|
August 30, 2021
|
Archives |
Escrow 101 – Part 1 of 3
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
When (or Not) Is the Best Interests of Creditors Test Applicable in a Modified Plan?
|
August 23, 2021
|
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?
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
This Black Family’s Home Appraisal Grew by $92,000 After They Removed All Signs of Their Race
From the NCLC
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
Ms. Ps & Qs
|
August 16, 2021
|
Archives |
When the Trustee Gets Subpoenaed
Ms. Ps & Qs
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
***************************
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
Absolute Right to Dismiss? Sixth Circuit Says “Yes”
|
August 9, 2021
|
Archives |
Who Gets the Trustee’s Fee?
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”
Federal Housing Administration Extends Single Family Eviction Moratorium
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
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
***************************
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
Critical Case Comment
|
August 2, 2021
|
Archives |
Assessable Yet Not Assessed Taxes Could Cost You a Malpractice Claim
Critical Case Comment
Federal Housing Administration Extends Single Family Eviction Moratorium
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.
Critical Case Comment
|
July 26, 2021
|
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
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.
The Importance of Using the Latest Master Mailing List for Serving Your Bankruptcy Documents
|
July 19, 2021
|
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
The Importance of Using the Latest Master Mailing List for Serving Your Bankruptcy Documents
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
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.
The Kill Switch and The Stay
“There are not many reported bankruptcy decisions regarding the use of kill switches.”
More from this author:
|
July 12, 2021
|
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
Appointment of New Bankruptcy Judge
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!
Critical Case Comment
|
July 5, 2021
|
Archives |
|
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
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
Critical Case Comment
|
June 28, 2021
|
Archives |
Critical Case Comment
Remember, Landlords Are Sacred Cows in Bankruptcy
Phil Lamos – Humble Sage
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
ACT 12 (Association of Chapter 12 Trustees)
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.
List It or Lose It: When Actual Knowledge Isn’t Enough
|
June 21, 2021
|
Archives |
List It or Lose It: When Actual Knowledge Isn’t Enough
Helping Our Clients Stay Afloat and Get Past the Covid-19 Tsunami
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
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
Objections to Claims: Two of These Creditors Are Not Like the Others
|
June 14, 2021
|
Archives |
Critical Case Comment
Objections to Claims: Two of These Creditors Are Not Like the Others
Passing of a Legend
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
Then & Now: Rucker ‘At Home’ As New Federal Bankruptcy Judge
Webinar Recording Now Available
Credit Union Issues in Chapter 13
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)
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.
|
June 7, 2021
|
Archives |
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
Passing of Stuart Gold
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
Bankruptcy Court Broadly Interprets “Engaged in Business” Requirement for Subchapter V Eligibility
|
May 31, 2021
|
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.
|
May 24, 2021
|
Archives |
Bankruptcy Court Broadly Interprets “Engaged in Business” Requirement for Subchapter V Eligibility
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
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
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.
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.)
|
May 17, 2021
|
Archives |
Tell the Story
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
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
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
Bankruptcy Court Finds Jurisdiction to Hear Discharge-Injunction Violation Class Action
|
May 10, 2021
|
Archives |
Assumption of Auto Lease in Chapter 7 Requires No Court Approval Says the 9th Circuit: In re Bobka
Bankruptcy Court Finds Jurisdiction to Hear Discharge-Injunction Violation Class Action
The Biggest News of the Week
CARES Act Financial Hardship ‘Laundry List’
In the “Just Plain Interesting” Category
Registration for Online Event
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
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
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
Parker, HOA, and Sanctions – Multiple Thrills to a Bankruptcy Lawyer’s Heart
|
May 3, 2021
|
Archives |
Parker, HOA, and Sanctions – Multiple Thrills to a Bankruptcy Lawyer’s Heart
Critical Case Comment
Registration for Online Event
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
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
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’
Did Congress Mean What It Said in Section 1328(i)?
|
April 26, 2021
|
Archives |
Did Congress Mean What It Said in Section 1328(i)?
I’ve Looked at Clouds from Both Sides Now
Sub Chapter V
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
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.
