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December 23, 2019
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Archives |
Five More Things Debtors Should Know About the SBRA of 2019
This week, Larry Ahern continues a report on bankruptcy-related legislation passed in the first session of the 116th Congress. This Part VII continues his review of issues of particular interest to small-business debtors and their counsel, including his primer on Chapter 11 confirmation.
Below is easy access to the previously published SBRA library.
- Two Things Debtors Should Know About SBRA, Including a Primer on Chapter 11 Confirmation By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- Three Last Things Trustees Should Know About the Small Business Reorganization Act of 2019 – Part V By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- Two More Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- The First Thing a Chapter 13 Debtor’s Attorney Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act By Jan Hamilton – Part One, Part Two and Part Three
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- H.R. 3311
- Appendix A to Part I – The HAVEN Act
- Appendix B to Part I The Small Business Reorganization Act of 2019(SBRA), H.R. 3311
Supreme Court Grants Cert
On December 18th, the Supreme Court granted the Petition for Certiorari in City of Chicago, Illinois v. Fulton.
See Mr. Ahern’s previous analysis of this case.
In re Fulton: Seventh Circuit Affirms Its Position with Majority of Circuits on Passive Retention of Property as Violation of Sections 362 and 542
There’s Always a Car
More Borrowers Are Getting Rejected for Auto Loans
New U.S. Trustee Appointed
Andrew R. Vara Appointed as U.S. Trustee for Ohio and Michigan
For Your Blog
- As Reverse Mortgages End, Heirs Are Left with Heartache – After a death, heirs who want to pay off reverse mortgages to hold onto a family home can be stymied by a seemingly endless cycle of problems.
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December 16, 2019
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Archives |
Disregarding Bankruptcy Protections Can be Costly: How Courts Decide Punitive Damages Awards for Stay Violations
“When a creditor willfully continues to engage in collection efforts in violation of the automatic stay, the harm to a debtor can be devastating.”
Supreme Court on Statute of Limitations Under Fair Debt Collection Practices Act
New Fellows of American College of Bankruptcy
Judge Marci B. McIvor Retires
Student Loan Chronicles
- University of Phoenix Cancels $141 Million in Debt for ‘Deceptive’ Ads – The for-profit school lured students by advertising employer partnerships that did not exist, the Federal Trade Commission said.
Sanctions and Irony and Fraud, Oh My!
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December 9, 2019
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Archives |
2019 Legislation Affecting Bankruptcy Practice – Part VI
Ask Ms. Ps & Qs
An Interesting Opinion from the Sixth Circuit BAP – In re Donnadio
From the Courts
Farmers in the News
- ‘They’re Trying to Wipe Us Off the Map’ – Small American Farmers Are Nearing Extinction
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December 2, 2019
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Archives |
Senior Moments
Taxes, Offset, and Mutuality
Trustee Cannot Require Debtor to Treat Nondischargeable Student Loan Debts in a Separate Class
Sanctions and Irony and Fraud, Oh My!
All new links . . .
- Now-Defunct Globe University Files for Chapter 11, Citing Many Millions Owed – With Minnesota School of Business, it owes millions in connection with fraud.
- Student Loan Debt Scam Stopped by FTC After Consumers Lose Millions – FTC says the companies would promise lower payments, and then push the loans onto another company.
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November 25, 2019
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Archives |
ABI Commission on Consumer Bankruptcy Recommendations – What Does It Mean to Surrender?
“One of the most confusing elements in consumer bankruptcy practice is the effect of electing the option given in § 1325(a)(5)(C) or § 521(a)(2).”Previously published articles:
Collateral Repossessed Pre-Petition
Recommendations Related to Exemptions
Post-Petition Changes in Value
A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability
Per Capita Bankruptcy Filings Heat Map
Click here for the map
Click here for the raw data
| Ranking | State | Filings per 1,000 |
| 1 | Alabama | 5.75 |
| 2 | Tennessee | 5.47 |
| 3 | Georgia | 4.43 |
| 4 | Mississippi | 4.28 |
| 5 | Nevada | 3.82 |
| 6 | Illinois | 3.79 |
| 7 | Indiana | 3.67 |
| 8 | Arkansas | 3.66 |
| 9 | Kentucky | 3.56 |
| 10 | Utah | 3.50 |
From the Supreme Court
Farmers in the News
- Farming Industry Faces Rising Bankruptcy Filings – The number of American farms going bankrupt is up 24 percent over last year.
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November 18, 2019
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Archives |
In re Crocker: New Approaches to Discharge Enforcement and Student Loan Dischargeability?
Three Last Things Trustees Should Know About the Small Business Reorganization Act of 2019 – Part V
This week, Larry Ahern continues a report on bankruptcy-related legislation. This Part V concludes his review of issues arising under the new small business subchapter added to Chapter 11, of particular interest to Chapter 12 and 13 trustees.See also our previously published articles:
- Two More Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- The First Thing a Chapter 13 Debtor’s Attorney Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act by Jan Hamilton – Part One, Part Two and Part Three
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Larry Ahern
- H.R. 3311
Why Your Bankruptcy Client Doesn’t Understand You (And How to Fix the Problem)
From the Courts
2019 Director’s Awards Presented for Leadership, Excellence, Bravery
From the IRS
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November 11, 2019
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Archives |
In honor of Veteran’s Day, we bring you a story from uscourts.gov
Double Duty: Reflections of an Army General and Clerk of Court
New and Revised Bankruptcy Forms
This week Judge Brown breaks down the new and revised bankruptcy forms that you need to be aware of.AND . . . below is a link to a really good article on rule amendments you also need to be aware of . . .
Amendments to the Federal Rules of Bankruptcy Procedure Take Effect December 1, 2019
Memories of a Chapter XIII Trustee
From the Supreme Court
- Argument Preview: Justices to consider when creditors in bankruptcy can appeal orders denying relief from the automatic stay
From the National Consumer Bankruptcy Rights Center
- No Amortization of Tax Refund in W.D. Texas
- Note that Standing Trustee Mary Viegelahn (Vega v. Viegelahn and Diaz v. Viegelahn) is Program Chair for the 2020 NACTT conference in San Diego. Mark your calendar NOW; it’s going to be EPIC!!! July 9-11, 2020. BE THERE!
For the Academic Set
Farmers in the News
- Report: Farm bankruptcies rose 24% over past year, growers increasingly depend on federal aid, programs
Student Loan Chronicles
- Law Schools with the Highest Student Loan Default Rates – Damned to lifetimes of debt, graduates of these law schools have been defaulting on their student loans.
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November 4, 2019
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Archives |
Critical Case Comment
Hanging Paragraph, Cars for Non-Personal Use, and PMSI
The hanging paragraph of § 1325(a)(9) prevents bifurcation of a PMSI claim if the collateral securing it was purchased within certain time periods prepetition. A 910-day limitation applies to motor vehicles acquired for the debtor’s personal use. A one-year limitation applies to all other PMSI collateral, including a vehicle purchased for non-personal use.
Barbara J. Rom Award for Bankruptcy Excellence
The 2019 recipient of the Barbara J. Rom Award for Bankruptcy Excellence given by the Federal Bar Association, Eastern District of Michigan chapter, was awarded to NACTT and Academy member Richardo Kilpatrick. We are honored that Kilpatrick will be a speaker at the 2020 NACTT Conference in San Diego.
The Barbara J. Rom Award for Bankruptcy Excellence honors individuals who have exhibited the highest level of overall excellence in the practice of bankruptcy law. The following criteria are among those considered in making this award: Excellence, civility, sophistication of practice, community involvement, Bar association and Court activity involvement, and pro bono participation.
CONGRATULATIONS RICHARDO!!!!
For Your Blog
Credit Scores Trend Upward After Bankruptcy
Farmers in the News
Farm Bankruptcies Rise Again
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October 28, 2019
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Archives |
Evidentiary Issues Arising from Attempts to Prove Alleged “Facts” Stated in The Monster Mash
“You have never heard – or seen – the Monster Mash. What have you heard, is a song ABOUT the Monster Mash. Let that sink in for a minute. Inevitably, that leads to the obvious question: What facts could we actually PROVE about the Monster Mash, in a federal court?”Two More Things Trustees Should Know About the Small Business Reorganization Act of 2019
This week, Larry Ahern continues reporting on bankruptcy-related legislation passed in August. This week, Ahern drills further into the new small business subchapter added to Chapter 11, which will also be of interest to Chapter 12 and 13 trustees and practitioners.See also our previously published articles:
- The First Thing a Chapter 13 Debtor’s Attorney Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act by Jan Hamilton – Part One, Part Two and Part Three
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Larry Ahern
- H.R. 3311
From the Editor
Judge Brown brings us one case of interest on curing defaults:
From the United States Trustee
Public Notice – Solicitation of Applicants to Serve as Subchapter V Trustees
City of Chicago, Illinois v. Fulton Appealed to Supreme Court
From the CFPB
- Will Supreme Court Decision Threaten CFPB Independence – Or will it bring more accountability?
- CFPB to Host Symposium on November 6 – Live Stream Available
Student Loan Chronicles
- At 69, She’s Still Paying Off $12,000 of Student Debt — including out of her Social Security checks – About 222,140 Texans ages 60 and older had student loan debt in 2017, carrying a median load of $15,754, according to government data.
- Where Student Loan Debt Hits the Hardest — 2019 Edition
Sanctions and Irony and Fraud, Oh My!
- 3 Arrested in $7 Million Mortgage Fraud that Targeted the Elderly – Distressed homeowners promised foreclosure relief by paying fees and deeding their property over to Grand View Financial
- Why Black Homeowners in Brooklyn Are Being Victimized by Fraud – Deed theft has become a worrisome crime in Brooklyn, targeting rapidly gentrifying communities of color.
- $30M Fraud Scheme Lands Bala Cynwyd Man in Prison – Gary Frank’s major loan fraud scheme helped him get on the boards of the Philadelphia Orchestra and the Philly Pops.
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October 21, 2019
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Archives |
Some Basics You Always Wanted to Know About the FCRA But Were Too Embarrassed to Ask
This article discusses the FCRA, the rules and practices of those who prepare credit reports, and some of the problems and issues that consumers need to be aware of. Much of it is based on the actual experience of one of the authors in representing consumers with credit report problems.
