National Consumer Bankruptcy Rights Center

Protecting The Rights Of Consumer Debtors In Bankruptcy

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Canadian Retirement Benefits Excluded from Current Monthly Income

A Treaty between Canada and the United States that became effective in 1984 was the basis for a bankruptcy court finding that Canadian Old Age Security (OAS) benefits should be treated the same way as U.S. social security benefits for purposes of application of the Bankruptcy Code. In re McPhee, No.13-36046 (Bankr. E.D. Va. Aug. 26, 2014). [Read more…] about Canadian Retirement Benefits Excluded from Current Monthly Income

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Eighth Circuit Joins Sister Courts on Lien Stripping in Chapter 13

Dealing with the issue it side-stepped in Fisette v. Keller (In re Fisette), 695 F.3d 803 (8th Cir. 2012), and joining all other circuit courts to address the issue, the Eighth Circuit held that a wholly unsecured lien may be stripped in chapter 13. Minn. Hous. Fin. Agency v. Schmidt (In re Schmidt), No. 13-2447 (8th Cir. Aug. 28, 2014). [Read more…] about Eighth Circuit Joins Sister Courts on Lien Stripping in Chapter 13

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Trustee Must Disgorge Fee Collected in Unconfirmed Chapter 13 Plan

Addressing an issue that “has been percolating through the courts,” an Arkansas bankruptcy court found that when a chapter 13 plan is not confirmed, the standing trustee must return to the debtors his percentage fee based on undisbursed payments on that plan. In re Dickens, No. 12-16982 (Bankr. E.D. Ark. July 25, 2014). [Read more…] about Trustee Must Disgorge Fee Collected in Unconfirmed Chapter 13 Plan

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Attorney’s “No Money Down” Fee Collection Practice Violates BAPCPA

Two cases out of the Western District of Louisiana found that attorney Glay H. Collier’s fee collection practices violated sections 526, 528, 362 and 524 of the Bankruptcy Code. Wheeler v. Collier (In re Wheeler), No 11-1670 (W.D. La. May 22, 2014) and (July 17, 2014), and Patrick v. Collier (In re Patrick), No. 14-11203 (Bankr. W.D. La. July 23, 2014). [Read more…] about Attorney’s “No Money Down” Fee Collection Practice Violates BAPCPA

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Ocwen’s Errors Force Debtors into Bankruptcy

A Delaware Bankruptcy Judge took on the task of calculating the debtors’ mortgage payment history in the face of erroneous calculations by Ocwen Loan Servicing, LLC. Judge Shannon found that the debtors were current on their payments when Ocwen initiated foreclosure proceedings and that Ocwen’s errors forced the debtors into bankruptcy to save their home. Williams v. Ocwen, No. 13-12234 (Bankr. D. Del. July 18, 2014). [Read more…] about Ocwen’s Errors Force Debtors into Bankruptcy

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Bankruptcy Court Takes Compassionate View of Default

The evidence showed that the debtors’ breach of contract and conversion of collateral was not willful and malicious for purposes of nondischargeability under section 523(a)(6). Mountain Am. Credit Union v. Trujillo (In re Trujillo), No. 13-12434, Adv. No. 13-1095 (Bankr. D. N.M. July 3, 2014).  [Read more…] about Bankruptcy Court Takes Compassionate View of Default

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Debt for Fees Related to Incarceration of Minor Not Dischargeable

A Bankruptcy Appellate Panel for the Ninth Circuit found that debt based on expenses incurred by the county juvenile justice system for the care of the debtor’s son while incarcerated is nondischargeable Rivera v. Orange County Probation Dept. (In re Rivera), No. 13-1476 (B.A.P. 9th Cir. June 4, 2014). [Read more…] about Debt for Fees Related to Incarceration of Minor Not Dischargeable