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November 29, 2021
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Archives |
IT’S CATCHUP WEEK!!
Due to the Thanksgiving Holiday, we bring you a Greatest Hits
Update. However, the non-password protected items are new.
When the Trustee Gets Subpoenaed
“. . . debtors, creditors or third parties may be interested in the trustee’s internal operating procedures or legal position on disputes pending in bankruptcy court or other forums. Trustees can certainly be subpoenaed but are there limits on issuance and compliance?”
For Whom Does the Bell Toll?
Attorney Scolforo brings us another great analysis of an opinion every consumer attorney needs to know about . . . A 70 year-old pro se Debtor . . . , inspired Judge Connelly . . . to issue a 31-page opinion discharging $109,983 in student loans.
Escrow 101 and 102
A resource you don’t want to miss.
Click here for Escrow 102 – Part 1 of 4
Click here for Escrow 102 – Part 2 of 4
Click here for Escrow 102 – Part 3 of 4
Click here for Escrow 102 – Part 4 of 4
Click here for Part 1 of 3 – Escrow 101 RESPA and Reg X
Click here for Part 2 of 3 – Escrow 101 What happens to escrow when a bankruptcy case is filed
Click here for Part 3 of 3 – Escrow 101 Q & A
Judicial Year in Review 2021 Part 2: Selected Cases under Parts I-III of the Federal Rules of Bankruptcy Procedure
In Part 1 of this year-in-review series, Larry Ahern summarized the changes in Bankruptcy Rules to take effect December 1, 202. Now, in Part 2, he selects some judicial activity related to bankruptcy procedure during the past year, organized in Bankruptcy Rule order.
A very popular item from last week . . .
Critical Case Comment – Pro Se Debtor Sanctioned
Where pro se debtors filed numerous groundless complaints and made specious allegations against their former counsel, sanctions under Rule 9011 were appropriate notwithstanding the fact that the debtors were now acting pro se.
Did You Know . . .
ConsiderChapter13.org maintains a library of all of the webinars we produce? Access is free to subscribers. We also offer a pay per view option.
There is also a staff training webinar library!
Not a Subscriber? JOIN NOW!
Student Loans Chronicles
For Your Blog
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
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November 22, 2021
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Archives |
Judicial Year in Review 2021 Part 2:Selected Cases under Parts I-III of the Federal Rules of Bankruptcy Procedure
In Part 1 of this year-in-review series, Larry Ahern summarized the changes in Bankruptcy Rules to take effect December 1, 202. Now, in Part 2, he selects some judicial activity related to bankruptcy procedure during the past year, organized in Bankruptcy Rule order.
Critical Case Comment – Pro Se Debtor Sanctioned
Where pro se debtors filed numerous groundless complaints and made specious allegations against their former counsel, sanctions under Rule 9011 were appropriate notwithstanding the fact that the debtors were now acting pro se.
TFS Bill Pay Announces New Attorney Report Centerd
TFS Bill Pay has launched a new powerful tool to help you succeed; the Attorney Report Centerlocated in your AttorneyPortal.
New Judges Appointed
Judge Grace E. Robson and Judge Jacob A. Brown Sworn in as Middle District of Florida Bankruptcy Judges.
Eviction Protection in the News
Renters Are Still Protected from Eviction in These States and Cities
Judge to Retire
United States Bankruptcy Judge Christopher S. Sontchi, District of Delaware, has announced his retirement effective June 20, 2022.
Did You Know . . .
ConsiderChapter13.org maintains a library of all of the webinars we produce? Access is free to subscribers. We also offer a pay per view option.
There is also a staff training webinar library!
Not a Subscriber? JOIN NOW!
From the CFPB
CFPB Takes Action to Stop False Identification by Background Screeners (Debtor Attorneys need to glance at this one.)
For Your Blog
From the Courts
- District of MN – Court issued en banc order to address post-petition attorney’s fee arrangements in Chapter 7 cases
- Central District of CA – Proposed Changes to Local Rules – Comments due by 11/24/21
- Southern District of NY – Proposed Chapter 13 Plan – Comments due by 12/27/21
Sanctions and Irony and Fraud, Oh My!
MORTGAGES AND DEEDS OF TRUST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
OF INTEREST (Not password protected)
Catalytic Converter Thieves Targeting 2004-2009 Toyota Prius (When is a catalytic converter not just a catalytic converter?)
OF INTEREST TO THE GEEKIEST OF BANKRUPTCY GEEKS! (Not password protected)
FOR YOUR HEALTH (Not password protected)
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November 15, 2021
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Archives |
Are Monthly Newsletters to Clients Beneficial? Heck Yeah!
“With the prolonged decline in case filings, I found that sending a mass emailed newsletter has been very beneficial. . . I have sent a tailored mass email to clients who I represented in Chapter 7s more than eight years ago letting the former clients know that they are now eligible for another Chapter 7, if needed, or a Chapter 13. I have also sent mass emails to potential clients with whom I have met who, at that time, decided against filing.”
Almost every week, ConsiderChapter13.org offers at least one item under the “For Your Blog” category.
We hope that these ideas will help jumpstart you toward a blog; mass email; and/or periodic newsletter.
Critical Case Comment – Creditor Not Required to Dismiss Prepetition Nonbankruptcy Action
Automatic stay does not require creditor pursuing prepetition nonbankruptcy court action to dismiss that action once a bankruptcy case is filed; requesting continuances and attending status conferences do not constitute “continuation” of the prepetition action for purposes of the automatic stay.
Judicial Year in Review 2021: Revised Rules and Selected Cases – Part 1 Amended Rules
Ahern begins a year-end review of 2021 developments in bankruptcy procedure. In Part 1, he summarizes the changes in Bankruptcy Rules to take effect December 1, 2021, absent Congressional action.
New Judge Appointed
Denise E. Barnett is appointed as United States Bankruptcy Judge for the Western District of Tennessee.
Did You Know . . .
ConsiderChapter13.org maintains a library of all of the webinars we produce? Access is free to subscribers. We also offer a pay per view option.
There is also a staff training webinar library!
Not a Subscriber? JOIN NOW!
Supreme Court Corner
Cert Denied – Vasquez, Jr., et ux., Petitionersv. Wilmington Savings Fund Society, FSB, as Trustee of Stanwich Mortgage Trust F – Case would have taken a current look at Dewsnup
From NCBRC
New From the Northern District of Illinois
Electronic Self-Representation (eSR) – Beginning Monday, November 8, 2021, people who live in the Northern District of Illinois and do not have an attorney will have the option of submitting their bankruptcy petitions through our electronic self-representation (eSR) system. eSR is an online tool to help people prepare a Chapter 7 or Chapter 13 bankruptcy petition when they have decided to file bankruptcy without an attorney.
From the CFPB
- CFPB Takes Action to Prevent Avoidable Foreclosures (Servicers need to glance at this; doesn’t appear to say anything new.)
- CFPB Takes Action to Stop False Identification by Background Screeners (Debtor Attorneys need to glance at this one.)
Position Opening
- Chapter 13 Trusteeship – Maryland, Baltimore Division (Application deadline 11/19/21)
- Chapter 7 Panel Trustees – (1) Western District of Tennessee, Jackson and Memphis Divisions (11/30/21); (2) District of Idaho, primarily in the Eastern Division (Pocatello) (11/29/21); (3) Northern and Eastern Districts of Oklahoma, primarily in the Eastern District (11/30/21)
- Judgeship – Southern District of New York(Application deadline 12/3/21)
From the Courts
- District of MN – Court issued en banc order to address post-petition attorney’s fee arrangements in Chapter 7 cases
- Central District of CA – Proposed Changes to Local Rules – Comments due by 11/24/21
- Southern District of NY – Proposed Chapter 13 Plan – Comments due by 12/27/21
- District of SC – Request for Comment on Proposed Changes to the Local Rules – Comments due by 11/19
- Middle District of FL – Your turn for NextGen – Going live 11/22/21.
IN CASE YOU MISSED IT . . .
Justifying Reasonable Document Requests
It seems this issue raises its ugly head ever so often causing tension between Trustees and their debtors’ bar.
Recent changes to the Handbook for Chapter 13 Standing Trustees prompted Attorney O’Hair (and his colleague Masako Okuda)to write this excellent reference piece on why the Trustee needs what he or she needs.
MORTGAGES AND DEEDS OF TRUST (Not password protected)
City Foreclosures Up Because of COVID-19 (And it starts . . . at least in one city in Kentucky.)
Mortgage Fraud on the Rise, Purchase Applications Vulnerable – Big jump in the incidence of mortgage fraud over the course of last year.
MBA Reports Decrease in Share of Mortgage Loans in Forbearance – Approx. 1 million loans
DEBT AND THE ECONOMY (Not password protected)
BY THE NUMBERS (Not password protected)
Bankruptcy Filings Continue to Fall Sharply (These are September to September numbers – Yes, we reported last week (see below) a slight increase in October.)
October 2021 New Bankruptcy Filings Increase 1.8% (Increase is GOOD!)
FOR YOUR HEALTH (Not password protected)
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November 8, 2021
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Archives |
Justifying Reasonable Document Requests
It seems this issue raises its ugly head ever so often causing tension between Trustees and their debtors’ bar.
Recent changes to the Handbook for Chapter 13 Standing Trustees prompted Attorney O’Hair (and his colleague Masako Okuda)to write this excellent reference piece on why the Trustee needs what he or she needs.
Judicial Year in Review 2021: Revised Rules and Selected Cases – Part 1 Amended Rules
This week Ahern begins a year-end review of 2021 developments in bankruptcy procedure. In Part 1, he summarizes the changes in Bankruptcy Rules to take effect December 1, 2021, absent Congressional action. Next, he will digest some selected judicial activity related to procedure during the past year.
New Chief Judge Named
The United States Bankruptcy Court for the Western District of Texas announced that effective November 2, 2021, Bankruptcy Judge Craig A. Gargotta shall serve as Chief Judge of the Bankruptcy Court.
Webinar Recording Now Available
Gravel: So, What’s the Big Deal?
Much is being written and discussed about an opinion out of Vermont – Gravel. Taggart, Law v. Siegel, Newrez, LLC v. Beckhart are all intertwined, but what does it mean in consumer bankruptcy? Sanctions? No sanctions? Join the Trustee in Gravel, Jan Sensenich, Appellate Attorney Mahesha Subbaraman, and Hank Hildebrand for the answers.
Webinar recordings are free to all current ConsiderChapter13.org subscribers. NOT A SUBSCRIBER? Join NOW.
Fun Article on Quasi-Retired Judge
Jerry Funk: 28 Years on the Bankruptcy Bench – From Winn-Dixie and Stein Mart to people who can’t pay off credit cards, he has seen it all.
SF Handbook
As of 10/20/21 HUD has updated the 4000.1 Single Family Housing Policy Handbook
Two ways to access:
- We’ve done the work for you. Click here for a PDF of the whole danged thing – all 1149 pages of it.
- For an electronic version click here.
Interesting New Study
Trajectories of Unsecured Debt and Health at Midlife
A new study concludes: “The amount, timing, and duration of unsecured debt accumulation and repayment have important health implications and may exacerbate midlife health inequalities” particularly joint pain and stiffness.
Student Loans Chronicles
- Borrowers Say They Were Wrongly Denied Loan Forgiveness – Now, help is on the way
- Biden’s Top Student-Loan Official Vows Students Defrauded By Defunct For-Profit Colleges Will Get Help — And Top Execs Will Pay The Price
From the CFPB
- CFPB Takes Action to Stop False Identification by Background Screeners (Debtor Attorneys need to glance at this one.)
Position Opening
- Chapter 13 Trusteeship – Maryland, Baltimore Division (Application deadline 11/19/21)
- Chapter 7 Panel Trustees – (1) Western District of Tennessee, Jackson and Memphis Divisions (11/30/21); (2) District of Idaho, primarily in the Eastern Division (Pocatello) (11/29/21); (3) Northern and Eastern Districts of Oklahoma, primarily in the Eastern District (11/30/21)
- Judgeship – Southern District of New York(Application deadline 12/3/21)
From the Courts
- Central District of CA – Proposed Changes to Local Rules – Comments due by 11/24/21
- Southern District of NY – Proposed Chapter 13 Plan – Comments due by 12/27/21
- District of SC – Request for Comment on Proposed Changes to the Local Rules
- Northern District of NY – Please click here for Public Notice regarding proposed amendments to two local bankruptcy rules.
- Western District of MI – Revised Model Chapter 13 Plan Available for Comment – Comments due by 11/12/21
- Middle District of FL – Your turn for NextGen – Going live 11/22/21.
- District of NV – CM/ECF will be unavailable from Wednesday, 11/10, 5:00 PM PST until approximately 8:00 AM PST, Monday, 11/15, to upgrade to Next Generation.
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
Rental Assistance
The Honorable Keith M. Lundin (Retired) offers Academy readers a special look at one of his LundinOnChapter13.com video blogs. At approximately eight minutes in, Judge Lundin details a little-known Rental Assistance program that all debtor attorneys need to be aware of and sharing with clients/potential clients.
ANNOUNCEMENTS: VIRTUAL MEETINGS OF CREDITORS AND RENTAL ASSISTANCE: The successful pandemic experiment in virtual meetings of creditors will be a permanent feature of consumer bankruptcy practice. Bankruptcy attorneys and trustees can help consumer debtors access billions of dollars in available rental assistance.
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTERESTS (Not password protected)
From Harvard.edu: Loan Forgiveness as Basis for Fraudulent Transfer Claims
IN THE NEWS (Not password protected)
Worth repeating . . .Consumers Turn to ‘Buy Now, Pay Later,’ Stoking Worry About Repayment Ability – Goldman Sachs, Mastercard Enter the Market (Contains several interesting nuggets – be sure to scroll past the ads to read the full article.)
DEBT AND THE ECONOMY (Not password protected)
October 2021 New Bankruptcy Filings Increase 1.8% (Increase is GOOD!)
FOR YOUR HEALTH (Not password protected)
Very popular from last week . . . Simple Steps You Can Take to Kick Your Junk Food Cravings and Eat Healthier Long Term, According to an Expert
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November 1, 2021
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Archives |
Critical Case Comment – And There is Also Blanco
Rule 3002.1 gives the Bankruptcy Court authority to impose sanctions, including punitive sanctions, as part of the rules-granted authority to award “other appropriate relief.”
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Webinar Recording Now Available
Gravel: So, What’s the Big Deal?
Much is being written and discussed about an opinion out of Vermont – Gravel. Taggart, Law v. Siegel, Newrez, LLC v. Beckhart are all intertwined, but what does it mean in consumer bankruptcy? Sanctions? No sanctions? Join the Trustee in Gravel, Jan Sensenich, Appellate Attorney Mahesha Subbaraman, and Hank Hildebrand for the answers.
Webinar recordings are free to all current ConsiderChapter13.org subscribers. NOT A SUBSCRIBER? Join NOW.
Rental Assistance
The Honorable Keith M. Lundin (Retired) offers Academy readers a special look at one of his LundinOnChapter13.com video blogs. At approximately eight minutes in, Judge Lundin details a little-known Rental Assistance program that all debtor attorneys need to be aware of and sharing with clients/potential clients.
ANNOUNCEMENTS: VIRTUAL MEETINGS OF CREDITORS AND RENTAL ASSISTANCE: The successful pandemic experiment in virtual meetings of creditors will be a permanent feature of consumer bankruptcy practice. Bankruptcy attorneys and trustees can help consumer debtors access billions of dollars in available rental assistance.
See also:
Navigating Secured Creditors Who File Unsecured Chapter 13 Claims
What happens to a lien when a secured judgment creditor with secured treatment in the plan files an “unsecured” claim? Will the Chapter 13 Trustee object?
SF Handbook
As of 10/20/21 HUD has updated the 4000.1 Single Family Housing Policy Handbook
Two ways to access:
- We’ve done the work for you. Click here for a PDF of the whole danged thing – all 1149 pages of it.
- For an electronic version click here.
Barbara J. Rom Award
The Federal Bar Association of the Eastern District of Michigan established the Barbara J. Rom Award for Bankruptcy Excellence to honor individuals who have exhibited the highest level of overall excellence in the practice of bankruptcy law. This year’s winner is Rozanne M. Giunta.
Congratulations Rozanne!!
Judge Retires
On August 12, 2021, due to health reasons, the Honorable Cynthia Carson Jackson retired as a bankruptcy judge of the United States Bankruptcy Court for the Middle District of Florida.
From the CFPB
- Worth repeating . . . CFPB Orders Tech Giants to Turn Over Information on their PaymentSystem Plans – “The initial orders were sent to Amazon, Apple, Facebook, Google, PayPal, and Square. The Bureau will also be studying the payment system practices of Chinese tech giants, including Alipay and WeChat Pay.”
From the Courts
- Southern District of NY – Proposed Chapter 13 Plan – Comments due by 12/27/21
- District of SC – Request for Comment on Proposed Changes to the Local Rules
- Northern District of NY – Please click here for Public Notice regarding proposed amendments to two local bankruptcy rules.
- Southern District MS – Effective November 1, 2021, Judge Jamie A. Wilson’s hearings will be “in-person” unless a party is notified otherwise by the Court.
- Western District of MI – Revised Model Chapter 13 Plan Available for Comment – Comments due by 11/12/21
- District of MD – Proposed Changes to Local Rules – Deadline for Comment 11/1/21
- Middle District of FL – Your turn for NextGen – Going live 11/22/21.
IN CASE YOU MISSED IT . . .
Employment Law Alphabet Soup
In our ongoing series for comptrollers, office managers, or anyone who runs a small business, Mr. Akers brings us a valuable resource regarding state and federal employment law.
“Employment law complaints and litigation are large and growing segments of the legal landscape. However, an employer can be protected by doing the right thing the right way.”
MORTGAGES AND DEEDS OF TRUST (Not password protected)
CoreLogic Uncovers the Five Most Haunted Cities to Move to in the U.S. (Included because this category never gets anything fun!!)
OF INTERESTS (Not password protected)
Michigan High School Students Would Be Required to Pass Personal Finance Class Under New Bill (Much better idea than Credit Card Barbie!)
IN THE NEWS (Not password protected)
Consumers Turn to ‘Buy Now, Pay Later,’ Stoking Worry About Repayment Ability – Goldman Sachs, Mastercard Enter the Market (Contains several interesting nuggets – be sure to scroll past the ads to read the full article.)
FAIR DEBT COLLECTION PRACTICES ACT (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
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October 27, 2021
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Archives |
Critical Case Comment – Circuit Says No Default Cures After Month 60
Chapter 13 debtor cannot submit missed payments to the trustee after the 60-month term of the plan has ended in an effort to cure defaults.
Employment Law Alphabet Soup
In our ongoing series for comptrollers, office managers, or anyone who runs a small business, Mr. Akers brings us a valuable resource regarding state and federal employment law.
“Employment law complaints and litigation are large and growing segments of the legal landscape. However, an employer can be protected by doing the right thing the right way.”
More from this author:
Why Address Formatting Is So Important for Jurisdiction
My guess is you initially saw the title of this article and promptly pressed right on past it. Who needs to learn how to properly address an envelope?
From the CFPB
- CFPB Orders Tech Giants to Turn Over Information on their PaymentSystem Plans – “The initial orders were sent to Amazon, Apple, Facebook, Google, PayPal, and Square. The Bureau will also be studying the payment system practices of Chinese tech giants, including Alipay and WeChat Pay.”
Position Opening
- NCLC – Public Interest Consumer Attorney: Predatory Lending, Banking
- Judgeship – Southern District of New York(Application deadline 12/3/21)
- Term Judicial Law Clerk – District of Minnesota
Student Loans Chronicles
- Nearly 10 Million Borrowers Are About to See a Change in Student Loan Service — here’s what that means, the good and bad
For Your Blog
During these lean times for attorneys who represent debtors, if you aren’t at least blogging, you may want to think about it. By reaching out to your former clients, you can increase your client base. Think about a newsletter – either paper mail or email. You may be surprised at the results. If you do this, be sure to include some “light” items such as recipes, exercise tips, or other life-style tips.
From the Courts
- District of SC – Request for Comment on Proposed Changes to the Local Rules
- Northern District of NY – Please click here for Public Notice regarding proposed amendments to two local bankruptcy rules.
- Southern District MS – Effective November 1, 2021, Judge Jamie A. Wilson’s hearings will be “in-person” unless a party is notified otherwise by the Court.
- Western District of MI – Revised Model Chapter 13 Plan Available for Comment – Comments due by 11/12/21
- District of MD – Proposed Changes to Local Rules – Deadline for Comment 11/1/21
- Middle District of FL – Your turn for NextGen – Going live 11/22/21.
- Central District of IL – Going live on NextGen 10/25/21 Click here for new information
IN CASE YOU MISSED IT . . .
Escrow 101 and 102
A resource you don’t want to miss.
Click here for Escrow 102 – Part 1 of 4
Click here for Escrow 102 – Part 2 of 4
Click here for Escrow 102 – Part 3 of 4
Click here for Escrow 102 – Part 4 of 4
Click here for Part 1 of 3 – Escrow 101 RESPA and Reg X
Click here for Part 2 of 3 – Escrow 101 What happens to escrow when a bankruptcy case is filed
Click here for Part 3 of 3 – Escrow 101 Q & A
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Foreclosure Prevention, Refinance, and FPM Report – July 2021 (Page 4 may be of interest: Completed Foreclosure Prevention Action; Page 5 is a graph of forbearance plans)
HUD Approved Housing Counseling Agencies (Interactive map to find HUD counselors)
OF INTERESTS (Not password protected)
Why You Shouldn’t Keep and Use the Same Credit Cards Indefinitely (Interesting for you but also a possible topic For Your Blog.)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
9 Ways to Boost Your Body’s Natural Defenses (And three of them start with “Eat More . . .”!!)
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October 18, 2021
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Archives |
Critical Case Comment – Discharged Junior in 7 Survives in 13
While in personam liability of a junior mortgage on the debtor’s residence is discharged by a Chapter 7, the lien survives and constitutes an allowed unsecured claim in the debtor’s subsequent Chapter 13 case.
Practice Tips from Hon. Meredith Jury (Ret.)
“Advice: look at the returns before they are sent to the trustee and get out in front of it.”
Escrow 102 – Part 4 of 4
Part 4 is the conclusion to McCormick’s two-part series (Escrow 101 and 102) discussing the escrow account from start to finish including mortgage servicer’s obligations. This section looks at the shortage only arrears claim.
See also:
Click here for Escrow 102 – Part 1 of 4
Click here for Escrow 102 – Part 2 of 4
Click here for Escrow 102 – Part 3 of 4
Click here for Part 1 of 3 – Escrow 101 RESPA and Reg X
Click here for Part 2 of 3 – Escrow 101 What happens to escrow when a bankruptcy case is filed
Click here for Part 3 of 3 – Escrow 101 Q & A
Appointment of Chapter 13 Standing Trustee
Effective October 1, 2021, Thomas H. Hooper was appointed Chapter 13 Standing Trustee for the Northern District of Illinois, Eastern Division.
