The Second Circuit has followed the lead of the Tenth and Fifth Circuits in affirming a bankruptcy court ruling regarding private student loans under 11 U.S.C. § 523(a)(8). In Homaidan v. Navient, et al., the court ultimately...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
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 11 bankruptcy cases are most frequently filed by businesses. However, certain high-earning individuals whose debts are above the statutory debt limits to qualify for Chapter 13 can also file for Chapter 11 relief. In...more
3/10/2021
/ Bankruptcy Code ,
CARES Act ,
Chapter 11 ,
Chapter 7 ,
Commercial Bankruptcy ,
Debt Restructuring ,
Debtors ,
Executory Contracts ,
Small Business ,
Statutory Requirements ,
Trustees
Chapter 7 bankruptcy cases are straight liquidations sought by debtors who wish to have most or all of their debts discharged. In Chapter 7 cases, the Chapter 7 trustee obtains control over the debtor’s assets and evaluates...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
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
The Fifth Circuit’s recent decision in Crocker v. Navient Solutions is a stark reminder to for-profit student lenders and servicers that bankruptcy caselaw continues to evolve relating to discharge. In Crocker, the Fifth...more
11/5/2019
/ Chapter 7 ,
Class Action ,
Consumer Bankruptcy ,
Consumer Financial Products ,
Consumer Lenders ,
Dischargeable Debts ,
Internal Revenue Code (IRC) ,
Loan Servicer ,
Payment Terms ,
Private Student Loans ,
Student Loans ,
Students
Part III: Modifications Post-Discharge -
Welcome to Part III of our series on the servicing of discharged mortgage debt. This part will discuss modifying a borrower’s loan after a discharge. (If you missed Part I or Part...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
Your tenant files for bankruptcy-what’s your move? Debtors who are lessees under real property leases have certain rights regarding their lease under § 365 of the Bankruptcy Code. Essentially, the debtor has two options: 1)...more
7/31/2015
/ Assignments ,
Chapter 11 ,
Chapter 7 ,
Commercial Bankruptcy ,
Commercial Leases ,
Consumer Bankruptcy ,
Debtors ,
Landlords ,
Leases ,
Proof of Claims ,
Section 365 ,
Tenants