bankruptcy courts in the nation.
For the Academic Set
U.S. Banking De-Regulation, Financial Engineering, and Bankruptcy Reform: How Banks Took Control over Consumer Insolvency Law
New from the author of Credit Card Nation a review of the legislative history of banking deregulation and bankruptcy reform. It provides a brief explanation of financial engineering, and compares the stringent effects of BAPCPA for consumers with the generosity offered to those financial services firms that created the crisis.
From the Courts
- Bankruptcy Court Miscellaneous Fee Schedule Effective September 1st
- BAPCPA Report – 2017 Report of Statistics Required by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
From the IRS
IRS Urges Taxpayers to Prepare for Natural Disasters
“Check on fiduciary bonds – Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.”
From Our Friends at Credit Slips
From the National Consumer Bankruptcy Rights Center
- Court Puts Trustee Fees Under the Microscope (Chpt 7 case)
For Your Blog
Retirees: Avoid Surprise Tax Bill Do Paycheck Checkup ASAP
“Because of this law change, retirees who receive a monthly pension or annuity check may need to raise or lower the amount of tax they pay in during the year.”
Sanctions and Irony and Fraud, Oh My!
- A Year Later, Equifax Lost Your Data but Faced Little Fallout – Equifax is financially stable and legally in the clear, but lawmakers aren’t backing down.
MORTGAGE MATTERS (Not password protected)
Article: New Home Sales Hit 9 Month Low
FreddieMac: Mortgage Rates Creeping Up
CoreLogic: Home Prices Rising at Reduced Rate
OF INTEREST (Not password protected)
8th Circuit BAP Rules Bad Faith Not Grounds to Deny Amended Exemption of Assets Disclosed Post-Petition (Chpt 7 case)
Montana Had Highest Suicide Rate in the Country: Then Budget Cuts Hit – Suicide has been a persistent problem in Montana — and it’s getting worse. Now, some who have lost loved ones are mobilizing to stop the deaths.
Interesting Chapter 11 case . . . Who Gets to Keep the Money: Sometimes Procedural Arguments Can Matter as Much as Substantive Arguments
Bankruptcy Claims Trading . . . the first empirical study of trading in the financial claims of Chapter 11 debtors to learn more about how claims trading impacts the average Chapter 11 case
JoCo Man Bought a Bank Upon ‘Revelation From God’ – Now $30M in debt, he’s bankrupt
DEBT AND THE ECONOMY (Not password protected)
MILITARY MATTERS (Not password protected)
Watchdog Report: VA benefits backlog is higher than officials say
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September 10, 2018
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Archives |
Critical Case Comment
A debt obligation for a penalty resulting from fraud can be both a debt under § 523(a)(2) and § 523(a)(7) and the obligation is excepted from discharge in a Chapter 13 case.
Factoring in Valuation – Consumer Cases that Impact Business Cases
Practitioners should be aware of important consumer decisions that may influence lower courts in the business context and commercial case decisions which may influence consumer cases.
Supreme Court Fellows Set to Begin New Term
- Two of four Fellows are from the bankruptcy world
- Congratulations Ms. Willie and Ms. Jones
From the Courts
- Bankruptcy Court Miscellaneous Fee Schedule Effective September 1st
- BAPCPA Report – 2017 Report of Statistics Required by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
Bankruptcy is Often a Gambler’s Only Sure Bet
“ . . . gamblers may actually have some luck on their side if they take advantage of current bankruptcy laws.” (Chapter 7 related article)
Federal Judges Mourn Passing of Retired Bankruptcy
Federal judges in the Pacific Northwest and beyond are mourning the passing of retired Bankruptcy Judge Thomas T. Glover of the United States Bankruptcy Court for the Western District of Washington.Click here for Obituary
From Our Friends at Credit Slips
From the National Consumer Bankruptcy Rights Center
Sanctions and Irony and Fraud, Oh My!
MORTGAGE MATTERS (Not password protected)
What’s the Frequency: Keeping Up with Tax Installment Changes – If a mortgage servicer knows that property taxes in a particular state or region are always due at the same time, forecasting workload volume and staffing needs can be more easily predicted . . . a few of the interesting changes and requirements of some of the jurisdictions around the country.
MBA Report: Profits Up In 1st Qtr
FreddieMac Forecast: Home Sales Slowing
OF INTEREST (Not password protected)
Are Our Days as Lawyers Numbered? Yes, robots/AI are changing the landscape of the legal world. But will they one day take over completely?
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
Texas Teacher Thought He Had Great Health Insurance – Now he’s stuck with a $109,000 ER bill.
Know what to do if this happens to you or your client:
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September 3, 2018
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Archives |
UpRight Not Right in East Tennessee
Law Solutions Chicago, LLC d/b/a Upright Law has once again been sanctioned. This time in the Eastern District of Tennessee by settlement agreement with the United States Trustee, Chapter 13 Trustee, Gwendolyn Kerney, and Chapter 7 Trustee, Jerrold Farinash.
From the National Consumer Bankruptcy Rights Center
Forgive Us Our Debts
NACTT Miami speaker and Orlando attorney Anne-Marie Bowen, has just published an exciting new resource for you and your clients. Forgive Us Our Debts is a short, easy read primarily written for Christian debtors and/or potential debtors but as a debtor or creditor attorney, this book is also a resource for you into the mindset of those clients who, for religious reasons, struggle with allowing themselves a chance at a fresh financial start.
From the IRS
IRS to Introduce New Tax Transcript to Better Protect Taxpayer Data
The new transcript replaces the previous format and will be the default format available via Get Transcript Online, Get Transcript by Mail or the Transcript Delivery System for tax professionals as of September 23.Click here for more . . .
For Your Blog
Taxpayers Should Be Prepared for Natural Disasters
With hurricane season underway, it’s a good idea for taxpayers to think about what they can do to be prepared should a hurricane or other natural disaster strike where they live. Here are a few helpful tips for taxpayers to keep in mind.
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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August 27, 2018
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Notice: Pitfalls and Perils of Rule 7004(h)
“Where the Plan proposes to strip or cram or avoid a lien held by an Insured Depository Institution, Rule 7004 contains much higher requirements for service.”
See also: Don’t Skimp on Service When Your Client’s House Is on the Line
Position Postings
Chapter 13 Standing Trustee
Location: Reading, PA
Location: Reading, PA
Term Law Clerk to U.S. Bankruptcy Judge Arthur I. Harris
Location: Cleveland, Ohio
Are You Throwing Your Bankruptcy Client to the Predators?
Standard operating procedure for taxing authorities who are in discussion with a tax payer about a tax issue is to “request” that the taxpayer sign an extension of the period in which the taxes can be assessed. The alternative, the taxpayer is told, is an immediate assessment.
From Our Friends at Credit Slips
Attention Trustees/Office Managers
NACTT Miami – Staff Track DVDs Now Available
Order the four staff track sessions TODAY for ONLY $75
(Ships within 24 hours)
(Ships within 24 hours)
Training Includes
- Understanding Business Entities and the Self-Employed Debtor
- National Data Center Training
- Acing the Annual Audit
- Mortgage Claims Issues
From the IRS
IRS to Introduce New Tax Transcript to Better Protect Taxpayer Data
The new transcript replaces the previous format and will be the default format available via Get Transcript Online, Get Transcript by Mail or the Transcript Delivery System for tax professionals as of September 23.
Student Loan Chronicles
For Your Blog
Sanctions and Irony and Fraud, Oh My!
- US v. VALDÉS-AYALA – For at least eight years, Defendant, who was not an attorney, exploited desperation of individuals behind on court-ordered child support payments by assisting them in filing ‘skeleton’ petitions.
In Case You Missed It . . .
Critical Case Comment DON’T WANT TO MISS
Claim that is not timely filed cannot be an allowed claim and trustee is precluded from making distribution to the claim even where no application to disallow the claim has been filed.
“Judge Dees has prevented the payment of the claim even though no one sought to disallow the claim or challenge the payments.”
Scroll to the very bottom of the page for an important comment and to add your own comments.
MORTGAGE MATTERS (Not password protected)
Article: The Million-Dollar Brownstone No One Owned – On a quiet street in Brooklyn, a real-estate imbroglio proved nearly impossible to solve.
OF INTEREST (Not password protected)
Federal Courts Propose Broad Evidence, Civil, Bankruptcy Rule Changes (Bankruptcy Rules 2002(h), 2004(c))
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
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August 20, 2018
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Critical Case Comment
Claim that is not timely filed cannot be an allowed claim and trustee is precluded from making distribution to the claim even where no application to disallow the claim has been filed.
“Judge Dees has prevented the payment of the claim even though no one sought to disallow the claim or challenge the payments.”
Are You Throwing Your Bankruptcy Client to the Predators?
Standard operating procedure for taxing authorities who are in discussion with a tax payer about a tax issue is to “request” that the taxpayer sign an extension of the period in which the taxes can be assessed. The alternative, the taxpayer is told, is an immediate assessment.
Trustee Passes Away
It is with great sadness and respect that we report the passing away of a Standing Chapter 13 Trustee for the Eastern District of Pennsylvania with offices in Reading. Frederick L. “Fred” Reigle was appointed in 1981. He passed away on July 15th after a lengthy illness.
Standing Chapter 13 Trustee William C. Miller has been appointed interim trustee of the division until a replacement can be appointed.
Applications are being accepted until the end of this month.
NACTT Miami – Staff Track DVDs Now Available
Order the four staff track sessions TODAY for ONLY $75
(Ships within 24 hours)
(Ships within 24 hours)
Training Includes
- Understanding Business Entities and the Self-Employed Debtor
- National Data Center Training
- Acing the Annual Audit
- Mortgage Claims Issues
Passing of Jim Batchelor
Jim Batchelor passed away Saturday morning August 10th after a long battle with cancer. Jim was the recipient of the Civility Award at the 2017 State of the Court luncheon and was a well-respected colleague in the bankruptcy bar in the Western District of Michigan.
No Room for Error? Determining Whether Your “Secured” Creditor Has a Fatally Deficient UCC-1 – Part 2 of 2
Trustees and debtors’ counsel may often think they cannot win in a contest over the secured status of a creditor. Prompted by recent bankruptcy and district court decisions, Larry Ahern reviewed in Part I some rules governing the preparation and filing of financing statements (UCC-1s) and explained how a UCC-1 might be fatally deficient. Now, in Part II, he reviews four recent decisions that illustrate the strictness of the rules governing naming of debtors on UCC-1s.
On the CFPB
CFPB Settles with Defendants in Hydra Group Payday Lending Case
District Court entered an Order effectuating settlement CFPB and Richard Moseley, Sr., Richard Moseley, Jr., and 20 interrelated corporate entities controlled by Moseley, Sr. and Moseley, Jr.