CONGRATULATIONS TOM!
From NCBRC
From the United States Courts
Chief Justice Names Conference Committee Chairs
“Bankruptcy Judge Dennis Dow (Missouri-Western) was extended for one year as chair of the Advisory Committee on Bankruptcy Rules.”
Position Opening
- Judgeship – Southern District of New York (Application deadline 12/3/21)
- Chapter 13 Standing Trustee – District of Delaware (Application deadline 10/22/21)
- Term Judicial Law Clerk – District of Maryland
- Term Judicial Law Clerk – District of Minnesota
For Your Blog
During these lean times for attorneys who represent debtors, if you aren’t at least blogging, you may want to think about it. By reaching out to your former clients, you can increase your client base. Think about a newsletter – either paper mail or email. You may be surprised at the results.
From the Courts
- Western District of MI – Revised Model Chapter 13 Plan Available for Comment – Comments due by 11/12/21
- Central District of CA – General Order Regarding Vaccination and Testing
- Southern District of GA – Starting 11/5/21, the Honorable Edward J. Coleman, III will return to in-person hearings in Savannah and Statesboro Divisions.
- Eastern District of WA – General Order amends LBR 1009-1, 2083-1, 3016-1, 3021-1, 9010-1 and adds LBR 2015-1 effective September 20, 2021
- Middle District of NC – New/revised standing orders, numbers 21-01, 21-02, and 21-03
- District of MD – Proposed Changes to Local Rules – Deadline for Comment 11/1/21
- Middle District of FL – Your turn for NextGen – Going live 11/22/21.
- Central District of IL – Going live on NextGen 10/25/21 Click here for new information
- Eastern District of CA – NextGen Going Live – CM/ECF will be down Thursday, 10/14/21 at 8:00 PM until Monday, October 18, 2021 at 8:00 AM
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
For Whom Does the Bell Toll?
Attorney Scolforo brings us another great analysis of an opinion every consumer attorney needs to know about . . . A 70 year-old pro se Debtor . . . , inspired Judge Connelly . . . to issue a 31-page opinion discharging $109,983 in student loans.
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Mortgage Delinquency Rate Fell to Nearly Pre-Pandemic Levels in July (W’at?? Is there reason for a happy dance?)
Foreclosure Prevention, Refinance, and FPM Report – July 2021 (Page 4 may be of interest: Completed Foreclosure Prevention Action; Page 5 is a graph of forbearance plans)
HUD Approved Housing Counseling Agencies (Interactive map to find HUD counselors)
OF INTERESTS (Not password protected)
Is a Grain Bin a Farm Fixture or Personal Property? Minnesota Case Examines the Question (Not a bankruptcy case but an interesting saga.)
IN THE NEWS (Not password protected)
Nearly 44% of Kentucky Adults Were Not Working in June 2021, Report Finds (This number was simply too astonishing to not report.)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
SUB CHAPTER V (Not password protected)
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October 11, 2021
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Archives |
The Second Monday in October
More Than a Mattress Sale
For Whom Does the Bell Toll?
Attorney Scolforo brings us another great analysis of an opinion every consumer attorney needs to know about . . . A 70 year-old pro se Debtor . . . , inspired Judge Connelly . . . to issue a 31-page opinion discharging $109,983 in student loans.
Escrow 102 – Part 3 of 4
In this series McCormick discusses a mortgage servicer’s obligations with respect to the escrow account upon learning that the borrower has filed bankruptcy. This week McCormick helps us to examine in detail Official Form 410A.
See also:
Click here for Escrow 102 – Part 1 of 4
Click here for Escrow 102 – Part 2 of 4
Click here for Part 1 of 3 – RESPA and Reg X
Click here for Part 2 of 3 – Analysis with Example
Click here for Part 3 of 3 – Q & A
Two Free Webinars
From the Academy
Gravel: So, What’s the Big Deal?
Thursday, October 14th 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific
Much is being written and discussed about an opinion out of Vermont – Gravel. Taggart, Law v. Siegel, Newrez, LLC v. Beckhart are all intertwined, but what does it mean in consumer bankruptcy? Join the Trustee in Gravel, Jan Sensenich, and Hank Hildebrand for the answers.
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From the North Carolina Bar Association’s Bankruptcy Section
Light-Touch Bankruptcy by Professor Jonathan Seymour
Thursday, October 28 12:30 eastern/11:30 central/10:30 mtn/9:30 pacific
This presentation will explore Code-based ways of improving the experience of chapter 13 debtors while also reducing the workload of attorneys, trustees and judges.
Position Opening
- Judgeship – Southern District of New York(Application deadline 12/3/21)
- Chapter 13 Standing Trustee – District of Delaware (Application deadline 10/22/21)
- Chapter 7 Panel Trustee – Northern District of Indiana – Hammond and South Bend Divisions (Application deadline 10/18/21)
- Term Judicial Law Clerk – District of Maryland
- Term Judicial Law Clerk – District of Minnesota
Student Loans Chronicles
From the Courts
- Western District of MI – Reappointment of the Hon. Scott W. Dales
- Central District of CA – General Order Regarding Vaccination and Testing
- Southern District of GA – Starting 11/5/21, the Honorable Edward J. Coleman, III will return to in-person hearings in Savannah and Statesboro Divisions.
- Western District of PA – Revised Local Rules effective 11/1 (It appears most of the changes are regarding Chpt 11; however, beginning on page 19, there may be some items consumer attorneys need to note.)
- Eastern District of WA – General Order amends LBR 1009-1, 2083-1, 3016-1, 3021-1, 9010-1 and adds LBR 2015-1 effective September 20, 2021
- Middle District of NC – New/revised standing orders, numbers 21-01, 21-02, and 21-03
- District of MD – Proposed Changes to Local Rules – Deadline for Comment 11/1/21
- Central District of IL – Going live on NextGen 10/25/21 Click here for new information
- Eastern District of CA – NextGen Going Live – CM/ECF will be down Thursday, 10/14/21 at 8:00 PM until Monday, October 18, 2021 at 8:00 AM
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
Is Your Law Practice Evolving to Incorporate New Technology
Fleischman has worked remotely for over a decade so in March of 2020, when most of the rest of us were scrambling to figure out this ‘remote’ working thing, Fleischman’s procedures didn’t change. In this article, he shares tips for making ‘remote’ work, well, work.
OF INTERESTS (Not password protected)
Do Commuters Who Worked from Home During COVID Deserve a Tax Refund? Ohio Municipal Income Tax Case Appealed
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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October 4, 2021
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Archives |
Critical Case Comment – Present Value and Attorney’s Fees
Administrative fees and claims existing when Chapter 13 plan was confirmed would reduce the amounts received by unsecured creditors in a Chapter 7 under the “best interests of creditors test;” unsecured creditors, expected to receive payments over three years, must be paid the “present value” of that stream of payments thus requiring a Chapter 13 plan to pay interest.
Is Your Law Practice Evolving to Incorporate New Technology
Fleischman has worked remotely for over a decade so in March of 2020, when most of the rest of us were scrambling to figure out this ‘remote’ working thing, Fleischman’s procedures didn’t change. In this article, he shares tips for making ‘remote’ work, well, work.
Meet a New Trustee
Many of you may recognize the name Jack N. Zaharopoulos – he has been in the consumer bankruptcy world almost his entire career. He was appointed as the Chapter 13 Standing Trustee for the Middle District of Pennsylvania on May 1st.
Escrow 102 – Part 2 of 4
In this series McCormick discusses a mortgage servicer’s obligations with respect to the escrow account upon learning that the borrower has filed bankruptcy. This week McCormick looks at The History of Escrow Treatment in Bankruptcy which, of course, means the case law you need to be familiar with.
See also:
Click here for Escrow 102 – Part 1 of 4
Click here for Part 1 of 3 – RESPA and Reg X
Click here for Part 2 of 3 – Analysis with Example
Click here for Part 3 of 3 – Q & A
New Trustee Announced
CONGRATULATIONS ED SAFIR!!!!
As of October 1st, K. Edward Safir, is a Chapter 13 Standing Trustee for the Northern District of Georgia. He takes over in cases assigned to Nancy Whaley, Interim Chapter 13 Trustee. No, no, no. Nancy isn’t going anywhere. This is the Trusteeship vacated by Mary Ida Townson after her resignation to work with the United States Trustee Program.
Judge to Retire
The United States Bankruptcy Court for the Southern District of New York announces that Judge Robert D. Drain has declared his intention to retire on June 30, 2022.
From NCBRC
More Trustee Announcements
We say good-bye to two much loved and respected Standing Trustees as they retire -Marianne Derosa and David Rosenthal. Derosa’s cases in New York will be administered by current Standing Chapter 13 Trustee, Krista Preuss. Likewise, Rosenthal’s cases will be administered by Debra L. Miller, Chapter 13 Standing Trustee for the Northern District of Indiana in South Bend.
Happy Next Chapter Marianne and David!
DVDs Now Available
Weren’t able to attend the NACTT annual conference in Washington, DC? You can still get all the educational benefit for only $150!!
Judiciary Supplements Judgeship Request, Prioritizes Courthouse Projects
“Courthouses in Hartford, Connecticut, and Chattanooga, Tennessee, have been identified as projects for which the Judiciary will request additional federal . . . the following projects have been identified as out-year courthouse priorities — Bowling Green, Kentucky; Anchorage, Alaska; McAllen, Texas; Greensboro/Winston-Salem, North Carolina; and Norfolk, Virginia.”
From the IRS
Important Item from Last Week: New Contracts Awarded to Private Collection Agencies; Taxpayers May Be Contacted by One of Three Groups
- CBE Group, Inc., Waterloo, IA
- Coast Professional, Inc., Albion, NY
- ConServe, Fairport, NY
Position Opening
- Judgeship – Southern District of New York(Application deadline 12/3/21)
- Chapter 13 Standing Trustee – District of Delaware (Application deadline 10/22/21)
- Chapter 7 Panel Trustee – Northern District of Indiana – Hammond and South Bend Divisions (Application deadline 10/18/21)
- U.S. Bankruptcy Judge – Middle District of North Carolina (Application deadline 10/8/21)
- Term Judicial Law Clerk – District of Maryland
From the Courts
- Western District of PA – Revised Local Rules effective 11/1 (It appears most of the changes are regarding Chpt 11; however, beginning on page 19, there may be some items consumer attorneys need to note.)
- Eastern District of WA – General Order amends LBR 1009-1, 2083-1, 3016-1, 3021-1, 9010-1 and adds LBR 2015-1 effective September 20, 2021
- Middle District of NC – New/revised standing orders, numbers 21-01, 21-02, and 21-03
- District of MD – Proposed Changes to Local Rules – Deadline for Comment 11/1/21
- Central District of IL – Going live on NextGen 10/25/21
- Southern District of GA – Going live on NextGen 10/12/21 – CM/ECF will be unavailable from Friday, October 8 at 5:00 PM (EST) until Tuesday, October 12
IN CASE YOU MISSED IT . . .
Passing of Affable, Humanitarian Trustee
The bankruptcy community has lost a good friend and esteemed colleague, Robert S. Thomas II. In an effort to pay tribute to Robert, who was loved and respected by so many, The NACTT Academy is privileged to share comments, thoughts, and tributes made by Robert’s bankruptcy colleagues.
OF INTERESTS (Not password protected)
A Creditor’s Perspective: The Bankruptcy Trustee – Friend or Foe? (Refers to Chpt 7 Trustees)
MORTGAGES IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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September 27, 2021
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Progeny of Law v. Siegel: Sixth and Ninth Circuits Say Right to Dismiss Chapter 13 Case is Absolute, Not Qualified by Section 105
Recent Supreme Court jurisprudence in bankruptcy has impaired the bankruptcy courts’ exercise of equitable power. In Progeny of Taggart, Larry Ahern examined two recent cases illustrating the limits emanating from In re Taggart. This week, he discusses the similar repercussions of Law v. Siegel (2014) and focuses on recent Sixth and Ninth Circuit decisions that break with the Fifth Circuit and abrogate earlier Ninth Circuit authority to say that Chapter 13 debtors’ right to dismiss their cases cannot be modified, however equitable it may seem to do so.
See also:
Rule 3002.1 Does Not Justify Punitive Sanctions
Progeny of Taggart: In re Gravel and Newrez, LLC v. Beckhart
Passing of Affable, Humanitarian Trustee
The bankruptcy community has lost a good friend and esteemed colleague, Robert S. Thomas II. In an effort to pay tribute to Robert, who was loved and respected by so many, The NACTT Academy is privileged to share comments, thoughts, and tributes made by Robert’s bankruptcy colleagues.
Escrow 102 – Part 1 of 4
In this series McCormick discusses a mortgage servicer’s obligations with respect to the escrow account upon learning that the borrower has filed bankruptcy.
Watch for a subsequent series in which McCormick plans to discuss a mortgage servicer’s obligations during the bankruptcy case after the initial proof of claim has been filed.
See also:
Click here for Part 1 of 3 – RESPA and Reg X
Click here for Part 2 of 3 – Analysis with Example
Click here for Part 3 of 3 – Q & A
New Trustee Announced
CONGRATULATIONS YVONNE VALDEZ!!!!
The EOUST has appointed Yvonne V. Valdez of Houston as the new Chapter 13 Standing Trustee for the Southern District of Texas effective November 1. She replaces retiring Cindy Boudloche. We will miss you Cindy! If Yvonne’s name is familiar to you, it is because she has served as staff attorney to Trustee Bill Heitkamp for five years.
DVDs Now Available
Weren’t able to attend the NACTT annual conference in Washington, DC? You can still get all the educational benefit for only $150!!
Bankruptcy Webinar
On September 29th the American College of Bankruptcy Third Circuit Fellows, Rutgers Institute for Professional Educationwill present a webinar: Splits and Confounding Issues Destined for the Supreme Court
From the IRS
New Contracts Awarded to Private Collection Agencies; Taxpayers May Be Contacted by One of Three Groups
- CBE Group, Inc., Waterloo, IA
- Coast Professional, Inc., Albion, NY
- ConServe, Fairport, NY
Position Opening
- Chapter 13 Standing Trustee – District of Delaware (Application deadline 10/22/21)
- Chapter 7 Panel Trustee – Northern District of Indiana – Hammond and South Bend Divisions (Application deadline 10/18/21)
- U.S. Bankruptcy Judge – Middle District of North Carolina (Application deadline 10/8/21)
- Term Judicial Law Clerk – District of Maryland
Student Loans Chronicles
- Student Loans: Ending the pandemic payment pause ‘is a defining moment,’ Federal Student Aid COO says
From the Courts
- Eastern District of WA – General Order amends LBR 1009-1, 2083-1, 3016-1, 3021-1, 9010-1 and adds LBR 2015-1 effective September 20, 2021
- Middle District of NC – New/revised standing orders, numbers 21-01, 21-02, and 21-03
- Lawyer Representatives to the Ninth Circuit Judicial Conference – 2 bankruptcy openings
- District of MD – Proposed Changes to Local Rules – Deadline for Comment 11/1/21
- District of PR – Annual Bar Membership fee due 10/1/21
- Eastern District of OK – Judge Michael’s Policy Regarding Granting Relief from Bankruptcy Rule 4001(a)(3)
- Central District of IL – Going live on NextGen 10/25/21
- Southern District of GA – Going live on NextGen 10/12/21
- District of RI – Going live on NextGen 10/4/21 – CM/ECF will be unavailable from Friday, October 1 at 6:00 PM until approximately 8:00 AM on Monday October 4
IN CASE YOU MISSED IT . . .
When Wishes Come True
If you don’t know the Chapter 13 Trustee for West Virginia, you are missing out! Trustee Morris has a sense of humor like no other and truly has some unique case situations in her jurisdiction.
Like most trustees, Trustee Morris was wishing for new cases – perhaps too enthusiastically as this article reveals.
More from this author:
I Win. I Win. Trustee Holds Record for Having the Oldest Open Chapter 13 Case
Debtor Math – If you young’uns have never seen this YouTube clip, it is worth 2-1/2 minutes of your day!
OF INTERESTS (Not password protected)
MORTGAGES IN THE NEWS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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September 20, 2021
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Rule 3002.1 Does Not Justify Punitive Sanctions
In order for a bankruptcy court to impose sanctions for contempt, Taggart compels a finding of a violation of a clear and unambiguous order; the bankruptcy court lacks inherent power to issue punitive sanctions under Rule 3002.1.
See also:
Progeny of Taggart: In re Gravel and Newrez, LLC v. Beckhart
Escrow 101 – Part 3 of 3
We continue our series of articles detailing the ins and outs of escrow analysis. In Part 3, McCormick anticipates questions you will have and answers them.
Click here for Part 1 of 3 – RESPA and Reg X
Click here for Part 2 of 3 – Analysis with Example
When Wishes Come True
If you don’t know the Chapter 13 Trustee for West Virginia, you are missing out! Trustee Morris has a sense of humor like no other and truly has some unique case situations in her jurisdiction.
Like most trustees, Trustee Morris was wishing for new cases – perhaps too enthusiastically as this article reveals.
More from this author:
I Win. I Win. Trustee Holds Record for Having the Oldest Open Chapter 13 Case
Debtor Math – If you young’uns have never seen this YouTube clip, it is worth 2-1/2 minutes of your day!
Eviction Ban
The National Eviction Ban Is Over – But renters still can’t be forced out in these states
New Judge for Puerto Rico
1st Circuit Names María de los Ángeles González-Hernández Judge
The 1st U.S. Circuit Court of Appeals announced that María de los Ángeles González-Hernández has been selected to fill the vacancy on the U.S. Bankruptcy Court for the District of Puerto Rico. González-Hernández will be appointed to the bench upon FBI clearance. (The rest of this story is behind a paywall at Massachusetts Lawyers Weekly)
From NCBRC
Panel Affirms Reduced Attorney Fees (Chpt 7 case but of interest to all debtor attorneys)
Foreclosure in the News
Position Opening
- Chapter 13 Standing Trustee – District of Delaware (Application deadline 10/22/21)
- Chapter 13 Standing Trustee – District of Nebraska (Application deadline 9/24/21)
- Chapter 7 Panel Trustee – Northern District of Indiana – Hammond and South Bend Divisions (Application deadline 10/18/21)
- U.S. Bankruptcy Judge – District of South Carolina (Application deadline 9/24/21)
- U.S. Bankruptcy Judge – Middle District of North Carolina (Application deadline 10/8/21)
- Term Judicial Law Clerk – District of Maryland
- I-T Specialist – Eastern District of Washington
For Your Blog
- Student Loan Borrowers: Expect These 4 Things by January (Better than average article – one you should probably read yourself AND share with your clients.)
From the Courts
- Lawyer Representatives to the Ninth Circuit Judicial Conference – 2 bankruptcy openings
- District of MD – Proposed Changes to Local Rules – Deadline for Comment 11/1/21
- District of PR – Annual Bar Membership fee due 10/1/21
- Eastern District of OK – Judge Michael’s Policy Regarding Granting Relief from Bankruptcy Rule 4001(a)(3)
- District of AZ – 9/30/21 Deadline for Submitting Proposed Amendments to the Local Rules
- District of AZ – Construction Project at Phoenix Bankruptcy Courthouse
- Central District of IL – Going live on NextGen 10/25/21
- Southern District of GA – Going live on NextGen 10/12/21
- District of RI – Going live on NextGen 10/4/21
- Northern District of OK – NextGen going live. CM/ECF will be down from Friday, 9/24/21 at 11:00 AM (CDT) through Monday, 9/27/21 at 8:00 AM
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
When (or Not) Is the Best Interests of Creditors Test Applicable in a Modified Plan?
While the best interests of creditors test is applicable upon modification of a Chapter 13 plan, post-petition acquired property of the estate is not included in such analysis in that such property would not be property of a Chapter 7 estate.
OF INTERESTS (Not password protected)
Bankruptcy Filings Are Down, But Lousy Deals and Operational Woes Will Change That (Business bankruptcy related and nothing particularly new)
MILITARY MATTERS (Not password protected)
MORTGAGES IN THE NEWS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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September 13, 2021
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Progeny of Taggart: In re Gravel and Newrez, LLC v. Beckhart
The Supreme Court’s 2019 opinion in Taggart v. Lorenzen is limiting not only the contempt powers of the bankruptcy courts in cases of discharge-injunction violations but also their equitable powers more broadly. This week, Larry Ahern considers two such recent decisions, In re Gravel and Newrez, LLC v. Beckhart, from the Second Circuit and the Eastern District of North Carolina, respectively.
Escrow 101 – Part 2 of 3
We continue our series of articles detailing the ins and outs of escrow analysis. In Part 1, McCormick looks at RESPA and Reg X, along with initial and annual escrow statements. In this, Part 2, he looks at the actual analysis with examples.
Meet a Chief Judge
Eviction Ban
- The National Eviction Ban Is Over – But renters still can’t be forced out in these states
- Supreme Court Blocks Biden Administration’s Eviction Moratorium – “Congress never gave the CDC the staggering amount of power it claims,” a group of landlords argued.
From NCBRC
Foreclosure in the News
From the IRS
Attention Operations/Office Managers:
Treasury, IRS Issue Guidance for 2021 on Reporting Qualified Sick and Family Leave Wages
From the Judicial Conference Committee
The Federal Rules of Bankruptcy Procedure (eff. Dec. 1, 2020) govern procedures for bankruptcy proceedings. For many years, such proceedings were governed by the General Orders and Forms in Bankruptcy promulgated by the Supreme Court. By order dated April 24, 1973, effective October 1, 1973, the Supreme Court prescribed, pursuant to 28 U.S.C. § 2075, the Bankruptcy Rules and Official Bankruptcy Forms, which abrogated previous rules and forms. Over the years, the Bankruptcy Rules and Official Forms have been amended many times, most recently in 2020.
- Appellate Rules 2 and 4;
- Bankruptcy Restyled Rules for the 3000 to 6000 Series; Rules 3002.1, 3011, and 8003; and new Rule 9038;
- Official Bankruptcy Forms 101, 309E1, 309E2, and 417A; and new Official Forms 410C13-1N, 410C13-1R, 410C13-10C, 410C13-10NC, and 410C13-10R;
- Civil Rules 15, 72, and new Rule 87; and
- Evidence Rules 106, 615, and 702.
Click here for the current version.
Click here for the Current Bankruptcy Forms
Click here for the Draft Proposed Amendments
Comments due by 2/16/22.
From the Courts Extra
Correcting Malformed PDFs
Although this was put out by the Western District of Texas, it seems to be applicable CM/ECF systemwide.
Position Opening
- Chapter 13 Standing Trustee – District of Nebraska
- U.S. Bankruptcy Judge – District of South Carolina
- U.S. Bankruptcy Judge – Middle District of North Carolina
- Term Judicial Law Clerk – District of Maryland
Student Loans Chronicles
- From Justia: In re Aleckna
For Your Blog
7 Areas Where You Should Continue to Be Financially Conservative While the Economy Recovers (This one could apply to you and your clients.)
