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
On December 9, 2020, Congressional Democrats, including Elizabeth Warren (D-Mass.) and Jerrold Nadler (D-N.Y.), proposed sweeping legislation that would overhaul consumer bankruptcy law. The proposed changes generally make it...more
12/15/2020
/ Bankruptcy Code ,
Bankruptcy Discharge Order ,
BAPCPA ,
Chapter 13 Conversions ,
Chapter 7 Conversions ,
Consumer Bankruptcy ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Protection Orders ,
Coronavirus/COVID-19 ,
Credit Counseling ,
Debt Relief ,
Dischargeable Debts ,
Proposed Legislation ,
Repayment Options
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
Chief Bankruptcy Judge Cecelia Morris in the Bankruptcy Court for the Southern District recently reinterpreted Brunner’s “undue hardship” test and discharged over $220,000 in student loan debt. This opinion reflects a marked...more
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
Welcome to Part II of our series on the servicing of discharged mortgage debt (catch up on Part I). This part will discuss communications to discharged borrowers and evaluate various disclaimers that can be utilized.
The...more
2/12/2019
/ Borrowers ,
Debt Collection ,
Debtors ,
Dischargeable Debts ,
FDCPA ,
Foreclosure ,
Mortgage Servicers ,
Mortgages ,
Notice Requirements ,
Personal Liability ,
RESPA
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