For Your Blog
Sanctions and Irony and Fraud, Oh My!
- Fil-Am Lawyer Pleads ‘Not Guilty’ to Attempted Murder of Ex-Clients (Has Chapter 13 lawyer income really sunk this low? . . . Oh My indeed!! . . . Now, the rest of the story . . . (on good authority but not verified, Academy staff was told that the victims had been in a Chapter 13 which was dismissed. Their attorney (Paul Mendoza Allen) went to their home to demand the balance of his fees. When they said they had no money, he shot them, then tried to flee.)
In Case You Missed It . . .
Ask Ms. Ps & Qs
Dear Readers:I just finished reading a disgorgement . . . Although D’Arata is a chapter 7 case, you might be interested in the Court’s take on appearance counsel.
MORTGAGE MATTERS (Not password protected)
Article: Fannie Mae Seeks to Offload Large Pool of Reperforming Loans BIDS DUE SEPTEMBER 6th
Article: Americans Now Have More Debt Than Ever Before – Mortgage debt hits highest level in 9 years
Article: Paying Rent in America
Article: Home Remodels Up 30%
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
Many Americans Still Feel the Sting of Lost Wealth – The housing crash hurt the poor and middle class more than the rich, who rode the bull stock market
BY THE NUMBERS (Not password protected)
Stagnating Salaries: Real US wages are essentially back at 1974 levels, Pew reports
FOR YOUR HEALTH (Not password protected)
The Illness Is Bad Enough. The Hospital May Be Even Worse – Elderly particularly vulnerable to “post-hospital syndrome,” some experts believe, and that may be why so many patients return.
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August 13, 2018
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Archives |
Ask Ms. Ps & Qs
Dear Readers:
I just finished reading a disgorgement . . . Although D’Arata is a chapter 7 case, you might be interested in the Court’s take on appearance counsel.
No Room for Error? Determining Whether Your “Secured” Creditor Has a Fatally Deficient UCC-1 – Part 2 of 2
Trustees and debtors’ counsel may often think they cannot win in a contest over the secured status of a creditor. Prompted by recent bankruptcy and district court decisions, Larry Ahern reviewed in Part I some rules governing the preparation and filing of financing statements (UCC-1s) and explained how a UCC-1 might be fatally deficient. Now, in Part II, he reviews four recent decisions that illustrate the strictness of the rules governing naming of debtors on UCC-1s.
New Study
Graying of U.S. Bankruptcy: Fallout from Life in a Risk Society
“Using data from the Consumer Bankruptcy Project, we find more than a two-fold increase in the rate at which older Americans (age 65 and over) file for bankruptcy and an almost five-fold increase in the percentage of older persons in the U.S. bankruptcy system.”
See also:
- Older Americans’ Rising Bankruptcy Filings
- ‘Too Little Too Late’: Bankruptcy Booms Among Older Americans
- Growing Number of Americans Over 65 Filing for Bankruptcy Just to Get By, and It Could Signal a Larger Problem in US
- Baby Boomers in Bankruptcy
- Retirees Struggle to Locate Billions in Lost Pensions
For Your Blog
Sanctions and Irony and Fraud, Oh My!
In Case You Missed It . . .
Discharged or Not? Post-Petition Interest on Pre-Petition Priority Taxes
“The Chapter 13 Debtor who completes the Plan and obtains a discharge is relieved of any further liability associated with the priority tax debt. Interest and penalties continue to accrue during the pendency of the Chapter 13 case and if the case is either dismissed or converted to a proceeding under Chapter 7, the suspension of the accrual of interest and penalties terminates and is excepted from the Chapter 7 discharge.”
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Article: Wells Fargo Bungles Loan Mods
Article: Housing: Still A Seller’s Market
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
BY THE NUMBERS (Not password protected)
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August 6, 2018
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Archives |
No Room for Error? Determining Whether Your “Secured” Creditor Has a Fatally Deficient UCC-1 – Part 1 of 2
Trustees and debtors’ counsel may often think they cannot win in a contest over the secured status of a creditor. Prompted by recent bankruptcy and district court decisions, Larry Ahern reviews some rules governing the preparation and filing of financing statements (UCC-1s) and explains how a UCC-1 might be fatally deficient.
In Part II, he will review four recent decisions that illustrate the strictness of the rules governing naming of debtors on UCC-1s.
Discharged or Not? Post-Petition Interest on Pre-Petition Priority Taxes
“The Chapter 13 Debtor who completes the Plan and obtains a discharge is relieved of any further liability associated with the priority tax debt. Interest and penalties continue to accrue during the pendency of the Chapter 13 case and if the case is either dismissed or converted to a proceeding under Chapter 7, the suspension of the accrual of interest and penalties terminates and is excepted from the Chapter 7 discharge.”
From the IRS
IRS Offers Guidance on Recent 529 Education Savings Plan Changes
On 7/30/18 the IRS and Department of the Treasury announced their intent to issue regulations on three recent tax law changes affecting popular 529 education savings plans.
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
In Case You Missed It . . .
Critical Case Comment
A discharge under § 1328(a) will discharge an obligation of the debtor to a condominium association where the condominium was purchased pre-petition and owned by the debtor post-petition.
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Article: Slump in California Home Sales
Article: Average Closing Costs $5650.00
Article: Poorer Half of US Bolsters Economy
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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July 30, 2018
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Critical Case Comment
A discharge under § 1328(a) will discharge an obligation of the debtor to a condominium association where the condominium was purchased pre-petition and owned by the debtor post-petition.
From the Courts
Sanctions and Irony and Fraud, Oh My!
In Case You Missed It . . .
Who Gets Paid When? A Short Primer on the Order of Distribution in the Era of National and Local Plans
The Federal Rules of Bankruptcy Procedure and Official Forms were amended last year in ways that significantly affected Chapter 13 Trustees and practitioners in many ways. Below, Mr. Ahern follows his 2017 series with Beverly Burden by discussing an important unanswered question for trustees, debtors and creditors: How is the order of distribution to creditors determined?
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Article: Tapping 401K Is Risky
Here Are 5 Reasons Millennial Homeownership Rate Is Low – Urban Institute breaks down the data
Article: Lil Kim Struggles to Save Home in BK
OF INTEREST (Not password protected)
Bankruptcy Law as a Balancing System – Lessons from a Comparative Analysis of the Interaction Between Labor and Bankruptcy Laws
BY THE NUMBERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
Mortgage, Groupon and Card Debt – How the bottom half bolsters U.S. economy
CYBER SECURITY (Not password protected)
None of Google’s 85,000 Employees Have Been Successfully Phished in Over a Year — And It’s Because of a Simple $20 Product Anyone Can Use
IN THE ‘OH WOW’ DEPARTMENT (Not password protected)
Health Insurers Are Vacuuming Up Details About You — And It Could Raise Your Rates
Without any public scrutiny, insurers and data brokers are predicting your health costs based on data about things like race, marital status, how much TV you watch, whether you pay your bills on time or even buy plus-size clothing.
Without any public scrutiny, insurers and data brokers are predicting your health costs based on data about things like race, marital status, how much TV you watch, whether you pay your bills on time or even buy plus-size clothing.
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July 23, 2018
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Archives |
WINNER: Cawthon Custer of Albany and Columbus, Georgia, is the NACTT 2018 conference winner of a one-year free subscription to ConsiderChapter13.org
Congratulations Cawthon Custer!!!
Who Gets Paid When? A Short Primer on the Order of Distribution in the Era of National and Local Plans
The Federal Rules of Bankruptcy Procedure and Official Forms were amended last year in ways that significantly affected Chapter 13 Trustees and practitioners in many ways. Below, Mr. Ahern follows his 2017 series with Beverly Burden by discussing an important unanswered question for trustees, debtors and creditors: How is the order of distribution to creditors determined?
Rule 3002.1 and the Tangled Web of HOA Assessments
“Secured creditors relying on the precept that a secured claim passes through bankruptcy unaffected (absent a proceeding focused on the lien) take note.”
From the IRS
Here’s How the IRS Contacts Taxpayers
Everyone should know how the IRS contacts taxpayers
Retired Bankruptcy Judge Passes Away
Judge James F. Queenan
From Our Friends at Credit Clips
Sanctions and Irony and Fraud, Oh My!
In Case You Missed It . . .
Critical Case Comment
Although a secured creditor with a purchase money security interest in personal property is entitled to adequate protection payments under § 1326(a)(1), the trustee is not obligated to make the payments without a motion, hearing, or court order.
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
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July 16, 2018
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Archives |
Critical Case Comment
Although a secured creditor with a purchase money security interest in personal property is entitled to adequate protection payments under § 1326(a)(1), the trustee is not obligated to make the payments without a motion, hearing, or court order.
From the Ninth Circuit Court of Appeals
Opinion: Goudelock v. Sixty-01 Association of Apartment Owners
“The panel reversed the district court’s decision affirming the bankruptcy court’s summary judgment in favor of a condominium association, which sought in an adversary proceeding to determine the dischargeability of a debtor’s personal obligation to pay condominium association assessments that accrued between the date the debtor filed her Chapter 13 bankruptcy petition and the date the condominium unit was foreclosed upon.”
See also: Post-Petition Condo Fees Dischargeable
From the IRS
Spread the Word . . . this could be a significant amount of money for veterans.
Veterans Owed Refunds for Overpayments Attributable to Disability Severance Payments Should File Amended Returns to Claim Tax Refunds
- $1,750 for tax years 1991 – 2005
- $2,400 for tax years 2006 – 2010
- $3,200 for tax years 2011 – 2016
District Authority to Opt Out of the “National” Chapter 13 Plan: Does Your Local Plan Improperly Restrict Plan Provisions?
The Rules of Bankruptcy Procedure were amended last year in ways that significantly affected Chapter 13 Trustees and practitioners in many ways. In a series of articles, Beverly Burden and Larry Ahern explained many of these changes.
This week, Mr. Ahern follows that series with an issue that tests the interplay of the national rules with local practice, rules, and judicial rulings.
On the CFPB
- CFPB Acting Director Mulvaney announced he has selected Brian Johnson, who currently serves as Principal Policy Director at the Bureau, to assume the responsibilities of Acting Deputy Director. “Brian Johnson is the first person I hired at the Bureau and has been an indispensable advisor,” said Acting Director Mulvaney. “Brian knows the Bureau like the back of his hand. He approaches his role as a public servant with humility and unsurpassed dedication. His steady character, work ethic, and commitment to free markets and consumer choice make him exactly what our country needs at this agency.”
NACTT Miami – Evaluation Time
IF YOU ATTENDED THE SEMINAR, we value your opinion. Please take a few moments to complete this evaluation. Your feedback is important to us and will assist in planning the 2019 Indianapolis Seminar. We look forward to seeing you there.