From the Courts
Too many policy changes to list so be sure to check the Court’s mask/vaccination/negative COVID test policy before heading into any Federal Building!
- Lawyer Representatives to the Ninth Circuit Judicial Conference – 2 bankruptcy openings
- Northern District of IL – Reassignment of Judge Jack B. Schmetterers Chapter 7 Cases
- Eastern District of OK – Tom R. Cornish, Chief Bankruptcy Judge retires as of 9/1/2
- Eastern District of OK – Judge Michael’s Policy Regarding Granting Relief from Bankruptcy Rule 4001(a)(3)
- Middle District of NC – Durham Courthouse Closes Permanently
- District of SC – Bar Announcement by Judge Waites
- District of AZ – 9/30/21 Deadline for Submitting Proposed Amendments to the Local Rules
- Central District of IL – Going live on NextGen 10/25/21
- Southern District of GA – Going live on NextGen 10/25/21
- District of RI – Going live on NextGen 10/4/21 – Going live on NextGen 10/25/21
- Western District of TX – Due to maintenance involving the installation of NextGen CM/ECF versions 1.6, 1.6.1 and 1.6.2 (11/1/21 – go live date), the system will be unavailable for filing, as well as access to PACER and VCIS for queries, between 10 am Sept. 18, and 10 am on Sept. 9.
Sanctions and Irony and Fraud, Oh My!
- ‘The Theft was Fatal’: Employee used 189 credit-card refunds to embezzle nearly $200,000 — bankrupting packaging firm
- CFPB Sues LendUp Loans for Violating 2016 Consent Order and Deceiving Borrowers – Online Lender Accused of Continuing to Misrepresent Products and Failing to Provide Timely and Accurate Adverse-Action Notices to Applicants
IN CASE YOU MISSED IT . . .
When the Trustee Gets Subpoenaed
“. . . debtors, creditors or third parties may be interested in the trustee’s internal operating procedures or legal position on disputes pending in bankruptcy court or other forums. Trustees can certainly be subpoenaed but are there limits on issuance and compliance?”
OF INTERESTS (Not password protected)
BY THE NUMBERS (Not password protected)
MORTGAGES IN THE NEWS (Not password protected)
The Secret Bias Hidden in Mortgage-Approval Algorithm – Nationally, loan applicants of color were 40%–80% more likely to be denied than their White counterparts
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September 6, 2021
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Archives |
Tell the Story
“. . . until judges develop an appreciation about how hard the consumer practice is, we will continue to be underpaid.” Fee app is not a bad word! Originally posted 5/17/21
Escrow 101 – Part 1 of 3
This week we begin a series of articles detailing the ins and outs of escrow analysis. In this Part 1, McCormick looks at RESPA and Reg X, along with initial and annual escrow statements. This is a detailed analysis you will want to not only review but hang on to.
Watch for Part 2 of 3 next week!
The “Snapshot” Rule – Part 1: The Circuits Begin to Line Up
This week, Larry Ahern starts by summarizing In re Anderson, a March 1 opinion from the Ninth Circuit, and the First Circuit’s In re Rockwell decision, which the Supreme Court declined to review on February 22. In this Part 1, he considers how and why the circuits are finding the petition date determinative of the exempt status of assets (the “snapshot” rule). In Part 2, he will ask when future cases, especially those involving different circumstances, may not apply the rule. Originally posted 3/15/21.
The “Snapshot” Rule – Part 2: When is the Rule Not Determinative?
In Part 1, Larry Ahern summarized recent cases and considered how and why the circuits are more consistently finding the petition date to be determinative of the exempt status of assets (the “snapshot” rule). In this Part 2, he asks when the rule might not apply in different circumstances. Originally posted 4/5/21
Of Interest to, Well, Everyone
GA Bankruptcy Judge Lowers Boom on Chapter 7 Trustee and Counsel Fees (Chpt 7 case converted to 13) Really. You gotta read this one! Originally posted 3/8/21.
Parker, HOA, and Sanctions – Multiple Thrills to a Bankruptcy Lawyer’s Heart
“. . . stamping the payment demands as “For Information Only” didn’t save the day for the HOA.” Originally posted 5/3/21
Eviction Ban
Supreme Court Blocks Biden Administration’s Eviction Moratorium – “Congress never gave the CDC the staggering amount of power it claims,” a group of landlords argued.
From the Judicial Conference Committee
The Federal Rules of Bankruptcy Procedure (eff. Dec. 1, 2020) govern procedures for bankruptcy proceedings. For many years, such proceedings were governed by the General Orders and Forms in Bankruptcy promulgated by the Supreme Court. By order dated April 24, 1973, effective October 1, 1973, the Supreme Court prescribed, pursuant to 28 U.S.C. § 2075, the Bankruptcy Rules and Official Bankruptcy Forms, which abrogated previous rules and forms. Over the years, the Bankruptcy Rules and Official Forms have been amended many times, most recently in 2020.
- Appellate Rules 2 and 4;
- Bankruptcy Restyled Rules for the 3000 to 6000 Series; Rules 3002.1, 3011, and 8003; and new Rule 9038;
- Official Bankruptcy Forms 101, 309E1, 309E2, and 417A; and new Official Forms 410C13-1N, 410C13-1R, 410C13-10C, 410C13-10NC, and 410C13-10R;
- Civil Rules 15, 72, and new Rule 87; and
- Evidence Rules 106, 615, and 702.
Click here for the current version.
Click here for the Current Bankruptcy Forms
Click here for the Draft Proposed Amendments
Comments due by 2/16/22.
Eviction Moratorium
Position Opening
- U.S. Bankruptcy Judge – District of South Carolina
- Staff Attorney – Middle District of Alabama – Office of the United States Bankruptcy Administrator– Application due date 9/10/21
From the Courts
- Middle District of NC – Durham Courthouse Closes Permanently
- District of MN – The Honorable William J. Fisher’s chambers and courtroom have moved within the Warren E. Burger Federal Building and United States Courthouse. Judge Fisher is now presiding in Courtroom 2A in St. Paul.Please update the courtroom location when filing motions and notices of hearing related to matters pending before Judge Fisher in St. Paul.
- District of SC – Bar Announcement by Judge Waites
- District of CO – Proposed revisions to Local Rules and Forms
OF INTERESTS (Not password protected)
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August 30, 2021
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Archives |
Escrow 101 – Part 1 of 3
This week we begin a series of articles detailing the ins and outs of escrow analysis. In this Part 1, McCormick looks at RESPA and Reg X, along with initial and annual escrow statements. This is a detailed analysis you will want to not only review but hang on to.
Eviction Ban
Big News of the Week . . .
Supreme Court Blocks Biden Administration’s Eviction Moratorium – “Congress never gave the CDC the staggering amount of power it claims,” a group of landlords argued.
From the Judicial Conference Committee
The Federal Rules of Bankruptcy Procedure (eff. Dec. 1, 2020) govern procedures for bankruptcy proceedings. For many years, such proceedings were governed by the General Orders and Forms in Bankruptcy promulgated by the Supreme Court. By order dated April 24, 1973, effective October 1, 1973, the Supreme Court prescribed, pursuant to 28 U.S.C. § 2075, the Bankruptcy Rules and Official Bankruptcy Forms, which abrogated previous rules and forms. Over the years, the Bankruptcy Rules and Official Forms have been amended many times, most recently in 2020.
- Appellate Rules 2 and 4;
- Bankruptcy Restyled Rules for the 3000 to 6000 Series; Rules 3002.1, 3011, and 8003; and new Rule 9038;
- Official Bankruptcy Forms 101, 309E1, 309E2, and 417A; and new Official Forms 410C13-1N, 410C13-1R, 410C13-10C, 410C13-10NC, and 410C13-10R;
- Civil Rules 15, 72, and new Rule 87; and
- Evidence Rules 106, 615, and 702.
Click here for the current version.
Click here for the Current Bankruptcy Forms
Click here for the Draft Proposed Amendments
Comments due by 2/16/22.
Eviction Moratorium
Position Opening
- U.S. Bankruptcy Judge – District of South Carolina
- Standing Chapter 13 Trustee – Northern District of Texas (Abilene, Amarillo, Lubbock, San Angelo and Wichita Falls Divisions) – Application due date 9/1/21
- Staff Attorney – Middle District of Alabama – Office of the United States Bankruptcy Administrator– Application due date 9/10/21
From the Courts
- Middle District of NC – Durham Courthouse Closes Permanently
- District of MN – The Honorable William J. Fisher’s chambers and courtroom have moved within the Warren E. Burger Federal Building and United States Courthouse. Judge Fisher is now presiding in Courtroom 2A in St. Paul.Please update the courtroom location when filing motions and notices of hearing related to matters pending before Judge Fisher in St. Paul.
- District of SC – Bar Announcement by Judge Waites
- District of CO – Proposed revisions to Local Rules and Forms
- Middle District of TN – Proposed Local BK Rules (Comments by 8/30/21)
- District of AZ – 9/30/21 Deadline for Submitting Proposed Amendments to the Local Rules
IN CASE YOU MISSED IT . . .
When (or Not) Is the Best Interests of Creditors Test Applicable in a Modified Plan?
While the best interests of creditors test is applicable upon modification of a Chapter 13 plan, post-petition acquired property of the estate is not included in such analysis in that such property would not be property of a Chapter 7 estate.
OF INTERESTS (Not password protected)
Can Ohio Businesses Hurt by COVID-19 Shutdowns Be Able to Make Insurance Claims? Court to Decide . . . A case to watch
MORTGAGES IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
CHAPTER 12 IN THE NEWS (Not password protected)
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August 23, 2021
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Archives |
Are Your Loyalties Divided?
“Anytime there are two people sitting across from you, you have a conflict of interest.”
One of Attorney Moran’s best! How much thought do you give to the seemingly happily married couple sitting across from you? What is the likelihood of separation or divorce? This concise article looks at the potential conflicts of interest.
When (or Not) Is the Best Interests of Creditors Test Applicable in a Modified Plan?
While the best interests of creditors test is applicable upon modification of a Chapter 13 plan, post-petition acquired property of the estate is not included in such analysis in that such property would not be property of a Chapter 7 estate.
From the Judicial Conference Committee
The Federal Rules of Bankruptcy Procedure (eff. Dec. 1, 2020) govern procedures for bankruptcy proceedings. For many years, such proceedings were governed by the General Orders and Forms in Bankruptcy promulgated by the Supreme Court. By order dated April 24, 1973, effective October 1, 1973, the Supreme Court prescribed, pursuant to 28 U.S.C. § 2075, the Bankruptcy Rules and Official Bankruptcy Forms, which abrogated previous rules and forms. Over the years, the Bankruptcy Rules and Official Forms have been amended many times, most recently in 2020.
- Appellate Rules 2 and 4;
- Bankruptcy Restyled Rules for the 3000 to 6000 Series; Rules 3002.1, 3011, and 8003; and new Rule 9038;
- Official Bankruptcy Forms 101, 309E1, 309E2, and 417A; and new Official Forms 410C13-1N, 410C13-1R, 410C13-10C, 410C13-10NC, and 410C13-10R;
- Civil Rules 15, 72, and new Rule 87; and
- Evidence Rules 106, 615, and 702.
Click here for the current version.
Click here for the Current Bankruptcy Forms
Click here for the Draft Proposed Amendments
Comments due by 2/16/22.
Oh My Goodness
You HAVE to read this article . . .
This Black Family’s Home Appraisal Grew by $92,000 After They Removed All Signs of Their Race
From the NCLC
Great info from last week . . .
Eviction Moratorium
Position Opening
- Standing Chapter 13 Trustee – Northern District of Texas (Abilene, Amarillo, Lubbock, San Angelo and Wichita Falls Divisions) – Application due date 9/1/21
- Staff Attorney – Middle District of Alabama – CORRECTION. This position is for a staff attorney position in the office of the United States Bankruptcy Administrator for the Middle District of Alabama in Montgomery. We apologize that we erroneously ran this as an opening in the Chapter 13 Trustee’s office – Application due date 9/10/21
Eviction Ban
From the Courts
- District of SC – Bar Announcement by Judge Waites
- District of CO – Proposed revisions to Local Rules and Forms
- Central District of CA – Revised Local Bankruptcy Rules Forms Effective 7/30/21
- Middle District of TN – Proposed Local BK Rules (Comments by 8/30/21)
- District of AZ – 9/30/21 Deadline for Submitting Proposed Amendments to the Local Rules
IN CASE YOU MISSED IT . . .
Ms. Ps & Qs
Ms. Ps & Qs has a great answer for us: What should you do when your “Spidey sense” tells you that your client might have diminished capacity?
OF INTERESTS (Not password protected)
MORTGAGES IN THE NEWS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
CHAPTER 12 IN THE NEWS (Not password protected)
FOR YOUR HEALTH (Not password protected)
Try This: 17 Exercises to Relieve Upper Back Pain, Neck Pain, and More These are REALLY easy – you don’t have to do all 17, just pick the ones you like best. And you only need to do them for MINUTES a day. Some you can even do at your desk!
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August 16, 2021
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When the Trustee Gets Subpoenaed
“. . . debtors, creditors or third parties may be interested in the trustee’s internal operating procedures or legal position on disputes pending in bankruptcy court or other forums. Trustees can certainly be subpoenaed but are there limits on issuance and compliance?”
Ms. Ps & Qs
Ms. Ps & Qs has a great answer for us: What should you do when your “Spidey sense” tells you that your client might have diminished capacity?
From the National Consumer Law Center
Eviction Moratorium
From the CFPB
- CFPB Issues Interpretive Rule on Certain Mortgage and Disclosure Timing Requirements for the 2021 Juneteenth Federal Holiday – Because the Juneteenth National Independence Day Act was signed into law two days before the newly created holiday on June 19, many participants in the mortgage industry reported being unsure of how to treat the day for purposes of regulatory compliance. . . . For rescission of closed-end mortgages and TILA-RESPA Integrated Disclosures, whether June 19, 2021, counts as a business day or federal holiday depends on when the relevant time period began. If the relevant time period began:
- On or before June 17, 2021, then June 19 was a business day.
- After June 17, 2021, then June 19 was a federal holiday.
Position Opening
- Standing Chapter 13 Trustee – Northern District of Texas (Abilene, Amarillo, Lubbock, San Angelo and Wichita Falls Divisions) – Application due date 9/1/21
- Trustee’s Staff Attorney – Middle District of Alabama
Eviction Ban
Student Loans Chronicles
- Senate Judiciary Committee Hearing on Student Loans and Act Introduced by Senators Durbin and Cornyn
By William Houston Brown, Adviser, Academy for Consumer Bankruptcy Education, Inc.
- Pause on Student Loan Payments Extended Through January (Not password protected)
From the Courts
- District of CO – Proposed revisions to Local Rules and Forms
- Central District of CA – Revised Local Bankruptcy Rules Forms Effective 7/30/21
- District of NV – Judge Beesley Retirement Announcement
- Middle District of TN – Proposed Local BK Rules (Comments by 8/30/21)
- District of AZ – 9/30/21 Deadline for Submitting Proposed Amendments to the Local Rules
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Proposed Amendments
- Appellate Rules 2 and 4;
- Bankruptcy Restyled Rules for the 3000 to 6000 Series; Rules 3002.1, 3011, and 8003; and new Rule 9038;
- Official Bankruptcy Forms 101, 309E1, 309E2, and 417A; and new Official Forms 410C13-1N, 410C13-1R, 410C13-10C, 410C13-10NC, and 410C13-10R;
- Civil Rules 15, 72, and new Rule 87;
- New Criminal Rule 62; and
- Evidence Rules 106, 615, and 702.
Comment period – 8/6/21 to 2/16/22
IN CASE YOU MISSED IT . . .
Absolute Right to Dismiss? Sixth Circuit Says “Yes”
“Does a Debtor have a right to dismiss a Chapter 13 case where Debtor has been acting in bad faith?”
IN THE NEWS (Not password protected)
OF INTERESTS (Not password protected)
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August 9, 2021
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Archives |
Who Gets the Trustee’s Fee?
An important new decision out of the 9th Circuit BAP wherein a Chapter 13 trustee is not compelled to return the percentage fee taken from a Chapter 13 case when the case is dismissed prior to confirmation.
Senate Judiciary Committee Hearing on Student Loansand Act Introduced by Senators Durbin and Cornyn
“The proposed Act . . . would strike current section 523(a)(8), replacing it with the same undue hardship provision for educational benefits or loans made, insured or guaranteed by governmental units or nonprofit institutions, or in the alternative such loans would be dischargeable ten years after the first payment on the loan became due.”
See also:
Absolute Right to Dismiss? Sixth Circuit Says “Yes”
“Does a Debtor have a right to dismiss a Chapter 13 case where Debtor has been acting in bad faith?”
Federal Housing Administration Extends Single Family Eviction Moratorium
July 30, 2021,announcement extends the eviction moratorium through September 30 for foreclosed borrowers and other occupants and notes expiration of the foreclosure moratorium on July 31.
From the CFPB
Just out . . . CFPB Issues Interpretive Rule on Certain Mortgage and Disclosure Timing Requirements for the 2021 Juneteenth Federal Holiday – Because the Juneteenth National Independence Day Act was signed into law two days before the newly created holiday on June 19, many participants in the mortgage industry reported being unsure of how to treat the day for purposes of regulatory compliance. . . . For rescission of closed-end mortgages and TILA-RESPA Integrated Disclosures, whether June 19, 2021, counts as a business day or federal holiday depends on when the relevant time period began. If the relevant time period began:
- On or before June 17, 2021, then June 19 was a business day.
- After June 17, 2021, then June 19 was a federal holiday.
From the IRS
Paid Leave Credit Available for Providing Leave to Employees Caring for Individuals Obtaining or Recovering from a COVID-19 Immunization (This could be applicable to YOU or your clients)
Eviction Ban
As evidenced by the below sample articles, evictions, or not, are all over the place . . .
AACER U.S. Bankruptcy Statistics and Trends
This interactive map displays cumulative U.S. bankruptcy filings by state for Chapter 7, Chapter 11 and Chapter 13 cases. Filings include both commercial and non-commercial (individual consumer) bankruptcy petitions.
For Your Blog
- Housing Insecurity Media Toolkit – Easy to share information. For example, this handout: For Landlords – Squeezed between missed rental income and bills you owe? Help is available And there are many others. Check it out.
From the Courts
- District of Rhode Island – Courts closed 8/9 for Victory Day
- Bankruptcy Filings Plunged to Lowest Number Since 1985
- District of NV – Judge Beesley Retirement Announcement
- Middle District of TN – Proposed Local BK Rules (Comments by 8/30/21)
- District of AZ – 9/30/21 Deadline for Submitting Proposed Amendments to the Local Rules
- Northern District of OK – Scheduled to go live on NextGen 9/21
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Proposed Amendments
- Appellate Rules 2 and 4;
- Bankruptcy Restyled Rules for the 3000 to 6000 Series; Rules 3002.1, 3011, and 8003; and new Rule 9038;
- Official Bankruptcy Forms 101, 309E1, 309E2, and 417A; and new Official Forms 410C13-1N, 410C13-1R, 410C13-10C, 410C13-10NC, and 410C13-10R;
- Civil Rules 15, 72, and new Rule 87;
- New Criminal Rule 62; and
- Evidence Rules 106, 615, and 702.
Comment period – 8/6/21 to 2/16/22
IN CASE YOU MISSED IT . . .
Critical Case Comment
Something for everyone in this decision . . . In a dismissed but reinstated case, should the bar date be extended for the benefit of creditors? “Once again, . . . case demonstrates to creditors that if you snooze, you lose.”
OF INTERESTS (Not password protected)
MORTGAGES IN THE NEWS (Not password protected)
Important from last week . . .Fact Sheet: Biden Administration Announces Additional Actions to Prevent Foreclosures
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
Can Foot Shape Reveal Your Personality Type? (This article starts out with some fun info but later it reveals some things that could answer questions about foot pain.)
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August 2, 2021
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Archives |
Assessable Yet Not Assessed Taxes Could Cost You a Malpractice Claim
“Barnes was a Chapter 11. What relevance does it have in Chapter 13? Just this: it reminds us that the assessable taxes are an undeconsidered invitation to malpractice . . .”
Critical Case Comment
In a dismissed but reinstated case, should the bar date be extended for the benefit of creditors? “Once again, . . . case demonstrates to creditors that if you snooze, you lose.”
Federal Housing Administration Extends Single Family Eviction Moratorium
Today’s (7/30/21) announcement extends the eviction moratorium through September 30 for foreclosed borrowers and other occupants and notes expiration of the foreclosure moratorium on July 31.
From the CFPB
- CFPB Confirms Effective Date for Debt Collection Final Rules – CFPB announced that two final rules issued under the Fair Debt Collection Practices Act (FDCPA) will take effect as planned, on November 30, 2021. The CFPB issued a proposal in April 2021 that, if finalized, would have extended the effective dates to January 29, 2022. The CFPB has now determined that such an extension is unnecessary. Following this announcement, the CFPB will publish a formal notice in the Federal
From the IRS
Paid Leave Credit Available for Providing Leave to Employees Caring for Individuals Obtaining or Recovering from a COVID-19 Immunization (This could be applicable to YOU or clients)
From NCBRC
Just For Our Military
VA Partial Claim Program – This is new. Have you heard of it?
The VA Partial Claim Payment is a temporary program that is intended to assist Veteran borrowers specifically impacted by the COVID-19 pandemic to resume making their regular (pre-COVID) mortgage payments after exiting forbearance. VAPCP will only be available from July 27, 2021 through October 28, 2022.
Sub Chapter V
Eviction Ban
For Your Blog
- So, this is different . . .Housing Insecurity Media Toolkit – Easy to share information. For example, this handout: For Landlords – Squeezed between missed rental income and bills you owe? Help is available. And there are many others. Check it out.
Student Loans Chronicles
- Discharge Student Loans in Bankruptcy? Courts Disagree — But Reform Could Be Coming
From the Courts
- Middle District of TN – Return to in-person hearings/trials 9/7/21
- Eastern District of KY – Return to in-person hearings/trials 9/1/21
- Middle District of FL – New Local Rules
- District of NM – Form change for chapter 13 fee applications
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Northern District of OK – Scheduled to go live on NextGen 9/21
- Northern District of GA – CM/ECF will be unavailable beginning Friday, August 6, 2021 @ 5:00pm/EST until GANB is live on Next/Gen on Monday, August 9, 2021.
IN CASE YOU MISSED IT . . .
Critical Case Comment
An important new case regarding ‘student’ loans. Are private educational loans automatically excepted from discharge by § 523(a)(8)?
