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Articles from Tampa Bankruptcy

October District Court case warning to Debtors and Counsel re changing homestead during chapter 13

   The Southern District of Florida case affirmed Judge Cristal in Miami finding that the debtor could not claim a homestead exemption in property bequeathed to  them during the chapter 13 case, when they subsequently converted to chapter 7.  Rodriguez v. Mukamal, 2020 U.S. Dist.

11th Circuit upholds sanctions under 28 U.S.C.S. §1927 and appellate sanctions under Rule 38 against pro se bankruptcy attorney debtor who lost §523 complaint

   The appeal in Wizenberg v Wizenberg, 2020 U.S. App. LEXIS 39276, Case No 20-10641 (11th Cir.

Detailed discussion of when chapter 7 trustee's abandonment of property can be set aside in finding trustee lost rights to class action settlement netting over $229,000

    Judge Moberly in Indiana was faced with a trustee's attempt to revoke his prior abandonment of a class action claim related to the drug Abilify.  In re Fuller, 2020 Bankr. LEXIS 3503, Case No 18-00681-RLM-7A (Bankr. S.D.

Iowa bankruptcy judge cites requirement that creditors' counsel exercise restraint in fees and expenses incurred in reducing fee request by $65,834 to $153,613.

   The amount of fees allowed to a substantially oversecured creditor, Farm Credit, in a complicated chapter 12 case was at issue before Judge Collins in In re Kurtenback, 2020 Bankr. LEXIS 3336, Case No 18-01607 (Bankr. N.D.

Amended Florida Wage Exemption Statute applies retroactively to loans incurred prior to amendment and only amount above such threshold is subject to 25 garnishment

   In 2010 §222.11 of the Florida Statutes dealing with exemption of wages was amended to increase the threshold above which wages of a head of a household could be garnished if the borrower had agreed in writing to such garnishment from $500/week to $750/week.  The 2010 statute read 


Debtor attorney awarded $17,302.50 fees for correcting $179.98 mortgage mistake leading to $130,000 past due mortgage debt

   In a fairly egregious factual situation, a bankruptcy court in Massachusetts awarded debtor's counsel $17,302.50 in fees and $261.60 in costs for correcting a mortgage company's minor error that in turn lead to an attempt by the mortgage to charge the debtor $130,000 in improper debt.  In re Miralda, case No 09-10853-MSH, 2020 Bankr. LEXIS 3006 (Bankr. D.Mass. 27 October 2020).  

'Definitive Analysis' (per Bill Rochelle-ABI) of issue in allowing debtor to retain exempt and nonexempt post-petition appreciation on sale of property in chapter 13

   Another important chapter 13 case involving a post-petition sale of a home for $11,000 net proceeds in excess of Colorado's $75,000 exemption in a chapter 13 when home had no nonexempt equity in filing was involved in  In re Baker, 2020 Bankr. LEXIS 2771, Case No. 17-14041-EEB (Bankr. Colo, 29 Sept 2020).  In ruling that the debtor could retain the proceeds of the sale rather than being forced to turn such proceeds over to the trustee, Judge Elizabeth Brown made a detailed analysis of the current law on the issue.

10th Circuit rules on what student loans are excepted from discharge under §523(a)(8)(A)(ii)

  In an important decision from the 10th Circuit Court of Appeals, the court found that purported student loans incurred for paying college expenses had been discharged in the debtor's chapter 13 bankruptcy case.  McDaniel v. Navient Sols. LLC (In re McDaniel), 2020 U.S. App. LEXIS 27687, Case No 18-1445 (10th Cir.

11th Circuit joins all but 4th Circuit in allowing modification of confirmed chapter 13 plans without requiring a change of circumstances

  In Whaley v. Guillen (In re Guillen), 2020 U.S. App. LEXIS 26980, Case #17-13899 (11th Cir.

11th Circuit affirms substantial sanctions against debtor's counsel and firm under code and rules for fee disclosure and contract

   The 11th Circuit affirmed a decision coming out of Alabama sanctioning Law Solutions of Chicago (Upright Law) and local counsel $150,000 and disgorgement of fees in 3 cases and barred Upright Law from filing cases in the Northern District of Alabama for 18 months for violation of Rule 9011, §707, and  §526 for filing 3 cases with Rule 2016 disclosures that did not comply with a prior settlement agreement requiring Upright Law to perform certain bankruptcy services such as dischargeability proceedings, stay motions, redemptions, lien avoidances, contested exemptions, reaffirmations, and c