Of Tax Refunds, Exemptions, Setoffs, and Roman Gods
|
April 19, 2021
|
Archives |
Of Tax Refunds, Exemptions, Setoffs, and Roman Gods
Bankruptcy Courts Grapple with the “COVID-19 Discharge”
New Judge Appointed
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
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!
Federal Payments for Foster Care and Adoption Assistance in Bankruptcy
|
April 12, 2021
|
Archives |
Federal Payments for Foster Care and Adoption Assistance in Bankruptcy
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
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
From SCOTUS
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
- 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.
The “Snapshot” Rule – Part 2: When is the Rule Not Determinative?
|
April 5, 2021
|
Archives |
Extensions of CARES Act Provisions By COVID-19 Bankruptcy Relief Extension Act of 2021
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
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
Sanctions and Irony and Fraud, Oh My!
Critical Case Comment
|
March 29, 2021
|
Archives |
Critical Case Comment
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
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
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
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!
6 Steps to Ethical Unbundling of Bankruptcy Representation
|
March 22, 2021
|
Archives |
6 Steps to Ethical Unbundling of Bankruptcy Representation
The American Rescue Plan
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
Comparison of Annual Change in Chapter 13 Case Filings During the Beginnings of the 2008 and the 2020 Recessions
More on Fulton
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
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!)
Critical Case Comment
|
March 15, 2021
|
Archives |
Critical Case Comment
The “Snapshot” Rule – Part 1: The Circuits Begin to Line Up
From the Editor
Serendipity, a Tribute to Judge Jack B. Schmetterer
“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
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!
Courts Continue to Fill in the Gaps on the Interplay of Bankruptcy and the FDCPA
|
March 8, 2021
|
Archives |
Courts Continue to Fill in the Gaps on the Interplay of Bankruptcy and the FDCPA
An Open Thank You Letter to NACTT – Reflections from a New(er) Trustee: My First Two Years
More on Fulton
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
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
Really. You gotta read this one!
From the United States Courts
Farmers in the News
New Judge Appointed
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
Reaffirmations Impose Impossible Demands on Bankruptcy Counsel
“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
|
March 1, 2021
|
Archives |
Turnover by Motion? How About Under Rule 6008?
“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
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
“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
- 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
We noticed this week that many, many Courts have adopted this form.
Subchapter V Reminder – March 27, 2021 Current Deadline
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.
Chapter 13 – It’s Good To Have A Plan
“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.”
|
February 22, 2021
|
Archives |
SBRA – The Sequel: Leases in Bankruptcy Under the Consolidated Appropriations Act, 2021
Form 1099G – How to Fight Back Against Scams
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 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
New Proof of Claim Form
Passing of Judge Shapiro
Subchapter V Reminder – March 27, 2021 Deadline
Subchapter V candidates with debt between $2,725,625 and $7,500,000 should decide whether to file as soon as possible.
Bitcoin
- 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!
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
Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases – Part 1 of 2
|
February 15, 2021
|
Archives |
2020 Vision
Judges on Race: Reducing Implicit Bias in Courtrooms
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
On Bankruptcy’s Promethean Gap: Building Enslaving Capacity into the Antebellum Administrative State
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
Subchapter V Reminder – March 27, 2021 Deadline
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
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
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
Is 1328(i) Ultimately Terrible for 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:
|
February 8, 2021
|
Archives |
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
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?
“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:
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
- 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!!!)
Legal Aid and Who Are Our Chapter 13 “Customers”
“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:
|
February 1, 2021
|
Archives |
Paying the Car Loan Directly vs. Through the Plan: Till Debt Us Do Part?
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”
“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
- 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)
Delinquent Utilities and Disconnection Under New Bankruptcy Provision
|
January 25, 2021
|
Archives |
Delinquent Utilities and Disconnection Under New Bankruptcy Provision
In The Staff Department
I Feel A Change Coming On (Song by Bob Dylan, 1964)
“Every Trusteeship has encountered unexpected change during the past year.”
Meet a Newish Trustee
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
- 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!