Mark Your Calendar NOW – NACTT 2019 Indianapolis – July 17-19 – Yep, WEDNESDAY – FRIDAY (Pre-mtgs will be on Tuesday the 16th)
From Our Friends at Credit Clips
Sanctions and Irony and Fraud, Oh My!
In Case You Missed It . . .
Permitted Changes to Official Bankruptcy Forms
The use of Official Bankruptcy Forms is required with certain exceptions, and the ability to modify Official Forms is limited. However, there are exceptions. Click here for an analysis done by the AO of permitted changes to official bankruptcy forms
See also: Director’s Forms and Their Use by Phil Lamos
MORTGAGE MATTERS (Not password protected)
Black Knight: Tappable Equity Up $380B In Q1
Article: Millennial Homeownership Stymied
BY THE NUMBERS (Not password protected)
OF INTEREST (Not password protected)
CONSUMER WARNING (Not password protected)
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July 9, 2018
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Archives |
The FDCPA and Bankruptcy One Year After Midland v. Johnson, Part IV Bankruptcy Court Interpretations
The conclusion to the Midland v. Johnson ‘epic’. . . “In Midland v. Johnson, the Supreme Court put an end to FDCPA lawsuits over proofs of claims for stale debts, at least where the claimant tells the truth about the date of last payment. Since the Midland ruling in May of 2017, there have been few decisions from bankruptcy courts on complaints under the Fair Debt Collection Practices Act (FDCPA).”
Click here for Part I
Click here for Part II
Click here for Part III
District Authority to Opt Out of the “National” Chapter 13 Plan: Does Your Local Plan Improperly Restrict Plan Provisions?
The Rules of Bankruptcy Procedure were amended last year in ways that significantly affected Chapter 13 Trustees and practitioners in many ways. In a series of articles, Beverly Burden and Larry Ahern explained many of these changes.
This week, Mr. Ahern follows that series with an issue that tests the interplay of the national rules with local practice, rules, and judicial rulings.
Permitted Changes to Official Bankruptcy Forms
The use of Official Bankruptcy Forms is required with certain exceptions, and the ability to modify Official Forms is limited. However, there are exceptions. Click here for an analysis done by the AO of permitted changes to official bankruptcy forms
See also: Director’s Forms and Their Use by Phil Lamos
NACTT Miami – Evaluation Time
IF YOU ATTENDED THE SEMINAR, we value your opinion. Please take a few moments to complete this evaluation. Your feedback is important to us and will assist in planning the 2019 Indianapolis Seminar. We look forward to seeing you there.
Mark Your Calendar NOW – NACTT 2019 Indianapolis – July 17-19 – Yep, WEDNESDAY – FRIDAY (Pre-mtgs will be on Tuesday the 16th)
From the Courts – Retirements
For Your Blog
- The 130 Best Military Discounts in 2018 – Active-duty service members, veterans, and retirees can save big by asking about deals and freebies.
From Our Friends at Credit Clips
Student Loan Chronicles
- Sixth Circuit Opinion: Follow Brunner until the Circuit Court decides to use a different standard
- Off the Salary Battlefield, Public Sector Struggles with Retention, Student Debt – As Big Law races to pay young lawyers ever-higher starting salaries, the public sector is struggling to pay enough to lawyers burdened by student debt.
IN THE NEWS (Not password protected)
Debtor Must Exhaust Administrative Remedies to Get Damages and Fees from IRS – Given that financial issues are the number one reason for security clearance denials and revocations, it’s no small wonder that one of the most frequent questions my office receives is how to resolve delinquent debt.
DEBT AND THE ECONOMY (Not password protected)
OF INTEREST (Not password protected)
Best Advice to U.S. Dairy Farmers? ‘Sell Out as Fast as You Can’
Upon Further Review, Ninth Circuit Finds No Flag on the Play – Creditor Allowed to Block a Cram-Up Plan Following Claims Purchases
JUST FOR FUN (Not password protected)
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July 2, 2018
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Archives |
Due to the NACTT Annual Conference, this week’s update will be brief and primarily a ‘Greatest Hits’ edition.
Impact of Supreme Court’s Decision on § 523(a)(2)(B)
“The opinion suggests that a statement respecting the debtor’s financial condition, whether a single-asset or overall condition statement, must meet all the requirements of subsection 523(a)(2)(B) to be nondischargeable. Otherwise, even though the statement is false, the debt is dischargeable, notwithstanding subsection 523(a)(2)(A).”
Not Born in the USA? The Perils of Bankruptcy Filings by Undocumented Persons
An excellent article exploring answers to can and should an undocumented person file for bankruptcy protection in America??
Sanctions and Irony and Fraud, Oh My!
From Our Friends at Credit Slips
OF INTEREST (Not password protected)
FOR YOUR HEALTH (Not password protected)
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June 25, 2018
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Archives |
The FDCPA and Bankruptcy One Year After Midland v. Johnson, Part III Does the Bankruptcy Code Implicitly Repeal the FDCPA?
“Given the ease with which time-barred claims may be disallowed, what could explain a debt buyer’s decision to invest in the expensive systems and personnel necessary to file these time-barred proofs of claim in bulk?”
Click here
for Part I
Click here for Part II
Impact of Supreme Court’s Decision on § 523(a)(2)(B)
“The opinion suggests that a statement respecting the debtor’s financial condition, whether a single-asset or overall condition statement, must meet all the requirements of subsection 523(a)(2)(B) to be nondischargeable. Otherwise, even though the statement is false, the debt is dischargeable, notwithstanding subsection 523(a)(2)(A).”
The Real Truth About Communication Between Bankruptcy Lawyers & Clients
“’Creditors,’ for debtors, means those folks who send a monthly bill, and who call if you are late.‘Creditors,’ for bankruptcy lawyers, means everyone who has a claim of any kind against the client.”
Sanctions and Irony and Fraud, Oh My!
Student Loan Chronicles
MORTGAGE MATTERS (Not password protected)
Article: Existing Home Sales Backpedal in May
Report: HELOC’s Up 14% In 1st Qtr
Report: ReFi’s Down To 30%
MBA: Applications Up 5.1%
DEBT AND THE ECONOMY (Not password protected)
OF INTEREST (Not password protected)
Gearing up for retirement? Make sure you understand your tax obligations
MILITARY MATTERS (Not password protected)
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June 18, 2018
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Archives |
FDCPA and Bankruptcy: One Year After Midland v. Johnson Part II
“Now, one year after Midland v. Johnson, this multi-part article will seek an understanding of what that decision tells us about the future of FDCPA litigation in bankruptcy cases.”Click here for Part I
The Death of MFDRA
“IRS’s Publication 4681 is a very helpful tool to explore the different ways taxpayers can exclude mortgage indebtedness and other types of 1099 forgiveness.”
Credit Cards in the News
- Americans Just Paid Off a Ton of Credit-Card Debt – But here’s the bad news
Sanctions and Irony and Fraud, Oh My!
- Paralegal Embezzled $900,000 From Connecticut Firm and Attorney, According to Prosecutors
- See also: Ask Ms. Ps & Qs May 13th, 2018
- $280M Settlement Reached with Ezra Merkin in Madoff Case – Nearly $13 billion, or 74 percent of the estimated $17.5 billion invested in Bernard Madoff’s Ponzi scheme, has been recovered, one official said.
- Debt Collector Accused of Scamming Credit Unions Loses Appeal – Charles V. Stanley remains in jail after allegedly committing more debt collection crimes while out on bail.
For Your Blog
- Worried About Cuts to Social Security? Here’s the bible on navigating this retirement benefit.
Student Loan Chronicles
From Our Friends at Credit Slips on the CFPB
On the CFPB
DannLaw Launches “Scoundrels, Scams and Cheats” Database to Ensure Public Access to CFPB Consumer Complaint Reports“ . . . , the head of the Consumer Financial Protection Bureau told a group . . . that he would soon hide the Bureau’s consumer complaint database from the American people and the media. . . . Marc Dann outlined his law firm’s plan . . . . “I am pleased to announce that DannLaw has downloaded all the information in the CFPB database and uploaded it into one that will remain accessible to the public and the media once Mulvaney carries out his threat,”
IN THE NEWS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
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June 11, 2018
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Archives |
FDCPA and Bankruptcy: One Year After Midland v. Johnson
“Now, one year after Midland v. Johnson, this multi-part article will seek an understanding of what that decision tells us about the future of FDCPA litigation in bankruptcy cases.”
Social Security and Chapter 13 – Can’t We All Just Get Along?
More than 12 years after its enactment, BAPCPA continues to confuse and confound. Could § 362(c)(3) be any more convoluted? Why did Congress define “disposable income” yet continue to require payment of “projected disposable income”? Who thought that hanging paragraphs were a good idea?
When Does the Statute of Limitations Commence
Does the statute of limitations for suing a debt collector for violation of the Fair Debt Collection Practices Act commences on the date the violation occurred, or the date the consumer discovered the violation?
Sanctions and Irony and Fraud, Oh My!
- SoCal Lawyer Facing Fraud Case Sentencing Files for Bankruptcy – Bruce Haglund, awaiting sentencing on charges that he helped perpetrate a $5 million Ponzi scheme, filed for Chapter 7
Student Loan Chronicles
- Court Considers Questions on Loan Forgiveness for Defrauded Students – Student borrowers argue the education secretary must follow previous policy to grant full loan relief to former Corinthian Colleges students.
- Student Loan Debt Just Hit $1.5 Trillion – Women hold most of it
- Financial Aid Letters Often Hide Real Cost of College – See if you can decipher these actual letters.
- Women Have $890 Billion in Student Loan Debt – Country’s Biggest Share
From SCOTUS
IN THE NEWS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
OF INTEREST (Not password protected)
BY THE NUMBERS (Not password protected)
MILITARY MATTERS (Not password protected)
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June 4, 2018
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Archives |
The Law of Unintended Consequences
We Don’t Need No Stinkin’ Objections, Revisited: Lee v. Field
Recent decisions of the Eleventh and Ninth Circuits have prompted us to ask the meaning of the word “objections” as they may be required by the Code or Rules.In an earlier, two-part comment, Larry Ahern reviewed the opinion of the Eleventh Circuit in Title Max v. Northington, and some consequences of that decision, which may not have been intended by the majority.This week, he joins Judge Brown in a look at the more recent Ninth Circuit opinion in Lee v. Field.This is part of a series of comments on statutes and decisions that have consequences beyond the contemplation of the legislators and judges involved. If you have suggestions for future analyses, please send them to Mr. Ahern.Click here for We Don’t Need No Stinkin’ Objections Part 1Click here for We Don’t Need No Stinkin’ Objections Part 2
Warning: The “Grant Scam” Is Real
“Recently one of clients received a message from someone who appeared to be a coworker, telling our client about a grant the coworker recently received. Intrigued and looking for ways to pay upcoming tuition bills, our client was put in touch with the co-worker’s “grant agent” . . .”
