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Articles from Tampa Bankruptcy

Pro se creditor sanctioned $41,000 for discharge violation in filing criminal embezzlement charges in attempt to collect debt

   While criminal proceedings are not stayed by the bankruptcy automatic stay, when a creditor files criminal charges simply in an attempt to collect a debt, they may face the wrath of the bankruptcy judge.  This was the case in In re Kimbler, 2020 Bankr. LEXIS 1853, Case no 19-04165-5-DMW (Bankr. E.D. N.C.

6th Circuit BAP affirms decision finding creditor did not violate discharge injunction by insisting on payment to release lien on surrendered vehicle it refused to repossess

  In Bentley v. OneMain Fin. Grp. LLC, 2020 Bankr. LEXIS 1837, Case No 19-8026 (6th Cir.

Obtaining sanctions against IRS or contractor for discharge violation

  The Bankruptcy Court for the Southern District of New York had the opportunity to rule on the availability of sanctions for a discharge violation regarding collection of discharged taxes against both the IRS and a contractor for the IRS in In re Starling, 2020 Bankr. LEXIS 1627, Case No 13-36564 (CGM), (Bankr.

5th Circuit rejects 'Molina' language, requiring debtors proposing 100% plans to either devote 100% of disposable income until claims are paid or agree that no future modification will pay less than 100%
  On 8 June, 2020 the 5th Circuit ruled against the chapter 13 Trustee on a matter a number of trustee's are asserting in plans proposing 100% to unsecured creditors.  Brown v. Viegelahn, 2020 U.S. App. LEXIS 17915, Case No.
Rule protecting claims secured solely by principal residence does not apply to mortgage when final payment is due before final payment under plan

   While the general rule in chapter 13 per 11 U.S.C. 1322(b)(2) is that the debtor cannot modify the mortgage on a debt secured by the debtor's principal residence (the debtor can cure and reinstate, but not change the terms of the mortgage); an exception to this rule comes into play when the final payment due on such mortgage comes due prior to the final payment due on the chapter 13 plan.  This was the case in In re Collier-Abbott, 2020 Bankr. LEXIS 1402, Case No. 19-21310-E 13 (Bankr. E.D. Cal., 27 May 2020).

1st Circuit BAP finds uncashed 401k loan check is property of estate and not exempt

  In reversing a bankruptcy court decision, the 1st Circuit BAP found that a $18,000 uncashed check for a loan from the Debtor's 401k was property of the estate, and was not exempt.  Ostrander v. Brown (In re Brown), 2020 Bankr.

Prepetition Credit Counselling requirement continues to trip up debtors

  A survey of cases in which waiver of the credit counseling requirement was sought was listed in In re Grantham, 2020 Bankr. LEXIS 1228, Case No. 6:20-bk-11740-WJ (Bankr. C.D.

Tennessee bankruptcy court rules that false statements to divorce court may lead to inability to meet good faith standard for confirmation of chapter 13 plan

  In In re Walker, 2020 Bankr. LEXIS 890, Case No. 3:19-bk-33182-SHB (Bankr. E.D. Tenn, 2 April 2020) the court was faced with a good faith objection to confirmation based on conduct in a prior divorce case.  A detailed factual background is necessary to understand the Court's ruling.

Debtor attorney sanctioned for inadequate investigation prior to emergency filing

   In a case study of what not to do in filing chapter 13 cases, the attorney for the Debtor in In re Chapman, 2020 Bankr. LEXIS 642, Case No. 19-26731-beh, (Bankr. E.D. Wis. 11 March 2020) was sanctioned under Rule 9011 for a portion of the fees incurred by the secured creditor.  A Holly Olm called the law office leaving a message seeking to file a chapter 13 case.  An appointment was scheduled the same day at which she disclosed that the case was actually for her mother, and that a foreclosure sale was scheduled for the next day regarding her mother's home.  Ms.

Debtors in a pending chapter 13 can use HAVEN act to reduce payments going forward per Michigan bankruptcy court

  On 23 August 2019 the HAVEN Act was enacted, which among other things, treats VA disability payments similar to social security payments, excluding them from the means test.  The issue coming before the Court in In re Gresham, 2020 Bankr. LEXIS 627, Case No 18-56289 (Bankr. E.D. Mich. 10 March 2020) was whether such change in the law applied to pending chapter 13 cases.