Fourth Circuit Overrules Own Precedent, Holds Certain Primary Residence Claims Can be Crammed Down in Chapter 13 Bankruptcies
From the Editor
Judge Brown was back at his desk this week, reading cases, and brings us four cases of interest relating to claims:
Small Business Reorganization Act…(“SBRA”) – All previously published articles:
- The First Thing a Chapter 13 Debtor’s Attorney Should Know About the Small Business Reorganization Act of 2019 By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act by Jan Hamilton – Part One, Part Two and Part Three
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Larry Ahern
- H.R. 3311
From the Courts – Form Changes
Forms effective October 1, 2019On August 26, 2019, the President signed into law the Honoring American Veterans in Extreme Need Act of 2019 (the HAVEN Act) Public Law No. 116-52. The HAVEN Act amended 11 U.S.C. § 101(10A) to exclude from the definition of Current Monthly Income certain payments made under title 10, 37, or 38 of the United States Code in connection with a disability, combat-related injury or disability, or death of a member of the uniformed services.At its September 26, 2019 meeting, the Advisory Committee on Bankruptcy Rules made minor conforming amendments to lines 9 and 10 of Official Forms 122A-1, 122B, and 122C-1 to address the HAVEN Act.Click here for New Form 122C-1Forms Effective December 1, 2019Two bankruptcy forms are on track to go into effect this December.
The proposed change to Official Form 122A-1 adds an instruction to line 14a to remind a debtor that if there is no presumption of abuse, that Official Form 122A-2 should not be filled out or filed.
Director’s Form 1340, Application for Payment of Unclaimed Funds, is a new form issued by the Director of the Administrative Office of the United States that bankruptcy courts may adopt or revise as needed to facilitate requests for unclaimed funds.
From the CFPB
- (Pretty interesting stuff – chapter 13 starts on page 5) Quarterly Consumer Credit Trends – Consumer Bankruptcy, BAPCPA, and the Great Recession
Also from the Courts
- Tampa’s Chief Bankruptcy Judge Sees Many People ‘Get Behind the Financial 8 Ball’ – Caryl E. Delano will serve four years as chief judge of one of the nation’s busiest bankruptcy courts.
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October 14, 2019
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Archives |
Taxes, Offset, and Mutuality
Small Business Reorganization Act…(“SBRA”)
The First Thing a Chapter 13 Debtor’s Attorney Should Know About the Small Business Reorganization Act of 2019
Larry Ahern continues his reporting on bankruptcy-related legislation passed in the first session of the 116th Congress. This week, he answers the single most frequently asked question from the debtors’ bar about the new small business rules: Could the new law require my client to file before the February 19 effective date?See also:
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act by Jan Hamilton – PART ONE, PART TWO and PART THREE
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Larry Ahern
- H.R. 3311
From the Courts
From the Courts – Form Changes
Forms effective October 1, 2019On August 26, 2019, the President signed into law the Honoring American Veterans in Extreme Need Act of 2019 (the HAVEN Act) Public Law No. 116-52. The HAVEN Act amended 11 U.S.C. § 101(10A) to exclude from the definition of Current Monthly Income certain payments made under title 10, 37, or 38 of the United States Code in connection with a disability, combat-related injury or disability, or death of a member of the uniformed services.At its September 26, 2019 meeting, the Advisory Committee on Bankruptcy Rules made minor conforming amendments to lines 9 and 10 of Official Forms 122A-1, 122B, and 122C-1 to address the HAVEN Act.Click here for New Form 122C-1Forms Effective December 1, 2019Two bankruptcy forms are on track to go into effect this December.
The proposed change to Official Form 122A-1 adds an instruction to line 14a to remind a debtor that if there is no presumption of abuse, that Official Form 122A-2 should not be filled out or filed.
Director’s Form 1340, Application for Payment of Unclaimed Funds, is a new form issued by the Director of the Administrative Office of the United States that bankruptcy courts may adopt or revise as needed to facilitate requests for unclaimed funds.
From the IRS
2 Million ITINs Set to Expire in 2019
- An ITIN is a tax ID number used by taxpayers who don’t qualify to get a Social Security number. Any ITIN with middle digits 83, 84, 85, 86 or 87 will expire at the end of this year.
New Payment Option Available to Taxpayers in Private Debt Collection Program
- IRS officials announced on 10/8/19 that a new payment option – preauthorized direct debit.
IRS: Sorry, but It’s Just Easier and Cheaper to Audit the Poor
- Congress asked the IRS to report on why it audits the poor more than the affluent. Its response is that it doesn’t have enough money and people to audit the wealthy properly. So it’s not going to.
ABI Commission on Consumer Bankruptcy Recommendations
Recommendations Related to Exemptions
Post-Petition Changes in Value
A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability
Student Loan Chronicles
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October 7, 2019
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Archives |
Small Business Reorganization Act…(“SBRA”) H.R. 3311 – Part Three
“What needs to be in a plan filed in a case under the SBRA? Start with the statute…”Yes, MORE on SBRA. We realize that to attorneys February of 2020 seems a LONG way away but it really isn’t, um, this is OCTOBER! We are building our library on this important legislation so it is available when YOU are ready for it.See also:
- Small Business Reorganization Act By The Honorable Hannah Blumenstiel
- Small Business Reorganization Act by Jan Hamilton – PART ONE and PART TWO
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019 By Larry Ahern
- H.R. 3311
Senior Moments
Farmers in the News
Student Loan Chronicles
Student Loan Crisis Driving Racial Wealth Gap
For Your Blog
Taxpayers Should Beware of Property Lien Scam
Sanctions and Irony and Fraud, Oh My!
- Woman Draws Ire of Bankruptcy Judge, Faces Possible Criminal Charges – Milwaukee woman who overcharged low-income people filing for bankruptcy and failed to pay more than $15,000 in fines should face criminal charges, U.S. Bankruptcy Court Judge Beth Hanan said in a recent order.
- FTC Says AdvoCare Will Pay $150 Million Fine for Using Illegal Pyramid Sales Scheme – “There is incredible profit that can be made through infinity,” a top AdvoCare promoter advertised to potential recruits, according to the FTC.
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September 30, 2019
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Archives |
Small Business Reorganization Act
Yes, MORE on SBRA. We realize that to attorneys February of 2020 seems a LONG way away but it really isn’t. We are building our library on this important legislation so it is available when YOU are ready for it.In this week’s installation, Judge Blumenstiel, analyzes the legislation. The first two and a half pages are of particular importance as she very briefly summarizes the chief take-aways.See also:
- Small Business Reorganization Act by Jan Hamilton – PART ONE and PART TWO
- 2019 Legislation Affecting Bankruptcy Practice – Overview
- Five Things Trustees Should Know About the Small Business Reorganization Act of 2019
- H.R. 3311
It Takes a Village
Kellner Retires
AND
A Sappy Farewell to Jeff Kellner as the Dayton Chapter 13 Trustee
Johnson Retires
Bankruptcy Judge Receives Award
Farmers in the News
Trump’s Farm Bailout Has Cost Taxpayers More Than Double the Auto Bailout
Student Loan Chronicles
- Here’s Another Way Student Loans Are Screwing You Over, Consumer Advocates Say – According to the Student Borrower Protection Center, a consumer advocacy group, the memo shows that Navient “orchestrated a predatory scheme to place borrowers in high-cost repayment options to boost corporate profits.”
Sanctions and Irony and Fraud, Oh My!
- Special Report: New frontier in health fraud – Genetic tests of the elderly
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September 23, 2019
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Archives |
Small Business Reorganization Act…(“SBRA”) H.R. 3311 – Part Two
Tax Projections and the Means Test – Part II
From the Editor – Avoidance
There’s Always a Car
Driven to Bankruptcy — New Research from the Consumer Bankruptcy Project
Marijuana in the News
Marijuana: Should a Plan “Go up in Smoke” Because a Debtor’s Tenant Operates a Marijuana Establishment?
Farmers in the News
CFPB in the News
- CFPB Just Told SCOTUS it’s Unconstitutional – What does that mean for its mission?
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September 16, 2019
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Archives |
Small Business Reorganization Act…(“SBRA”) H.R. 3311 – PART ONE
Tax Projections and the Means Test
From the Editor
Marijuana in the News
Bankruptcy Court Tells Debtors They Must Choose Between Bankruptcy or Medical Marijuana
Sanctions and Irony and Fraud, Oh My!
- After Fire, Philadelphia Refinery Paid Executives $4,591,500 in Bonuses while Hundreds Were Laid Off
- Rev. Leon Finney Jr.’S Free Fall – Nonprofits Got Millions in Public Housing Money. Now, He’s Facing Allegations of Fraud and Self-Dealing.
- Chpt 7 but interesting . . .Cochran Testifies at Creditors’ Meeting
- Email Wire Fraud Simple for Criminals to Pull Off – Cost companies $26 billion since 2016, says FBI
Student Loan Chronicles
5th Circuit Finds No Room for Sympathy for Student Loan Debtor
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September 9, 2019
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Archives |
Undersecured Short-Term Mortgages May be Crammed Down
2019 Legislation Affecting Bankruptcy Practice
Five Things Trustees Should Know About the Small Business Reorganization Act of 2019
This week, Larry Ahern continues a report on bankruptcy-related legislation passed in the first session of the 116th Congress. This installment begins to drill down into the new small business subchapter added to Chapter 11, which will also be of interest to Chapter 12 and 13 trustees and practitioners.
See also:
When $400 Emergency Pushes You Over the Edge
Farmers in the News
The Graying of Debtors
Rising Senior Debt Levels are Concerning Researchers
Session Recording Now Available
At the NACTT 2019 conference, an exceptional panel addressed the ‘graying’ of debtors across the country. Click here* to purchase this 75 minute session featuring Trustee Krispen Carroll, Professor Robert Lawless, William Rule PhD, and Debtor Counsel David Cox.
*Ninth session from the top – a mere $35 for the session.
