News & Analysis as of September 24, 2024

Consumer Bankruptcy › Consumer Lenders

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Consumer bankruptcy is a process to reduce or eliminate personal as opposed to business debts. Consumer bankruptcies can be filed under either Chapter 7 or Chapter 13 of the bankruptcy code. Debtors are... more +

CFPB scrutinizes discharged private student loan billing and collection practices

Orrick, Herrington & Sutcliffe LLP on 3/27/2023

On March 16, the CFPB released a compliance bulletin discussing student loan servicers’ practice of collecting on private student loans discharged in bankruptcy. ...more

Breaking Down Biden's Student Debt Relief Plan

Brownstein Hyatt Farber Schreck on 9/1/2022

On Wednesday, Aug. 24, President Biden announced a three-part plan to provide student loan debt relief to tens of millions of Americans. The student loan debt relief plan includes the following components: (1) a final...more

The Future of Student Loans and Bankruptcy – Is There a Bubble Waiting to Burst?

Epiq on 9/15/2021

In March 2021, the U.S. Department of Education noted that student loan borrowers owed $1.6 trillion federal and private loans. For many, loans are the only option to attend a U.S. university or college for undergraduate,...more

Madden Progeny Update

Orrick, Herrington & Sutcliffe LLP on 3/10/2020

The Second Circuit’s decision in Madden v. Midland Funding, LLC was announced in 2015. Since that time, there have been a number of cases brought based on the Second Circuit opinion, as well as recent regulatory proposals...more

5th Circuit Joins the Growing Crowd Holding that Private Student Loans May be Dischargeable in Bankruptcy

Bradley Arant Boult Cummings LLP on 11/5/2019

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

A Dream or a Nightmare? Who pays in a world without student loans?

Womble Bond Dickinson on 8/14/2019

Anyone who hasn’t heard about the “student loan crisis” in the U.S. hasn’t been paying attention. U.S. student loan debt is estimated to range from between $1.2 and $1.6 trillion with more than seven million borrowers in...more

Student Loans in Bankruptcy: What’s on the Horizon?

Bradley Arant Boult Cummings LLP on 6/19/2019

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

The Conundrum of Credit Reporting In and After Bankruptcy: Help May Be on the Way

Bradley Arant Boult Cummings LLP on 5/31/2019

Creditors and credit furnishers often find properly reporting a payment status to Credit Reporting Agencies (CRAs) during, and after, bankruptcy a challenge. The recent Report of the American Bankruptcy Institute on Consumer...more

Burr Alert: Fourth Circuit Green Lights Lender Claims for Post-Petition Attorneys’ Fees

Burr & Forman on 3/4/2019

Most lending institutions and bankruptcy practitioners are familiar with a secured creditor’s ability to include post-petition attorneys’ fees in its claim against a bankrupt debtor so long as (1) the claim amount does not...more

U.S. District Court for the Southern District of Florida Narrows the Definition of Borrower Under RESPA

Ballard Spahr LLP on 1/23/2018

In 2014, the Consumer Financial Protection Bureau (CFPB) promulgated a number of mortgage servicing rules, including rules governing loss mitigation procedures. ...more

Handy List of Basic Issues to Consider for the Transactional Workout

BCLP on 2/3/2017

While significant energy here at the Bankruptcy Cave is devoted to substantive bankruptcy matters, not all aspects of a general insolvency practice are always fun and litigation. Oftentimes insolvency lawyers add the most...more

A Debtor’s Allegedly False Financial Statement Doesn’t, At All, Excuse a Lack of Lender Diligence

BCLP on 1/10/2017

A decision rendered during the sometimes peaceful interlude between Christmas and New Year’s is worth reading, and heeding. Hurston v. Anzo (In re Hurston), Adv. Proc. No. 15-2026 (Bankr. N.D. Ga. Dec. 27, 2016) is a helpful...more

Chapter 13 Plans are Just About Written in Stone

Ward and Smith, P.A. on 7/26/2016

Recently, a bankruptcy judge in the United States Bankruptcy Court for the Eastern District of North Carolina issued a ruling that should help lenders dealing with borrowers in Chapter 13. In a case entitled In re Royal, the...more

Mortgage Acknowledgements: Can A Boo-Boo Be Fixed?

Troutman Pepper on 10/28/2015

Bank of America, N.A. v. Casey, 517 B.R. 1 (D. Mass. 2015) – A Chapter 7 trustee sought to avoid a mortgage using “strong-arm” powers based on a defect in the acknowledgement. The mortgagee contended that the defect was...more

Real Property, Financial Services & Title Insurance Update: Week Ending October 23, 2015

Carlton Fields on 10/27/2015

REAL PROPERTY UPDATE - Foreclosure/Documentary Stamp Tax: deferred interest on a “pick-a-payment” mortgage did not amount to future advance, which would have required payment of documentary stamp tax - Steinberg v. Wells...more

Another Bankruptcy Court Confirms Plan Reference to “Surrender” Means Not Defending a Lender’s Foreclosure

Burr & Forman on 8/13/2015

Foreclosure defense and bankruptcy often go hand in hand, but sometimes it seems like the left hand doesn’t talk to the right. This has proven especially common with bankruptcy plans that propose to “surrender” real property...more

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Consumer Bankruptcy › Consumer Lenders

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