MORTGAGES IN THE NEWS (Not password protected)
Local Black Homebuyers Twice as Likely to Be Denied Loans – Here’s what could help. (While this article is specific to the Dayton, OH, area, seems to be a good amount of information that covers the nation.)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTHCARE IN THE NEWS (Not password protected)
Medical Debt Was Cut Nearly in Half in States that Expanded Medicaid – Non-expansion states saw a much smaller drop in new medical debt over the same period.
FOR YOUR HEALTH (Not password protected)
9 Things You Can Clean with Vinegar – Nontoxic, eco-friendly vinegar is a multipurpose cleaning solution that’s also great at killing bacteria (and it’s really cheap!!)
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July 26, 2021
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Archives |
“Stripping” Residential Mortgages and the Effect of 11 U.S.C. § 1111(b) – Part 2 Eleven Eleven What?
This week, Larry Ahern concludes his two-part review of “lien stripping.” The initial focus of his analysiswas to explore recent legislation that makes it easier for some individuals, especially farmers or small business owners, to modify residential mortgages, with special emphasis on the Small Business Reorganization Act of 2019. He also made some suggestions for tactics to consider before and during bankruptcy. He now concludes with an analysis of whether and how subsection 1111(b) may reinforce the residential lender’s position in a case under subchapter V of Chapter 11 and recent cases that have struggled over the issue.
Click here for Part 1 Strategies in Modification of Residential Mortgages
Critical Case Comment
An important new case regarding ‘student’ loans. Are private educational loans automatically excepted from discharge by § 523(a)(8)?
Beyond Professional Ethics
Continuing with our quarterly series directed to staff, Mr. Akers, very eloquently speaks to everyone – attorneys, trustees, CPAs, PHRs, Paraprofessionals, and clerical staff – from the new hire to the 30 year veteran employee.
“Being truthful is a valuable ethic that can actually help work be completed more quickly and in a quality manner.”
Just For Our Military
VA Partial Claim Program – This is new. Have you heard of it?
The VA Partial Claim Payment is a temporary program that is intended to assist Veteran borrowers specifically impacted by the COVID-19 pandemic to resume making their regular (pre-COVID) mortgage payments after exiting forbearance. VAPCP will only be available from July 27, 2021 through October 28, 2022.
Sub Chapter V
A Guide to the Small Business Reorganization Act of 2019
Judge Bonapfel has again edited/supplemented his SBRA materials as of July 12, 2021. Click here for the entire Guide.
The title page indicates the sections in which material revisions and additions occur.
Position Vacancies
Judgeship – Eleventh Circuit Seeks Applications for Bankruptcy Judge for the Middle District of Florida at Jacksonville – Application Deadline July 30, 2021
Student Loans Chronicles
From the Courts
- Middle District of TN – Return to in-person hearings/trials 9/7/21
- Eastern District of KY – Return to in-person hearings/trials 9/1/21
- Middle District of FL – New Local Rules – Click HERE to view a memorandum from Judge Lori V. Vaughan summarizing the changes.
- District of NM – Form change for chapter 13 fee applications
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Southern District of GA – Scheduled to go live on NextGen 10/12/21
- Northern District of OK – Scheduled to go live on NextGen 9/21
- Northern District of GA – CM/ECF will be unavailable beginning Friday, August 6, 2021 @ 5:00pm/EST until GANB is live on Next/Gen on Monday, August 9, 2021.
- Middle District of LA – CM/ECF will be unavailable fromThursday, July 22, 4:00pm until Next/Gen is live on Monday, July 26, 2021 at 8:00am.
IN CASE YOU MISSED IT . . .
The Importance of Using the Latest Master Mailing List for Serving Your Bankruptcy Documents
“If the Court does not have jurisdiction, then the orders it issues are ineffective as to the relief requested. Your client will not be happy about that. Nor will the Court. Of course, the creditor will be ever in your debt for ensuring that they were not bound to the order by the Bankruptcy Court.”
MORTGAGES IN THE NEWS (Not password protected)
Share of Mortgage Loans in Forbearance Decreases to 3.5% (1.75 million in forbearance plans)
IN THE NEWS (Not password protected)
Bankruptcy in the Northern District of Texas and Attorneys’ Fees (Chpt 13 case you are probably going to want to read!)
OF INTEREST (Not password protected)
House Judiciary Committee Announces Series of Hearings on Bankruptcy Reforms (The first one, which is next week, is on Chpt 11)
DEBT AND THE ECONOMY (Not password protected)
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July 19, 2021
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Archives |
A Review of Residential Mortgage “Stripping,” Recent Developments and the Effect of 11 U.S.C. § 1111(b) – Part 1 Strategies in Modification of Residential Mortgages
This week Ahern begins a two-part review of the power of an individual to alter the terms of a residential mortgage, among other liens. The primary focus of his analysis is to explore recent legislation that makes it easier for some individuals, especially farmers and small business owners, to modify residential mortgages, with special emphasis on the Small Business Reorganization Act of 2019 (SBRA). He makes some suggestions for small business debtors to consider before and during bankruptcy and will conclude in Part 2 with a description of the arcane topic of subsection 1111(b).
The Importance of Using the Latest Master Mailing List for Serving Your Bankruptcy Documents
“If the Court does not have jurisdiction, then the orders it issues are ineffective as to the relief requested. Your client will not be happy about that. Nor will the Court. Of course, the creditor will be ever in your debt for ensuring that they were not bound to the order by the Bankruptcy Court.”
Regarding the Judiciary
- Recalled Bankruptcy Judge – Eastern District of Michigan Recalls Judge Thomas J. Tucker
Sub Chapter V
A Guide to the Small Business Reorganization Act of 2019
Judge Bonapfel has again edited/supplemented his SBRA materials as of July 12, 2021. Click here for the entire Guide – FREE.
The title page indicates the sections in which material revisions and additions occur.
Eviction Ban
Final Mortgage Servicing Rule
On June 23, 2020, the CFPB published an Interim Final Rule regarding loss mitigation requirements during the COVID-19 emergency.
On June 28, 2021, they issued the 2021 Mortgage Servicing COVID-19 Final Rule
Click here for an Executive Summary
Click here for an Unofficial Redline
From JDSupra: Detailed Breakdown of the CFPB’s COVID-19 Mortgage Servicing Final Rule
A popular item from last week. . .
Foreclosure Ban
From NCBRC
Position Vacancies
Judgeship – Eleventh Circuit Seeks Applications for Bankruptcy Judge for the Middle District of Florida at Jacksonville – Application Deadline July 30, 2021
From the Courts
- Middle District of FL – New Local Rules – Click HERE to view a memorandum from Judge Lori V. Vaughan summarizing the changes.
- District of NM – Form change for chapter 13 fee applications
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Northern District of GA – CM/ECF will be unavailable beginning Friday, August 6, 2021 @ 5:00pm/EST until GANB is live on Next/Gen on Monday, August 9, 2021.
- Middle District of LA – CM/ECF will be unavailable fromThursday, July 22, 4:00pm until Next/Gen is live on Monday, July 26, 2021 at 8:00am.
IN CASE YOU MISSED IT . . .
The Kill Switch and The Stay
“There are not many reported bankruptcy decisions regarding the use of kill switches.”
More from this author:
MORTGAGES IN THE NEWS (Not password protected)
SUBCHAPTER V (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
FOR YOUR HEALTH (Not password protected)
‘Long COVID’: More than a quarter of COVID-19 patients still symptomatic after 6 months, 55% of ‘Long COVID’ sufferers reported fatigue, 25% had shortness of breath, and 26% had symptoms of depression
JUST FOR FUN (Not password protected)
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July 12, 2021
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Archives |
The Kill Switch and The Stay
“There are not many reported bankruptcy decisions regarding the use of kill switches.”
More from this author:
Critical Case Comment
A prior servicer of a mortgage claim subsequently transferred to another servicer could be held liable if the transferor servicer provided inadequate or incorrect information to the transferee.
Appointment of New Bankruptcy Judge
The Honorable Jamie A. Wilson has been appointed as bankruptcy judge in the Jackson office of the United States Bankruptcy Court for the Southern District of Mississippi. Judge Wilson has been assigned all active cases previously assigned to retired United States Bankruptcy Judge Neil P. Olack.
Final Mortgage Servicing Rule
On June 23, 2020, the CFPB published an Interim Final Rule regarding loss mitigation requirements during the COVID-19 emergency.
On June 28, 2021, they issued the 2021 Mortgage Servicing COVID-19 Final Rule
Click here for an Executive Summary
Click here for an Unofficial Redline
From JDSupra: Detailed Breakdown of the CFPB’s COVID-19 Mortgage Servicing Final Rule
From NCBRC
Positions Open
Judgeship – Eleventh Circuit Seeks Applications for Bankruptcy Judge for the Middle District of Florida at Jacksonville – Application Deadline July 30, 2021
Student Loans Chronicles
From the Courts
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Southern District of MS – The Honorable Neil P. Olack will retire on 6/30/21
- Northern District of GA – CM/ECF will be unavailable beginning Friday, August 6, 2021 @ 5:00pm/EST until GANB is live on Next/Gen on Monday, August 9, 2021.
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
Critical Case Comment
In awarding attorneys’ fees in a Chapter 13 case, a court is not limited to establishing the fee by use of the lodestar method; fees for services rendered should be based on the reasonable and customary fees charged by other attorneys performing the same or similar work.
IN THE NEWS (Not password protected)
SUBCHAPTER V (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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July 5, 2021
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Archives |
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Happy Birthday |
 |
Due to the holiday, we bring you an abbreviated update.
But we did want you to know that the
FINAL Mortgage Servicing Rule is out
Final Mortgage Servicing Rule
On June 23, 2020, the CFPB published an Interim Final Rule regarding loss mitigation requirements during the COVID-19 emergency.
On June 28, 2021, they issued the 2021 Mortgage Servicing COVID-19 Final Rule
Click here for an Executive Summary
Click here for an Unofficial Redline
From JDSupra: Detailed Breakdown of the CFPB’s COVID-19 Mortgage Servicing Final Rule
Very popular item from last week
Student Loans and the Supreme Court
- That’s a Brunner, Man. Supreme Court Declines to Revisit Overly Rigid Standard for Discharge of Student Loans in Bankruptcy
Positions Open
- Judgeship – Eleventh Circuit Seeks Applications for Bankruptcy Judge for the Middle District of Florida at Jacksonville – Application Deadline July 30, 2021
- Chapter 12 Trusteeship – Western, Middle and Eastern Districts of Louisiana – Application Deadline July 7
- Term Law Clerk Northern District of Mississippi – Application Deadline July 9
From the Courts
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Southern District of MS – The Honorable Neil P. Olack will retire on 6/30/21
IN CASE YOU MISSED IT . . .
Critical Case Comment
It constitutes an unfair discrimination, violative of 11 U.S.C. § 1322(b)(1), for a Chapter 13 plan which would pay more to a student loan than to the remaining general unsecured creditors. (Somers) In re Kane, 603 B.R. 491 (Bankr. C.D. Kan. June 18, 2019)
OF INTEREST (Not password protected)
Bankruptcy Filing Blocks Foreclosure Auction of Historic Lenox Mansion (Really cool house if you are into history.)
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
7 Drinks for Lowering Blood Pressure (Okay, some of these taste like crap BUT there are recipes that may make them more palatable! Overall a really helpful article.)
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June 28, 2021
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Archives |
Critical Case Comment
It constitutes an unfair discrimination, violative of 11 U.S.C. § 1322(b)(1), for a Chapter 13 plan which would pay more to a student loan than to the remaining general unsecured creditors.
Remember, Landlords Are Sacred Cows in Bankruptcy
“ . . . most common complaint is the landlord. These days the callers tell me they are a few months behind on the rent.”
Phil Lamos – Humble Sage
We at ConsiderChapter13.org are deeply saddened by the loss of one of our own. Phillip D. Lamos was a quiet, humble man. He loved his family, loved the law, and loved to serve others.
Student Loans and the Supreme Court
- That’s a Brunner, Man. Supreme Court Declines to Revisit Overly Rigid Standard for Discharge of Student Loans in Bankruptcy
Foreclosure Ban Extended
Biden Renews Foreclosure Ban One Last Time – Foreclosure, eviction protections to remain in place through the end of July
ACT 12 (Association of Chapter 12 Trustees)
ACT 12 has a really cool new website. Not only a new website but they have just posted a video – Intro to Chapter 12. Check it out!!
NACTT LIVE! July 7-10 – Still time to register with no late fee!!
Don’t Miss the Fun – Register NOW
Click here for the Program
Click here for the In-Person Registration NOW!
Not yet ready/can’t travel, the conference is being offered virtually.
“Business Day”
CFPB Issues Statement on Juneteenth Bill Truth in Lending Act Issue (You need to read this one . . . regarding “business day” under Regulation Z)
Positions Open
- Chapter 12 Trusteeship – Western, Middle and Eastern Districts of Louisiana – Application Deadline July 7
- Term Law Clerk Northern District of Mississippi – Application Deadline July 9
Student Loan Chronicles
From the Courts
- District of South Carolina – New Law Clerk for Judge Waites
- Northern District of GA – Consolidated Appropriations Act and New CM/ECF Events
- Southern District of MS – The Honorable Neil P. Olack will retire on 6/30/21
- District of MN – Tricia Pepin Selected as Next Clerk of the Bankruptcy Court
- District of MN – Proposed Changes to Chapter 13 Plan
- Northern District of GA – Nancy Whaley appointed Interim Trustee for cases formerly assigned to Mary Ida Townson
Sanctions and Irony and Fraud, Oh My!
- Omega Insurance Surrogacy Scandal Surpasses $6M in Claims – Yes, the victims were insured. But no, the insurance policy is not paying covered claims.
IN CASE YOU MISSED IT . . .
List It or Lose It: When Actual Knowledge Isn’t Enough
To actually effect abandonment of unadministered assets in a bankruptcy case, the asset in question must appear on Schedule A/B.
IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Fannie Mae and Freddie Mac State Borrower Assistance Map through March 31, 2021 (cool, interactive map with lots of info)
OF INTEREST (Not password protected)
Executory or Not Executory? That is the Question – NJ Bankruptcy Court Rules That Court-Ordered Specific Performance Renders a Contract Non-Executory
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
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June 21, 2021
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Archives |
List It or Lose It: When Actual Knowledge Isn’t Enough
To actually effect abandonment of unadministered assets in a bankruptcy case, the asset in question must appear on Schedule A/B.
Helping Our Clients Stay Afloat and Get Past the Covid-19 Tsunami
The article discusses some of the tactics available, including bankruptcy, that can be used by business owners, especially restaurateurs, who have been negatively impacted by governmental shutdowns this past year due to Covid-19. First published on CorporateLiveWire, May 2021
Retired Judge Passes Away
NACTT ANNUAL CONFERENCE LIVE! July 7-10
D.C. IS OPEN!! The program is phenomenal. BE THERE!
Along with the trial skills presentations and the ever popular Case Law Update, Keeping the Home and Paying the Mortgage Creditor won’t be just another mortgage panel – it will be cutting edge with information you will hear first at NACTT!
For anyone who is not yet ready/can’t travel, the conference is being offered via live stream and/or recordings.
Click here for the LIVE Registration NOW!
Judge Retires
U.S Bankruptcy Court Judge Robert Kressel Retires After Nearly 40 Years of Service
Click here for more information on Judge Kressel
New Judge Announced
Click here for more information on McAfee
Free On-Line Seminar
U.S. Trustee for the Western District of Michigan and Chapter 13 Trustee Barbara Foley are pleased to present a free seminar for the benefit of the Bar of the Western District of Michigan on July 19th.
From the Courts
- Delaware Bankruptcy Bench Is at Full Strength with Addition of Judge Craig Goldblatt
- Southern District of MS – The Honorable Neil P. Olack will retire on 6/30/21
- District of MN – Tricia Pepin Selected as Next Clerk of the Bankruptcy Court
- District of MN – Proposed Changes to Chapter 13 Plan
- Western District of MI – Administrative Order 2021-2 Regarding Interim Amendment of LBR 4001-1(b) and Deemed Waiver of Time Limits Under 11 U.S.C. Section 362(e)(1)
- Northern District of GA – Nancy Whaley appointed Interim Trustee for cases formerly assigned to Mary Ida Townson
- Western District of VA – New Local Rule regarding dismissal of certain adversaries
- District of MN – New Local Rules – Click here for red-lined version
- District of AZ – Transitioning to NextGen June 28th. Downtime starting Thursday, June 24, at 5:00pm through Monday, June 28, at 8:30am (MST)
For Your Blog
More Than a Third of Volunteers in a Consumer Reports Study Found Errors in Their Credit Reports – Here’s how to find and fix mistakes and avoid paying for a ‘free’ report
Sanctions and Irony and Fraud, Oh My!
- Choctaw County Man Accused of Lying About Purple Heart Admits Fraud: Alleged Scheme Cost Government More Than $800,000
IN CASE YOU MISSED IT . . .
Objections to Claims: Two of These Creditors Are Not Like the Others
This exceptional article is a case summary of In re Nicolaus and how it is helpful in determining proper service under 3007(a)(2)(A)(i). Attorney Tavera also discusses amendments to 3007(A)(2)(A)(ii) that become effective 12/1/2021.
IN THE NEWS (Not password protected)
MILITARY MATTERS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Mortgage Lenders Loosened Credit Standards in May – Numbers are consistent with an uptick in mortgage rates and a downturn in applications
OF INTEREST (Not password protected)
From NCBRC: Arizona District Court Addresses Eligibility for Exemptions (Chapter 7 case)
From NCBRC: Law Firm and Counsel Joint and Severally Liable for D/C Injunction Violation (Chapter 7 case)
DEBT AND THE ECONOMY (Not password protected)
U.S. Household Wealth Jumps to Record $136.9 Trillion, Fed Says (Could the headlines be any worse for those in the consumer bankruptcy industry!!)
THIS IS JUST FUNNY (Not password protected)
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June 14, 2021
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Archives |
Critical Case Comment
In awarding attorneys’ fees in a Chapter 13 case, a court is not limited to establishing the fee by use of the lodestar method; fees for services rendered should be based on the reasonable and customary fees charged by other attorneys performing the same or similar work.
Objections to Claims: Two of These Creditors Are Not Like the Others
This exceptional article is a case summary of In re Nicolaus and how it is helpful in determining proper service under 3007(a)(2)(A)(i). Attorney Tavera also discusses amendments to 3007(A)(2)(A)(ii) that become effective 12/1/2021.
Passing of a Legend
C. Kenneth Still was a legend. Always with Barbara at this side, he epitomized qualities I think we all seek—honesty, diligence, kindness, and patience. He was a great mentor and a quick wit, and I miss him already.
NACTT ANNUAL CONFERENCE LIVE!
The National Association of Chapter 13 Trustees is incredibly proud to announce that its annual conference in our nation’s capital will be presented LIVE. Yes, LIVE – as in attendees actually in the audience and speakers actually on the stage – July 7-10.
The program is phenomenal – click here to check it out.
Wanna head back to live court with better trial skills? THREE hours of trial skills at no additional cost! Not interested in how to properly introduce evidence, Don’t Forget Me! has you covered. A panel of the best of the best discussing a myriad of issues – confirmation, post-confirmation, and even post-discharge along with vesting and more.
Of course, for anyone who is not yet ready/can’t travel, the conference is being offered via live stream and/or recordings.
Click here for the LIVE Registration NOW!
Free On-Line Seminar
U.S. Trustee for the Western District of Michigan and Chapter 13 Trustee Barbara Foley are pleased to present a free seminar for the benefit of the Bar of the Western District of Michigan.
Then & Now: Rucker ‘At Home’ As New Federal Bankruptcy Judge
In April, the Eighth Circuit Court of Appeals appointed Fayetteville attorney Bianca Rucker to a 14-year term as Arkansas’ newest federal bankruptcy judge.
Webinar Recording Now Available
Credit Union Issues in Chapter 13
Join an esteemed panel for a detailed discussion regarding the nuances of working with credit union loans in Chapter 13 cases. Panel includes: The Honorable Brian Lynch, Bankruptcy Judge, Western District of Washington; Chapter 13 Standing Trustee Beverly Burden, Eastern District of Kentucky; and Miles D. Monson, Monson Law Firm, Beaverton, Oregon. Atty Monson regularly represents credit unions.
The webinar is available free to all active subscribers to ConsiderChapter13.org. Not a subscriber? JOIN NOW.
Position Postings
Trusteeship
- Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21
- Southern District of Texas, Brownsville, Corpus Christi and McAllen Divisions – Application deadline 6/22/21
Law Clerk
Student Loan Chronicles
From the Courts
- U.S. Judicial Conference Urges Senate to Back Security Funding
- Western District of MI – Administrative Order 2021-2 Regarding Interim Amendment of LBR 4001-1(b) and Deemed Waiver of Time Limits Under 11 U.S.C. Section 362(e)(1)
- Northern District of GA – Nancy Whaley appointed Interim Trustee for cases formerly assigned to Mary Ida Townson
- Western District of VA – New Local Rule regarding dismissal of certain adversaries
- District of MN – New Local Rules – Click here for red-lined version
- District of OR – Implementation of new calendar system (CHAP) will occur on May 24
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- District of AZ – Transitioning to NextGen June 28th. Downtime starting Thursday, June 24, at 5:00pm through Monday, June 28, at 8:30am (MST)
IN CASE YOU MISSED IT . . .
A Consideration of Employer Required COVID-19 Vaccinations
In a recent edition of The NACTT Quarterly, Trustee McCarty looks in detail at the legalities of employers requiring employees to receive vaccinations.
Special thank you to NACTT and The NACTT Quarterly, May/June/July 2021, Vol. 33, No. 3.
IN THE NEWS (Not password protected)
From Credit Slips: Bankruptcy Filing Rates Not Rising, May Go Lower
MILITARY MATTERS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
The Cost of Caregiving: When Financial and Emotional Stress Compound (If these numbers are true, definitely makes one have second thoughts about taking a leave of absence to care for an ill loved one.)
Workers Are Gaining Leverage Over Employers Right Before Our Eyes (Free article from the New York Times but you may have to create an account – it’s easy, just email address and password – no other questions.)
DEBT AND THE ECONOMY (Not password protected)
Evictions at Kentucky Trailer Park Highlight Ohio Valley’s Lack of Affordable Housing (A must read for anyone who has, perhaps, lost touch with the Chapter 13 client base.)
IN THE FAMILY VACATION DEPARTMENT (Not password protected)
Vacation Meal Planning Made Easy (A nifty website with multiple features including a potluck planner, a sign-up app for taking meals to a convalescing friend, and vacation meal planning help – it’s pretty cool.)
HEALTH AND WELLNESS (Not password protected)
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June 7, 2021
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Measuring Success in Chapter 13: Five Years Later
“Five years ago, I wrote an article for this publication,‘Measuring Success in Chapter 13,’ where I criticized some media and academics for repeating an outdated and misleading statistic about the success of chapter13 cases.”
It appears this statistic is STILL being quoted. Here, Judge Lynch sets the record straight.