Student Loan Chronicles
- Americans Are Drowning in $1.5 Trillion of Student Loan Debt – There’s one easy way congress could help
- Congress Promised Student Borrowers a Break. Education Dept. Rejected 99% of Them
(But not so fast . . . the language is not so cut and dried. Mark your calendar NOW for the NACTT 2020 conference in San Diego where the HAVEN Act will be explored in detail – JULY 9-11, 2020)
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September 2, 2019
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Archives |
Ditech Bank in the News
Less Than 100% Dividend, Can a Chapter 13 Plan be Paid Off Early? Originally published 4/22/19
From the Editor
Bankruptcy Protections Limited for Repeat Filers Originally published 1/14/19
Proposed Amendments Published for Public Comment
- Appellate Rules 3, 6, 42, and Forms 1 and 2;
- Bankruptcy Rules 2005, 3007, 7007.1, and 9036; and
- Civil Rule 7.1.
The comment period is open from August 19, 2019 to February 19, 2020.
Student Loan Chronicles
99% of Public Workers Who Seek Student Debt Relief Don’t Qualify. California wants to know why
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August 26, 2019
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Archives |
Trustee Cannot Require Debtor to Treat Nondischargeable Student Loan Debts in a Separate Class
“In fact, some discrimination is even allowed – as long as it’s not unfair discrimination.”Be sure to scroll to the end of the article for a surprise!
What to Do with the Dreaded Timeshare?
As reported in March, we are pleased to publish articles written by law students who benefited from the grant money provided by the National Data Center.
The Bankruptcy Moot Court Experience – Duberstein 2019
“. . . I had no idea what I was getting myself into. . . . coach’s question was challenging. It made it seem like the Court siding with my position would bring an end to the financial world as we know it. . . . I diverted and acted like the question had never been asked. And that was it, I was hooked on bankruptcy moot court.”See also:
Farmers in the News
Proposed Amendments Published for Public Comment
- Appellate Rules 3, 6, 42, and Forms 1 and 2;
- Bankruptcy Rules 2005, 3007, 7007.1, and 9036; and
- Civil Rule 7.1.
The comment period is open from August 19, 2019 to February 19, 2020.
From the IRS
Bankruptcy Boot Camp 2019
Sanctions and Irony and Fraud, Oh My!
- Broward Lawyer Suspended by Bankruptcy Judge After ‘Farcical Attempt to Avoid Accountability’ – “Now that the court has looked, it cannot look away,” said a court order by U.S. Bankruptcy Judge John K. Olson, who suspended Pembroke Pines attorney Maite Diaz from his court for allegedly filing unsworn and unverified documents.
- Military Fraudster Sentenced – Man Lied About Military Record to Swindle Donors to His Purported Charity
For Your Blog
Car Payment Trouble? How to turn it around
IN CASE YOU MISSED IT . . .
2019 Legislation Affecting Bankruptcy Practice
MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTHCARE IN THE NEWS (Not password protected)
FOR YOUR HEALTH (Not password protected)
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August 19, 2019
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Archives |
Win Now, Wreck Later: A Tale of Bankruptcy and Mortgage Servicing
2019 Legislation Affecting Bankruptcy Practice
Chapter 12 and Act2/Conference Update
“The presentations and materials are a great start for someone just getting into chapter 12, and for those more experienced practitioners the conference provided a chance to sharpen some skills and get up to date on the latest in Chapter 12.”This article contains valuable information about materials and the Act2 officers.
Farmers in the News
Drummond Receives Professionalism Award
ABI Commission on Consumer Bankruptcy
Post-Petition Changes in Value
A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability
From the IRS
- Taxpayers with Expiring ITINs Should Renew Them NowNearly 2 million ITINs will expire on December 31, 2019. If your practice is geographically in a high immigration area, you need to read this. Per immigration expert Richard J. Parker, Esq. of Parker, Butte & Lane, P.C. in Portland, Oregon, “They are most commonly used by people who have requested waivers and so do not have work authorization. It would generally be seen as the spouse of a US Citizen so that a joint tax return can be filed.”See also, related article: Not Born in the USA? The Perils of Bankruptcy Filings by Undocumented Persons
Student Loan Chronicles
- ‘Severely Derogatory’: U.S. student debt defaults have ‘grown stunningly’
Student Loan Chronicles Part B
CFPB Settles Lawsuit Against ITT Educational Services
CFPB announced 8/12/19 a proposed settlement with ITT Educational Services, Inc. to resolve the lawsuit which alleges that ITT engaged in unfair and abusive practices in connection with its private loan program in violation of the Consumer Financial Protection Act of 2010.The Complaint, filed in the U.S. District Court for the Southern District of Indiana in 2014, alleges that ITT helped to create private loan programs for students at ITT Technical Institute, the school run by ITT until it filed for bankruptcy and ceased operations in 2016. The Bureau alleges that ITT improperly induced students to take out those loans to pay the tuition amounts not covered by loans or other tuition assistance from the federal government. The Bureau’s complaint also alleges that ITT knew the student borrowers did not understand the terms and conditions of the loans and could not afford them, resulting in high default rates and other negative consequences.
The terms of the proposed stipulated order include, among other things, a judgment against ITT for $60 million and an injunction prohibiting ITT from offering or providing student loans in the future.
In a separate action filed by the Bureau on June 14, 2019, a final stipulated judgment was entered against the entity holding the private loans at issue, Student CU Connect CUSO, LLC. Under the terms of that judgment all collection on such loans must cease, all outstanding loans must be discharged, and all negative credit reporting must be corrected.
See also:
U.S. Regulator Settles Lawsuit Against ITT Educational, Will Not Collect $60 Million
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
Score One for the United States Bankruptcy Court in the Service of the African America Community
MORTGAGES AND DEEDS OF TRUST (Not password protected)
IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
OF INTEREST (Not password protected)
BY THE NUMBERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
TECH/HEALTH/JUST FOR FUN – Take your pick! (Not password protected)
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August 12, 2019
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Archives |
Score One for the United States Bankruptcy Court in the Service of the African America Community
Don’t forget to complete your NACTT Indy Evaluation
NACTT Indianapolis EVALUATION TIME – Attention NACTT Indy Attendees: Your Voice is Important
Thank you for your recent participation at the NACTT Indianapolis 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 2020 San Diego Seminar. We look forward to seeing you there next year. Mark your calendar NOW – July 8-11, 2020.Click Here To Let Your Voice Be Heard
Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 5 of 5
ABI Commission on Consumer Bankruptcy – Recommendations Related to Exemptions
NEW – Commission Member Hildebrand continues looking individually at the recommendations of the Commission.“Applying that convoluted mechanism, debtors get to assert the exemptions of the state in which they reside or, in several jurisdictions that did not ‘opt out’ of the federal exemptions, unless the debtor has moved to that jurisdiction within two years of filing of the bankruptcy petition.”
See also previous recommendations:
Post-Petition Changes in Value
A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability
Farmers in the News
Important CFPB Settlement
“Clearly and Prominently:” Consumer Debt Settlement Disclosures in Wake of CFPB v. Freedom Debt Relief
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
- CFPB and the New York A.G. Settle with Debt Collection Group Douglas MacKinnon, Northern Resolution Group, LLC, Enhanced Acquisitions, LLC, Delray Capital, LLC, and Mark Gray
For Your Blog
- Judges Explain Rule of Law, Why It Matters
What does the rule of law mean, and how does it affect our daily lives?This five minute “Court Shorts” video, explains how fair and consistent adherence to the law protects our rights and well-being in everyday situations like buying a breakfast sandwich, reading mail, and investing in the stock market. Definitely not our ‘normal’ For Your Blog option but a short, interesting reminder of why ‘the Rule of Law’ is important.
IN CASE YOU MISSED IT . . .
Forced Vesting by Any Other Name – Just Might Work
MORTGAGES AND DEEDS OF TRUST (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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August 5, 2019
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Archives |
Forced Vesting by Any Other Name – Just Might Work
NACTT Indianapolis EVALUATION TIME – Attention NACTT Indy Attendees: Your Voice is Important
Thank you for your recent participation at the NACTT Indianapolis 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 2020 San Diego Seminar. We look forward to seeing you there next year. Mark your calendar NOW – July 8-11, 2020.Click Here To Let Your Voice Be Heard
Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 4 of 5
Hot Off the Press – Judgement and Memorandum Opinion
Mortgage servicer was not required to specifically state on its proof of claim that it was servicing the loan on behalf of Freddie Mac. Nor was it necessary for there to be a specific endorsement of the Note or an assignment of the Mortgage to Freddie Mac. The servicer was in physical possession of the Note with an affixed endorsement in blank, and was therefore the holder of a negotiable instrument under the Alabama Uniform Commercial Code. Accordingly, the servicer had standing to file a proof of claim in the Debtors’ Chapter 13 case and to enforce the Note. Furthermore, the post-petition assignment of the Mortgage was not a violation of the automatic stay or an avoidable transfer. Moreover, under Eleventh Circuit law, the Debtors did not have standing to challenge the assignment of their Mortgage.The Court further found that the Debtors (i) failed to establish by competent evidence that the servicer made any misrepresentations either pre-petition or during the post-petition loan modification process regarding the servicer’s ability to foreclose, (ii) failed to establish that the servicer’s proof of claim was materially defective, and (iii) failed to establish that their loan modification agreement was unenforceable.
Stop and Smell the . . . Well, Corn
I stop and visit with folks a lot. (Surprise…) I had an encounter this year that I found meaningful. It greatly reminded me of my days of representing farmers in 12s and 11s. And it made me stop for a moment and think about how we, as trustees, interact with debtors and how, for the most part, they are just case numbers to us. But they all have stories.Farmers in the News
- House Passes Chapter 12 Farmer Bankruptcy Relief Bill – Bipartisan bill raises debt limit cap to $10 million.
- Farm Loan Delinquencies and Bankruptcies Are Rising – Farm Bankruptcy Filings Rise 13%
- Trump’s $16 Billion Farm Bailout Designed to Help Farmers Hit in Trade War – But report says it will make rich farmers richer.
Safe Deposit Boxes
- Unclaimed Property (a second article about safe deposit boxes and how they become unclaimed property in states’ coffers)
An Oldie But a Goodie – Original Publication 12/9/18
Watch the Clock – Timing of Appeals
From the National Consumer Bankruptcy Rights Center
Student Loan Chronicles
Thousands of Scammed Student-Loan Borrowers Filed Claims for Debt Relief – the feds haven’t approved any in over a year
Sanctions and Irony and Fraud, Oh My!