The Proposed Consumer Bankruptcy Reform Act: A Political Analysis
|
January 18, 2021
|
Archives |
SCOTUS Decision: Section 362(a)(3) Is Not Violated by Retention of Repossessed Propert
Creditors’ Rights and Debtors’ Protections at the Intersection of Consumer Bankruptcy and UCC Article 9 – Part VII
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
1/12/21 – Bankruptcy Administration Improvement Act Signed Into Law
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
- 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
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)
Just the Facts, Ma’am – Consolidated Appropriations Act, December 27, 2020
|
January 11, 2021
|
Archives |
Just the Facts, Ma’am – Consolidated Appropriations Act, December 27, 2020
“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
Legal Aid and Who Are Our Chapter 13 “Customers”
Passing of Judge Bernstein
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
- 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)
Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases
|
January 4, 2021
|
Archives |
Recent Trends in the Interpretation of Midland v. Johnson and the Applicability of the FDCPA to Bankruptcy Cases
Chapter 13 Discharge Expanded by COVID Relief Legislation
From the Courts
- Northern District of Oklahoma – Policy Regarding Relief from Stay During the COVID-19 Crisis
- District of Arizona – Changes to Courtroom Deputy Assignments
- Northern District of Illinois – Congratulations to Elizabeth Peterson, the David S. Yen Bankruptcy Help Desk Volunteer of the Year
- Middle District of Florida, Fort Myers Division – In order to align the Court’s case numbering system with that of the District Court, effective January 1, 2021, the “location code” for cases filed in the Fort Myers Division will be changed from “9” to “2” – attorneys should use the “2” location code in all filings in Fort Myers Division cases.
- District of Nevada – Effective 1/1/21, updated Mortgage Modification Program is in effect.
- District of Nevada – Chapter 13 Presumptive Fees – Request for Public Comment
- District of South Carolina – 2020 South Carolina Bankruptcy Law Association Awards
Consumer Attorneys Work and Fee Survey
This is the 21st year that Ron Burdge has undertaken the herculean task of surveying consumer attorneys about their work and fees. The last published Consumer Bankruptcy Survey Report was 371 pages of detailed city and state data, that breaks down the fees that different courts allow and that attorneys charge for the various aspects of consumer rights and bankruptcy cases. There has never been any charge for the survey reports that are published and generously posted online for everyone’s use.
Previous reports have been used in Courts nationwide to award more than thirty million dollars in attorney fees to consumer advocates all over the country, including consumer bankruptcy attorneys. State and Federal Courts routinely rely on this report in awarding hourly fees in consumer cases. (If they aren’t using this report in your cases, you should be using it as evidence!) It is one of the primary resources that has been used to increase presumptive fees set by bankruptcy courts in Chapter 13 cases and also invaluable for attorneys in setting their fees for Chapter 7 cases.
The more people that participate the more accurate and useful the data becomes, so please feel free to share this with your local listservs and Google groups.
Go to www.AttorneyFeeStudy.com to fill out the online questionnaire. The survey does not obtain any personal information and there is no charge to participate and no charge for obtaining the published survey results.
CARES Act FFCRA Tax Credit Extended
Congress Extends FFCRA Tax Credit into 2021, Declines to Extend FFCRA Leave
Click here for more information.
State-By-State Guide to Litigation Financing Disclosure
“. . . , we now share an overview of similar procedures for determining whether a plaintiff has taken out a loan in 12 other states.”
Positions Open
- Eastern District of Michigan – Application due date 1/8/21
- Middle District of Florida at Orlando and Jacksonville – Application due date 2/1/21
On the CFPB
- You need to glance at this one. Our guess is that Debtor Attys will see debts from these cards in the future. . . . CFPB Issues Approval Order to Facilitate the Use of Dual Usage Credit Cards “The card is designed for consumers with a limited or damaged credit history as a tool that can be used to establish or reestablish a favorable credit history. Synchrony intends to offer a lower rate on secured use with the opportunity for eligible accountholders to graduate to unsecured use after 12 months.”
Critical Case Comment
Section 506(d) does not allow the voiding of a lien when the underlying claim, filed by the debtor, has been disallowed; when notice is provided to a corporation it must be addressed to the individual who holds the office of an officer, manager, or general agent.