A Consideration of Employer Required COVID-19 Vaccinations
In a recent edition of The NACTT Quarterly, Trustee McCarty looks in detail at the legalities of employers requiring employees to receive vaccinations.
Special thank you to NACTT and The NACTT Quarterly, May/June/July 2021, Vol. 33, No. 3.
NACTT ANNUAL CONFERENCE LIVE!
The National Association of Chapter 13 Trustees is incredibly proud to announce that its annual conference in our nation’s capital will be presented LIVE. Yes, LIVE – as in attendees actually in the audience and speakers actually on the stage – July 7-10.
The program is phenomenal – click here to check it out.
Of course, for anyone who is not yet ready/can’t travel, the conference is being offered via live stream and/or recordings.
Click here for the LIVE Registration NOW!
Conflict Avoidance
Understanding your colleagues and/or co-workers, and even yourself, can help ease conflicts.
Does it drive you crazy when people don’t honor ‘your’ time? Or, are you confused when you are ONE MINUTE late and someone is really ticked off about it!
Understanding personality types can help people described in either of these questions. Meeting Time is a short, easy read but a GREAT reminder that we are all different.
Passing of Big Picture Thinker
Joseph L. Cosetti, Bankruptcy Court Judge Who Also Served as Pittsburgh Treasurer for 7 Years
Passing of Stuart Gold
Long-time respected member of the New Jersey bankruptcy bar and adjunct professor passed away 5/30.
Webinar Recording Now Available
Credit Union Issues in Chapter 13
Join an esteemed panel for a detailed discussion regarding the nuances of working with credit union loans in Chapter 13 cases. Panel includes: The Honorable Brian Lynch, Bankruptcy Judge, Western District of Washington; Chapter 13 Standing Trustee Beverly Burden, Eastern District of Kentucky; and Miles D. Monson, Monson Law Firm, Beaverton, Oregon. Atty Monson regularly represents credit unions.
The webinar is available free to all active subscribers to ConsiderChapter13.org. Not a subscriber? Join NOW.
From the IRS
Looking Ahead: How the American Rescue Plan Affects 2021 Taxes: Part 1 and Part 2 (Not sure how much this matters but it appears there is money your clients could be leaving on the table – even EITC for people who don’t have children.)
A popular item from 5/24 – 6 Million Tax Returns Are ‘In Suspension’ at the IRS, and That’s Preventing Many Families from Receiving Valuable Tax Credit
On the CFPB
Position Postings
Trusteeship
- Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21
- Southern District of Texas, Brownsville, Corpus Christi and McAllen Divisions – Application deadline 6/22/21
Law Clerk
From the Courts
- District of MN – New Local Rules – Click here for red-lined version
- Western District of VA – Reopening of in-person hearings (Beginning to see a lot of these!!)
- Eastern District of TN – Resumption of Handwritten Signature Requirement – Note that this is happening across the country – be sure to check your local rules.
- District of SC – Best Wishes to Andrew Powell and Agnes Babb – (Powell will serve as the staff attorney for new chapter 13 trustee, Annemarie Mathews.)
- District of OR – Implementation of new calendar system (CHAP) will occur on May 24
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- District of AZ – Transitioning to NextGen June 28th. Downtime starting Thursday, June 24, at 5:00pm through Monday, June 28, at 8:30am (MST)
For Your Blog
IN CASE YOU MISSED IT . . .
Bankruptcy Court Broadly Interprets “Engaged in Business” Requirement for Subchapter V Eligibility
This week, Larry Ahern revisits the SBRA, as modified by the CARES Act, and examines In re Ikalowych, an opinion interpreting debtors’ eligibility for subchapter V of Chapter 11 in a way that could make Chapter 11 accessible for more debtors who are “engaged in commercial or business activities.”
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
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May 31, 2021
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Archives |
As we remember those who have served, we at
ConsiderChapter13.org are taking a much needed break.
We hope that you will take this opportunity to catch up on the
many excellent articles and/or webinars for which
you’ve been trying to find time.
We are already working on an exciting new update for June 7th.
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May 24, 2021
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Archives |
Bankruptcy Court Broadly Interprets “Engaged in Business” Requirement for Subchapter V Eligibility
This week, Larry Ahern revisits the SBRA, as modified by the CARES Act, and examines In re Ikalowych, an opinion interpreting debtors’ eligibility for subchapter V of Chapter 11 in a way that could make Chapter 11 accessible for more debtors who are “engaged in commercial or business activities.”
What the FICO? Reaffirming Doesn’t Help My Credit Score?
The fact that reaffirmation decisions are subject to more variables doesnot mean attorneys can just “go along” with Debtors – at least under Anzaldo, debtors’ attorneys need to stay informed and have a sound basis for signing off on the “attorney certification”.
See also:
Reaffirmations Impose Impossible Demands on Bankruptcy Counsel
Chapter 13 Trustee Change
Annemarie B. Mathews to replace retiring chapter 13 standing trustee Wm. Keenan Stephenson, Jr.
New Paper from Yale Law Review
Grifters take advantage of situations, latching on to others for benefits they do not deserve. Bankruptcy has many desirable benefits, especially for mass tort defendants. Bankruptcy provides a centralized proceeding for resolving claims, making it a forum of last resort for many companies to aggregate and resolve mass tort liability. For the debtor-defendant, this makes sense. A bankruptcy court’s tremendous power represents a well-considered balance between debtors who have a limited amount of money and many claimants seeking payment. (Seems to be more Chapter 11 related.)
On the CFPB
- CFPB Takes Action Against Debt-Settlement Company DMB Financial for Charging Consumers Unlawful Fees – Proposed Settlement Would Require DMB to Pay $5.4 Million to Consumers
Position Postings
Trusteeship
Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21Law Clerk
E.D. of Michigan – Application deadline 5/28/21
Northern District of OH
Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21Law Clerk
E.D. of Michigan – Application deadline 5/28/21
Northern District of OH
From the Courts
- Eastern District of TN – Resumption of Handwritten Signature Requirement – Note that this is happening across the country – be sure to check your local rules.
- District of OR – Implementation of new calendar system (CHAP) will occur on May 24
- Northern District of OK – Court and Federal Building closed Friday, May 28, in observance of the Tulsa Race Massacre
- Districts of WA – Washington State Legislature Significantly Amends Homestead Law Effective May 12, 2021
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Eastern District of MI – Notice Regarding Disclosure for Domestic Support in Chapter12
- Northern District of IL – Transitioning to NextGen 5/24/21
For Your Blog
FEMA Offers Financial Assistance for COVID-Related Funeral Expenses
The Benefits Division would like to make sure all are aware that under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 and the American Rescue Plan Act of 2021, FEMA is providing financial assistance for COVID-19 related funeral expenses incurred after January 20, 2020. This assistance is available to any eligible individuals, not just federal employees.
IN CASE YOU MISSED IT . . .
Tell the Story
“. . . until judges develop an appreciation about how hard the consumer practice is, we will continue to be underpaid.”
(Be sure to note the reinforcing comment from a Bankruptcy Judge at the end of this article.)
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
As the Pandemic Recedes, Small Businesses Face a New Plague: Debt Collectors – Creditors may have held off collecting unpaid debts but rest assured, they’ll want to get paid.
MILITARY MATTERS (Not password protected)
Government Promised to Forgive Military Members’ Student Loans After 10 Years of Service — It’s only worked for 124 of them
HEALTH AND WELLNESS (Not password protected)
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May 17, 2021
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Archives |
Tell the Story
“. . . until judges develop an appreciation about how hard the consumer practice is, we will continue to be underpaid.”
From the Editor – Claims
This week, Judge Brown, takes a look at four cases, each dealing with a claims issue.
Legislation Update
- A Trump Rule Paved the Way for Predatory Lending – Window to Reverse It Is Closing (Good background story written just prior to Senate vote)
New Paper from Yale Law Review
Grifters take advantage of situations, latching on to others for benefits they do not deserve. Bankruptcy has many desirable benefits, especially for mass tort defendants. Bankruptcy provides a centralized proceeding for resolving claims, making it a forum of last resort for many companies to aggregate and resolve mass tort liability. For the debtor-defendant, this makes sense. A bankruptcy court’s tremendous power represents a well-considered balance between debtors who have a limited amount of money and many claimants seeking payment. (Seems to be more Chapter 11 related.)
Illinois Judge Retires
Position Postings
Trusteeship
Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21Law Clerk
United States Bankruptcy Court for the E.D. of Michigan
Northern District of Georgia, Atlanta and Rome Divisions – Application deadline 6/15/21Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21Law Clerk
United States Bankruptcy Court for the E.D. of Michigan
Student Loan Chronicles
From the Courts Extra
Northern District of OK – Court and The Federal Building shall be closed for business on Friday, May 28, 2021, in observance of the Tulsa Race Massacre
From the Courts
- Districts of WA – Washington State Legislature Significantly Amends Homestead Law Effective May 12, 2021
- Eastern District of MI – Notice Regarding Disclosure for Domestic Support in Chapter12
- Eastern District of MO – How to be Successful in Bankruptcy Court
- District of SC – Summary of Recent Changes to Local Rule 9013-4 and Other Recent Guidance (Judge Waites)
- Southern District of FL – Guidelines for Preparing, Submitting and Serving Orders (completely changed)
- District of CO – Increase in Presumptively Reasonable Fee Allowance
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Eastern District of MI – Transitioning to Next Gen 6/1/21
- Northern District of IL – Transitioning to NextGen 5/24/21
IN CASE YOU MISSED IT . . .
Bankruptcy Court Finds Jurisdiction to Hear Discharge-Injunction Violation Class Action
This week, Larry Ahern examines In re Ajasa, an opinion rendered in a nationwide class action based on alleged discharge-injunction violations. Larry clarifies the relatively narrow but important jurisdictional issue addressed in this case, explains the outcome and concludes with an observation about one of its broader implications. Look for other discussions of discharge violations, debt reporting and class actions in this space.
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
Releasing the Social Animal Back Into the Wild – It’s time for a confession: some of us are slightly terrified of transitioning back to doing business in person. (A fun and thought provoking read.)
DEBT AND THE ECONOMY (Not password protected)
One Big Question About the Dramatically Lower US Credit Card Debt – In data released Wednesday from the New York Fed, credit card balances shrunk by $49 billion, compared to the last quarter.
Unemployed Americans Thought They’d Receive Benefits Until September – Now that aid is in jeopardy (This article does a pretty good job of showing both sides of this issue.)
MILITARY MATTERS (Not password protected)
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May 10, 2021
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Assumption of Auto Lease in Chapter 7 Requires No Court Approval Says the 9th Circuit: In re Bobka
In Bobka v. Toyota, the chapter 7 debtor wanted to retain her leased Toyota. Toyota sent her an “assumption agreement” which she signed and returned to Toyota the day before she received her discharge. . . . The debtor later decided to return the Toyota who immediately began “collection efforts”. .
Bankruptcy Court Finds Jurisdiction to Hear Discharge-Injunction Violation Class Action
This week, Larry Ahern examines In re Ajasa, an opinion rendered in a nationwide class action based on alleged discharge-injunction violations. Larry clarifies the relatively narrow but important jurisdictional issue addressed in this case, explains the outcome and concludes with an observation about one of its broader implications. Look for other discussions of discharge violations, debt reporting and class actions in this space.
The Biggest News of the Week
CARES Act Financial Hardship ‘Laundry List’
During the Academy webinar The CARES Act – Impacts on Chapter 13 on April 2, 2020, the panel – Judge Wm. Houston Brown (Retired), Amanda DeBerry and Henry Hildebrand – referred to the importance of detailing the reasons for modifications or suspensions to be related to financial hardship stemming from the COVID-19 pandemic. The bankruptcy section of the CARES Act does not detail what would constitute a coronavirus related financial hardship. The statute only says: “the debtor is experiencing or has experienced a material financial hardship due, directly or indirectly, to the coronavirus disease (COVID-19) pandemic” . . .In this article, Hildebrand outlines what constitutes a pandemic related financial hardship.Not a ConsiderChapter13.org subscriber? Join NOW.
In the “Just Plain Interesting” Category
Registration for Online Event
Federal Bankruptcy Judge to Keynote PuLSE Forum on Bankruptcy & Poverty May 25th, 4:30-6:00 Central
On the CFPB
- Making Ends Meet Series: Consumer Use of Payday, Auto Title, and Pawn Loans – In a new report in the CFPB’s Making Ends Meet series, we find that consumers who use a payday, auto title, or pawn loan in one year are often still using that type of loan a year later. Some users of these services have lower cost credit available on credit cards, while others lack access to traditional credit. Among payday, auto title and pawn loan borrowers who experience significant financial shocks, the costs of these shocks often exceed other possible sources of funds.
Two important items from last week . . .
- CFPB Delays Mandatory Compliance Date for General Qualified Mortgage Final Rule from July 1, 2021 to October 1, 2022
Sub Chapter V
A Guide to the Small Business Reorganization Act of 2019
Judge Bonapfel has again edited/supplemented his SBRA materials. Click here for the entire Guide – FREE.The supplemental materials are in Part XV and is designed as a “pocket part.”As with the previous supplement, this version contains a new chapter, Chapter XV, which supplements the original text and the previous supplement in Chapter XIV. Except for some editorial revisions, the original text and Chapter XIV are unchanged.
Eviction Ban
- Federal Judge Vacates CDC’s Nationwide Eviction Moratorium (But it doesn’t really change anything.)
- Emergency Bans on Evictions and Other Tenant Protections Related to Coronavirus (Even in light of the CDC’s order, some states are allowing evictions to proceed – this website has a nifty list by state of who is doing what. Updated 5/5/21)
Position Postings
Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21
From the Courts
- Eastern District of MO – How to be Successful in Bankruptcy Court
- District of SC – Summary of Recent Changes to Local Rule 9013-4 and Other Recent Guidance (Judge Waites)
- District of ND – Beginning May 3, Court will file digital audio recordings of oral orders and rulings from the bench, allowing the public to access them through PACER
- Southern District of FL – Guidelines for Preparing, Submitting and Serving Orders (completely changed)
- District of CO – Increase in Presumptively Reasonable Fee Allowance
- District of NM – New Plan and Local Rule Effective 5/1/21
- Middle District of GA – New Local Rules
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Eastern District of MI – Transitioning to Next Gen 6/1/21
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
For Your Blog
IN CASE YOU MISSED IT . . .
Parker, HOA, and Sanctions – Multiple Thrills to a Bankruptcy Lawyer’s Heart
“. . . stamping the payment demands as “For Information Only” didn’t save the day for the HOA.”
IN THE NEWS (Not password protected)
April 2021 New Bankruptcy Filings Continue Steady Increase Over COVID Lows (Ahhhh, what a lovely headline!)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
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May 3, 2021
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Archives |
Parker, HOA, and Sanctions – Multiple Thrills to a Bankruptcy Lawyer’s Heart
“. . . stamping the payment demands as “For Information Only” didn’t save the day for the HOA.”
Critical Case Comment
In calculating an above-median income debtor’s projected disposable income, the court may deduct from the debtor’s current monthly income only the expenses as listed in the IRS manual and not the debtor’s actual expenses.
Registration for Online Event
Federal Bankruptcy Judge to Keynote PuLSE Forum on Bankruptcy & Poverty May 25th, 4:30-6:00 Central
On the CFPB
- CFPB Delays Mandatory Compliance Date for General Qualified Mortgage Final Rule from July 1, 2021 to October 1, 2022
Hunstein v. Preferred Collection & Mgmt. Services, Inc.
Sub Chapter V
A Guide to the Small Business Reorganization Act of 2019
Judge Bonapfel has again edited/supplemented his SBRAmaterials. Click here for the entire Guide – FREE.
The supplemental materials are in Part XV and is designed as a “pocket part.”
As with the previous supplement, this version contains a new chapter, Chapter XV, which supplements the original text and the previous supplement in Chapter XIV. Except for some editorial revisions, the original text and Chapter XIV are unchanged.
From the IRS
Popular item from last week Why Tax Refunds Are Taking Longer Than Usual (Article starts out somewhat elementary but then provides some useful information.)
From NCBRC
Debtor Loses the Battle but Wins the War – Confirmed plan binds county tax creditor even though plan did not provide for the interest claimed in its post-confirmation proof of claim where the county had notice of the plan and failed to object to confirmation. In re Bird, 624 B.R. 841 (Bankr. N.D. Ill., Feb. 2, 2021) (case no. 1:17-bk-2072).
Debtor May Avoid County Tax Foreclosure Sale – County’s tax sale of debtor’s farm was avoidable as constructively fraudulent under section 548, where debtor was insolvent at the time of the title transfer and the tax debt was substantially less than fair market value of the property. DuVall v. County of Ontario, No. 19-20179, Adv. Proc. No. 19-2011 (Bankr. W.D. N.Y. Feb. 18, 2021).
Eviction Ban
- Emergency Bans on Evictions and Other Tenant Protections Related to Coronavirus (Even in light of the CDC’s order, some states are allowing evictions to proceed – this website has a nifty list by state of who is doing what. Updated 4/26/21)
Position Postings
Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21Term Law Clerks – District of Colorado
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21Term Law Clerks – District of Colorado
From the Courts
- District of SC – Summary of Recent Changes to Local Rule 9013-4 and Other Recent Guidance (Judge Waites)
- District of ND – Beginning Monday, May 3, 2021, the United States Bankruptcy Court for the District of North Dakota will file digital audio recordings of oral orders and rulings from the bench, allowing the public to access these recordings online through the Public Access to Court Electronic Records (PACER)
- Southern District of FL – Guidelines for Preparing, Submitting and Serving Orders (completely changed)
- District of CO – Increase in Presumptively Reasonable Fee Allowance
- District of NM – New Plan and Local Rule Effective 5/1/21
- Middle District of GA – New Local Rules
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
For Your Blog
- Federal Aid to Renters Moves Slowly, Leaving Many at Risk – Congress allocated $25 billion in December and another $21 billion in March to help people who fell behind on rent during the pandemic. Little has reached landlords or tenants.
- Information for Student Loan Borrowers – Principal and interest payments on federally held student loans are automatically suspended through September 30, 2021.
Sanctions and Irony and Fraud, Oh My!
Student Loan Chronicles
- Student-Loan Borrowers Are Battling for Relief Even after Biden’s Administration Canceled $2.3 Billion: ‘We were taken advantage of’
IN CASE YOU MISSED IT . . .
Did Congress Mean What It Said in Section 1328(i)?
“Had Congress intended the Court’s inquiry to end at the consideration of only the bare statutory prerequisites of section 1328(i), it would have used the constraining ‘shall,’ as it has in other subsections of § 1328, rather than the discretionary ‘may.’”
IN THE NEWS (Not password protected)
Experian’s Credit Freeze Security is Still a Joke (Could also be a topic for your blog)
From Justia: Francis v. Desmond, No. 19-9011 (1st Cir. 2021)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Credit Scores, and the End of Mortgage Forbearance – Experts discussed the future of credit scores and the specter of policy changes
OF INTEREST (Not password protected)
SUBCHAPTER V (Not password protected)
HEALTH AND WELLNESS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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April 26, 2021
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Archives |
Did Congress Mean What It Said in Section 1328(i)?
“Had Congress intended the Court’s inquiry to end at the consideration of only the bare statutory prerequisites of section 1328(i), it would have used the constraining ‘shall,’ as it has in other subsections of § 1328, rather than the discretionary ‘may.’”
I’ve Looked at Clouds from Both Sides Now
“Either side can find themselves in egregiously stressful circumstances.”
Sub Chapter V
A Guide to the Small Business Reorganization Act of 2019
Judge Bonapfel has again edited/supplemented his SBRAmaterials. Click here for the entire Guide – FREE.
The supplemental materials are in Part XV and is designed as a “pocket part.”
As with the previous supplement, this version contains a new chapter, Chapter XV, which supplements the original text and the previous supplement in Chapter XIV. Except for some editorial revisions, the original text and Chapter XIV are unchanged.
From the IRS
- Why Tax Refunds Are Taking Longer Than Usual (Article starts out somewhat elementary but then provides some useful information.)
From the National Consumer Law Center
Eviction Ban
- Emergency Bans on Evictions and Other Tenant Protections Related to Coronavirus (Even in light of the CDC’s order, some states are allowing evictions to proceed – this website has a nifty list by state of who is doing what. Updated 4/20/21)
Position Postings
Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21Trusteeship – Eastern District of Pennsylvania – Application deadline 4/30/21Term Law Clerks – District of ColoradoTerm Law Clerks – Northern District of Indiana DISTRICT CourtPaid Internship – District of Kansas – Applications are being accepted for a paid internship for a college junior or senior in the new Model Intern Diversity Pilot Program – internship starts in June.
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21Trusteeship – Eastern District of Pennsylvania – Application deadline 4/30/21Term Law Clerks – District of ColoradoTerm Law Clerks – Northern District of Indiana DISTRICT CourtPaid Internship – District of Kansas – Applications are being accepted for a paid internship for a college junior or senior in the new Model Intern Diversity Pilot Program – internship starts in June.
From the Courts
- Southern District of FL – Guidelines for Preparing, Submitting and Serving Orders (completely changed)
- District of CO – Increase in Presumptively Reasonable Fee Allowance
- District of NM – New Plan and Local Rule Effective 5/1/21
- Middle District of GA – New Local Rules
- District of Columbia – Comment Invitation – Plan and New Local Rule
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
Student Loan Chronicles
- Information for Student Loan Borrowers – Principal and interest payments on federally held student loans are automatically suspended through September 30, 2021.
IN CASE YOU MISSED IT . . .
Of Tax Refunds, Exemptions, Setoffs, and Roman Gods
“If you’re looking for a well-written and clear appellate opinion about a much-litigated topic, with a bit of ancient mythology thrown in for good measure, this HUD’s for you.” (waka waka!)
IN THE NEWS (Not password protected)
Credit Scores, and the End of Mortgage Forbearance – Experts discussed the future of credit scores and the specter of policy changes
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Here It Is: A Bill to Help First-Time Homebuyersrs – But it’s not a tax credit, and conditions limit how many people will qualify
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
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April 19, 2021
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Archives |
Of Tax Refunds, Exemptions, Setoffs, and Roman Gods
“If you’re looking for a well-written and clear appellate opinion about a much-litigated topic, with a bit of ancient mythology thrown in for good measure, this HUD’s for you.” (waka waka!)
Bankruptcy Courts Grapple with the “COVID-19 Discharge”
Larry Ahern has previously reported on bankruptcy-related legislation passed in 2019 and amended in response to the COVID-19 pandemic. This week, he returns to the subject and focuses on the “COVID-19 Discharge,” created temporarily by the Consolidated Appropriations Act, 2021 (“CAA”), in light of recent decisions from the Bankruptcy Courts in California and South Carolina.
New Judge Appointed
On April 6 J. Kate Stickles was sworn in as the newest judge of the United States Bankruptcy Court for the District of Delaware. Judge Stickles becomes the latest judge to join the Delaware Bankruptcy Court since Judges John T. Dorsey and Karen B. Owens were sworn onto the bench in 2019.