- Facebook Lost Control of Our Data. Now paying record $5 billion fine
For Your Blog
Have a Capital One Credit Card? Then take these 5 steps
IN CASE YOU MISSED IT . . .A Well-Deserved Thank You to Attorneys Who Represent Debtors . . .
Ordinary Heroes Deliver Second Chances with Bankruptcy
“With your help, a mother or father can enjoy their child’s soccer game without fear that a tow truck might show up at the game and take their car, or show up at their door when they have guests or a myriad of other embarrassing situations.”Be sure to check-out the NEW comments at the end of this article.
MORTGAGES AND DEEDS OF TRUST (Not password protected)
BY THE NUMBERS (Not password protected)
OF INTEREST (Not password protected)
IN THE NEWS (Not password protected)
RETAIL UPDATE (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
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July 29, 2019
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A Well-Deserved Thank You to Attorneys Who Represent Debtors . . .
Ordinary Heroes Deliver Second Chances with Bankruptcy
Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 3 of 5
Meet A Newish Trustee
From the IRS
IRS Attempting to Collect on Virtual Currency
From the Judiciary
Student Loan’ify
New Bankruptcy Program Seeks to Help People Saddled with Student Debt; 2.4 Million Floridians Owe $85.5 Billion
Save the Date: September 25, 1:00 eastern WEBINARSee also:
From the Courts
- In case you missed this . . . United States Department of Justice Executive Office for United States Trustees Report to Congress: Criminal Referrals by the United States Trustee Program Fiscal Year 2018
From the National Consumer Bankruptcy Rights Center
City Did Not Violate Stay by Failing to Rescind Warrant
Student Loan Chronicles
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
RETAIL UPDATE (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
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July 22, 2019
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Due to the Annual NACTT Conference, Shout Out to NACTT Indianapolis Attendees. |
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NEW – Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 2 of 5
A very popular article from last week . . .
Unscheduled Creditor May Not File a Late Proof of Claim
Unscheduled creditor without notice of the bankruptcy case was denied an extension of time to file a proof of claim pursuant to Bankruptcy Rule 3002(c)(6)(A).More from this author:
Tips and Traps: Issuing A Subpoena for Bank Records
Complete Termination of The Automatic Stay Under §362(c)(3)(A) According to the First Circuit
Trustee May Use Any Law Available to Avoid a Transfer
ABI Commission on Consumer Bankruptcy – Post-Petition Changes in Value
From the UST
For Your Blog
Successful Side Hustlers Share Their Best Secrets
Sanctions and Irony and Fraud, Oh My!
- (A popular link from last week) This Is Where Robocalls Are Coming From (And Where They Are Targeting)
IN CASE YOU MISSED IT . . .
Court Supervised Student Loan Modification
“The Order provides for use of online software to assist Debtors with student loan repayment options.”See also original article: Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy
Watch for a webinar on this topic in September!!
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July 15, 2019
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Archives |
Unscheduled Creditor May Not File a Late Proof of Claim
Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 1 of 5
ABI Commission on Consumer Bankruptcy – Post-Petition Changes in Value
Another issue concerns Chapter 7 trustees who would not take prompt action to abandon exempt or partially exempt assets but, would retain assets in the hope that there might be equity in the future to sell the asset for the full lien amount and exemption. In doing so, the trustee delays the debtor’s ability to use the asset as part of the fresh start.See also previous recommendations:
A Chapter 7 Trustee’s Sale of Encumbered Property
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability
From the Courts
- United States Department of Justice Executive Office for United States Trustees Report to Congress: Criminal Referrals by the United States Trustee Program Fiscal Year 2018
Chapter 12/Farmers in the News
- House Judiciary Committee Advances Farmer Bankruptcy Assistance – Bill expands debt cap to be covered under Chapter 12 bankruptcy to $10 million.
From the National Consumer Bankruptcy Rights Center
Debt for Overpayment of DSO Not Itself DSO
Student Loan Chronicles
Broken Promises: Teachers Sue U.S. Over Student Loans That Weren’t Forgiven
For Your Blog
- Secrets to Credit Score Success – How to keep track of your score, get it as high as possible—and keep it that way
Sanctions and Irony and Fraud, Oh My!
- Biggest Complaints About Debt Collectors – 6 ways a debt collector may be breaking the law
- Struggling to Pay Student Loans? You could be targeted by scammers
IN CASE YOU MISSED IT . . .
Court Supervised Student Loan Modification
“The Order provides for use of online software to assist Debtors with student loan repayment options.”See also original article: Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
RETAIL UPDATE (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
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July 8, 2019
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Critical Case Comment
Court Supervised Student Loan Modification
“The Order provides for use of online software to assist Debtors with student loan repayment options.”See also original article: Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy
ABI Commission on Consumer Bankruptcy – A Chapter 7 Trustee’s Sale of Encumbered Property
The Commission heard from several individuals and attorneys that related tales of Chapter 7 trustees negotiating a “carve out” with a lienholder on the debtor’s real property when there was no equity available in the property. This article addresses the Commission’s recommendations regarding prevention of such “carve out.”Click here to register for the NACTT conference
See also:
Judicial Estoppel
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability
From the United States Courts
Judiciary Creates Public User Group for PACER
Farmers in the News
- Relief Urged for Family Farmers Facing Bankruptcy – Legislation would ease process of reorganizing debt through Chapter 12 bankruptcy rules.
Don’t register – just show up for the Chapter 12 conference July 15-16 in Indianapolis. Click here for more information.
On the Judiciary
Balls and Strikes: New Bankruptcy Court Chief Judge is also a hall of fame baseball umpire
Student Loan Chronicles
- Student Loan Borrowers with Cancer Are Supposed to Get a Break from Their Bills. That’s not happening – More than nine months after the law took effect, borrowers still can’t get the cancer deferment.
For Your Blog
- Student Debt Relief Phone Calls: Playing nice or simply scams?
- Savvy Senior: Can a debt collector take my Social Security benefits?
IN CASE YOU MISSED IT . . .
What IS a Principal Residence?
IN THE NEWS (Not password protected)
HEALTHCARE AND DEBT (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
RETAIL UPDATE (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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July 1, 2019
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Happy Independence Day |
In re Fulton: Seventh Circuit Affirms Its Position with Majority of Circuits on Passive Retention of Property as Violation of Sections 362 and 542
What IS a Principal Residence?
From the United States Courts
Judiciary Creates Public User Group for PACER
ABI Commission on Consumer Bankruptcy – Judicial Estoppel
“Over the past twenty years, the judicial estoppel doctrine has had a significant impact on people who file bankruptcy. Judicial estoppel has grown to be a significant issue within the consumer bankruptcy system. The Commission was asked to address it.”Click here to register for the NACTT conference
See also:
Statement of Intention: Deadlines and Consequences
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Farmers in the News
Ohio Farmland Underwater – Big Trouble for Corn Industry
OLD Cases
See also previous Academy article:
I Win. I Win. Trustee Holds Record for Having the Oldest Open Chapter 13 Case
By Helen M. Morris, on April 7th, 2019
Student Loan Chronicles
For Your Blog
7 Keys to Keeping Your House: Chapter 13 After You File
IN CASE YOU MISSED IT . . .
The Brunner Student Loan Hardship Test: Alive and Well in The Big Apple
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
(free access to Academy subscribers)
DEBT AND THE ECONOMY (Not password protected)
IN THE TECH DEPARTMENT (Not password protected)
How do you measure up??
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June 24, 2019
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The Brunner Student Loan Hardship Test: Alive and Well in The Big Apple
Marijuana in Bankruptcy
That Didn’t Take Long: Ninth Circuit’s Cannabis Bankruptcy Decision in Garvin v. Cook Invs. NW is Challenged
By Gretchen D. Holland, Standing Chapter 13 Trustee for the Greenville/Spartanburg Division of South CarolinaAlthough this article is about a Chapter 11 case, it has Chapter 13 implications because the confirmation requirement that a plan be “proposed in good faith and not by any means forbidden by law” is identical in both chapters.
In the Trenches: Secrets to Settlement – Competency in the Courtroom Part 3 of 3
ABI Commission on Consumer Bankruptcy – Statement of Intention: Deadlines and Consequences
“The Commission recommends a harmonization of the conflicting provisions of the Code.”At the Indianapolis NACTT meeting (July 16-19), a panel of Commissioners will explore recommendations that directly affect Chapter 13 practice.Click here to register for the NACTT conferenceSee also:Student Loans – Suggested Statutory ChangesStudent Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
Definition of “Tax Return” for Purposes of Nondischargeability
From the National Consumer Bankruptcy Rights Center
Reverse Mortgages in the News
- USA Today Blasts Reverse Mortgages, Industry Fights Back – Trade association says reporters jumbled the facts, skimmed over rule changes
Sanctions and Irony and Fraud, Oh My!
- SEC, FBI Reportedly Investigating Live Well Financial Collapse – Creditors’ court documents say authorities are looking into defunct lender and its CEO
- Quicken Loans Agrees to Pay $32.5 Million to Resolve FHA Loan Allegations with DOJ – Mediation finally brings 4-year battle over False Claims Act violations to an end
- Amid Fraud Case, A Bevy of Brooklyn Properties End Up in Bankruptcy Court – Two accused fraudsters and a mysterious real estate investor are linked in a recent series of Chapter 11 filings
Student Loan Chronicles
For Your Blog
Millions of ITINs Set to Expire in 2019; IRS Says Renew Early to Prevent Refund Delays
No Take Backs – Critical Case Comment
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June 17, 2019
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Archives |
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Shout Out to the GREAT folks at Even with the rain, it was a great conference. |
Critical Case Comment
Supreme Court Stakes Out Middle Ground on Contempt Standard for Discharge Injunction Violations, Leaves Clues About Automatic Stay Violations
In the Trenches: Secrets to Settlement – Competency in the Courtroom Part 2 of 3
About the Judiciary
- Public Notice Asking for Comments: Potential Reappointment of Judge Laurel Myerson Isicoff as Chief U.S. Bankruptcy Judge for Florida Southern District
From the National Consumer Bankruptcy Rights Center
Rooker-Feldman Bars Motion to Vacate
Positions Open
Location: Eastern District of California (primarily Sacramento and Modesto) and District of Nevada
Application Due Date: June 21, 2019Chapter 7 Trusteeship Open
Location: District of New Jersey, primarily in the Newark and Camden Vicinages
Application Due Date: June 30, 2019
Student Loan Chronicles
For Your Blog
Substantial Contribution Claims
“Statutes ought to be construed, if possible, so that no clause, sentence, or word shall be superfluous, void, or insignificant.”The second issue at hand in this year’s Duberstein moot court problem involves a matter of statutory interpretation—specifically, whether §503(b) of the Bankruptcy Code allows a creditor to recover costs and expenses incurred in making a substantial contribution to the bankruptcy estate in a case under chapter 7.See also: Passive Retention: A Creditor’s Right or an Act to Exercise Control?