From the IRS
Law Change Affects Moving, Mileage and Travel Expenses; Higher Depreciation Limits
- No deduction for moving expenses
- No miscellaneous deductions for un-reimbursed employee expenses (uniforms, union dues and the deduction for business-related meals, entertainment and travel)
- 54.5 cents for every mile of business travel driven, a 1 cent increase from 2017
- 18 cents per mile driven for medical purposes, a 1 cent increase from 2017
- 14 cents per mile driven in service of charitable organizations, which is set by statute and remains unchanged
- Depreciation maximum standard automobile cost may not exceed $50,000 for passenger automobiles, trucks and vans placed in service after Dec. 31, 2017. Previously, the maximum standard automobile cost was $27,300 for passenger automobiles and $31,000 for trucks and vans
From Our Friends at Credit Slips
OCC Payday Lending Bulletin
Also from the CFPB: Acting Director Mick Mulvaney issued the following statement in response to bulletin from the Office of the Comptroller of the Currency regarding short-term, small-dollar credit:“I applaud Comptroller Otting’s move to encourage national banks and federal savings associations to offer short-term, small-dollar installment loans. Millions of Americans desperately need access to short-term, small-dollar credit. We cannot simply wish away that need. In any market, robust competition is a win for consumers. The Bureau will strive to expand consumer choice, and I look forward to working with the OCC and other partners on efforts to promote access and innovation in the consumer credit marketplace.”
Student Loan Chronicles
There’s Always a Car
$523 Monthly Payment is New Standard for Car Buyers
Malware is Bad
More Criminalization of Private Debt
OF INTEREST (Not password protected)
Canadian Study: Keeping Up with the Joneses: Neighbors of Lottery Winners Are More Likely to Go Bankrupt – Seeing someone else get rich puts people into spending mode
MORTGAGE MATTERS (Not password protected)
Article: Mortgage Rates Up, Sales Down
Report: MBA Economic Forecast
MILITARY MATTERS (Not password protected)
What Veterans Need to Know About Student Loan Discharges – Veterans with severe physical impairments who borrowed federal student loans will receive a notification on erasing their debt
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May 28, 2018
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Archives |
In memory of the men and women who gave their lives for our Country, there will be no weekly update.
If you are looking for something to read, we recommend scrolling back through previous updates (below) and catch up on anything you might have missed.
Some suggestions include:
- The Gig Economy – Classifying Independent Contractors
- IRS Caught Double Dipping
- Crushing Tax Change For Injured Consumers
- We Don’t Need No Stinkin’ Objections
- We Don’t Need No Stinkin’ Objections Part 2 of 2
- Critical Case Comment – An attorney violates § 526(a)(4) if the attorney instructs a client to pay the bankruptcy related legal fees using a credit card.“It is without question that the complexities of the bankruptcy system . . .requires some sophistication and, . . . the assistance of a professional. To preclude any realistic way to pay these fees and costs is ridiculous.”
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May 21, 2018
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Archives |
Critical Case Comment
An attorney violates § 526(a)(4) if the attorney instructs a client to pay the bankruptcy related legal fees using a credit card.“It is without question that the complexities of the bankruptcy system . . .requires some sophistication and, . . . the assistance of a professional. To preclude any realistic way to pay these fees and costs is ridiculous.”
From the Editor
- Dismissal – Employer’s housing loan was not consumer debt for purposes of § 707b)(1)
- Reopening Closed Case – Cause did not exist to reopen case to allow extension to file certificate of financial management course
- Trustee’s Attorney Fees – Fees properly denied for services not necessary to case administration
From the IRS
Tax Reform: Changes to Depreciation Affect Businesses Now
IRS reminds businesses that passage of the Tax Cuts and Jobs Act may affect their depreciation deductions and taxes.Attention Debtor Attorneys: While you may need this information to properly advise your clients, you will certainly want to glance at it for your own business taxes.
From Our Friends at Credit Slips
Illegal Repo Practices
“ . . . of particular note is the end of the article, wherein the repo man profiled says that he will return ransom the defaulted borrower’s personal goods found in the car back to the buyer for a $50 flat fee (with child car seats given back for free).”
Sanctions and Irony and Fraud, Oh My!
- Tom Petters Trustee Alleges Bogus Multimillion Dollar Claim – Bankruptcy judge will decide if the claim of up to $100 million is valid
From the National Consumer Bankruptcy Rights Center
DEBT AND THE ECONOMY (Not password protected)
OF INTEREST (Not password protected)
MORTGAGE MATTERS (Not password protected)
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May 14, 2018
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Archives |
Ask Ms. Ps & Qs
“I’ve heard it said . . . that the best predictor of future behavior is past behavior. . . . So what do you get when you hire an embezzler, fire him, and rehire him?”
The Gig Economy – Classifying Independent Contractors
“The issue at hand is how to properly classify a worker who performs discrete services for a company: Is that worker a company employee or an independent contractor?”
PHH Gives Up Challenge to CFPB Constitutionality – Will not pursue case to Supreme Court
Student Loan Chronicles
- Alexandrov & Jiménez Article Finds 2005 Bankruptcy Reforms “Failed Miserably” to Help Students
- Click here for study
- Student Debt Just Hit $1.5 Trillion – It stood at about $600 billion 10 years ago
- Federal Student Loans Are About to Get More Expensive – What you need to know
- The Truth About Student Loan Bankruptcy Discharge – It can be difficult to discharge a student loan by declaring bankruptcy, but it’s not impossible.
From the National Consumer Bankruptcy Rights Center
For Your Blog
- Tips for Taxpayers Who Missed the April Filing Deadline – Great, quick tips to assist your clients who have procrastinated and are now scared to file their return
IN THE NEWS (Not password protected)
Chicago Begins to Rethink How Bankruptcy Lawyers Get Paid – Judges are demanding that lawyers tell their clients that their other debts might not get paid, but their lawyers will.
OF INTEREST (Not password protected)
Cramdown: Can “Dirt-for-Debt” Qualify as the Indubitable Equivalent of a Secured Claim? (Chapter 11 case)
Woman Receives $5,751 ER Bill—For Ice Pack and Bandage – The hospital zeroed out the bill after a reporter asked questions
MORTGAGE MATTERS (Not password protected)
Article: Mortgage Delinquency Keeps Falling, Drops For 19th Straight Quarter – But one generation shows higher delinquency levels than the rest
MILITARY MATTERS (Not password protected)
ScamBusters: Military Members Often Targeted by ID Thieves
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May 7, 2018
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Archives |
Should the Stay Stay or Should It Go: Successive Filings and the Termination of the Automatic Stay
“The complexity is multiplied by a split of authority in the case law about what actually happens when the automatic stay is terminated under §362(c)(3).”Recent Developments in Chapter 12: Summary of December 1, 2017 Rules Changes – Part 2
Before last December’s amendment of the Bankruptcy Rules (discussed in Part I of this series), the Bankruptcy Code itself was amended and likely will have a more significant effect on Chapter 12 plans. Knowing that many Chapter 13 trustees also serve as their districts’ Chapter 12 trustees, Larry Ahern follows his analysis of the amended Rules in Part I with an analysis of that 2017 amendment of Chapter 12.Part III of this series is expected to provide new forms for plan provisions affected by these changes.
Meet the New GA Judge
Honorable Sage M. Sigler was appointed as a Bankruptcy Judge for the Northern District of Georgia on March 28, 2018.
Sanctions and Irony and Fraud, Oh My!
Retired U.S. Bankruptcy Judge Dies in Little Rock at 80
“He was a classy guy with more friends than anybody I’ve ever met,” said Hodges, who for years practiced law down the hall from Fussell on the 17th floor of the downtown Little Rock skyscraper now known as the Regions Bank Building, until Fussell became a bankruptcy judge in 1983.
For Your Blog
Here’s How Much Borrowers Pay on Loans After a Bankruptcy – It’s more, of course, but you can lessen the blow by improving your credit score.
From the U.S. Courts
IN THE NEWS (Not password protected)
Bankruptcy Venue Reform: Are the District of Delaware and the Southern District of New York at Risk?
OF INTEREST (Not password protected)
Tax Sale Certificate Transfer Was Avoidable Preference (Chapter 7 case)
MORTGAGE MATTERS (Not password protected)
Article: No Housing Affordability Crisis Yet
Announcement: Freddie Mac Announces 3% Down Program
White Paper: Home Equity Conversion Mortgages
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April 30, 2018
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Archives |
Critical Case Comment
Where a student loan creditor and servicer do not comply with a provision of the confirmation order requiring the student loan creditor to properly apply payments and to permit the debtor to participate in the Income Driven Repayment plan or Public Service Forgiveness plan, attorney’s fees are appropriate and can be awarded against the servicer of the student loan. (Waites)
Student Loans and Chapter 13 – Federal Student Loan Debt in Bankruptcy: Recent Movement Towards Income-Driven Repayment Plans in Chapter 13
“This article is one you need to read as student loans and bankruptcy is the next battle and possible solution for Chapter 13 debtors with student loans.”
Sanctions and Irony and Fraud, Oh My! A Feature Article
It’s NOT Your Money
Ya’ know how sometimes you are tempted to borrow cash from your kid’s piggy bank for a birthday card, or a tip, or Girl Scout cookies, or any number of other things that you either didn’t plan for or snuck up on you? Even if you borrow the money, you KNOW it is not YOUR money!Apparently, attorneys sometimes forget this rule. Not only are you forbidden from taking clients’ money, you can’t even borrow it.
The road to redemption is long and bumpy but can be accomplished. Congratulations Attorney Brewer
Disbarment and Back: Attorney James Brewer’s Road From Despair
For Your Blog
IRS Warns of New Twist on Phone Scam
Crooks Direct Taxpayers to IRS.gov to “Verify” Calls
IN THE NEWS (Not password protected)
How a Florida Supreme Court Case Could Affect Attorney Pay – Twelve law firms and legal aid groups weigh in with friend-of-the-court briefs in a case where a homeowner beat back a foreclosure lawsuit.
MORTGAGE MATTERS (Not password protected)
Article: Raising Rent on Subsidized Housing
Article: Home Prices and Mortgage Rates Rise
MILITARY MATTERS (Not password protected)
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April 23, 2018
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Archives |
Ask Ms. Ps & Qs
Attorneys can’t be complicit in knowing that their client’s testimony is wrong and not doing anything about it; however, client perjury is a slippery slope.