New Term of the Week
What the heck is blockchain?
From Epiq: The Future of Blockchain and eDiscovery: What Should the Legal Industry Expect? (Not specific to Chapter 13 – If you don’t care what bitcoin is, you probably won’t care about blockchain.)
Eviction Ban
- Emergency Bans on Evictions and Other Tenant Protections Related to Coronavirus (Even in light of the CDC’s order, some states are allowing evictions to proceed – this website has a nifty list by state of who is doing what.)
Position Postings
Judgeship
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21Trusteeship – Eastern District of Pennsylvania – Application deadline 4/30/21Term Law Clerks – District of ColoradoTerm Law Clerks – Northern District of Indiana DISTRICT CourtPaid Internship – District of Kansas – Applications are being accepted for a paid internship for a college junior or senior in the new Model Intern Diversity Pilot Program – internship starts in June.
Middle District of Florida – Application deadline 6/7/21
Middle District of Alabama – Application deadline 6/7/21Trusteeship – Eastern District of Pennsylvania – Application deadline 4/30/21Term Law Clerks – District of ColoradoTerm Law Clerks – Northern District of Indiana DISTRICT CourtPaid Internship – District of Kansas – Applications are being accepted for a paid internship for a college junior or senior in the new Model Intern Diversity Pilot Program – internship starts in June.
Fair Credit Reporting Act
From the Courts
- District of CO – Increase in Presumptively Reasonable Fee Allowance
- District of NM – New Plan and Local Rule Effective 5/1/21
- Middle District of GA – New Local Rules
- District of Columbia – Comment Invitation – Plan and New Local Rule
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Southern District of FL – New Student Loan Program Effective 5/3/21
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
- Central District of CA – Transitioning to NextGen 4/26/21 – CM/ECF will be down from noon on Thursday, 4/22 until 9:00 a.m. Monday 4/26
For Your Blog
- $1,400 Stimulus Checks Can Be Garnished for Unpaid Debts. Some states are working to prevent that
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
Federal Payments for Foster Care and Adoption Assistance in Bankruptcy
If a Chapter 13 Debtor has adopted a child who is eligible for assistance under Title IV-E of the Social Security Act, should those funds which were received in the six months prior to filing the petition be included in the Official Form 122C–1 Chapter 13 Statement of Current Monthly Income?
MORTGAGES AND DEEDS OF TRUST (Not password protected)
U.S. Foreclosure Activity Continues to Increase Despite Government Moratorium (Article contains some interesting statistics you may not have seen before.)
Federal Housing Finance Agency: Foreclosure Prevention, Refinance and FPM Report – January 2021 (Published: 4/16/2021)
CFPB Issues Warning to Mortgage Servicers (Refers to the April 1 warning but this article is very concise – if you are in the mortgage service industry and have ignored their warning, this is a short article you should read.)
OF INTEREST (Not password protected)
SUBCHAPTER V (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
What Does Your Sleeping Position Say About Your Personality and Health? (This is more for fun than real information.)
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April 12, 2021
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Archives |
Federal Payments for Foster Care and Adoption Assistance in Bankruptcy
If a Chapter 13 Debtor has adopted a child who is eligible for assistance under Title IV-E of the Social Security Act, should those funds which were received in the six months prior to filing the petition be included in the Official Form 122C–1 Chapter 13 Statement of Current Monthly Income?
Finally, Some Good News, Well At Least in Our Business
- March Total Bankruptcy Filings Increase 39% from Previous Month; First Quarter Bankruptcies Down 40% from 2020
But Then There is a Flip Side
From Credit Slips: Bankruptcy Filings Are Still Super Low–Don’t Believe the Headlines
Extension of CARES Act Provisions
- Extensions of CARES Act Provisions By COVID-19 Bankruptcy Relief Extension Act of 2021 – H.R.1651 – No longer legislation but actual law, signed by the President 3/27/21.
Bankruptcy Study by Foohey, Lawless and Thorne
As with The Bill proposed last year, many aspects of this study will be controversial.At base it says nothing negative about Chapter13 other than people’s financial problems don’t fit neatly into either Chapter 7 or Chapter 13thus is supportive of the proposed bankruptcy-a-la-carte bill. The study seems to come down emphatically that much of what drives people to seek bankruptcy has to do with societal inequities and the lack of a functioning safety net.See also:
Foreclosure Ban
- From Housingwire: CFPB Proposes Foreclosure Ban until 2022 – Amending Regulation X to give servicers and homeowners more time to work through options
- Does CFPB Have Authority to Postpone Foreclosures? Proposal may force servicers to violate covenants of investors who bought the loan
Another ‘Good News’ Headline Only Consumer Bankruptcy Attorneys will Appreciate
Risky Borrowers Are Falling Behind on Car Payments (Wall Street Journal Subscriber Only Article – Below is the free blurb)
More subprime borrowers are missing monthly payments on their cars and trucks, pointing to an uneven economic recovery. Some 10.9% of subprime borrowers with outstanding auto loans or leases were more than 60 days past due in February, up from 10.7% in January and 8.7% a year prior, according to credit-reporting firm TransUnion. It marked the sixth consecutive month-over-month increase and the highest level in monthly data going back to January 2019.More than 9% of subprime auto borrowers were more than 60 days past due in the fourth quarter, the highest quarterly figure in data going back to 2005.Not Password Protected on the Same Topic:
From SCOTUS
For those keeping an eye on the mortgage issue in Jones v. U.S. Bank, N.A., U.S., No. 20-1064, cert. denied 4/5/21.
Eviction Ban
- Emergency Bans on Evictions and Other Tenant Protections Related to Coronavirus (Even in light of the CDC’s order, some states are allowing evictions to proceed – this website has a nifty list by state of who is doing what.)
- ‘The Exact Wrong Time:’ Evictions resume (in Hamilton County, Ohio) as pandemic-triggered moratorium is put in doubt
Positions Open
Judgeship
- Middle District of Florida – Application deadline 6/7/21
Trusteeship
- Eastern District of Pennsylvania – Application deadline 4/30/21
From the IRS
- Treasury/IRS Provide Guidance on Tax Relief for Deductions for Food or Beverages from Restaurants – Businesses can temporarily deduct 100% beginning Jan. 1, 2021 (Save those receipts!)
- IRS Extends Additional Tax Deadlines for Individuals to May 17 – Time to make contributions to IRAs and health savings accounts extended to May 17
- Click here for Previous Announcement
- IRS Reminds Taxpayers to Make April 15 Estimated Tax Payment (In case there was any question – paperwork deadlines are extended but NOT payment!)
Taxation
See also Academy Resource:
From the Courts
- Middle District of GA – New Local Rules
- District of Columbia – Comment Invitation – Plan and New Local Rule
- Middle District of FL –Judge Jennemann has announced her retirement effective 2/22
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Southern District of FL – New Student Loan Program Effective 5/3/21
- Middle District of FL – Proposed Local Rules Available for Comment
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
- Central District of CA – Transitioning to NextGen 4/26/21 – CM/ECF will be down from noon on Thursday, 4/22 until 9:00 a.m. Monday 4/26
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
- Bankruptcy Judge Grants Extra Time to Probe Zayat’s Finances – Judge overseeing Ahmed Zayat’s Chapter 7 ordered trustee will have through Apr. 30 to pore over financial documentation to make sure the allegedly insolvent owner and breeder of Triple Crown champ American Pharoah isn’t hiding assets.
IN CASE YOU MISSED IT . . .
The “Snapshot” Rule – Part 2: When is the Rule Not Determinative?
In Part 1, Larry Ahern summarized recent cases and considered how and why the circuits are more consistently finding the petition date to be determinative of the exempt status of assets (the “snapshot” rule). In this Part 2, he asks when the rule might not apply in different circumstances.Click here for Part 1- The Circuits Begin to Line Up
IN THE NEWS (Not password protected)
Most Big Debt Collectors Backed Off During Pandemic – Little-Known Sherman Financial Filed More Collection Lawsuits After Lockdowns Began
OF INTEREST (Not password protected)
For FDCPA Litigators, New Lessons on Standing – Whether you represent FDCPA plaintiffs or defendants, recent decisions provide new insight on how standing issues may affect your case.
Supreme Court Takes a Chainsaw to the TCPA (Same case reported last week but different article.)
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
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April 5, 2021
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Archives |
Extensions of CARES Act Provisions By COVID-19 Bankruptcy Relief Extension Act of 2021
H.R.1651 – No longer legislation but actual law, signed by the President 3/27/21.
The “Snapshot” Rule – Part 2: When is the Rule Not Determinative?
In Part 1, Larry Ahern summarized recent cases and considered how and why the circuits are more consistently finding the petition date to be determinative of the exempt status of assets (the “snapshot” rule). In this Part 2, he asks when the rule might not apply in different circumstances.
United States Trustee Program Alert
In case you missed this last week . . . Notice to Chapter 7 and 13 Trustees Regarding Treatment of Recovery Rebates and Tax Credits for Consumer Bankruptcy Debtors Under the American Rescue Plan Act of 2021
“In Summary – Chapter 7 and 13 trustees should not consider recovery rebates or child tax credits in administering estate assets or calculating disposable income in chapter 13 repayment plans.”
Tax on Unemployment Benefits Your Client Never Received – How to Fight Back Against Scams
Although written for Californians, this is a huge, national issue. Simply replace the acronym EDD for your state’s unemployment entity.See also:
From SCOTUS
Eviction Ban
- Federal Eviction Moratorium Extended Just 2 Days Before Expiration (Extended thru June of this year)
From the IRS
- IRS Extends Additional Tax Deadlines for Individuals to May 17 – Time to make contributions to IRAs and health savings accounts extended to May 17
- Click here forPrevious Announcement
From the CFPB
- CFPB Rescinds Series of Policy Statements to Ensure Industry Complies with Consumer Protection Laws (Pertains to mortgages, credit reporting, credit cards and prepaid cards)
Subchapter V
Debt limit cap extended to March 27, 2022.
From the Courts
- Eastern District of WI – Mandatory Use of Revised Model Plan Effective 6/1/21
- Southern District of FL – New Student Loan Program Effective 5/3/21
- Middle District of FL – Proposed Local Rules Available for Comment
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
- Central District of CA – Transitioning to NextGen 4/26/21 – CM/ECF will be down from noon on Thursday, 4/22 until 9:00 a.m. Monday 4/26
Student Loan Chronicles
Coronavirus and Forbearance Info for Students, Borrowers, and Parents – Updated 3/30/21
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
Critical Case Comment
Section 1328(i) requires the court to consider the discharge provisions of §§ 1328(a) through (h) and the fact that incomplete personal residence mortgage payments or a forbearance do not preclude but do not compel a COVID-19 Discharge.See Also Legislation to Watch below. It appears that extension of the new § 1328(i) provision created under the Consolidated Appropriations Acthas been omitted from the current Bill making its way to the President’s desk. BUT AS OF PRESS TIME, THIS IS STILL LEGISLATION.
MORTGAGES AND DEEDS OF TRUST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
How a Federal Agency Excluded Thousands of Viable Businesses from Biden Relief Plan (Definite bankruptcy connection of which you may want to be aware.)
HEALTH AND WELLNESS (Not password protected)
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March 29, 2021
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Archives |
Critical Case Comment
Section 1328(i) requires the court to consider the discharge provisions of §§ 1328(a) through (h) and the fact that incomplete personal residence mortgage payments or a forbearance do not preclude but do not compel a COVID-19 Discharge.
See Also Legislation to Watch below. It appears that extension of the new § 1328(i) provision created under the Consolidated Appropriations Acthas been omitted from the current Bill making its way to the President’s desk. BUT AS OF PRESS TIME, THIS IS STILL LEGISLATION.
United States Trustee Program Alert
“In Summary – Chapter 7 and 13 trustees should not consider recovery rebates or child tax credits in administering estate assets or calculating disposable income in chapter 13 repayment plans.”
Legislation to Watch
- H.R. 1651: COVID–19 Bankruptcy Relief Extension Act of 2021 – Bill passed the House 3/17
- S. 473: COVID–19 Bankruptcy Relief Extension Act of 2021 – Bill passed Senate 3/24 with Amendment (S.Amend. 1407).
Passed the House with Amendment 3/26 and is expected to be signed by the President on 3/28.
From the Editor
Even during spring break, Judge Brown made time to find two cases of interest regarding lien modification:
From the IRS
- Face Masks and Other Personal Protective Equipment to Prevent the Spread of COVID-19 Are Tax Deductible (Nice of the IRS but with current Standard Deductions who does this really help?)
- Tax Day for Individuals Extended to May 17 (From April 15th)
Subchapter V
Reminder – March 27 WAS the Deadline to decrease the cap back to $2,725,625, although an extension has been proposed (Passed the House 3/17; Passed the Senate).
From the Courts
- Middle District of FL – Proposed Local Rules Available for Comment
- District of KS – Revised Local Rules effective 3/17/21
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
- Eastern District of OK – Transitioning to NextGen 4/1/21 – CM/ECF will be shut down from Thursday 4/1 through 8 am Monday 4/4
Student Loan Chronicles
- Student Debt “Feels Like Quicksand” Is loan forgiveness the answer?
- An Extremely Important Statistic About Student Debt That Has Never Been Published – Dept. of Education does not actually publish straightforward figures tracking how much money it collects each year. The data the agency releases annually combines the regular principal and interest collections with the massive number of loan consolidation payments borrowers make each year, which doesn’t really tell us how much of their own money Americans are paying toward loans.
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
6 Steps to Ethical Unbundling of Bankruptcy Representation
The client initialed every paragraph of the 19-paged representation agreement, and the appeals court still sanctioned the attorney over the agreement.Turns out, a long agreement and the client’s initials weren’t enough to protect the lawyer from sanctions for unbundling his services. So, what does it take??
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Door Is Shut to Millions of American Homeowners In Need of Mortgage Relief as Pandemic Enters Year 2 – Some 14.5 million single-family home loans are privately owned, with no federal backing, and occupy a gray area when it comes to government programs delaying foreclosure proceedings and granting payment forbearance
MBA: Share of Mortgage Loans in Forbearance Declines to 5.35% (BlackKnight says 4.9%, hmmm?)
4th Quarter FHFA Foreclosure Prevention and Refinance Report (Forbearance numbers are on page 13)
OF INTEREST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
How a Federal Agency Excluded Thousands of Viable Businesses from Biden Relief Plan (Definite bankruptcy connection of which you may want to be aware.)
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March 22, 2021
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Archives |
6 Steps to Ethical Unbundling of Bankruptcy Representation
The client initialed every paragraph of the 19-paged representation agreement, and the appeals court still sanctioned the attorney over the agreement.Turns out, a long agreement and the client’s initials weren’t enough to protect the lawyer from sanctions for unbundling his services. So, what does it take??
The American Rescue Plan
The new $1,400 per person stimulus checks could be garnished for unpaid debts. Why this one but not the previous two?
Reconciliation. Reconciliation in this context is a way for Congress to enact legislation on taxes, spending, and the debt limit with only a majority (51 votes, or 50 if the vice president breaks a tie) in the Senate, avoiding the threat of a filibuster, which requires 60 votes to overcome. Because Democrats have 50 seats in the Senate—plus a Democratic vice president—reconciliation is a way to get a tax-and-spending bill to the president’s desk even if all 50 Republicans oppose it.
More information:
- CFPB Steps in to Help Shield Consumers from Having Their Stimulus Check Garnished by Creditors – The agency says banks are willing to help consumers who are affected by this issue
- From the Auto Industry: CFPB Wants Stimulus Payments to Go to Consumers, Not Collectors
Legislation to Watch
- H.R. 1651: COVID–19 Bankruptcy Relief Extension Act of 2021 – Bill passed the House 3/17
- S. 473: COVID–19 Bankruptcy Relief Extension Act of 2021 (Bill is only 2 pages long.)
From the Editor
Judge Brown found some cases of interest regarding plan modification:
Comparison of Annual Change in Chapter 13 Case Filings During the Beginnings of the 2008 and the 2020 Recessions
Coming off the longest economic expansion in U.S. history, Chapter 13 filings were at their lowest levels since 2007. With the country entering a sudden and unanticipated recession in February of 2020, we expected to see Chapter 13 filing rates increase; however, the opposite occurred.
More on Fulton
Judge Wedoff: On Representing Respondents at Supreme Court in Chicago v. Fulton (17-minute substantive and entertaining (I mean, it’s Judge Wedoff!!) interview by Don Swanson)
Chapter 12 Conference Farm Reorganization
July 22, 23 & 29, 30, 2021 – VIRTUAL
From the IRS
- Tax Day for Individuals Extended to May 17 (From April 15th)
- IRS Office of Chief Counsel Unveils National Virtual Settlement Days (From April 15th) – IRS Office of Chief Counsel has embarked on its most far-reaching Settlement Days program ever, declaring the month of March 2021 (nice of them to announce this on March 18th) as “National Settlement Month.”If you have clients with IRS issues, this may be of interest to you.BUT if we are reading this properly, they would have to participate without counsel.
The Advisory Committee on Bankruptcy Rules Needs Your Help
Positions Open
- Sixth Circuit announced final 5 candidates for Eastern District of Michigan judgeship. They request comments in order to narrow 5 to 3.
- District of Minnesota – Term Law Clerk
- District of Maryland – Term Law Clerk
Subchapter V
Reminder – March 27 is the CurrentDeadline to decrease the cap back to $2,725,625, although an extension has been proposed (and passed the House 3/17).
From the Courts
- Middle District of FL – Proposed Local Rules Available for Comment
- District of KS – Revised Local Rules effective 3/17/21
- District of NJ – Zoom Trial Guidelines
- Eastern District of MI – Transitioning to NextGen 6/1/21
- Northern District of IL – Transitioning to NextGen 5/24/21
- District of MD – Transitioning to NextGen 5/10/21
- Eastern District of OK – Transitioning to NextGen 4/1/21 – CM/ECF will be shut down from Thursday 4/1 through 8 am Monday 4/4
For Your Blog
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
- Texas Energy Company that Charged Huge Electric Bills During Storm Files for Bankruptcy (This is all kinds of Oh My!)
IN CASE YOU MISSED IT . . .
Critical Case Comment
Despite a split in authority, funds held by a Chapter 13 trustee at the time a case is dismissed prior to confirmation, are subject to the trustee’s commission before any balance is returned to the debtor.
IN THE NEWS (Not password protected)
FCC Enforces Largest Fine Ever of $225 Million Against Telemarketers Who Made 1 Billion Robocalls (Wahoooo– ‘Aint’ it about time!)
OF INTEREST (Not password protected)
If Ohio Workers Don’t Return to City Offices, What Will Happen to Municipal Income Tax? (An issue most likely playing out across multiple American cities.)
DEBT AND THE ECONOMY (Not password protected)
40 Cities that Could Be Poised for a Housing Crisis (Pretty interesting)
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March 15, 2021
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Critical Case Comment
Despite a split in authority, funds held by a Chapter 13 trustee at the time a case is dismissed prior to confirmation, are subject to the trustee’s commission before any balance is returned to the debtor.
The “Snapshot” Rule – Part 1: The Circuits Begin to Line Up
This week, Larry Ahern starts by summarizing In re Anderson, a March 1 opinion from the Ninth Circuit, and the First Circuit’s In re Rockwell decision, which the Supreme Court declined to review on February 22. In this Part 1, he considers how and why the circuits are finding the petition date determinative of the exempt status of assets (the “snapshot” rule). In Part 2, he will ask when future cases, especially those involving different circumstances, may not apply the rule.
From the Editor
Judge Brown had a little time on his hands this week and brings us two cases of interest:
Serendipity, a Tribute to Judge Jack B. Schmetterer
(Used with expressed permission. Published February 2021 in the Northern District of Illinois Bankruptcy Court Liaison Committee Newsletter.)
“Despite appearing before the Senior Bankruptcy Judge for the Northern District of Illinois perhaps hundreds of times over the last 29 years, I was uncharacteristically nervous to interview him. After all, a person could be quite different personally in an interview setting than they appear professionally.”
Chapter 13 Practice and Procedure
Free Section 5:12 – The forthcoming 2021 edition of Chapter 13 Practice and Procedure, a treatise by Hon. W. Homer Drake, Jr., Hon. Paul W. Bonapfel, and Adam M. Goodman, will include a revised section 5:12 that deals with the Supreme Court’s decision in City of Chicago v. Fulton and its implications for turnover issues in Chapter 13 cases. The publisher, Thomson Reuters, has given permission for posting a draft of section 5:12. Further use of the material is prohibited.
ConsiderChapter13.org thanks the authors and Thomson Reuters for sharing this valuable resource FREE to our readers.
The Advisory Committee on Bankruptcy Rules Needs Your Help
As you know, the Supreme Court recently decided City of Chicago v. Fulton which has opened up much discussion regarding current turnover procedures. The Rules Committee would like to hear from you regarding your current practices. PLEASE take this survey.
Subchapter V
- What Qualifies as “Engaged in Business or Commercial Activities” for Subchapter V Eligibility? (In re U Stop)
- Reminder – March 27 is the Current Deadline to decrease the cap back to $2,725,625, although an extension has been proposed.
Positions Open
- District of Maryland – Term Law Clerk
- Middle District of Alabama – Trustee’s Staff Attorney – Application deadline 3/24/21
- Eastern District of Wisconsin – Two Law Clerks for Judge Blise – Career Law Clerk; Term Law Clerk
- District of Minnesota – Judgeship – Application due date 3/18/21
From the Courts
- District of NJ – New Motion for Discharge Pursuant to § 1328(i)
- Eastern District of TN – New CM/ECF Dictionary Events for Section 1328(i) Discharge
- Middle District of GA – Amendment to LBR 9013-3 Certificate of Service – Motions
- Middle District of NC – New local form Motion for Entry of Discharge Section 1328(i)) and other issues
- Northern District of OK – New policy regarding motions for relief from stay
- District of SC – Revised Conduit Orders (Judges Duncan and Waites)
- Northern District of GA – Transitioning to NextGen 8/9/21
- District of AZ – Transitioning to NextGen 6/28/21
- Eastern District of MI – Transitioning to NextGen 6/1/21
- District of MD – Transitioning to NextGen 5/10/21
- Eastern District of OK – Transitioning to NextGen 4/1/21
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
Courts Continue to Fill in the Gaps on the Interplay of Bankruptcy and the FDCPA
“. . . the CFPB largely declined to address bankruptcy issues. As a result, the burden will remain on practitioners and the courts to fill in the gaps with respect to the interplay of bankruptcy and the FDCPA. . . . The United States District Court for the Southern District of Ohio recently analyzed correspondence sent by a mortgage servicer in the context of potential FDCPA and discharge violations, providing a helpful catalog of many of the cases previously addressing the FDCPA in bankruptcy.”
IN THE NEWS (Not password protected)
What’s in the $1.9 Trillion Covid Bill Biden Just Signed? You might be surprised. Stimulus checks aside, the law also has relief for indebted students, renters and homeowners, restaurants, minority farmers, pensions and funeral expenses.