As reported in March, we are pleased to publish articles written by law students who benefited from the grant money provided by the National Data Center.
FOR YOUR HEALTH (Not password protected)
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June 10, 2019
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Archives |
In the Trenches: Secrets to Settlement – Competency in the Courtroom Part 1 of 3
Substantial Contribution Claims
“Statutes ought to be construed, if possible, so that no clause, sentence, or word shall be superfluous, void, or insignificant.”The second issue at hand in this year’s Duberstein moot court problem involves a matter of statutory interpretation—specifically, whether §503(b) of the Bankruptcy Code allows a creditor to recover costs and expenses incurred in making a substantial contribution to the bankruptcy estate in a case under chapter 7.See also: Passive Retention: A Creditor’s Right or an Act to Exercise Control?By John Andreasen and Patrick Lombardi, Law Students at the University of Illinois College of Law and Duberstein Moot Court Team MembersAs reported in March, we are pleased to publish articles written by law students who benefited from the grant money provided by the National Data Center.
From the IRS
All Taxpayers Should Plan Ahead for Natural Disasters
- Update emergency plan
- Create electronic copies
- Document valuables
Farmers in the News
Auctioneers have an up-close view of the pain behind the dairy crisis. They see no sign of better times to come.There is still time to register for the Chapter 12 conference July 15-16. Click here for more information.
ABI Commission on Consumer Bankruptcy – Definition of “Tax Return” for Purposes of Nondischargeability
“So, a critical question has arisen: what is a “return” and when is it too late to file one?”At the Indianapolis NACTT meeting (July 16-19), a panel of Commissioners will explore recommendations that directly affect Chapter 13 practice. Click here to register for the NACTT conference.See also:Report of the ABI’s Commission on Consumer BankruptcyReport – Introduction
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
From the Supreme Court
Supreme Court Declines to “Vaporize” Licensee’s Rights Under Rejected Trademark License Agreement
Sanctions and Irony and Fraud, Oh My!
- Workers Left With No Paychecks – Bankrupt Dexter Book Manufacturer Sold
- Contractor Loses License, Files Bankruptcy — Again. Customers say they were ripped off.
Student Loan Chronicles
- High-Earning Millennials Have a Surprising Student Debt Problem – You might think that HENRYs (High Earners, Not Rich Yet) would be doing just fine after college, but they’re in serious debt just like most other new grads. In fact, in some ways, they face a few added challenges.
Surrender of Collateral in a Plan- What Is the Court to Do if the Debtor Doesn’t Follow Through?
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June 3, 2019
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Critical Case Comment
Surrender of Collateral in a Plan- What Is the Court to Do if the Debtor Doesn’t Follow Through?
New Bankruptcy Judge Appointed to Bench
See also: Honorable Andrea K. McCord (from 2018)
Bankruptcy Judge Appointed to District Seat
ABI Commission on Consumer Bankruptcy – Definition of “Tax Return” for Purposes of Nondischargeability
“So, a critical question has arisen: what is a “return” and when is it too late to file one?”At the Indianapolis NACTT meeting (July 16-19), a panel of Commissioners will explore recommendations that directly affect Chapter 13 practice. Click here to register for the NACTT conference.See also:Report of the ABI’s Commission on Consumer BankruptcyReport – Introduction
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Dischargeability of Homeowner Association Fees
From the Supreme Court
Sanctions and Irony and Fraud, Oh My!
- CFPB Claims Debt Collection Firm Forster & Garbus Robo-Sued Thousands on Behalf of Citibank, Discover, Others – Attorneys allegedly reviewed cases for only minutes before signing off on lawsuits
Student Loan Chronicles
- Black Borrowers More Likely to Fall Behind on Student Debt – Federal Reserve report highlights extent of debt burden on minority communities
- Can Data Ward Off College Debt? – There’s a Push to Show Which Majors Pay Off
A Confirmed Plan with a Marijuana Wrinkle
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May 27, 2019
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In Memory of All Who Gave All |
(In observance of Memorial Day, we bring you an abbreviated updated.)
Supreme Court Agrees to Revisit Finality of Orders in Bankruptcy
This week, Larry Ahern addresses the May 20 writ of certiorari in Ritzen Group, Inc. v. Jackson Masonry, LLC (In re Jackson Masonry, LLC), in which the Supreme Court is to decide whether an order denying relief from the automatic stay is “final.” Ahern considers the broader context in which the federal judiciary struggles with finality in bankruptcy proceedings.
Hildebrand headed to the Supreme Court . . . no, not that one . . . in a fun twist to those of us in the consumer bankruptcy world, the next generation – Henry E. “Ned” Hildebrand, IV – represents Jackson Masonry.
Postpetition Borrowing by a Consumer Debtor in Chapter 13
In this Part 1, Judge Fagone and Ciera Dye outline the statutory framework as well as the caselaw.
In this Part 2, Judge Fagone and Ciera Dye look at policy considerations.
ABI Commission on Consumer Bankruptcy – Dischargeability of Homeowner Association Fees
“While HOA fees and assessments serve a valid purpose, when a debtor seeks to obtain a fresh start, often HOA fees can become a substantial obstacle to that goal.”
At the Indianapolis NACTT meeting (July 16-19), a panel of Commissioners will explore recommendations that directly affect Chapter 13 practice. Click here to register for the NACTT conference.
See also:
Report of the ABI’s Commission on Consumer Bankruptcy
Report – Introduction
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Student Loan Chronicles
- What’s Scarier Than Student Loans? Welcome to the World of Subprime Children – Income share agreements sound like a better deal than today’s student loans, but what will they do to society?
How Guarantors Can Escape Tax on Soured Debt
Tax lawyer Bill Purdy and Cathy Moran shared a client with a small interest in a failed corporation with a huge SBA loan. Could our client escape the tax consequences should we be able to settle his liability on a million dollars in unpaid loan. Was the client looking at a million dollars of cancellation of debt income? Here’s the marvelous result that Bill’s caper through the IRS regs returned.See also:Tax Form 1099 Needs A Closer Look: Chances Are It’s Wrong
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May 20, 2019
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Archives |
A Confirmed Plan with a Marijuana Wrinkle
How Guarantors Can Escape Tax on Soured Debt on Soured Debt
Tax lawyer Bill Purdy and Cathy Moran shared a client with a small interest in a failed corporation with a huge SBA loan. Could our client escape the tax consequences should we be able to settle his liability on a million dollars in unpaid loan. Was the client looking at a million dollars of cancellation of debt income? Here’s the marvelous result that Bill’s caper through the IRS regs returned.
See also: Tax Form 1099 Needs A Closer Look: Chances Are It’s Wrong
ABI Commission on Consumer Bankruptcy – Dischargeability of Homeowner Association Fees
As most of you know, the ABI Board of Directors charged the Consumer Commission with recommending improvements to the consumer bankruptcy system which could be “implemented within its existing structure.”
In this installment, Trustee Hildebrand looks at suggested changes in dealing with HOA fees.
“While HOA fees and assessments serve a valid purpose, when a debtor seeks to obtain a fresh start, often HOA fees can become a substantial obstacle to that goal.”
At the Indianapolis NACTT meeting (July 16-19), a panel of Commissioners will explore recommendations that directly affect Chapter 13 practice. Click here to register for the NACTT conference.
See also previous articles:
Report of the ABI’s Commission on Consumer Bankruptcy
Report – Introduction
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
Remedies for Discharge Violation
Ditech in the News
- Mortgage Borrowers Win Protection in Ditech Bankruptcy, Ditech Fights Back – New York court must rule on Ditech’s objection
See also: Webinar: Ditech – What Consumer Bankruptcy Folks Need to Know
From the UST
Multiple Chapter 7 Trustees Wanted
From the IRS
Tax Tips for Taxpayers to Consider When Selling Their Home
From the CFPB
CFPB Gearing Up to Further Relax HMDA and Possibly Other Rules
Farmers in the News
- Illinois Farmer to Trump on China Trade War: “Farmers are the ones that are taking it on the jaw”
Student Loan Chronicles
- Who’s at Fault for Student-Loan Defaults? – For-profit colleges enroll 10 percent of US students but account for 50 percent of student-loan defaults. And low-income students are hit the hardest.
- U.S. Stepping Up Enforcement on Delinquent Student Loans – Treasury collections totaled $2.9 billion in fiscal 2018; Even more recovered in first six months of current fiscal year
Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy
Probably the most thought provoking article The Academy has run on student loans in a long time. A must read . . .FOR YOUR HEALTH (Not password protected)
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May 13, 2019
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Archives |
Teaching Old Dogs New Tricks: New Ideas for Treatment of Student Loans in Bankruptcy
Probably the most thought provoking article The Academy has run on student loans in a long time. A must read . . .
Postpetition Borrowing by a Consumer Debtor in Chapter 13 – Part 2 of 2
ABI Commission on Consumer Bankruptcy – Remedies for Discharge Violation
See also previous articles:
Report of the ABI’s Commission on Consumer Bankruptcy
Report – Introduction
Student Loans – Suggested Statutory Changes
Student Loans – Suggested Regulatory and Judicial Changes
A Day in the Life of a Chapter 13 Trustee
“I was recently asked to expound on a ‘Day in the Life of a Chapter 13 Trustee.’ . . . so here goes.”As part of Trustee Burks’ article, she shares a treasure you may not have seen before . . . ‘Effective Communication Guide.’ It’s a very useful document. Please share it with your Judges especially those who believe they cannot speak to you. They CAN on procedural issues.