Sanctions and Irony and Fraud, Oh My! A Feature Article
It Makes No Sense to Act Ugly to the People Charged with Your Safety
The Bankruptcy Court for the Eastern District of VA, imposed sanctions against a veteran attorney by barring him from practicing law before that court for six months. He is also banned from even entering the Courthouse.
Click here for Memorandum Opinion
SCOTUS Blog
Argument Analysis: When Neither Baseball Nor Vermeer Analogies Persuade Court
Continuing the less-than-truthful theme from Ms. Ps & Qs, the Supreme Court heard argument:
“This case is about whether a debtor’s false statement about a single asset can be a statement ‘respecting the debtor’s … financial condition.’”
“This case is about whether a debtor’s false statement about a single asset can be a statement ‘respecting the debtor’s … financial condition.’”
From mediatbankry.com
Appeal Deadline in Consolidated Bankruptcy Cases: Supreme Court Adopts Minority View (Hall v. Hall)
This is an excellently written analysis of an important case regarding ‘immediate’ appeal.
From Our Friends at NCBRC
Credit Cards and Signatures
A continuation of last week’s links regarding signatures . . . From our friends at Credit Slips . . .
IN THE NEWS (Not password protected)
MORTGAGE MATTERS (Not password protected)
Article: Over Half of U.S. Metros Surpass Pre-Recession Peak Prices in Q1 – Some metros up more than 60%
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
Russian Hackers Mass-Exploit Routers in Homes, Govs, and Infrastructure – The hacks steal passwords and clear the way for future attacks, officials warn
DEBT AND THE ECONOMY (Not password protected)
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April 16, 2018
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Archives |
Critical Case Comment
Chapter 13 debtor may void a valueless lien even where the creditor does not file a proof of claim.“Although the Court ignored the appearance of the word “allowed” in § 506(a), this is a common sense result. To require the claim to be allowed before it could be valued would have enabled wholly unsecured “lienholders” to simply refuse to file a claim in order to attempt to preserve their liens, which in turn would have forced debtor’s attorneys to file proofs of claims on behalf of these creditors for the sole purpose of having the liens voided.” Commentary by Chapter 13 Trustee Jody Bledsoe, Eastern District of North Carolina.
Recent Developments in Chapter 12: Summary of December 1, 2017 Rules Changes – Part I
Last December’s amendment of the Bankruptcy Rules significantly affected Chapter 13 practice, but those changes also had an impact on Chapter 12 practice. Knowing that many Chapter 13 trustees also serve as their districts’ Chapter 12 trustees, Larry Ahern highlights the changes that apply to Chapter 12 and provides a cross-reference to a series of earlier articles, which provide more in-depth analyses in the context of Chapter 13, written with Beverly Burden, Standing Trustee for the Eastern District of Kentucky.
From the IRS
If you have clients in the military, this is important – you need to read . . . Could mean a significant amount of cash in their pockets . . .
Combat Zone Tax Benefits Now Available to Armed Forces Members Who Served in the Sinai Peninsula; IRS Accepting Retroactive Tax Refund Claims Back to 2015
From the Supreme Court
Sanctions and Irony and Fraud, Oh My!
- Bernie Madoff’s Beachfront Mansion Is Selling for $21 Million– Currently owned by Vornado chairman Steven Roth
From Our Friends at NCBRC
Credit Cards and Signatures
For Your Blog
MORTGAGE MATTERS (Not password protected)
MBA: Mortgage Apps Decrease for Second Consecutive Week – Refi Apps Remain at Lowest Share Since 2008
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
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April 9, 2018
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Archives |
Don’t Skimp on Service When Your Client’s House Is on the Line
“The issue stood out when, for reasons that are yet inexplicable, the trustee and my office each filed a Notice of Final Cure Payment with respect to the same loan on the same day.”
Response to ProPublica Article Discussing Racial Patterns in Bankruptcy Filings and Outcomes – Part 3 of 3
Part 3 of Attorney Hutchens detailed response looks at the possibilities of changing the Bankruptcy Code and ways to reduce the cost of filing bankruptcy.Click here for Part 1 of 3
Click here for Part 2 of 3New This Week: ProPublica’s ‘Too Broke for Bankruptcy’ Wins ASNE Award – The series showed that the bankruptcy system routinely fails those it is meant to aid.
Click here for Part 2 of 3New This Week: ProPublica’s ‘Too Broke for Bankruptcy’ Wins ASNE Award – The series showed that the bankruptcy system routinely fails those it is meant to aid.
There’s Always a Car
- The 0% Auto Loan Era Is Fading into America’s Rearview Mirror – Average rate has risen to highest since 2009, Edmunds says
Sanctions and Irony and Fraud, Oh My!
From Our Friends at NCBRC
From the CFPB
- Mortgage Servicing FAQs – The questions and answers pertain to compliance with Regulation X and Regulation Z, effective April 19, 2018.
Student Loan Chronicles
- How You Can Requalify for Public Service Loan Forgiveness – Student loan borrowers may have another shot at loan forgiveness thanks to a new law.
For Your Blog
- Midlife ‘Wealth Shock’ May Lead To Death, Study Suggests – Big financial loss may shorten your life, study suggests
MORTGAGE MATTERS (Not password protected)
Article: NYC Foreclosures Continue to Climb to Near-Recession Highs – Staten Island, Brooklyn log major increases
Hot Item from Last Week: Article: Florida Passes Bill to Stop Bankruptcy Debtors From “Having Their Cake and Eating It Too”
MILITARY MATTERS (Not password protected)
Free house! Court Throws Out Iraq Vet’s Foreclosure After Bank Missed Deadline – An appellate panel’s decision allows a Central Islip couple to keep their home, ‘free and clear’ of its mortgage.
OF INTEREST (Not password protected)
Debt And The Economy (Not password protected)
America’s Debt Load Is Reaching a Tipping Point – Interest rates are likely to go up three times this year — making the cost of borrowing even more of a burden.
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April 2, 2018
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Archives |
IRS Claims in Cases Converted from Chapter 7 to Chapter 13 – Technically Not Allowed? (Spoiler: They Are Allowed)
Have you noticed a drop in claims from the IRS in converted cases? MORE IRS issues . . . read this then check your computer software.Last week’s article titled Crushing Tax Change For Injured Consumers By William J. Purdy, III, Simmons & Purdy (Soquel, CA) could have been titled IRS Double Dipping . . . Again. If you missed this article, you need to read it!
Response to ProPublica Article Discussing Racial Patterns in Bankruptcy Filings and Outcomes – Part 2 of 3
Part 2 of Attorney Hutchens response to ProPublica’s articles discussing racial patterns in bankruptcy filings focuses on ProPublica’s methodology and the fact that socio-economic conditions are the largest contributors to the disparities found by ProPublica, Not race. Click here for Part 1 of 3
Sanctions and Irony and Fraud, Oh My!
- Portland-Area Man Wins Reported Seven-Figure Whistleblower Settlement from Wells Fargo Formerly enslaved by the Khmer Rouge, Duke Tran lived the American dream until a big bank fired him.
- Personal Injury Attorney Reprimanded for Punching Man in Face (not bankruptcy related but a great headline)
- Lawyer Sanctioned $50K For Alleged ‘Inappropriate Diatribes’ And ‘Unhinged Attack’ On Expert (not bankruptcy related)
From the CFPB
- Mortgage Servicing FAQs – The questions and answers pertain to compliance with Regulation X and Regulation Z, effective April 19, 2018.
- RFIs – Each week since the end of January, the CFPB has (and will continue to) issued RFIs (Request for Information). ConsiderChapter13.org has not spotlighted these RFIs; however, if you are interested click here and scroll down for a listing of the RFI’s.
Student Loan Chronicles
- (This one is important) Consumer Bankruptcy Committee Issues Observations and Recommendations Re: Student Loans
For Your Blog
- Step-by-Step Instructions for Using the IRS Withholding Calculator – The IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.” This is even more important this year because of recent tax law changes.
IN THE NEWS (Not password protected)
FOR YOUR HEALTH (Not password protected)
Particularly for those of you with teenagers . . .Juul’s So Cool, Kids Smoke It in School
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March 26, 2018
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Archives |
Response to ProPublica Article Discussing Racial Patterns in Bankruptcy Filings and Outcomes – Part 1 of 3
Back in September, ProPublica published two articles discussing racial patterns in bankruptcy filings. Their analysis considered statistics from across the country, but they focused on one judicial district in particular: the Western District of Tennessee. In this three part series, Law Clerk Ricky Hutchens examines, point by point, the reporters conclusions.
“Beyond all the legal and strategic reasons to choose Chapter 13 over Chapter 7, there is the debtor himself. Debtors are, after all, people.”
Crushing Tax Change For Injured Consumers
(Used with permission, originally published by BankruptcyMastery.com 2018)
“ . . . the vast bulk of all other legal recoveries ARE taxable under IRS Section 104. However, in the past, one could deduct the costs to obtain the award under the miscellaneous expense deduction.” But no more.
From Our Friends at Credit Slips
- Stormy Daniel’s Three-Way (Contract) & Donald Trump’s Performance Problem (Sorry folks, couldn’t resist this title)
Varying Views of the Same Issue
- How Often Do Medical Problems Lead to Bankruptcy? Poor health is a less common cause of bankruptcy than commonly thought, but it brings other economic woes, study finds.
- Getting Sick Can Be Really Expensive, Even for the Insured – Beyond medical costs, a trip to the hospital can mean a permanent reduction in income for many Americans, new research shows
- February 2018 Study: American Economic Association: The Economic Consequences of Hospital Admissions
- June 2017 Study: The Economic Consequences of Hospital Admissions
Student Loan Chronicles
- (This one is important) Consumer Bankruptcy Committee Issues Observations and Recommendations Re: Student Loans
MORTGAGE MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
IN THE NEWS (Not password protected)
Debt Collectors Hijack Justice System – ‘It’s easier to settle when the debtor is under arrest’
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
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March 19, 2018
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Archives |
Section 105 and Lack of Good Faith
Trustee Langehennig takes a look at cases post Marrama.
CFPB Issues Final Rule Amendment Regarding Timing for Transition to Modified or Unmodified Periodic Statements
We are pleased to provide of synopsis of this final rule.
Click here for Press Release (Not password protected)
Click here for Final Rule Effective Date April 19, 2018 (Not password protected)
From the Academy Archives
Planning for Attorney Disability or Death
Back in ‘09, now retired Judge Pat E. Morgenstern-Clarren (N.D. Ohio) brought Academy members a great reminder that the only certainty in life is that there are no certainties.This article on planning for your future is still just as relevant today.
Do you have a plan for your practice if you become disabled? What will happen to your clients if you suddenly pass away?
TAKE THE TIME NOW – MAKE A PLAN.
