The Director of the Justice Department’s U.S. Trustee Program (USTP), which oversees the administration of bankruptcy cases, is about to change for the first time in nearly 20 years. Clifford White will be stepping down from...more
A proof of claim is a written statement setting out a creditor's claim and asserting its right to receive a distribution from the bankruptcy estate. It must "conform substantially" to Official Bankruptcy Form B410 (Fed. R....more
One of the first things creditors ask after filing a proof of claim is, “when do I get paid?” As with so many other legal questions, the answer is, “it depends.” Although many different factors govern payment in a bankruptcy...more
Last March, in response to the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) made several changes to the Bankruptcy Code, including those changes discussed in more detail here. As it...more
4/15/2021
/ Bankruptcy Code ,
CARES Act ,
Chapter 13 ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Eviction ,
Forbearance Agreements ,
Mortgage Servicers ,
Mortgages ,
Proof of Claims ,
Relief Measures
Bankruptcy is primarily about “claims.” The debtor seeks to discharge personal liability on claims, while creditors seek payment on their claims. In basic terms, a bankruptcy “claim” is a right to payment. The claim does not...more
You just heard that a customer has filed for bankruptcy — what do you do now? One of the first steps is to determine whether you should file a proof of claim.
How will I be alerted about the bankruptcy?
When a...more
The early bird gets the worm. Do your homework upon receiving notice of a bankruptcy filing, and review the account. Initial questions include: Is your debt secured or unsecured? What is the outstanding debt owed? Are there...more
As we cross the one-year anniversary of the COVID-19 pandemic, we reflect on the multiple amendments to the Bankruptcy Code that have been implemented to help curb the effects of various economic shutdowns and financial...more
3/19/2021
/ Bankruptcy Code ,
Bankruptcy Court ,
CARES Act ,
Chapter 11 ,
Chapter 13 ,
Chapter 7 ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Debtors ,
Mortgages ,
Proof of Claims ,
Small Business Reorganization Act of 2019 (SBRA)
Chapter 13 bankruptcy provides relief only to individuals with regular income. This Chapter is most frequently used by debtors who have sufficient disposable monthly income to make some payments over time to their creditors....more
Bankruptcy cases differ from typical lawsuits in a variety of ways, including the parties involved. Whereas standard lawsuits generally involve a plaintiff and a defendant, bankruptcy cases have a different cast of “players,”...more
For the past few years, the federal circuit courts have struggled with the issue of whether a creditor retaining possession of bankruptcy estate property violates the automatic stay. For example, is a creditor required to...more
On December 21, 2020, Congress passed the Consolidated Appropriations Act, 2021 (CAA 2021). Similar to the March 2020 CARES Act, several temporary changes to the Bankruptcy Code are included in Title X of the CAA 2021. Below,...more
1/8/2021
/ Bankruptcy Code ,
CARES Act ,
Chapter 13 ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Eviction ,
Forbearance Agreements ,
Foreclosure ,
Moratorium ,
Mortgage Servicers ,
Paycheck Protection Program (PPP) ,
Title X
The 10th Circuit has joined several circuit courts holding that private student loans are dischargeable in bankruptcy. In McDaniel v. Navient Solutions, a case of first impression in the 10th Circuit, the court concluded that...more
Consumers that have pending Chapter 13 bankruptcy cases undoubtedly suffered from financial hardship prior to the COVID-19 pandemic. For many of those consumers, the pandemic may have exacerbated that hardship...more
4/14/2020
/ Chapter 13 ,
Chapter 7 ,
Consumer Bankruptcy ,
Coronavirus/COVID-19 ,
Creditors ,
Debtors ,
Forbearance Agreements ,
Lenders ,
Liens ,
Mortgage Lenders ,
SCOTUS ,
Senior Lenders
Federal law has long excepted student loans from discharge in bankruptcy in all but the rarest instances, recognizing the problems (and costs) associated with allowing borrowers to wipe out defaulted debts through a...more
We previously provided you with some of the American Bankruptcy Institute’s Commission on Consumer Bankruptcy’s recommendations to improve the consumer bankruptcy system. As the commission noted, changes in bankruptcy law...more
Chicagoans have found a new avenue through which to regain possession of their vehicle after it has been impounded by the City: file a chapter 13 bankruptcy case. In 2018, 17,603 new chapter 13 bankruptcy cases were filed in...more
Individuals have several options when filing bankruptcy. Chapter 13 is often preferred for individuals with regular income who wish to keep their homes and other secured assets. In a Chapter 13 filing, the court will approve...more
2/21/2019
/ Appeals ,
Bankruptcy Code ,
Chapter 11 ,
Chapter 13 ,
Chapter 7 ,
Commercial Bankruptcy ,
Consumer Bankruptcy ,
Debt Restructuring ,
Debtors ,
Spouses ,
Student Loans ,
Unsecured Debt
Mortgage servicers are plagued by their nebulous relationships with the borrowers who discharge their personal liability in bankruptcy. Issues arise when the borrower whose debt has been discharged continues to engage with...more
1/29/2019
/ Chapter 13 ,
Chapter 7 ,
Consumer Bankruptcy ,
Debt Collection ,
Debtors ,
Dischargeable Debts ,
FDCPA ,
Foreclosure ,
Mortgage Servicers ,
Mortgages ,
Personal Liability ,
Safe Harbors
On December 22, 2018, the federal funding for certain agencies lapsed, and the United States government entered into a partial shutdown. The U.S. Department of Justice (DOJ), including the United States Trustee Program...more
Timely proof of claim filings by secured creditors have “been a thorn in the side of many Chapter 13 cases involving secured creditors,” according to Judge Wood in In re Pajian. However, a recent Seventh Circuit decision may...more