From the UST
Location: Eastern District of Virginia, primarily Norfolk/Newport News Divisions
Application Due Date: May 31, 2019
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Indiana U.S. Bankruptcy Trustee Appointed as Interim Trustee in Region Including Georgia
From the IRS
Taking Care of Business: Recordkeeping for Small Businesses
From the CFPB
- CFPB Proposes New HMDA Rules – New rules would increase reporting threshold for mortgages
Farmers in the News
Student Loan Chronicles
- Good News for Most Student-Loan Borrowers: Interest Rates Are Going Down – The 2019-2020 academic year marks the first time in three years the rates on federal loans are set to decrease
- Consumer Reports: Student loan forgiveness programs
For Your Blog
Looking Beyond Taggart: Is the Contempt Standard for a Stay Violation the Same as for a Discharge Injunction Violation?
Click here for a summary of Taggart v. Lorenzen
Click here for Oral argument transcripts — Taggart v. Lorenzen
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May 6, 2019
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Archives |
Postpetition Borrowing by a Consumer Debtor in Chapter 13 – Part 1 of 2
“Although our Nation’s bankruptcy laws are uniform, chapter 13 practice in our Nation’s bankruptcy courts varies to a significant extent in the different judicial districts. One example of this variation is the treatment of postpetition borrowing by a consumer debtor in chapter 13.”In this Part 1, Judge Fagone and Ciera Dye outline the statutory framework as well as the caselaw.
Looking Beyond Taggart: Is the Contempt Standard for a Stay Violation the Same as for a Discharge Injunction Violation?
Click here for Oral argument transcripts — Taggart v. Lorenzen
ABI Commission on Consumer Bankruptcy – Student Loans – Suggested Regulatory and Judicial Changes
At the Indianapolis NACTT meeting (July 16-19), a panel of Commissioners will explore recommendations that directly affect Chapter 13 practice. Click here to register for the NACTT conference.
See also previous articles:
Report of the American Bankruptcy Institute’s Commission on Consumer Bankruptcy
ABI Commission on Consumer Bankruptcy – Introduction
ABI Commission on Consumer Bankruptcy – Student Loans – Suggested Statutory Changes
From the UST
Chapter 7 Trustees WantedApplication due date for all 3 is: May 17, 2019
- Northern District of New York, primarily in the Utica/Binghamton/Syracuse Division
- Western District of New York, primarily in the Rochester Division
- District of Connecticut, in the Bridgeport/Hartford/New Haven Divisions
On the IRS
Six Things Taxpayers Should Know About the Sharing Economy and Their Taxes
From the CFPB
CFPB Proposes Changes to HMDA Rules
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
For Your Blog
Done with Taxes This Year? Use 2018 Return to Get 2019 Withholding Right
Are Direct Payments by Debtor on Mortgage Considered Payments “Under the Plan” for Purposes of Discharge?
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April 29, 2019
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Archives |
Making Sense of the Means Test
Attorney Spanos brings us an excellent reference tool which asks the question ‘are you doing it right?’
“Of significance, line 13b is not the contractual monthly payment pursuant to the contract with the creditor. It is balance owing at the time of filing (as determined by schedule A/B or the proof of claim) divided by 60. This formula differentiates cases where a debtor’s loan will mature sooner, rather than later, and will adjust accordingly the amount that can be deducted.”
A Hot Case. Hot Off the Press.
Are Direct Payments by Debtor on Mortgage Considered Payments “Under the Plan” for Purposes of Discharge?
Report of the American Bankruptcy Institute’s Commission on Consumer Bankruptcy
The Report of the Commission on Consumer Bankruptcy for improvements to the consumer bankruptcy system was made public on April 11, 2019. The full report is available free by download from the ABI’s website.
This article is the Foreward to the Report which explains the creation and charge of the Commission, as well as its procedures in deliberating and reaching consensus on forty-eight discrete recommendations. This Foreward is reprinted with permission of the American Bankruptcy Institute.
Periodically between now and NACTT’s annual meeting in Indianapolis, July 16-19, 2018, we will post articles discussing specific recommendations of the Commission, and at the Indianapolis meeting, a panel of Commissioners will explore recommendations that directly affect Chapter 13 practice. Click here to register for the conference.
See also previous articles:
ABI Commission on Consumer Bankruptcy – Introduction
ABI Commission on Consumer Bankruptcy – Student Loans – Suggested Statutory Changes
NACTT Indianapolis Speaker Named ABI Prez
From the Supreme Court
Court Hears Arguments on Limiting Contempt For Pursuing Invalid Debts
Click here for a summary of Taggart v. Lorenzen
Click here for Oral argument transcripts — Taggart v. Lorenzen
Graying of Debtors
Older Workers Helped Fuel Recent U.S. Growth. Can it last?
McDonald’s is Partnering with AARP to Hire Older Employees – Would you like fries with your retirement?
Low Savings, High Medical Costs, Fraying Safety Net Keep Seniors Working
The fact that more and more older individuals are filing bankruptcy is one that will be addressed at the NACTT conference in Indianapolis. A team of experts has been assembled to address: Graying of Debtors – Effectively representing older clients and economic factors increasing seniors’ filings. Speakers are: Krispen Carroll, Prof. Bob Lawless, William T. Rule, Ph.D., and David Cox.
From the Courts
- Notice of Vacancy – Bankruptcy Judgeship – Youngstown, Ohio
Chapter 12 in the News
Bipartisan Group of Lawmakers Aim to Ease Chapter 12 Bankruptcy Rules
Ditech Bankruptcy in the News
- Victims of Reverse Mortgage Scam Want Protection from Ditech Bankruptcy – Request the creation of a committee to protect consumer interests
See also: Webinar: Ditech – What Consumer Bankruptcy Folks Need to Know
From the CFPB
- A Kinder, Gentler CFPB? Bureau announces new enforcement rules – CFPB issues new policies on Civil Investigative Demands
Student Loan Chronicles
- Sudden Death: Can the most damaging kind of for-profit closure be prevented?
For Your Blog
A very popular item from last week . . .
Less Than 100% Dividend, Can a Chapter 13 Plan be Paid Off Early?
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April 22, 2019
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Less Than 100% Dividend, Can a Chapter 13 Plan be Paid Off Early?
From the Supreme Court
Argument Preview: Justices to consider sanctions for violating bankruptcy discharge
ABI Commission on Consumer Bankruptcy – Introduction
- In this, the first in a series, Trustee Hildebrand explains the background and processes of the Consumer Commission. “A significant number of suggestions were included in the report and the Academy intends to review these recommendations, hoping to solicit feedback from Academy members.”
ABI Commission on Consumer Bankruptcy – Student Loans – Suggested Statutory Changes
- “The Commission did not believe it appropriate to make student loans freely dischargeable . . . The Commission did, however, recommend that we return to a time-based exception from discharge . . .”
Hot Off the Press – ABI Report
The Final Report of the ABI Commission on Consumer Bankruptcy has now been released. The Report is available for download at ABI.org. Click here, complete the short form (name and email address) and you will be sent a link to the 274-page report.
You may also click here for a summary
See also: Many People are Too Broke for Bankruptcy – New Report Suggests Some Fixes
Author and Titan of Bankruptcy Dies at 95
George M. Treister, author of ALIABA’s Fundamentals of Bankruptcy Law, a Yale graduate, influenced bankruptcy in so many way.
Click here to leave a sympathy message for the family
Farmers in the News
Trends Show Chapter 12 Bankruptcies Not Rising at an Alarming Rate
Recorded Webinar Available – Ditech – What Consumer Bankruptcy Folks Need to Know
Tara Twomey and Thad Bartholow did an excellent job teaching attendees: how/where to file claims; the bar date; the entire list of entities involved; why your client may not have received notice and what to do about it; what the proposed plan does and doesn’t say; and more.
This resource is FREE to subscribers or is available for $25 per view for non-subscribers. Click here to subscribe!
From the CFPB
Could Debt Collectors Send You Texts, Emails? – Consumer groups fear CFPB may allow it.
Tax Form 1099 Needs A Closer Look: Chances Are It’s Wrong
Tax attorney Bill Purdy says: “Don’t take IRS form 1099 at face value.”
“Financial intuitions use dart boards, Ouija boards, soothsayers, the entrails of an owl, and basically any number they feel like using for the fair market value.”
More from this author: Crushing Tax Change for Injured Consumers
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April 15, 2019
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Passive Retention: A Creditor’s Right or an Act to Exercise Control?
As reported in March, we are pleased to publish the first of several articles written by law students who benefited from the grant money provided by the National Data Center.
“ . . . Whether it is a motor vehicle or other collateral, this type of dispute is the prompt to the Duberstein Moot Court Competition and leads to the questions of whether passive retention of property is a violation of the automatic stay.”
Tax Form 1099 Needs A Closer Look: Chances Are It’s Wrong
Tax attorney Bill Purdy says: “Don’t take IRS form 1099 at face value.”
“Financial intuitions use dart boards, Ouija boards, soothsayers, the entrails of an owl, and basically any number they feel like using for the fair market value.”
More from this author: Crushing Tax Change for Injured Consumers
Hot Off the Press – ABI Report
The Final Report of the ABI Commission on Consumer Bankruptcy has now been released. The Report is available for download at ABI.org. Click here, complete the short form (name and email address) and you will be sent a link to the 274-page report.
You may also click here for a summary
Beginning next Monday, ConsiderChapter13.org will publish a series of explanatory articles related to topics of interest to you addressed in the report.
Webinar Now Available
Ditech – What Consumer Bankruptcy Folks Need to Know
On April 3rd, The Academy d/b/a ConsiderChapter13.org produced an excellent webinar regarding the bankruptcy of Ditech and its affiliates.
Tara Twomey and Thad Bartholow did an excellent job teaching attendees: how/where to file claims; the bar date; the entire list of entities involved; why your client may not have received notice and what to do about it; what the proposed plan does and doesn’t say; and more.
This resource is FREE to subscribers or is available for $25 per view for non-subscribers. Or click here to subscribe!