From the U.S. Courts
U.S. Bankruptcy Courts – Judicial Business 2017
Nationwide, debtors filed 790,830 bankruptcy petitions in 2017, 2% fewer than in 2016. Lowest total since 2007, which was the first full fiscal year after BAPCPA.
Women’s History Month
Senior Judge Carolyn Dimmick (U.S. District Court, W.D. of WA) earned her law degree in 1957 when female lawyers and their opportunities were rare.In honor of Women’s History Month, a new video profile explores the highlights and challenges of Judge Dimmick’s groundbreaking and highly distinguished career.
From the U.S. Courts
Judicial Conference Receives Status Report on Workplace Conduct Review – Nearly 20 reforms and improvements have been implemented or are under development to help address workplace conduct concerns in the federal judiciary.
Academy Members Inducted into American College of Bankruptcy – Congratulations to Judges Flatley and Waites
From the IRS
Winter Storm Extension: Many Businesses Have Extra Time To Request A 6-Month Extension – 3/13/18 IRS granted businesses affected by severe winter storms additional time to request six-month extension to file their 2017 federal income tax returns.
Student Loan Chronicles
- ‘Morally Suspect’ Way the Government Collects Student Loans – A tax credit aimed at helping working low and moderate-income Americans can be seized to repay defaulted student loans
Sanctions and Irony and Fraud, Oh My!
- Dance Moms Star Abby Lee Miller Set for Early Release from Prison… After Being Sentenced to a Year Behind Bars for Bankruptcy Fraud
For Your Blog
If you haven’t warned your readers about IRS/tax scams, please do so. This is happening in every community. Below are a few links you may be interested in sharing.
MORTGAGE MATTERS (Not password protected)
IN THE NEWS (Not password protected)
Odd title but important article: Bankruptcy Court Reluctantly Allows Creditor To Shuck “Lil’ Sweet Pea” Accounts
OF INTEREST (Not password protected)
Winn-Dixie Closing Almost 100 Stores as Part of Bankruptcy Filing — see if your store is on the list
Amazon Didn’t Kill Toys ‘R’ Us – Here’s what did
MILITARY MATTERS (Not password protected)
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March 12, 2018
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Archives |
The Law of Unintended Consequences
We Don’t Need No Stinkin’ Objections Part 2 of 2
A recent decision struggles with the effect on Chapter 13 on the special protections given to “title pawn” creditors by state law. The purpose of this commentary is to analyze the case and identify some unintended consequences of the decision. In Part I, Larry Ahern reviewed the majority’s opinion. This week, in Part II, he discusses some consequences of the decision, which may not have been intended by the majority. Click here for Part 1
From the CFPB
CFPB Giving Servicers “More Latitude” in Dealing with Borrowers in Bankruptcy – Issues Final Rule on Communication with Certain Borrowers
Click here for Press Release
Click here for Final Rule
Effective Date April 19, 2018
Credit Cards in the News
From the U.S. Courts
Just the Facts: Consumer Bankruptcy Filings, 2006-2017
In the 12-year span from October 1, 2005 to September 30, 2017, about 12.8 million consumer bankruptcy petitions were filed in the federal courts. Of those, 8.7 million–68 percent–were filed under Chapter 7, and 4.1 million– 32 percent–were filed under Chapter 13 (see Table 1).
From the NCLC
The National Consumer Law Center has made some really cool info available . . . free: Consumer Protection in the States: A 50-State Evaluation of Unfair and Deceptive Practices Laws
Appendix C is a State-By-State Summary of State Unfair and Deceptive Practices Statutes
How Chicago Ticket Debt Sends Black Motorists into Bankruptcy
NEW ON THIS ISSUE THIS WEEK
- She Owed $102,158.40 in Unpaid Tickets, but She’s Not in the Story – Still, we want to tell you a little bit about her, and about some of the other people we interviewed, because they helped inform our ticket debt investigation.
From the Supreme Court
From the IRS
Updated Withholding Calculator, Form W-4 Released; Calculator Helps Taxpayers Review Withholding Following New Tax Law
Click here for new calculator
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
- Wife of Mamtek’s Cole Shut Down by Judge Dow* During Court Hearing (*Judge Dow will be joining the esteemed list of speakers at the NACTT 2018 seminar in Miami!) REGISTER NOW
MORTGAGE MATTERS (Not password protected)
Article: Home Purchases Post Bankruptcy
Article: When Your Home Is Your…Car
MBA Article: Lending Standards Tightening
Black Knight Article: Affordability Threatened with Increased Rates
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
Customers Ripped Off by Wine Store Now Being Sued – Customers had to beg and threaten the wine store for refunds; now a bankruptcy trustee is suing them to get the money back
MILITARY MATTERS (Not password protected)
‘We Took a Broken System and Just Broke It Completely’ – Trump touted a project to make veterans’ health care seamless, but some doctors say it’s a disaster.
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March 5, 2018
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Archives |
IRS Caught Double Dipping
Let us know if you have seen this same issue.
Special Counsel and Chapter 13 Bankruptcy
“So, you think the Bankruptcy Code does not impact your practice.”NOT PASSWORD PROTECTED. This a great resource to share with your non-bankruptcy colleagues about how the Bankruptcy Code intertwines with their area of the law.
Mullins Retires
Life in the Sweatbox
Professors Foohey, Lawless, Porter, and Thorne are at it again. Their latest study has just been released.The study looks at “The time before a person files bankruptcy is sometimes called the financial “sweatbox.” Using original data from the Consumer Bankruptcy Project, we find that people are living longer in the sweatbox before filing bankruptcy than they have in the past. We also describe the depletion of wealth and well-being that defines people’s time in the sweatbox.”
Big News from the Department of Education on Student Loans
Responses must be received by May 22, 2018
Click here for Comment Portal
MORTGAGE MATTERS (Not password protected)
Article: Ocwen To Acquire PHH Mortgage
Article: Home Sales Tank in January
Article: Home Prices Leveling Off??
DEBT AND THE ECONOMY (Not password protected)
IN THE NEWS (Not password protected)
Break Up the Credit-Reporting Racket – Why do three companies control Americans’ most sensitive personal information? There’s no good answer to that question.
MILITARY MATTERS (Not password protected)
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February 26, 2018
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Archives |
The Law of Unintended Consequences
We Don’t Need No Stinkin’ Objections
A recent decision of the Eleventh Circuit Court of Appeals struggles with the effect on Chapter 13 of the special protection given to “title pawn” creditors. Prompted by this decision, the purpose of this article is to analyze the case and identify some unintended consequences of the decision. This week, in Part I, Larry Ahern reviews the majority’s opinion in Title Max v. Northington. In Part II, he will discuss some consequences of the decision for Chapter 13 practice, which may not have been intended by the majority.This is one in a series of comments on statutes and decisions that have consequences beyond the contemplation of the legislators and judges involved. If you have suggestions for future comments, please send them to the author by clicking here.
How Different Are Millennials from Their Parents and Grandparents? TransUnion Report Decodes Millennials’ Financial Health
A recent TransUnion report evaluated Millennials as consumers, focusing on their credit participation and performance, ability to manage debt and expenses, and financial planning trends. Ms. Wisenberg summaries this 25-page study.
Register NOW FOR WEBINAR THIS WEDNESDAY
Title: In re Crawford – How Far Can a Court Go in Placing Conditions on Confirmation of a Plan?
When: Wednesday, February 28, 2018 – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific
Description: Mary K. Viegelahn, Trustee will moderate a discussion with Debbie Langehennig, Trustee and Todd Malaise, Debtors’ Attorney on the issue involving excess disposable income beyond the amount necessary to pay all creditors in full and how far can a court go to place conditions on confirmation of a plan, including a discussion on how other courts have ruled on this issue.
When: Wednesday, February 28, 2018 – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific
Description: Mary K. Viegelahn, Trustee will moderate a discussion with Debbie Langehennig, Trustee and Todd Malaise, Debtors’ Attorney on the issue involving excess disposable income beyond the amount necessary to pay all creditors in full and how far can a court go to place conditions on confirmation of a plan, including a discussion on how other courts have ruled on this issue.
Welcome New Judge
Vacant Judgeship
Big News from the Department of Education on Student Loans
Responses must be received by May 22, 2018
Click here for Comment Portal
For Your Blog
Do your clients know about this???
- New Budget Law Includes Last-Minute Tax Relief for Millions of Homeowners. . . on their 2017 tax returns.
“Potentially the most popular one is aimed at millions of people who pay mortgage-insurance premiums on conventional, FHA and VA loans. Roughly 4.1 million owners took write-offs averaging more than $1,500 during 2015 . . . Mortgage-insurance industry officials predict that at least that many will be able claim the benefit on their 2017 tax returns — provided they learn that the deduction has been revived for the year.” [emphasis added]
Debtors’ Prison is Back
- ACLU Just Proved Courts Are Being Manipulated by Private Debt Collectors – A damning new ACLU report uncovers how the private debt collection industry uses courts to do their dirty work (very good, concise summary)
- Some U.S. Borrowers Jailed Over Civil Debts, ACLU Report Shows (same issue as above, more detail)
- Click here to see the whole study: The Criminalization of Private Debt
In Case You Missed It . . .
Discharges and the DoD: The Interplay between Bankruptcy & Security Clearances
For those who practice in bankruptcy law, the “whole person” concept is similar to the broad “totality of the circumstances” analysis that is found throughout bankruptcy opinions.
MORTGAGE MATTERS (Not password protected)
Article: Existing Home Sales See Largest Decline in More Than Three Years – Declining Due to Lack of Housing Inventory
DEBT AND THE ECONOMY (Not password protected)
Fewer Americans are Working. Don’t Blame Immigrants or Food Stamps (fascinating article!)
IN THE NEWS (Not password protected)
Fifth Circuit Report: Third Quarter 2017 – The third quarter of 2017 had one blockbuster opinion reaffirming the finality of exemptions in Chapter 7 and several less remarkable decisions. It was a slow quarter for bankruptcy.
MILITARY MATTERS (Not password protected)
Tax Credits that Help Military Families the Most – Getting tax deductions for uniforms and moving expenses is nice, but tax-free combat pay and enhanced retirement savings help out a lot more.
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February 19, 2018
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Archives |
Website Upgrade
The Academy has been hard at work making much needed upgrades to the infrastructure of ConsiderChapter13.orgEven if you don’t normally have to log into your account, you may have to log in today. Be sure to click the ‘Remember Me’ button and in most* circumstances you should only have to log in when your cookies are cleared or when you click the log out feature.
*Some of you have very strict firewalls which do not allow individual computers to remember logins.
If you experience problems accessing the site or in viewing individual posts, please let us know.