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
Can You Charge Different Prices For (Nearly) Identical Products That Are Packaged Differently? (Not in the slightest bit bankruptcy related.)
MILITARY MATTERS (Not password protected) 
DEBT AND THE ECONOMY (Not password protected)
HEALTH AND WELLNESS (Not password protected)
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March 8, 2021
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Archives |
Courts Continue to Fill in the Gaps on the Interplay of Bankruptcy and the FDCPA
“. . . the CFPB largely declined to address bankruptcy issues. As a result, the burden will remain on practitioners and the courts to fill in the gaps with respect to the interplay of bankruptcy and the FDCPA. . . . The United States District Court for the Southern District of Ohio recently analyzed correspondence sent by a mortgage servicer in the context of potential FDCPA and discharge violations, providing a helpful catalog of many of the cases previously addressing the FDCPA in bankruptcy.”
An Open Thank You Letter to NACTT – Reflections from a New(er) Trustee: My First Two Years
“I vividly remember getting the call that I was to be appointed as a Standing Chapter 13 Trustee (effective October 1, 2018). I was so honored, and humbled, and excited.”
More on Fulton
The forthcoming 2021 edition of Chapter 13 Practice and Procedure, a treatise by Hon. W. Homer Drake, Jr., Hon. Paul W. Bonapfel, and Adam M. Goodman, will include a revised section 5:12 that deals with the Supreme Court’s decision in City of Chicago v. Fulton and its implications for turnover issues in Chapter 13 cases. The publisher, Thomson Reuters, has given permission for posting a draft of section 5:12. Further use of the material is prohibited.
ConsiderChapter13.org thanks the authors and Thomson Reuters for sharing this valuable resource FREE to our readers.
Other resources on Fulton (Password Protected):
- Turnover by Motion? How About Under Rule 6008?
By Joseph A. Bledsoe, III (“Jody”), Chapter 13 Standing Trustee for the Eastern District of North Carolina (New Bern)
- City of Chicago v. Fulton: What SCOTUS Did Not Say Webinar Recording – Without a doubt, one of the best webinars we have ever produced
Not a subscriber to ConsiderChapter13.org? You are missing out. Click here to subscribe now.
From the Advisory Committee on Bankruptcy Rules
Re: Survey of Bankruptcy Court Procedures for Turnover
Dear Fellow Bankruptcy Practitioners:
I have been asked to reach out on behalf of the Advisory Committee on Bankruptcy Rules which requests your assistance.
As you know, the Supreme Court recently decided City of Chicago v. Fulton which has opened up much discussion regarding current turnover procedures.
The Rules Committee would very much like to hear from you. PLEASE take this survey. It is only 3 questions and then asks for a summary as to whether or not your Court has adopted local rules or general orders on this issue. Please specify whether your Court is contemplating or has adopted local rules revisions or general, procedural, or administrative orders allowing a party to seek turnover of estate property under 11 U.S.C. § 542 by motion as suggested in the concurrence of the Supreme Court opinion in City of Chicago v. Fulton.
I thank you in advance!!
Debra L. Miller, Esq.
Chapter 13 Standing Trustee for the Northern District of Indiana
Of Interest to, Well, Everyone
GA Bankruptcy Judge Lowers Boom on Chapter 7 Trustee and Counsel Fees (Chpt 7 case converted to 13)
Really. You gotta read this one!
From the United States Courts
Farmers in the News
Texas Farmers Tally Up Damage from Winter Storm ‘Massacre’ – The state’s agriculture sector has lost an estimated $600 million or more. Crop and livestock damage could mean shortages and higher prices beyond Texas.
New Judge Appointed
The Fifth Circuit has appointed Jamie Wilson to be a U.S. Bankruptcy Judge in the Southern District of Mississippi, stationed in Jackson. Ms. Wilson will replace retiring Judge Neil Olack and assume her position on July 1st.
Positions Open
- Middle District of Alabama – Trustee’s Staff Attorney – Application deadline 3/24/21
- Northern District of Mississippi – Term Law Clerk to Judge Selene D. Maddox – Application due date 3/12/21
- Eastern District of Wisconsin – Two Law Clerks for Judge Blise – Career Law Clerk; Term Law Clerk
- District of Minnesota – Judgeship – Application due date 3/18/21
Subchapter V
- Reminder – March 27 is the Current Deadline to decrease the cap back to $2,725,625, although an extension has been proposed.
From the Courts
- Eastern District of TN – New CM/ECF Dictionary Events for Section 1328(i) Discharge
- Middle District of GA – Amendment to LBR 9013-3 Certificate of Service – Motions
- Middle District of NC – New local form Motion for Entry of Discharge Section 1328(i)) and other issues
- Northern District of OK – New policy regarding motions for relief from stay
- District of OR – Kirsten Wilkinson Selected as Next Clerk of Court
- Northern District of IL – Revised Court-Approved Retention Agreement for cases filed on or after March 15, 2021
- District of SC – Changed Till rate
- District of SC – Revised Conduit Orders (Judges Duncan and Waites)
- Eastern District of OK – Transitioning to NextGen 4/1/21
For Your Blog
- HUD.gov has a good all-in-one-place resource for homeowners – Special COVID-19 Mortgage Relief for Homeowners with FHA-Insured Single Family Mortgages
- New Rules for Self-Employed and Gig Workers Applying for PPP Loans Are Out. Here’s What You Need to Know
IN CASE YOU MISSED IT . . .
Reaffirmations Impose Impossible Demands on Bankruptcy Counsel
One of Attorney Moran’s best! Another MUST READ from ConsiderChapter13.org.
“That’s until the court in Anzaldo dug into the effect of reaffirmation on credit.”
Debtor attorney in this case was not only ‘dinged’ regarding recommending a reaffirmation agreement but also for not having sufficient (in the Court’s mind) information on credit scoring to properly advise his client.
AND more info from last week on credit scores:
NCLC: The Credit Score Pandemic Paradox and Credit Invisibility
Americans Are Struggling, But You’d Never Know It from Their Credit Scores
IN THE NEWS (Not password protected)
Texas Judge Rules Federal Eviction Moratorium Unconstitutional – Lawyers and advocates disagree on what that means for tenants.
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
From Justia – Klein v. Anderson – Ninth Circuit BAP concluded that Chpt 7 debtor, who occupied homestead on petition date, was entitled to homestead exemption despite fact that she moved out shortly thereafter and neither re-occupied the property nor filed a declaration of non-abandonment within six months of moving out.
“Diminishing” Returns: A Pre-Petition Change of Life Insurance Beneficiary is Not Subject to Avoidance as a Fraudulent Transfer (Chpt 7 case; life insurance has almost $815,000 cash value)
MILITARY MATTERS (Not password protected) 
DEBT AND THE ECONOMY (Not password protected)
The Pandemic’s Existential Threat to Black-Owned Businesses – Danette Wilder spent years building up her company. Now it has to survive a recession that could put a generation of Black entrepreneurs out of business.
HEALTH AND WELLNESS (Not password protected)
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March 1, 2021
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Archives |
Turnover by Motion? How About Under Rule 6008?
After his participation in ConsiderChapter13.org’s webinar City of Chicago v. Fulton: What SCOTUS Did Not Say, Trustee Bledsoe examined long-standing common practice in the recovery of assets. This is a MUST READ article!
“In the aftermath of City of Chicago v. Fulton, discussions abound as to whether it is sufficient for a chapter 13 debtor to seek return of his vehicle, repossessed prepetition, via a motion for turnover. Most seem to believe a motion is not sufficient, but that – if pushed- a debtor will be required to file an adversary proceeding. But, let’s analyze the issue using the same methodology the Justices used in Fulton.”
Webinar Recording Now Available
Without a doubt, one of the best webinars we have ever produced.
Chapter 13 Trustee Jody Bledsoe, along with noted attorneys Richard Parker and Tony Sottile, engage in a one-hour presentation on the recent Fulton decision. Our expert panel digs into what the Supreme Court did not rule on in this case. They also drill down into §§ 362 and 542 to look at adversary proceeding vs. motion for turnover.
A few comments we received:
- I think you guys have the most quality programming in bankruptcy-centric circles
- Very interesting webinar
- Webinar had some very practical suggestions for dealing with the complications/extra work created by The Supremes
- Excellent
Not a subscriber to ConsiderChapter13.org? You are missing out. Click here to subscribe now.
Or click here for a discounted offer.
Reaffirmations Impose Impossible Demands on Bankruptcy Counsel
One of Attorney Moran’s best! Another MUST READ from ConsiderChapter13.org.
“That’s until the court in Anzaldo dug into the effect of reaffirmation on credit.”
Debtor attorney in this case was not only ‘dinged’ regarding recommending a reaffirmation agreement but also for not having sufficient (in the Court’s mind) information on credit scoring to properly advise his client.
Farmers in the News
Farm Bankruptcies During 2020 – Filings Drop 7% During 2020, Not Out of the Woods Yet
Legislation to Watch
Durbin, Grassley Introduce Bipartisan Legislation to Extend CARES Act Bankruptcy Relief Provisions ( . . . ‘til March 2022. Oy vey)
Credit Scores in the News
Positions Open
Judgeship Positions
- Middle District of Alabama – Trustee’s Staff Attorney – Application deadline 3/24/21
- Northern District of Mississippi – Term Law Clerk to Judge Selene D. Maddox – Application due date 3/12/21
- Eastern District of Wisconsin – Two Law Clerks for Judge Blise – Career Law Clerk; Term Law Clerk
- District of Minnesota – Judgeship – Application due date 3/18/21
- District of Puerto Rico – Judgeship – Application due date 3/3/21
New Supplemental Proof of Claim Form
Director’s Form 4100S is new, in response to the Consolidated Appropriations Act of 2020, which amended Code sections 501 and 502 to provide that creditors under Federally backed mortgages, qualified under the CARES Act and RESPA, and who entered into forbearance agreements with debtors, may file proofs of claim for the deferred forbearance payments, even when the claim would otherwise be untimely. The Code amendment sunsets one year after enactment; therefore, the form itself is proposed to terminate at that time.
We noticed this week that many, many Courts have adopted this form.
Subchapter V Reminder – March 27, 2021 Current Deadline
In response to the economic consequences of the pandemic, the CARES Act increased the eligibility limit for electing to have a small business Chapter 11 governed by subchapter V from $2,725,625 of debt to $7,500,000. The cap is to return to $2,725,625 on March 27, 2021, although an extension has been proposed.
Subchapter V candidates with debt between $2,725,625 and $7,500,000 should decide whether to file as soon as possible. The extension is included in the legislation to watch above.
From the Courts
- Southern District of Ohio – Increased No Look Fee
- Western District of Michigan – Attn: Debtor Attorneys – To be considered for increased Fee Memorandum rates, you must certify your attendance at 2020 bankruptcy legal education by completing and submitting Exhibit 6.
- Northern District of Illinois – Revised Court-Approved Retention Agreement for cases filed on or after March 15, 2021
- District of South Carolina – Changed Till rate
- District of South Carolina – Revised Conduit Orders (Judges Duncan and Waites)
- Western District of Pennsylvania – Increase in Loss Mitigation Program Fee Limits
- District of Nevada – Mortgage Modification Program Fee Updates
- Middle District of Florida – Judge Colton Only Chpt 13 Hearing Procedures effect 3/1/21 – IMPORTANT
- District of Minnesota – Proposed Abrogation of Local Rule 1007-4(b) and Proposed New Local Rule and Form 2016-2 regarding disclosure of atty fees in adversaries.
- Northern District of New York – Loss Mitigation Procedures revised to clarify the process for participation when a motion to terminate the automatic stay has been granted as to real property. The revisions to Part V (A) and (B) provide for uniformity in practice across the divisions. Click here for a redline of the revisions.
- Middle District of Georgia – Proposed LBR 9072-1 and Proposed LBR 9073-1 regarding Final Disposition Calendar Procedures
- Middle District of Alabama – Transitioning to NextGen 3/8/21 – ECF will be unavailable from noon on Friday the 5th through 7am Monday
- District of Maryland – Transitioning to NextGen 5/10/21
- Eastern District of Michigan – Transitioning to NextGen 6/1/21
Student Loan Chronicles
Sanctions and Irony and Fraud, Oh My!
- Millions Are Hounded for Debt They Don’t Owe. One Victim Fought Back, With a Vengeance This is not a typical debt collector story. It reveals an atypical scam, the depths of which you need to have a passing knowledge of.
IN CASE YOU MISSED IT . . .
Chapter 13 – It’s Good To Have A Plan
The next in our series “Chapter 13 – It’s Good to Have a Plan” is a poignant, personal story of a debtor attorney in response to the recent desire to modify the Bankruptcy Code based upon perceptions that debtors’ attorneys get rich off the backs of minorities by inordinately steering minorities toward Chapter 13.
“The banker asked whether I could then expect a regular, monthly payment at confirmation. I chuckled and replied that while I kept track of what I would get paid, I might not see a penny for many years, if at all.”
IN THE NEWS (Not password protected)
HUD Announces Disaster Assistance for Victims of Texas Severe Winter Storm – Foreclosure Protections in Place for Homeowners in Presidentially Declared Major Disaster Areas
MORTGAGES AND DEEDS OF TRUST (Not password protected)
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
Repeat from last week 124,000 Retirees and Family Members Were Dropped from Tricare Select. Here’s What You Can Do
DEBT AND THE ECONOMY (Not password protected)
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February 22, 2021
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SBRA – The Sequel: Leases in Bankruptcy Under the Consolidated Appropriations Act, 2021
Larry Ahern has previously reported on bankruptcy-related legislation passed in 2019 and amended in response to the COVID-19 pandemic. This week, he returns to the subject and focuses on a much-needed patch in the treatment of small business debtors’ leases under the Consolidated Appropriations Act, 2021 (“CAA”).
Form 1099G – How to Fight Back Against Scams
Although written for Californians, the issue is national. Simply replace the acronym EDD for your state’s unemployment entity.
Many taxpayers believe any form 1099 writ from on high. They figure such forms are unchallengeable, immutable, all powerful, and require full and docile submission. Poppycock. In the Great Recession, banks issued millions of Forms 1099-A and 1099-C that were inspired fiction. Many taxpayers attached the erroneous forms to their tax returns and using a well drafted Plain Paper Attachment, explained why the forms were wrong and the potential tax increase was short circuited right then and there!
See also: Massive Fraud Slows Legitimate Unemployment Claims, State Says
Chapter 13 – It’s Good To Have A Plan
The Chapter 13 Business Model
The next in our series “Chapter 13 – It’s Good to Have a Plan” is a poignant, personal story of a debtor attorney in response to the recent desire to modify the Bankruptcy Code based upon perceptions that debtors’ attorneys get rich off the backs of minorities by inordinately steering minorities toward Chapter 13.
“The banker asked whether I could then expect a regular, monthly payment at confirmation. I chuckled and replied that while I kept track of what I would get paid, I might not see a penny for many years, if at all.”
Foreclosures: The New Date is July 1
New Judge Appointed in the Eastern District of Wisconsin
From the Supreme Court: Case to Watch
- Amicus Brief: McCoy Student Debt Bankruptcy Discharge
On Bankruptcy’s Promethean Gap: Building Enslaving Capacity into the Antebellum Administrative State
“. . . by looking to modern U.S. bankruptcy law’s first forebear, the 1841 Bankruptcy Act, which Congress enacted in response to the depressed economic conditions following the Panic of 1837. That legislation created a judicially administered system that nationalized bankrupts’ assets, some of which featured prominently in the business of slavery.”
New Proof of Claim Form
Director’s Form 4100S is new, in response to the Consolidated Appropriations Act of 2020, which amended Code sections 501 and 502 to provide that creditors under Federally backed mortgages, qualified under the CARES Act and RESPA, and who entered into forbearance agreements with debtors, may file proofs of claim for the deferred forbearance payments, even when the claim would otherwise be untimely. The Code amendment sunsets one year after enactment; therefore, the form itself is proposed to terminate at that time.
Passing of Judge Shapiro
James E. Shapiro was a bankruptcy court judge for the Eastern District of Wisconsin from 1986 to September of ’96 when he was elevated to Chief Judge. He served as Chief Judge for four years and retired from the court on December 31, 2012. He passed away Feb. 5, 2021 at the age of 90.
Subchapter V Reminder – March 27, 2021 Deadline
In response to the economic consequences of the pandemic, the CARES Act increased the eligibility limit for electing to have a small business Chapter 11 governed by subchapter V from $2,725,625 of debt to $7,500,000. The cap is to return to $2,725,625 on March 27, 2021 (unless extended).
Subchapter V candidates with debt between $2,725,625 and $7,500,000 should decide whether to file as soon as possible.
Bitcoin
How are Bitcoin Created? An illustrated guide to bitcoin mining, blockchains, and the “minting” process of cryptocurrency’s most popular coin.
- See also this ConsiderChapter13.org resource from 2016: Bitcoins and Bankruptcy By Phil Lamos, Chief Legal Counsel, Office of the Chapter 13 Trustee (Cleveland, OH)
From the Courts
- Middle District of Florida – Judge Colton Only Chpt 13 Hearing Procedures effect 3/1/21 – IMPORTANT
- District of Minnesota – Proposed Abrogation of Local Rule 1007-4(b) and Proposed New Local Rule and Form 2016-2 regarding disclosure of atty fees in adversaries.
- Northern District of New York – Loss Mitigation Procedures revised to clarify the process for participation when a motion to terminate the automatic stay has been granted as to real property. The revisions to Part V (A) and (B) provide for uniformity in practice across the divisions. Click here for a redline of the revisions.
- Middle District of Georgia – Proposed LBR 9072-1 and Proposed LBR 9073-1 regarding Final Disposition Calendar Procedures
- Middle District of Alabama – Transitioning to NextGen 3/8/21
- District of Maryland – Transitioning to NextGen 5/10/21
- Eastern District of Kentucky – NextGen went into effect over the weekend
For Your Blog
- Your clients need to know this . . . Lost a Job or Income? Don’t lose access to key tax credits – Earned Income Tax Credit and the Child Tax Credit.
Student Loan Chronicles
- Student Debt Crisis Hits Black Borrowers Hardest – These debtors say Biden’s plan to tackle it isn’t enough
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part 2 of 2: Thomas v. Midland Funding, LLC
In order to “eliminate abusive debt collection practices by debt collectors . . .”, the Fair Debt Collection Practices Act (“FDCPA”) bars debt collectors from using any “false, deceptive, or misleading representation or means in connection with the collection of any debt . . .” 15 U.S.C. § 1692e.
Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part 1 of 2
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Repeat – HUD Extends Waivers for FHA Reverse Mortgages – Provisions not set to expire until Dec. 31, 2021
OF INTEREST (Not password protected)
2021 Ninth Circuit Civics Contest! High school students in the Ninth Circuit are invited to participate in the 2021 essay and video contests. Deadline for submissions 3/17/21
Michigan Updates and Expands Its Receivership Act – “Now it is applicable to all operating businesses in Michigan, and commercial and industrial loans irrespective of whether real estate collateral is involved.” (Obviously more of an 11 thing, but we wanted our creditor readers to be aware of this change.)
MILITARY MATTERS (Not password protected)
124,000 Retirees and Family Members Were Dropped from Tricare Select. Here’s What You Can Do
DEBT AND THE ECONOMY (Not password protected)
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February 15, 2021
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2020 Vision
“Before the murder of George Floyd, I thought I understood institutional racism. I did not deny that it existed, and I knew it was a terrible thing. I believed that by supporting politicians who called for social reforms aimed at correcting institutional racism, I was doing my part.”
Judges on Race: Reducing Implicit Bias in Courtrooms
In December and January Law360 ran a series of free articles entitled Judges on Race. While they are all very good, we want you to particularly note Judge Donald’s article: With unconscious biases deeply embedded in the court system, judges must take steps to guard against the power and influence of stereotypes during jury selection, evidence admissibility hearings, bail proceedings and other areas of judicial decision making, says Sixth Circuit Judge Bernice Donald.
The National Association of Chapter Thirteen Trustees is pleased to announce that The Honorable Bernice Donald will be the keynote speaker at its summer conference (hopefully) in Washington, D.C. Mark your calendar now for July 7-10 for an in person or virtual seminar.
Autherine Lucy: Failed Integration Bid Left Lasting Legacy
Before Brown v. Board of Education there was Autherine Lucy.
On Bankruptcy’s Promethean Gap: Building Enslaving Capacity into the Antebellum Administrative State
“. . . by looking to modern U.S. bankruptcy law’s first forebear, the 1841 Bankruptcy Act, which Congress enacted in response to the depressed economic conditions following the Panic of 1837. That legislation created a judicially administered system that nationalized bankrupts’ assets, some of which featured prominently in the business of slavery.”
Still Time to Register for Free Webinar
City of Chicago v. Fulton: What SCOTUS Did Not Say
This Friday, February 19th – 2:00 eastern/1:00 central/12:00 mtn/11:00 pacific
Join Chapter 13 Trustee Jody Bledsoe along with noted attorneys Rich Parker and Tony Sottile in a one-hour presentation on the recent Fulton decision. Our expert panel will dig into what the Supreme Court did not rule on in this case. They will also drill down into Sections 362 and 542.
Can’t attend on Friday? It is ConsiderChapter13.org’s practice to record all webinars. Although we offer live webinars FREE, access to the recordings is a benefit of subscription. Only $275/year for access to ALL of the resources! Click her to subscribe.
(If you are a solo practitioner and have been impacted by the pandemic, contact us for a discount.)
Forbearance Period Extended
FHFA Extends Foreclosure and REO Eviction Moratoriums and COVID Forbearance Period
Note the fine print regarding forbearances – three-month extension only applies to those already in a forbearance by 2/28/21 and it is not an automatic extension – one must request it.
Subchapter V Reminder – March 27, 2021 Deadline
In response to the economic consequences of the pandemic, the CARES Act increased the eligibility limit for electing to have a small business Chapter 11 governed by subchapter V from $2,725,625 of debt to $7,500,000. The cap is to return to $2,725,625 on March 27, 2021 (unless extended).
Subchapter V candidates with debt between $2,725,625 and $7,500,000 should decide whether to file as soon as possible.
Webinar Recording Now Available
Recent Legislation January 2021
Join The Honorable William H. Brown (retired), and Chapter 13 Trustees Henry Hildebrand and Debra Miller in a one hour discussion regarding consumer bankruptcy implications of the Bankruptcy Administration Improvement and Consolidated Appropriations Acts, along with some thoughts on pending legislation.
New Information: During the webinar Trustee Miller mentioned a not yet available Director’s Form – several of you have emailed asking for it. The form has now been released: Supplemental Proof of Claim for CARES Forbearance Claim
From the National Consumer Law Center
NCLC is partnering with Consumer Reports to hold credit reporting agencies accountable for errors and need your help.