See also: Ditech Bankruptcy Loophole Could Cause Adverse Effect for Some Homeowners
Discounted Registration Price ENDS Tomorrow – April 16th! Save $200 by registering right now!!
Click here to see the fabulous program offered – The Honorable Kevin R. Anderson joins Lundin and Hildebrand for the annual case law update.
Register NOW for NACTT Indianapolis
Think Indy isn’t fun? Think they don’t have GREAT restaurants? THINK AGAIN . . .
- Click here for Indy’s Top 25 Local Restaurants
- Check out this list of Restaurants near JW the Marriott Indianapolis by OpenTable
- Click here for a fun list of 47 Unconventional Things to do in Indianapolis
- FREE – Click here for 20 FREE Things to do in Indy
On the IRS
- Middle-Class Homeowners Hit by New Tax Law: “This is going to wipe us out”
Sanctions and Irony and Fraud, Oh My!
Student Loan Chronicles
- Student Loan Debt Could Affect Your Job in 13 States – While some states have laws to punish those in student loan default, enforcement varies widely.
- ‘Lousy System’: U.S. official who resigned explains how the student debt crisis got so bad
- 21 States to DeVos: Stop blocking our efforts to crack down on student-loan companies
- (Proposed Texas legislation you need to be aware of) Is Old Debt Coming Back to Haunt You? Why you may no longer have to worry about it
For Your Blog
Deconstructing the Fair Debt Collection Practices Act: Obduskey Says Lawyers Conducting Nonjudicial Foreclosure Are Not “Debt Collectors”
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April 8, 2019
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Deconstructing the Fair Debt Collection Practices Act: Obduskey Says Lawyers Conducting Nonjudicial Foreclosure Are Not “Debt Collectors”
I Win. I Win. Trustee Holds Record for Having the Oldest Open Chapter 13 Case
From the Editor
This week Judge Brown looks at two cases – one on the ever popular topic of attorney fees and the other on confirmation:
- Attorney Fees – Chapter 13 debtor’s attorney not entitled to recovery under § 330 of fees that were incurred in defending prior attorneys’ sanctions motion.
- Confirmation – Debtors could not deduct ownership costs for vehicle secured by non-purchase money lien.
Discounted Registration Price EXTENDED through April 16th! Save $200 by registering right now!!
Click here to see the fabulous program offered – The Honorable Kevin R. Anderson joins Lundin and Hildebrand for the annual case law update.
Register NOW for NACTT Indianapolis
Click here for registration forms only
Think Indy isn’t fun? Think they don’t have GREAT restaurants? THINK AGAIN . . .
- Click here for Indy’s Top 25 Local Restaurants
- Check out this list of Restaurants near JW the Marriott Indianapolis by OpenTable
- Click here for a fun list of 47 Unconventional Things to do in Indianapolis
- FREE – Click here for 20 FREE Things to do in Indy
W.Va. Bankruptcy Judge Nominated to U.S. District Court
Judge Volk Nominated to U.S. District Court
From the National Consumer Bankruptcy Rights Center
From ProPublica on the IRS
Student Loan Chronicles
- Student Loan Relief for Public Servants: 38,460 applied, only 262 accepted
- How Student Loans Impact Your Taxes – Student loan borrowers could qualify for education tax breaks and may want to rethink filing status.
Farmers in the News
- Caution Is Watchword for Local Farmers – With 2019 trade environment murky, every factor matters
Regarding Retirement
For Your Blog
Critical Case Comment
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April 1, 2019
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Critical Case Comment
This one is for the creditors!!!When the wages of an insolvent spouse are deposited into the couple’s entireties account, both spouses are fraudulent transferees; wage deposits spent on non-necessary expenditures are recoverable from the joint account by determining the proportion to the overall share of wages in the account as a whole. (Ambro) In re Titus, 916 F.3d 293 (3rd Cir. February 20, 2019)
From the Editor
This week Judge Brown looks at four cases. He brings us one synopsis on lien modification and three relating to debtor attorneys:
REMINDER – INCREASES GO INTO EFFECT TODAY!! (APRIL 1ST)
Dollar Amount Increases in Bankruptcy Code
Sanctions and Irony and Fraud, Oh My!
- Is Manafort-Style Mortgage Fraud More Common Than We Think? Mortgage fraud is on the rise as more consumers use false claims to jump hurdles to homeownership
Arbitration in Bankruptcy: Reading Opinions & Tea Leaves in Recent Supreme Court & Lower Court Actions – Part IV – The Lower Courts Struggle with Arbitration Guidelines
What’s an Attorney to Do? Considerations for Counsel on all Sides of the Arbitration Question
Click here for Part II
Click here for Part III
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March 25, 2019
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Duberstein Bankruptcy Moot Court
In partnership with The Academy, the National Data Center awarded two $5,000 scholarships to teams wishing to participate in the Duberstein competition. Sixty-two teams in all participated in the Honorable Conrad B. Duberstein National Bankruptcy Moot Court Competition this year. Duberstein is the only bankruptcy-focused national advocacy competition and is sponsored by the American Bankruptcy Institute and hosted by St. John’s University Law School in New York.
The National Data Center grants were awarded to teams from the University of Illinois and the University of Texas. Both schools advanced to the Sweet Sixteen at the national competition, Illinois advancing one team and Texas sending through two teams this year. One University of Texas Law School team then advanced to the Final Four, finishing 3rd in the competition and also receiving an outstanding brief award.
CONGRATULATIONS TO BOTH TEAMS UNIVERSITY OF ILLINOIS AND UNIVERSITY OF TEXAS AND THEIR COACHES, DEBBIE LANGEHENNIG AND PROF. BOB LAWLESS!!!!
In coming weeks, watch for articles written by law student team members.
Arbitration in Bankruptcy: Reading Opinions & Tea Leaves in Recent Supreme Court & Lower Court Actions – Part IV – The Lower Courts Struggle with Arbitration Guidelines
What’s an Attorney to Do? Considerations for Counsel on all Sides of the Arbitration Question
In this series of articles for the Academy, Larry Ahern reviews the effect of arbitration clauses in bankruptcy proceedings. Today, he concludes the series with some suggestions and resources for parties on all sides of the arbitration question.
Click here for Part I
Click here for Part II
Click here for Part III
See also: Forced Arbitration Is Unjust and Deeply Unpopular. Can Congress End It?
From the Editor
Judge Brown was chained to his desk this week and shares three case synopsis, each on discharge issues:
New from the Supremes
Supreme Court Defines ‘Debt Collector’ Under Fair Debt Collection Practices Act
From the IRS
Tax Time Guide: Contribute to an IRA by April 15 to claim it on 2018 tax returns
Want to learn more about Chapter 12?
Register Now for the Chapter 12 Conference
Register NOW! |
Dollar Amount Increases in Bankruptcy Code (Not password protected)
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March 18, 2019
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Trustee May Use Any Law Available to Avoid a Transfer
From the Editor
Judge Brown was back at his desk this week and takes a look at two cases dealing with confirmation:
Ensure You Understand Insurance in Bankruptcy
From the IRS
There is NO MORE Form 1040A or 1040EZ – Six New Schedules Some Taxpayers Will File with New Form 1040
Passing of District Court Judge
Pioneering Judge Mary Lou Robinson Dies at 92
A popular link from last week . . .
Bending the FDCPA to the Breaking Point
3rd Cir. Broadens Scope in Ruling Creditor is a Debt Collector
From the National Consumer Bankruptcy Rights Center
What is Bankruptcy Fraud?
Key Concepts Concerning Bankruptcy Fraud: the Wagoner Rule and the In Pari Delicto Defense
Sanctions and Irony and Fraud, Oh My!
Dollar Amount Increases in Bankruptcy Code
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March 11, 2019
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Tips and Traps: Issuing A Subpoena for Bank Records
Arbitration in Bankruptcy: Reading Opinions & Tea Leaves in Recent Supreme Court & Lower Court Actions – Part III – The Lower Courts Struggle with Arbitration Guidelines
Click here for Part IISee also:Arbitration in Bankruptcy — Discharge, the Easy Case
From the IRS
Here’s How a Name Change Affects a Tax Return
- When someone legally changes their name, there are tax consequences they need to know about., especially at tax time.
IRS Extends April 15, Other Upcoming Deadlines for Alabama Storm Victims, Provides Other Tax Relief
- Victims of March 3rd tornadoes and severe storms in Alabama have until July 31, 2019, to file certain individual and business tax returns and make certain tax payments.
Farmers in the News
‘We Need It Now’: U.S. Farm Country Pins Hopes on China Trade Deal
Want to learn more about Chapter 12?
Register Now for the Chapter 12 Conference
Register NOW! |
NEW Chapter 7 Trustee Positions Available
Due Date: March 22, 2019Location: District of Maryland, primarily the Northern Division (including Baltimore and Salisbury)
Due Date: March 22, 2019
Payday Lenders in the News
Move to Pull Consumer Protection Rule Heightens Debate Over Payday Lending
Bending the FDCPA to the Breaking Point
3rd Cir. Broadens Scope in Ruling Creditor is a Debt Collector
From the National Consumer Bankruptcy Rights Center
Vocabulary Term of the Week
- The Suitability and Logic of ‘Suitability Logic’ in Valuations – Article describes new trends in lender valuation processes
For Your Blog
- Debt Collectors: Make Sure They’re Legit, and They Can’t Scream, Curse or Threaten You
Dollar Amount Increases in Bankruptcy Code (Not password protected)
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March 4, 2019
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Complete Termination of The Automatic Stay Under §362(c)(3)(A) According to the First Circuit
Why Bankruptcy Judges in North Carolina Still Appoint Trustees (Not password protected)
This is a panel you won’t want to miss!
Register NOW for NACTT IndianapolisClick here for registration forms only
Dollar Amount Increases in Bankruptcy Code (Not password protected)
Farmers in the News
- USDA Has Paid Out $7.7 Billion to Help Farmers Hit by Trump’s Tariffs – “Under the trade dispute, soybean exports to China alone have plummeted by 22 million tonnes, or over 90 percent,” said the USDA.
- Economists Don’t See Farm Crisis – Bankruptcies, Loan Delinquency Rates Don’t Reflect Ag Economy in Distress
Want to learn more about Chapter 12? Attend the Chapter 12 Conference.