Discharges and the DoD: The Interplay between Bankruptcy & Security Clearances
For those who practice in bankruptcy law, the “whole person” concept is similar to the broad “totality of the circumstances” analysis that is found throughout bankruptcy opinions.
From the Editor
- Dismissal of Case – Debtor’s attorney’s failure to file timely appeal of dismissal was not excusable neglect
- Executory Contracts – Buy-sell agreement for stock was not executory contract
- Pawn and Tax Sale Redemption – Expiration of time for redemption did not prevent treatment of taxes in plan
Register NOW for the Academy’s Next Free Webinar
Title: In re Crawford – How Far Can a Court Go in Placing Conditions on Confirmation of a Plan?
When: Wednesday, February 28, 2018 – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific
Description: Mary K. Viegelahn, Trustee will moderate a discussion with Debbie Langehennig, Trustee and Todd Malaise, Debtors’ Attorney on the issue involving excess disposable income beyond the amount necessary to pay all creditors in full and how far can a court go to place conditions on confirmation of a plan, including a discussion on how other courts have ruled on this issue.
Webinar Recording Now Available
The Current Loan Modification Arena
On 1/31/18 Attorney Brent Meyer moderated an excellent one-hour discussion on new and existing loan modification programs throughout the country. Experts Robert Branson and Tammy Branson updated attendees on options available to clients right now and how to navigate the loan modification application process and how to get paid! This is a moderate to advanced level webinar directed primarily to attorneys who represent debtors. Access to webinar recordings is part of your Academy subscription. Not a member? Join NOW!
Need Help With Loan Modifications?
During The Current Loan Modification Arena webinar, the Bransons mentioned their proprietary software which makes loan modification calculations a breeze. Click here to check out how you can purchase this software. Additionally, the Bransons offer educational programs and materials to help you set up your own loan medication program. Click here for more information.
For Your Blog
Sanctions and Irony and Fraud, Oh My!
- (Same case as above) Upright Law, ‘Partners’ Sanctioned for Unauthorized Law Practice
Student Loan Chronicles
- Inside One State’s Effort to Help Borrowers Erase Student Debt in Bankruptcy – Through a program championed by the AG, the Massachusetts Bar Association is matching borrowers with pro bono lawyers
In Case You Missed It . . .
Do Voluntary Retirement Contributions Made During a Chapter 13 Constitute Disposable Income?
“There are three lines of cases regarding the Debtor’s ability to contribute to a voluntary retirement plan post-petition.”
MORTGAGE MATTERS (Not password protected)
Article: US Mortgage Debt At $8.8 Trillion
Article: Mortgage Rates Highest Since 2014
Article: The New Tax Laws And Real Estate
DEBT AND THE ECONOMY (Not password protected)
MILITARY MATTERS (Not password protected)
Attention Trustees. You may also be interested in this one . . .More Than 133,000 Vets May Qualify for This Tax Refund Windfall
OF INTEREST (Not password protected)
Seems like everyone is going bust . . . Linda The Bra Lady Files for Bankruptcy
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February 12, 2018
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Archives |
Critical Case Comment
Precedent setting: Nothing requires a court to dismiss a Chapter 13 case filed by a debtor whose unsecured debts exceed the debt limits of § 109 where the excess debt derives from student loans.
Do Voluntary Retirement Contributions Made During a Chapter 13 Constitute Disposable Income?
“There are three lines of cases regarding the Debtor’s ability to contribute to a voluntary retirement plan post-petition.”
Register NOW for the Academy’s Next Free Webinar
Title: In re Crawford – How Far Can a Court Go in Placing Conditions on Confirmation of a Plan?
When: Wednesday, February 28, 2018 – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific
Description: Mary K. Viegelahn, Trustee will moderate a discussion with Debbie Langehennig, Trustee and Todd Malaise, Debtors’ Attorney on the issue involving excess disposable income beyond the amount necessary to pay all creditors in full and how far can a court go to place conditions on confirmation of a plan, including a discussion on how other courts have ruled on this issue.
When: Wednesday, February 28, 2018 – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific
Description: Mary K. Viegelahn, Trustee will moderate a discussion with Debbie Langehennig, Trustee and Todd Malaise, Debtors’ Attorney on the issue involving excess disposable income beyond the amount necessary to pay all creditors in full and how far can a court go to place conditions on confirmation of a plan, including a discussion on how other courts have ruled on this issue.
Bitcoins . . . STILL
- Bitcoin Above $8,000 After Regulators Spare Toughest Reprisals
- See also Bitcoins and Bankruptcy By Phil Lamosfor the definition of bitcoin
Webinar Recording Now Available
The Current Loan Modification Arena
On 1/31/18 Attorney Brent Meyer moderated an excellent one-hour discussion on new and existing loan modification programs throughout the country. Experts Robert Branson and Tammy Branson updated attendees on options available to clients right now and how to navigate the loan modification application process and how to get paid! This is a moderate to advanced level webinar directed primarily to attorneys who represent debtors.Access to webinar recordings is part of your Academy subscription. Not a member? Join NOW!
Need Help With Loan Modifications?
During The Current Loan Modification Arena webinar, the Bransons mentioned their proprietary software which makes loan modification calculations a breeze. Click here to check out how you can purchase this software. Additionally, the Bransons offer educational programs and materials to help you set up your own loan medication program. Click here for more information.
Did You Know?
- Here’s Exactly How Much Credit-Card and Student Debt Makes You Undateable – There appears to be a tipping point where debt and singledom go hand-in-hand
For Your Blog
- Ask Brianna: What If I Really, Really Need My Tax Refund? (Excellent article reiterating everything you want your clients to do!)
Sanctions and Irony and Fraud, Oh My!
In Case You Missed It . . .
Forced Vesting – Take It. Please.
“The debtors soon realize the lienholders are never going to start the foreclosure proceedings.”Other Academy resources on vesting:
- No Forced Vesting Over Creditor’s Objection, at Least Not in Massachusetts (Sagendorph from 2/2017)
- From the Editor – Surrender and Vesting (Zair from 10/2016)
- Vesting Property in Disinclined Creditors (Sagendorph from 8/2015)
MORTGAGE MATTERS (Not password protected)
Article: Life After Bankruptcy-Mortgages
Article: 2017 Record Low Foreclosures
Article: Reverse Mortgages-Language Matters
Black Knight: Mortgage Performance Improves In 2017
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
The Death of Clothing (Interesting article – raises questions regarding whether or not the national standards reflect our true spending habits.)
Effort Aims to Ease Filing for Bankruptcy – Lawyers program, startup partner to aid low-income residents
CONSUMER NEWS FOR YOU (Not password protected)
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February 5, 2018
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Archives |
Stay It Isn’t So! Is the Automatic Stay Eroding in the Tenth Circuit?
“Does the automatic stay require action when inaction would otherwise affect estate property?”
Forced Vesting – Take It. Please.
“The debtors soon realize the lienholders are never going to start the foreclosure proceedings.”Other Academy resources on vesting:
- No Forced Vesting Over Creditor’s Objection, at Least Not in Massachusetts (Sagendorph from 2/2017)
- From the Editor – Surrender and Vesting (Zair from 10/2016)
- Vesting Property in Disinclined Creditors (Sagendorph from 8/2015)
Register NOW for the Academy’s Next Free Webinar
Title: In re Crawford – How Far Can a Court Go in Placing Conditions on Confirmation of a Plan?
When: Wednesday, February 28, 2018 – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific
Description: Mary K. Viegelahn, Trustee will moderate a discussion with Debbie Langehennig, Trustee and Todd Malaise, Debtors’ Attorney on the issue involving excess disposable income beyond the amount necessary to pay all creditors in full and how far can a court go to place conditions on confirmation of a plan, including a discussion on how other courts have ruled on this issue.
When: Wednesday, February 28, 2018 – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific
Description: Mary K. Viegelahn, Trustee will moderate a discussion with Debbie Langehennig, Trustee and Todd Malaise, Debtors’ Attorney on the issue involving excess disposable income beyond the amount necessary to pay all creditors in full and how far can a court go to place conditions on confirmation of a plan, including a discussion on how other courts have ruled on this issue.
From the IRS
(Many IRS items could also be used in your blog.)
How Taxpayers Across the Country Can Have their Taxes Prepared for Free
Millions get their taxes done free through two programs sponsored by the IRS. These help people with lower and moderate incomes:
- The Volunteer Income Tax Assistance: This program is also known as VITA. It offers free tax return preparation to eligible taxpayers who generally earn $54,000 or less.
- Tax Counseling for the Elderly: TCE is mainly for people age 60 or older, but offers service to all taxpayers. The program focuses on tax issues unique to seniors. AARP participates in the TCE program through AARP Tax-Aide.
From the NCLC on the CFPB
A Letter from Rich Dubois, Executive Director, NCLC
“ . . . the Court of Appeals for the District of Columbia ruled yesterday that the structure of the Consumer Financial Protection Bureau (CFPB) is constitutional . . .”
Webinar Recording Now Available
The Current Loan Modification Arena
On 1/31/18 Attorney Brent Meyer moderated an excellent one-hour discussion on new and existing loan modification programs throughout the country. Experts Robert Branson and Tammy Branson updated attendees on options available to clients right now and how to navigate the loan modification application process and how to get paid! This is a moderate to advanced level webinar directed primarily to attorneys who represent debtors. Access to webinar recordings is part of your Academy subscription. Not a member? Join NOW!
From the IRS
Updated 2018 Withholding Tables Now Available; Taxpayers Could See Paycheck Changes by February
Did You Know?
(Now available (on various terms) in about half of the courts.)
For Your Blog
Student Loan Chronicles
- Understand Discharge Rates for Defrauded Borrowers – Thousands are submitting borrower defense discharge claims, but only a fraction are seeing any relief.
In Case You Missed It . . .
Separate Classification and Unfair Discrimination – Co-obligors Debts
As a Chapter 13 Trustee faced with numerous proposed plans which discriminate in the payments to non-priority unsecured claims, it does not happen often when the plan proposes to pay the unsecured claims of co-obligors less than the 100% dividend proposed to non-priority unsecured claims.
MILITARY MATTERS (Not password protected)
Army Warns of ‘Emerging Public Health Threat’ (And not just for military)
OF INTEREST (Not password protected)
Most Americans Can’t Afford a Minor Emergency – Just 39 percent of Americans have enough money in savings to cover an unexpected $1,000 bill, according to a new report.
MIAMI! (Not password protected)
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January 29, 2018
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Archives |
Separate Classification and Unfair Discrimination – Co-obligors Debts
As a Chapter 13 Trustee faced with numerous proposed plans which discriminate in the payments to non-priority unsecured claims, it does not happen often when the plan proposes to pay the unsecured claims of co-obligors less than the 100% dividend proposed to non-priority unsecured claims.