At least one in four of us probably has an error in our credit report. And the COVID-19 financial crisis has made that bad situation even worse.
Can you check your credit report for errors, and let Consumer Reports know what you find? You’ll be a key part of a groundbreaking Consumer Reports’ people-powered research project, where thousands of consumers like you use their credit report to finally hold these powerful credit agencies accountable.
From the Courts
- Middle District of Georgia – Proposed LBR 9072-1 and Proposed LBR 9073-1 regarding Final Disposition Calendar Procedures
- Northern and Southern Districts of Mississippi – ChapMobile app now available – To download the app, go to the Apple App Store or Google Play App Store and search for “chapmobile”
- Northern District of Georgia – Northern District of Georgia Bankruptcy Court is interested in your input in planning how to conduct hearings when it returns to normal operations post-pandemic. Please complete survey by 2/16/21.
- Eastern District of Michigan – Notice Regarding Updated System Banner – Although we only saw this notice on one court’s website, it is probably the policy for all CM/ECF users – the message: You Are Being Recorded
- Middle District of Alabama – Transitioning to NextGen 3/8/21
- Eastern District of Kentucky – Transitioning to NextGen 2/22/21
- District of Maryland – Transitioning to NextGen 5/10/21
From Fannie Mae
Worth repeating: You Don’t Have to Repay the Forbearance Amount All at Once Upon Completion of Your Forbearance Plan: Get the Facts
IN CASE YOU MISSED IT . . .
Is 1328(i) Ultimately Terrible for Debtors?
Attorney Siomos focuses on how 1328(i) can hurt debtors.
“The December 2020 Consolidated Appropriations Act, 2021, more commonly known as the second covid-19 stimulus bill, contains a few bankruptcy related provisions, but none stood out more with respect to Chapter 13 than the newly created § 1328(i).”
See also:
MORTGAGES AND DEEDS OF TRUST (Not password protected)
HUD Extends Waivers for FHA Reverse Mortgages – Provisions not set to expire until Dec. 31, 2021
Some Mortgage Companies Misled Borrowers About Forbearance, Regulators Say (Article does not name names but still of interest.)
OF INTEREST (Not password protected)
Bankruptcy Provisions Contained in the Consolidated Appropriations Act, 2021 – The Act includes nine bankruptcy related amendments. See §§320, 1001, 134 Stat., at 2015, 3216. The District of Rhode Island Court has prepared this training document outlining the amendments to the bankruptcy laws contained in the CAA, most of which sunset in one or two years.
DEBT AND THE ECONOMY (Not password protected)
Unpaid Rent Is Piling Up – Landlords Can’t Hold on Forever
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February 8, 2021
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Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part 2 of 2: Thomas v. Midland Funding, LLC
In order to “eliminate abusive debt collection practices by debt collectors . . .”, the Fair Debt Collection Practices Act (“FDCPA”) bars debt collectors from using any “false, deceptive, or misleading representation or means in connection with the collection of any debt . . .” 15 U.S.C. § 1692e.
Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part 1 of 2
Is 1328(i) Ultimately Terrible for Debtors?
Attorney Siomos focuses on how 1328(i) can hurt debtors.
“The December 2020 Consolidated Appropriations Act, 2021, more commonly known as the second covid-19 stimulus bill, contains a few bankruptcy related provisions, but none stood out more with respect to Chapter 13 than the newly created § 1328(i).”
See also:
On 1/29/21 ConsiderChapter13.org hosted its first webinar of the year with many to come. All webinars are free is viewed live; however, access to the webinar recordings are a benefit of subscription to ConsiderChapter13.org. Not a subscriber? Click here to join now.
The Recording of “Recent Legislation January 2021” is now available.
Join The Honorable William H. Brown (retired), and Chapter 13 Trustees Henry Hildebrand and Debra Miller in a one hour discussion regarding consumer bankruptcy implications of the Bankruptcy Administration Improvement and Consolidated Appropriations Acts, along with some thoughts on pending legislation.
Farmers In The News
- USDA Suspends Debt Collections, Foreclosures, Other Activities on Farm Loans Due to COVID-19 In place “until further notice.”
- Cadillac Area Farmers Glad 2020 Over, Nervous About 2021 (Now, that’s a lot of bull!)
New NY Judges Appointed
From the IRS
- Business Aid: For eligible employers, paid sick and family leave credits have been extended for leave taken through March 31- IRS Updates FAQs on Paid Sick Leave Credit and Family Leave Credit
From the Courts
- Northern District of Georgia – Northern District of Georgia Bankruptcy Court is interested in your input in planning how to conduct hearings when it returns to normal operations post-pandemic. Please complete survey by 2/16/21.
- District of Maryland – Transitioning to NextGen 5/10/21
- District of Oregon – On February 1, the court will implement a new calendar program (CHAP) that will affect how hearings are scheduled
- Eastern District of Michigan – Notice Regarding Updated System Banner – Although we only saw this notice on one court’s website, it is probably the policy for all CM/ECF users – the message: You Are Being Recorded
- Middle District of North Carolina – Standing Order re Ch 13 Notices Rule 2002(h)
- District of Nevada – Administrative Order 2021-01 – Order Adopting Chapter 13 Presumptive Attorney’s Fees Guidelines
- Middle District of Alabama – Transitioning to NextGen 3/8/21
- Eastern District of Kentucky – Transitioning to NextGen 2/22/21
Positions Open
Judgeship Positions
- Western District of Texas – San Antonio – Application due date 2/26/21
- District of Minnesota – Application due date 3/18/21
- District of Puerto Rico – Application due date 3/3/21
Chapter 13 Standing Trustee
- District of South Carolina, Columbia Division – Application due date 2/19/21
On the CFPB
- Struggling During the Pandemic? COVID-19 Financial Relief and Protections Extended (Not a great title – this article spells out all the deadlines as of 2/1/21 – i.e. no payment on federally backed student loans until 10/1/21; evictions for renters stayed until 4/1/21; FHA or USDA backed loans 4/1/21; etc.
- Acting Director David Uejio Issues Warning: CFPB Will Take Aggressive Action with Regard to COVID-19
Student Loan Chronicles
- Biden Supports Cancelling Student Debt, Expresses Openness to Executive Action
(There are lots of articles out there on this topic – bottom line seems to be two proposals: (1) $10k per borrower forgiven if via executive order; (2) $50k per borrower forgiven if via law (a/ka/ the ever looming “Act of Congress”).)
Sanctions and Irony and Fraud, Oh My!
- WA Launches Investigation Into 200,000 Missing Cows at Center of Easterday Bankruptcy, Legal Fight (headline pretty much says it all – couldn’t resist running a story on 200,000 missing cows!!!)
IN CASE YOU MISSED IT . . .
Legal Aid and Who Are Our Chapter 13 “Customers”
DON’T SKIP THIS ONE JUST BECAUSE YOU THINK YOU KNOW WHO OUR CLIENTELE IS!
“I would argue that for the Debtors living in poverty, Trustees need to take a more panoramic approach and be mindful of the issues impacting individuals in extreme poverty. On the face of the petition and schedules, it may certainly appear some Debtors are making bad choices.”
Additional recommended reading:
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Are We Trapped in Another Housing Bubble? A rapid rise in home prices has some experts worried.
OF INTEREST (Not password protected)
Introduced Bill of Interest: S.146 – A bill to amend title 11, United States Code, to provide bankruptcy protections for medically distressed debtors, and for other purposes. (VERY early in the process – similar bills have been introduced many times before but have never passed.)
The Big Lie in Bifurcated Chapter 7 Fees – The controversial use of bifurcated attorney fees in Nebraska chapter 7 cases has reached critical mass.
MILITARY MATTERS (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
America’s Seniors in Debt: A Growing Problem (Article isn’t really new info but it contains several good links.)
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February 1, 2021
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Paying the Car Loan Directly vs. Through the Plan: Till Debt Us Do Part?
Debtor owed $13,000 to Dort Federal Credit Union on a car loan. The confirmed plan called for her to repay the loan directly to DFCU at the contract interest rate of 15%. The Trustee challenged this provision on two grounds.
Fulton’s Aftermath – What Do Chapter 13 Practitioners Need To Know?
The Geraci firm takes a different approach in looking at Fulton.
“Chapter 13 practitioners are urged to examine this decision more closely because the holding in Fulton is quite narrow: . . .”
See also:
City of Chicago v. Fulton And the Turnover Conundrum
By Kara K. Gendron, Esquire, Mott & Gendron Law (Harrisburg, PA)
Legal Aid and Who Are Our Chapter 13 “Customers”
DON’T SKIP THIS ONE JUST BECAUSE YOU THINK YOU KNOW WHO OUR CLIENTELE IS!
“I would argue that for the Debtors living in poverty, Trustees need to take a more panoramic approach and be mindful of the issues impacting individuals in extreme poverty. On the face of the petition and schedules, it may certainly appear some Debtors are making bad choices.”
Additional recommended reading:
From the Courts
- District of Oregon – On February 1, the court will implement a new calendar program (CHAP) that will affect how hearings are scheduled
- Eastern District of Michigan – Notice Regarding Updated System Banner – Although we only saw this notice on one court’s website, it is probably the policy for all CM/ECF users – the message: You Are Being Recorded
- Middle District of North Carolina – Standing Order re Ch 13 Notices Rule 2002(h)
- Northern District of Georgia – Public Notice Regarding Reassignment of Judge Homer Drake Cases
- District of North Carolina – Sandy Davis is Judge Aron’s new Courtroom Contact – her number is 336-358-4028
- District of Nevada – Administrative Order 2021-01 – Order Adopting Chapter 13
Middle District of Alabama – Transitioning to NexGen 3/8/21 - Eastern District of Kentucky – Transitioning to NextGen 2/22/21
Positions Open
Judgeship Positions
- Western District of Texas – San Antonio – Application due date 2/26/21
- District of Minnesota – Application due date 3/18/21
- District of Puerto Rico – Application due date 3/3/21
Chapter 13 Standing Trustee
- District of South Carolina, Columbia Division – Application due date 2/19/21
- Northern District of Illinois, Eastern Division – Application due date 2/5/21
On the CFPB
- Supervisory Highlights COVID-19 Prioritized Assessments Special Edition – This 28-paged Special Edition inform of observations in its prioritized assessment supervisory work conducted last year after the sudden onset of the COVID-19 pandemic – focused on assessing risks to consumers resulting from the pandemic.
Sanctions and Irony and Fraud, Oh My!
- Calabasas Real Estate Developer Indicted for Bankruptcy Fraud – Mark Handel was indicted for fraud, money laundering, and falsely testifying under oath.
- Judge Wants Payday Loan Firm to Pay $132.5M to Victims (same case as above)
IN CASE YOU MISSED IT . . .
Delinquent Utilities and Disconnection Under New Bankruptcy Provision
Another great, practical piece from Board Member Cathy Moran: “Bankruptcy debtors with delinquent utility bills got a measure of protection from interruption in their service under an amendment to the Bankruptcy Code in the omnibus spending bill enacted December 27, 2020.”
IN THE NEWS (Not password protected)
Another Blow to Bankruptcy Relief for Marijuana-Adjacent Debtors (Colorado specific and doesn’t appear to be much new.)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Biden Issues Executive Order on Foreclosures; HUD Updates DACA Regulations (We are now at 3/31/21 on federally backed loans.)
BUSINESS AIDS (Not password protected)
Continued Remote Working Guidance for Employees (Article addresses employee withholding – particularly if your employee is now working from home in a different state than your physical location is/was.)
OF INTEREST (Not password protected)
MILITARY MATTERS (Not password protected)
FOR YOUR HEALTH (Not password protected)
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January 25, 2021
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“If the creditor is likely to lose the turnover action, it would make more sense from a cost-benefit analysis simply to turn over the property as soon as possible, without requiring a formal turnover action.”
Delinquent Utilities and Disconnection Under New Bankruptcy Provision
Another great, practical piece from Board Member Cathy Moran: “Bankruptcy debtors with delinquent utility bills got a measure of protection from interruption in their service under an amendment to the Bankruptcy Code in the omnibus spending bill enacted December 27, 2020.”
In The Staff Department
I Feel A Change Coming On (Song by Bob Dylan, 1964)
This week we launch the first in a new, ongoing series of articles directed to staff – particularly staff of trustees’ offices but many of the lessons conveyed will transfer to support staff of any office type.
“Every Trusteeship has encountered unexpected change during the past year.”
Meet a Newish Trustee
On October 1, 2019, John G. Jansing was appointed Chapter 13 Standing Trustee for the Southern District of Ohio at Dayton. John took over from Jeff Kellner, who retired and moved to New Hampshire.
From the Courts
- District of Nevada – Administrative Order 2021-01 – Order Adopting Chapter 13
Middle District of Alabama – Transitioning to NexGen 3/8/21 - Eastern District of Kentucky – Transitioning to NextGen 2/22/21
- Middle District of Alabama – New 11 U.S.C. 1328(i) Discharges new local form, not a 9007 motion.
- District of Minnesota – Congratulations to recipients of the Judge Nancy C. Dreher Pro Bono Distinguished Service Award: Attorneys Peter Greenlee, Yvonne Michaud Novak and Dennis Ryan
- Southern District of Mississippi – Bankruptcy filings for 2020 down 31.5% over prior year
Positions Open
Judgeship Positions
- District of Minnesota – Application due date 3/18/21
- District of Puerto Rico – Application due date 3/3/21
- Middle District of Florida at Orlando and Jacksonville – Application due date 2/1/21
- Eastern District of Tennessee – Application deadline extended to 1/29/21
Chapter 13 Standing Trustee
- District of South Carolina, Columbia Division – Application due date 2/19/21
- Northern District of Illinois, Eastern Division – Application due date 2/5/21
On the CFPB
- FTC Commissioner Rohit Chopra to be Named CFPB Director – A Strong Consumer Advocate and Aggressive Law Enforcer
For Your Blog
Congress Approves $25 Billion in Rental Assistance. Here’s How to Apply
Sanctions and Irony and Fraud, Oh My!
IN CASE YOU MISSED IT . . .
The Proposed Consumer Bankruptcy Reform Act: A Political Analysis
“This memorandum provides a brief description of the reasons that the legislation is likely to fail and proposes that the Chapter 13 trustees best chance to defeat the legislation comes from aligning themselves with other interests opposed to its passage.”
IN THE NEWS (Not password protected)
MORTGAGES AND DEEDS OF TRUST (Not password protected)
DEBT AND THE ECONOMY (Not password protected)
Biden Stimulus Plan Framework (Good summary of third stimulus proposal)
OF INTEREST (Not password protected)
TCPA For Dummies (From Mondaq so actually written to larger companies – this is a really good, short (key word s-h-o-r-t) outline of what the Telephone Consumer Protection Act says.)
MILITARY MATTERS (Not password protected)
BUSINESS AIDS (Not password protected)
FOR YOUR HEALTH (Not password protected)
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January 18, 2021
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SCOTUS Decision: Section 362(a)(3) Is Not Violated by Retention of Repossessed Propert
On January 14, 2021, the Supreme Court held in City of Chicago v. Fulton, 592 U.S. _____ (2021), that “mere retention” of estate property after the filing of a bankruptcy petition does not violate § 362(a)(3) of the Bankruptcy Code. Essentially, in order to recover property from a repossessing creditor, turnover under § 542 would be required. Watch for more about the opinion and its ramifications coming soon.
Creditors’ Rights and Debtors’ Protections at the Intersection of Consumer Bankruptcy and UCC Article 9 – Part VII
In the consumer bankruptcy field, practitioners are often uncomfortable with the rules in UCC Article 9. Ahern has written a series for the Academy, designed to review Article 9’s rules related to consumer transactions. This week, he concludes his review of Article 9’s rules related to consumer transactions with an essential analysis of penalties imposed on creditors for violations of rules regulating their exercise of remedies.
Click here for Part I
Click here for Part II
Click here for Part III
Click here for Part IV
Click here for Part V
Click here for Part VI
The Proposed Consumer Bankruptcy Reform Act: A Political Analysis
“This memorandum provides a brief description of the reasons that the legislation is likely to fail and proposes that the Chapter 13 trustees best chance to defeat the legislation comes from aligning themselves with other interests opposed to its passage.”
1/12/21 – Bankruptcy Administration Improvement Act Signed Into Law
Bill modifies administrative provisions related to the bankruptcy trustee system. Specifically: (1) provides for the distribution of bankruptcy fees made to the U.S. Trustee System Fund for the costs of administering payments and trustee compensation, (2) establishes the Chapter 7 Trustee Fund and associated fees, and (3) extends the temporary office of bankruptcy judges in specified judicial districts.
From the Courts
- Eastern District of Kentucky – Transitioning to NextGen 2/22/21
- Western District of Kentucky – Welcome new judge – Honorable Charles R. Merrill
- Northern District of Oklahoma – Policy Regarding Relief from Stay During the COVID-19 Crisis
From the IRS
- Recovery Rebate Credit – No Double Dipping – this credit is ONLY for folks who did NOT receive their stimulus payments ($1,200 and $600)
Positions Open
Judgeship Positions
- Middle District of Florida at Orlando and Jacksonville – Application due date 2/1/21
- Eastern District of Tennessee – Application deadline extended to 1/29/21
Chapter 13 Standing Trustee
- Northern District of Illinois, Eastern Division – Application due date 2/5/21
For Your Blog
- Congress Approves $25 Billion in Rental Assistance. Here’s How to Apply
- Notice: If You Are a Former Member of Members 1st Federal Credit Union Who Was Charged Overdraft Fees between March 29, 2015 and January 14, 2019, and who had closed their accounts prior to January 14, 2019, You May Be Eligible For Benefits Under a Class Action Settlement.
From the Judiciary
ChapMobile App Not Working as of 1/15/21
On January 14, 2021, updates were made on Google servers which affected the display of Hearing and 341 Calendars for the ChapMobile App. Although the main display of the hearing and 341 calendars will not produce data, the Search functions within these areas will produce results. This is a national problem, but the Judiciary has isolated the issue and has adjusted the ChapMobile App code to match the changes made by this Google update. The Judiciary will be deploying an updated ChapMobile App to the Apple and Google App Stores as soon as possible. We anticipate the new app will be released by the App Stores in the next few days. Users will receive the update via their devices.
Sanctions and Irony and Fraud, Oh My!
Bankruptcy Trustee Sues Mom, Family of Westchester Funeral Home Director in Fraud Case (Chpt 7 case – big money – worth the read)
IN CASE YOU MISSED IT . . .
Just the Facts, Ma’am – Consolidated Appropriations Act, December 27, 2020
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Biden Calls for $30 Billion More in Rental Assistance and Extending Eviction (and Foreclosure) Ban. . . Through September – note that his is asking for this but it is not law . . . yet)
Fannie Mae Update: Mortgage Servicer Sentiment Amid Pandemic Challenges
DEBT AND THE ECONOMY (Not password protected)
OF INTEREST (Not password protected)
Bankruptcy Court Rules Bankruptcy Code Does Not Permit Extended Rent Holiday for Retail Debtors – A recent Chuck E. Cheese decision denies the debtor’s/tenant’s request to defer paying rent after the 60-day “rent holiday.”
Federal Consolidated Appropriations Act Alters Commercial Landlord Rights Under Bankruptcy Code – (Chapter 11 issues, but you might want to glance at this concise article)
Commercial Landlords Take Note – COVID Relief Bill Contains Important Bankruptcy Code Amendments – (Same as above – may be a little more detailed)
Op-Ed by Prof. Adam Levitin: Reform Our Bankruptcy Laws Before Tsunami of Covid Debt Comes Due (Note: This article represents the ‘other’ side.)
PROFESSIONAL BEHAVIOR (Not password protected)
FOR YOUR HEALTH (Not password protected)
Apps for mental health? Yes. Apps: 5 Mental Health Apps to Help Manage Coronavirus Anxiety
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January 11, 2021
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Archives |
Just the Facts, Ma’am – Consolidated Appropriations Act, December 27, 2020
Judge Brown looks at the “Stimulus Bill”
“Consumer bankruptcy issues are addressed in Title X of the Act, section 1001, which amends Bankruptcy Code § 541(b)’s exclusions from property of the estate, adding subsection 11 for certain coronavirus relief, defined as “recovery rebates made under section 6428 of the Internal Revenue Code.” . . . Section 1001 also amends Bankruptcy Code § 1328 to add subsection (i)(1), . . .”
Never Let a Good Crisis Go to Waste: The Bankruptcy Amendments in the Consolidated Appropriations Acts of 2021
“While several of the bankruptcy provisions are to be expected – such as excluding stimulus payments made under the Internal Revenue Code from being considered property of the estate or disposable income – the law creates, for a one-year period, a substantial modification in § 1328 . . .”
Legal Aid and Who Are Our Chapter 13 “Customers”
Attorney Jones looks takes a graceful look at poverty in America. “What I found most troubling about low-income representation is how one, seemingly minor but frustrating, episode to the middle or upper classes, can be devastating for a low-income individual.”
Passing of Judge Bernstein
“Intellectually curious and committed to helping develop a generation of excellent attorneys, Bernstein continued to teach while building his own career, including courses at the University of Toledo, Wayne State and the University of Detroit law schools.”
From the Courts
- Western District of Kentucky – Welcome new judge – Honorable Charles R. Merrill
- Northern District of Georgia – Public Notice Regarding Virtual Celebration for the Retiring Hon. W. Homer Drake, Jr.
- Northern District of Oklahoma – Policy Regarding Relief from Stay During the COVID-19 Crisis
- District of Arizona – Changes to Courtroom Deputy Assignments
- District of Nevada – Effective 1/1/21, updated Mortgage Modification Program is in effect.
Positions Open
Judgeship Positions
- Middle District of Florida at Orlando and Jacksonville – Application due date 2/1/21
Chapter 13 Standing Trustee
- Northern District of Illinois, Eastern Division – Application due date 2/5/21
On the CFPB
- CFPB/Santander Consent Order (previously reported agreement)
IN CASE YOU MISSED IT . . .
Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases
“Derby III is important to debtor’s attorneys, trustees, and creditors, because it demonstrates the broad powers Rule 3001 affords bankruptcy courts to govern the claims process.”
MORTGAGES AND DEEDS OF TRUST (Not password protected)
Negative Equity InfoGraphic (you will have to scroll down to the 3rd graphic)
October District Court Case Warning to Debtors and Counsel Re Changing Homestead During Chapter 13 (probably a rare set of facts but interesting nonetheless)
IN THE NEWS (Not password protected)
OF INTEREST (Not password protected)
Passing of Ted Moskowitz – Member of McCarter & English and a well-known and respected bankruptcy practitioner
Proofs of Claim: Don’t Rely on the Mailbox Presumption – Be Sure Claims are Filed by the Bar Date with the Court Clerk or the Claims Agent (article contains some very basic information but the underlying case – In re North Carolina New Schools, Inc. – may be of interest)
SUBCHAPTER V (Not password protected)
FOR YOUR HEALTH (Not password protected)
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January 4, 2021
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Archives |