Register NOW! |
UST Has Multiple Trustee Positions Posted
Application Due: March 19, 2019Chapter 7Location: Northern District of Ohio, (Eastern Division, Akron)
Application Due: March 11, 2019Location: Northern District of Ohio, (Western Division, Toledo)
Application Due: March 11, 2019
About Income Tax Changes
Tax Refunds Down 17%: IRS
Payday Lenders in the News
For Your Blog
‘Where’s My Refund?’ Remains Easiest Way to Check Tax Refund Status
Student Loan Chronicles
- Government’s Trillion-Dollar Student Loan Office Is a Train Wreck – A “damning” inspector general report reveals shady tactics on the business side of the American education system
- U.S. Student-Loan Delinquencies Hit Record – Past-due debt reached $166 billion in the fourth quarter, but may be understated
- Public-Interest Lawyers Who Sued Over Student-Loan Forgiveness Are One Step Closer – A judge said the government’s changing approach to whether some borrowers qualify was ‘arbitrary and capricious’
- End of the Road for Argosy – Trump administration cuts off Title IV student aid for Argosy University campuses and blocks deal to go nonprofit after chain fails to make payments to thousands of students.
Sanctions and Irony and Fraud, Oh My!
- In the “You Can’t Make This Stuff Up” Department – In Retrospect, Expert’s ‘How To Make Child Pornography’ Exhibit Might Have Been A Bad Idea
- Meet the Wives Whose Husbands Committed White-Collar Financial Crimes – These women are bouncing back financially after their partners committed fraud and embezzlement
- (Small bankruptcy connection) Fake Invoices and Gambling Debts: How a county bureaucrat stole $6.7 million
Critical Case Comment
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February 25, 2019
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Critical Case Comment
Rescuing a Troubled Chapter 13: The Unseen Threat
Meet an AO Trustee
!!! IT’S TIME IT’S TIME IT’S TIME !!!
“This year’s program is filled with a range of relevant and timely topics of interest to consumer practitioners. Members of the ABI Commission on Consumer Bankruptcy will discuss recommendations related to Chapter 13 and how those recommendations may impact the Chapter 13 practice. These and other talented speakers will address topics on critical issues involving mortgages, graying of debtors, factors impacting discharge rates, modifications, Chapter 13 duties, powers and limitations, negotiating with secured claimholders, class actions, security clearances, loss mitigation, presentation skills, new bankruptcy rules and local plans, strategies for addressing student loans, and three hours of sessions related to ethics. The always-popular case law update is returning again this year, featuring the Honorable Keith M. Lundin, the Honorable Kevin R. Anderson, and Trustee Henry E. Hildebrand III.” – Program Chair Linda B. GoreRegister NOW for NACTT Indianapolis
Click here for registration forms only
From the Supreme Court
- Argument Analysis: Meandering argument suggests justices likely to narrow bankrupts’ power to rescind licenses in bankruptcy
UST Has Multiple Trustee Positions Posted
Application Due: March 19, 2019
Application Due: March 1, 2019
Application Due: March 11, 2019Location: Northern District of Ohio, (Western Division, Toledo)
Application Due: March 11, 2019
About Income Tax Changes
There’s Always a Car
- How Scary Are Subprime Auto Loans? Unlike subprime mortgages during the financial crisis, they don’t pose a risk to the system.
For Your Blog
As Refunds Dip Again, Treasury Cites Last Year’s Tax Cut
Sanctions and Irony and Fraud, Oh My!
When Life Backs Chapter 13 Debtors Into A Corner, § 1329 May Provide A Way Out Of Trouble And A Shorter Path To Discharge
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February 18, 2019
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When Life Backs Chapter 13 Debtors Into A Corner, § 1329 May Provide A Way Out Of Trouble And A Shorter Path To Discharge
Arbitration in Bankruptcy: Reading Opinions & Tea Leaves in Recent Supreme Court & Lower Court Actions – Part II: More Supreme Court Action on Arbitration
In this series of articles, Larry Ahern selects several recent decisions addressing the effect of arbitration clauses. He starts with three cases presented to the Supreme Court in 2018, including one decided after Part I of this series was published.Stay tuned for Part III – Mr. Ahern will consider what guidance may be found in the caselaw to date, especially as it relates to core proceedings, like student loan dischargeability disputes.
Note Correction to Part I of this Series
Part I has been corrected since its original publication on January 21. In the Conclusion, the phrase “to extend that commitment” has been amended to read “not to extend that commitment.” Thanks to Mark Leffler for noting the typographical error.
See also:
Applying a U.S. District Court’s Local Mediation Rule in Bankruptcy Court: Iowa & Minnesota Examples
Mediation as “Entirely-Voluntary”: An Unexamined Value That’s Not Worth Keeping
Farmers and Chapter 12
In Debt and Out of Options, Thousands of Dairy Farmers Turn to GoFundMe for Bailout
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Want to learn more about Chapter 12?
On July 15 & 16 (just prior to the NACTT Conference) the Association of Chapter 12 Trustees (Act2) will host a day and a half seminar on all things Chapter 12.
Register NOW! |
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Study of Continued Interest
Personal Bankruptcy Decisions Before and After Bankruptcy Reform
UST Has Multiple Trustee Positions Posted
Application Due: March 19, 2019Location: Eastern District of Texas, (Tyler, Marshall, Lufkin and Beaumont Divisions)
Application Due: March 1, 2019Chapter 7Location: Northern District of Ohio, (Eastern Division, Akron)
Application Due: March 11, 2019Location: Northern District of Ohio, (Western Division, Toledo)
Application Due: March 11, 2019
About Income Tax Changes
CFPB In The News
CFPB Cripples New Rules for Payday Loans
For Your Blog
Fastest Way to Check Tax Refund Is ‘Where’s My Refund?’ Tool at IRS.Gov
Sanctions and Irony and Fraud, Oh My!
Meet Another Trustee
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February 11, 2019
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Acquisition of Post-Confirmation Property in Chapter 13: What Remains of the Estate?
Chapter 12 and the Challenge of the New Farm Crisis (Reprinted with permission from the ABI Journal, Vol. XXXVIII, No. 2, February 2019)
“The Most Powerful – Yet Most Underutilized – Chapter of the Code”
“If your firm does small business chapter 11 or 13 cases, but you have never handled a chapter 12 case, it is worth consider¬ing. There are a lot of farmers and fishermen out there. Their businesses tend to be highly leveraged, and they operate under tremendous financial and physical risks. Very few of them realize what Congress did to help them three decades ago.”
See also:
Farmer Bankruptcies Swell to Decade High in Farm Belt
Farmers Nearing Crisis Push Back on Trump Trade Policies – Low prices, trade wars and higher interest rates are depressing farm incomes.
And note Act2’s new Twitter account – @farmfreshstart
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Want to learn more about Chapter 12?
On July 15 & 16 (just prior to the NACTT Conference) the Association of Chapter 12 Trustees (Act2) will host a day and a half seminar on all things Chapter 12.
Register NOW!And note Act2’s new Twitter account – @farmfreshstart |
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Meet Another Trustee
UST Has Multiple Trustee Positions Posted
Location: Southern District of Ohio, Dayton
Application Due: March 19, 2019
Location: Eastern District of Texas, (Tyler, Marshall, Lufkin and Beaumont Divisions)
Application Due: March 1, 2019
Location: Northern District of Ohio, (Eastern Division, Akron)
Application Due: March 11, 2019
Location: Northern District of Ohio, (Western Division, Toledo)
Application Due: March 11, 2019
Worth repeating . . .
Eviction Diversion Programs and Chapter 13 Bankruptcy
About Income Taxes
- Why Millions of People Are Getting Hit with a Surprise Tax Bill This Year – An effort to make the tax bill look better ended up making it look worse.
For Your Blog
- Credit Errors Upend Lives of Thousands of Consumers – Lawsuits accuse Equifax of not properly investigating disputes, despite laws and settlements about the issue dating back decades.
- Stuck in Student Loans? Don’t blow your tax refund — here are 4 smart ways to spend it
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February 4, 2019
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Archives |
Critical Case Comment
Avoidance Powers in Chapter 13 – Part 6 of 6
Click here for Part 2 of 6
Click here for Part 3 of 6
Click here for Part 4 of 6
Click here for Part 5 of 6
Eviction Diversion Programs and Chapter 13 Bankruptcy
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January 28, 2019
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Pump the Brakes: Bad Faith Debtors Are Not Gaming the System Part 2
“This decision has understandably created concern among those who care about the integrity of Chapter 13, leading some to suggest that the Code and Rules don’t do enough to prevent bad faith debtors from reaping the benefits of the discharge.”Click here for Part 1
Click here for Yet Another Arrow in the Quiver of the “Less Than Honest Debtor”?
– The District Court of Kansas has lowered the bar of acceptable conduct by Debtors to a new, unimaginable low. “The policy implications of this holding are greatly distressing.”NOTE: Commentary Posted at End of Article (scroll to the bottom of the article page and look for ‘Comments’)
Avoidance Powers in Chapter 13 – Part 5 of 6
Click here for Part 2 of 6
Click here for Part 3 of 6
Click here for Part 4 of 6
The Government Shutdown and Chapter 13 Plan Arrearages -What Do We Do Now?
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January 21, 2019
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Archives |
Arbitration in Bankruptcy: Reading Opinions & Tea Leaves in Recent Supreme Court & Lower Court Actions
Avoidance Powers in Chapter 13 – Part 4 of 6
Click here for Part 2 of 6
Click here for Part 3 of 6
Meet Another of the New Trustees
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January 14, 2019
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Archives |
Pump the Brakes: Bad Faith Debtors Are Not Gaming the System Part 1 of 2
From the Editor
Bankruptcy Protections Limited for Repeat Filers
Avoidance Powers in Chapter 13 – Part 3 of 6
Click here for Part 2 of 6
Meet One of Our Newest Trustees
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January 7, 2019
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Archives |
Yet Another Arrow in the Quiver of the “Less Than Honest Debtor”?
Avoidance Powers in Chapter 13 – Part 2 of 6
working backward from the rest of the Code to Chapter 13.Click here for Part 1 of 6