From the Editor – Claims
Register NOW for the First Free Academy Webinar of 2018
Title: The Current Loan Modification Arena
When: Wednesday, January 31, 2018 – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific
Description: Attorney Brent Meyer will moderate a one-hour discussion on new and existing loan modification programs. Experts Robert Branson and Tammy Branson will update attendees on options available to clients . . . and there ARE options. This is a moderate to advanced level webinar directed primarily to attorneys who represent debtors.
When: Wednesday, January 31, 2018 – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific
Description: Attorney Brent Meyer will moderate a one-hour discussion on new and existing loan modification programs. Experts Robert Branson and Tammy Branson will update attendees on options available to clients . . . and there ARE options. This is a moderate to advanced level webinar directed primarily to attorneys who represent debtors.
Farmers in Crisis
- Western Wisconsin Led Nation In Farm Bankruptcies In 2017 – Ag Experts Say Low Commodity Prices, High Land Costs Have Farmers Feeling More Financial Stress
From the IRS
Updated 2018 Withholding Tables Now Available; Taxpayers Could See Paycheck Changes by February
Sanctions and Irony and Fraud, Oh My!
In Case You Missed It . . .
“Cure and Maintain” in Chapter 20? Not in Canton, You Don’t!
“Judge Kendig’s conclusion flows from a faulty premise.”
MELTDOWN AND SPECTRE (Not password protected)
Intel Halts Some Chip Patches as the Fixes Cause Problems – The chipmaker’s updates were meant to fix the Meltdown and Spectre design flaws, but have been causing computers to unexpectedly reboot.
MORTGAGE MATTERS (Not password protected)
Black Knight Report: First Look at December 2017 Mortgage Data: 90-Day Delinquencies Jump Again as Hurricane Fallout Continues
Article: Cleveland Digs Out 10 Years Later
OF INTEREST (Not password protected)
Armed with High-Tech Assistance, Legal Aid Attorneys Aim to Assist More People Filing For Bankruptcy
(Interesting article, not what you expect) What Not to Wear…To Court – No shoes, no shirt, no justice!
CAR MATTERS (Not password protected)
FOR YOUR HEALTH (Not password protected)
What Makes This Flu Season So Bad – A dangerous strain paired with less effective vaccines has created a dangerous recipe for illness
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January 22, 2018
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Archives |
Was It a Return?
“The standard for determining whether a document is a return consists of a four-part analysis known as the Beard test.”
“Cure and Maintain” in Chapter 20? Not in Canton, You Don’t!
“Judge Kendig’s conclusion flows from a faulty premise.”
From the CFPB
- Three Things Companies Hate About the CFPB’s Investigative Demands – CFPB will start soliciting comments on a host of matters—including enforcement, supervision and rule-making.
From the IRS
Updated 2018 Withholding Tables Now Available; Taxpayers Could See Paycheck Changes by February
Finally, Some Good News. Well, for the Consumer Bankruptcy Industry
Sanctions and Irony and Fraud, Oh My!
- British Bankruptcy Kerfuffle . . .BBC Investigation Exposes High-Living Debtors Exploiting Weaknesses in Bankruptcy System
FAR BEYOND Sanctions and Irony and Fraud, Oh My!
Creepy parents who chained up kids had previously filed a Chapter 7:
In Case You Missed It . . .
Critical Case Comment
“While it is possible for a Chapter 13 debtor to have two bankruptcy cases at the same time, a debtor is precluded from having two reorganization bankruptcy cases at the same time.”
MELTDOWN AND SPECTRE (Not password protected)
Intel Says Newer Chips Also Hit by Unwanted Reboots After Patch – Intel’s Firmware Fix for SpectreIs Also Causing Higher Reboots on Kaby Lake and Skylake CPUs
MORTGAGE MATTERS (Not password protected)
Article: Fed Fines Five More Banks
Article: Mortgage Applications Up 4.1%
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
BY THE NUMBERS (Not password protected)
MILITARY MATTERS (Not password protected)
FOR YOUR HEALTH (Not password protected)
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January 15, 2018
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Archives |
Critical Case Comment
“While it is possible for a Chapter 13 debtor to have two bankruptcy cases at the same time, a debtor is precluded from having two reorganization bankruptcy cases at the same time.”
From the Editor – Automatic Stay
Back by popular demand, Judge Brown is at it again. This week he brings Academy subscribers three cases, all regarding the automatic stay.
CLOSE TO HOME Sanctions and Irony and Fraud, Oh My!
Counterfeit Check Cashing Scheme Lands Newark Man in Jail for 6 Years
Although there was no loss, Trustee Greenberg in Fairfield, New Jersey, was directly affected by this counterfeit operation. NJ State Police requested that she make a victim’s impact statement.Do you think six years is a long enough sentence? Click here and let us know your thoughts.
From the Supreme Court
A Stern Warning from the Supreme Court . . .
From the IRS EXTRA
New Mailing Address for Forms 8809 — Faxes No Longer Accepted
All Forms 8809, Application for Extension of Time to File Information Returns,filed on paper are now processed by the Internal Revenue Service Center in Ogden, Utah. These paper forms must be mailed. Faxes will not be accepted.The mailing address is:
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0209
The IRS will only grant extensions for very specific reasons. For example, records were lost in a disaster or someone responsible for filing the company’s returns has an unavoidable absence.
From the National Consumer Law Center
Private IRS Collectors Waste Taxpayer Money While Squeezing Low-Income Families
Program costs three times the amount collected from financially-strapped taxpayers
Finally, Some Good News. Well, for the Consumer Bankruptcy Industry
Student Loan Chronicles
- Student Loan Crisis Could Be Worse Than Originally Thought – Nearly 40% of those who entered in 2004 could default by 2023 (2023 sounds like a LONG time off . . . um, it’s only FIVE years)
Sanctions and Irony and Fraud, Oh My!
- Aspen Homeowner Sentenced to 16-Yr Prison Sentence for Predatory Lending Scheme – U.S. District Judge Kevin Castel also sentenced co-defendant Timothy Muir, an attorney, to 7 years in prison
In Case You Missed It . . .
A Primer on Drafting Adversary Complaints, Counterclaims, Cross-Claims, and Third-Party Complaints
Click here for “. . . a framework for drafting complaints that will avoid unnecessary procedural motions and issues for the court and which will aid in the claimant’s obtaining the relief which is sought.”Judge Humphrey provides Academy members an excellent tool which can be found under The Toolbox tab in both the Definitions and Debtor Attorney categories.
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
FOR YOUR HEALTH (Not password protected)
Get Ready, Some Medical Experts Are Predicting Worst Flu Season in History
- Medical experts are bracing for one of the worst flu seasons in history.
- The main flu strain for 2017-18 is known as the H3N2 virus, and it is more deadly than the swine flu.
- The flu is now widespread in about 46 states, reports the CDC.
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January 8, 2018
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Archives |
A Primer on Drafting Adversary Complaints, Counterclaims, Cross-Claims, and Third-Party Complaints
Click here for “. . . a framework for drafting complaints that will avoid unnecessary procedural motions and issues for the court and which will aid in the claimant’s obtaining the relief which is sought.”Judge Humphrey provides Academy members an excellent tool which can be found under The Toolbox tab in both the Definitions and Debtor Attorney categories.
Why Can’t I Get My Chapter 13 Plan Confirmed? (Or Simple Keys on How I Can Satisfy the Trustee So I Can Get Paid)
Attorney Stout describes three easy ways to pave the way for plan confirmation and, hopefully, get paid along the way.
In the Tech Department
- How to Protect Your PC Against the Major ‘Meltdown’ CPU Security Flaw – Everything we know so far
Credit Check Shake-Up
- US Considers Mortgage Credit Check Shake-Up – Critics complain current system is outdated and locks millions out of home ownership
For Your Blog
- Downside of Automatic 401(k) Savings: More Debt – New research finds employees auto-enrolled in retirement plans borrow more than they otherwise would have, offsetting savingsMessage to Clients: DON’T BORROW FROM YOUR 401(k)!
Student Loan Chronicles
- These Towns Will Help Pay Off Your Student Loan Debt If You Move There (May also be a good topic for your blog.)
- DeVos May Make It Harder for Students to Prove They Were Defrauded – Potential rule revisions from the Education Department would force students to meet a higher standard of evidence when seeking loan relief.
Sanctions and Irony and Fraud, Oh My!
- $119,000 Sanctions for Discharge Injunction Violations (Chapter 7 case)
In Case You Missed It . . .
Ask Ms. Ps & Qs
“ . . . an opinion is going to involve some juicy facts when this is the first sentence: “This Motion to Expunge an attorneys’ fee lien asserted by the debtors’ former attorney involves an important tool in the judicial toolbox for addressing the dilemma of counsel who incompetently represent debtors who have a meritorious case.”
MORTGAGE MATTERS (Not password protected)
Attention Mortgage Creditors On the Radar: Legal Experts on the Cases Shaping the Industry (skim down to The Shape of 2018—And Beyond)
Article: California Housing Issues For 2018
MILITARY MATTERS (Not password protected)
FOR YOUR HEALTH (Not password protected)
Nearly Half of All Cancer Deaths Linked to Preventable Risk Factors: Study. . .Not just cigarettes . . .
FOR YOUR HEALTH EXTRA (Not password protected)
Friends, Romaines, Countrymen – Lend Me Your Ears: Stay away from romaine lettuce, Consumer Reports advises
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January 1, 2018
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Archives |
Ask Ms. Ps & Qs
“ . . . an opinion is going to involve some juicy facts when this is the first sentence: “This Motion to Expunge an attorneys’ fee lien asserted by the debtors’ former attorney involves an important tool in the judicial toolbox for addressing the dilemma of counsel who incompetently represent debtors who have a meritorious case.”
Sorry Folks, There is No “Riding Through” This Town!
“ . . . Faced with these equally undesirable alternatives, clever attorneys came up with a fourth option – the ‘ride through’. This alternative, not found anywhere in the Code, could be used where Debtor was not in default under the loan agreement.”
This is one you definitely want to read!
CFPB Releases Report on State of Credit Card Market
Click here for highlights
Click here for entire report
Regarding the Supreme Court
From Our Friends at Credit Slips
For Your Blog
Sanctions and Irony and Fraud, Oh My!
- How to Get Away with Bankruptcy Fraud – Los Angeles is the nation’s hub for bankruptcy crime. Scammers prey on struggling homeowners with little fear of getting caught, because criminal enforcement of bankruptcy laws is rare.
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
E-commerce is Louisville’s Mixed Bag – There’s job growth, but wages can’t support a family
FOR YOUR HEALTH (Not password protected)
(You Go Massachusetts!)
