When it comes to estate planning (and carpentry) “use the right tool for the job.” This was the ultimate message in Soule v. Gragg (In re Harrison), No. 11-13580, A.P. No. 13-1010 (Bankr. N.D. Okla. Jan. 23, 2014). [Read more…] about Court Allows Sale of Property in Joint Tenancy with Non-Debtors
Cosigned Debts May Receive Higher Dividends in Chapter 13 Plan
Section 1322(b)(1) permits more favorable treatment of cosigned loans without regard to the degree of disparity between the payment on those loans and the payment on the general unsecured debts. In re Russell, No. 13-50045 (Bankr. S.D. Ohio Dec. 31, 2013). [Read more…] about Cosigned Debts May Receive Higher Dividends in Chapter 13 Plan
NACBA Files Amicus in Supreme Court Inherited IRA Case
NCBRC has filed an amicus brief on behalf of the NACBA membership in the Supreme Court case of Clark v. Rameker (In re Clark), No. 13-299. The debtor in Clark inherited the funds in her mother’s IRA which were then transferred into the debtor’s tax-exempt account via a trustee-to-trustee transfer. In the debtor’s later bankruptcy she sought to exempt those funds. The Seventh Circuit created a split in the circuits when it held that a debtor may not exempt her inherited IRA in bankruptcy. In re Clark, 714 F.3d 559 (7th Cir. 2013). The Fifth Circuit had reached the opposite conclusion in Chilton v. Moser, 674 F.3d 486 (5th Cir. 2012). [Read more…] about NACBA Files Amicus in Supreme Court Inherited IRA Case
CTC Refund Not Exemptible Under Missouri Exemption Statute
A recent BAP decision found that the debtor may not exempt her federal Child Tax Credit refund under Missouri’s exemption for “public assistance.” Hardy v. Fink (In re Hardy), No. 13-6029 (B.A.P. 8th Cir. Dec. 23, 2013) (notice of appeal to 8th Cir. filed January 2, 2014). [Read more…] about CTC Refund Not Exemptible Under Missouri Exemption Statute
NCLC Issues Paper on Foreclosure Crisis’s Effect on Credit Reporting
In addition to the 4.5 million families who lost their homes, the foreclosure crisis had another insidious and long-lasting consequence both to individual consumers and on a broader economic scale. In a new white paper issued by the National Consumer Law Center, author Chi Chi Wu explores the devastating credit reporting problems left in the wake of the Great Recession. The report explores the scope of the problem and offers a variety of policy solutions. Solving the Credit Conundrum: Helping Consumers’ Credit Records Impaired by the Foreclosure Crisis and the Great Recession. [Read more…] about NCLC Issues Paper on Foreclosure Crisis’s Effect on Credit Reporting
Supreme Court Hears Homestead Surcharge Case
The US Supreme Court heard arguments yesterday in the case of Law v. Siegel (In re Law), No. 12-5196. That case involves the issue of whether a bankruptcy court has the power under section 105(a) to impose a special surcharge by taking the debtor’s homestead exemption due to debtor misconduct.
NCBRC filed an amicus brief on behalf of the NACBA membership arguing that while section 105(a) grants equitable power to the court to effectuate the terms of the Bankruptcy Code, it does not permit the court to contravene other sections of the Code or bypass its otherwise applicable provisions. In sections 522(c) and (k) Congress specified that exempt property cannot be used to pay pre-petition debts or administrative expenses. In addition, in sections 522(o) and (q), Congress specified conditions under which a homestead exemption may be compromised as a result of debtor’s misconduct. Section 105(a) permits a court to use its equitable power to “carry out the provisions” of the Code, not to override or contradict them.
The transcript of the argument can be found here. Law v Siegel transcript
Tax Purchaser Claim May Be Modified in Chapter 13
In a chapter 13 bankruptcy filed prior to the expiration of the redemption period, a real property tax purchaser’s claim is treated as a secured claim which may be modified in the plan. Alexandrov v. LaMont (In re LaMont), No. 13-1187 (7th Cir. Jan. 7, 2014). [Read more…] about Tax Purchaser Claim May Be Modified in Chapter 13
Current Possession of Bank Funds Not Necessary for Turnover
In an unfortunate decision, the Ninth Circuit held that current possession is not necessary to turnover of funds in a checking account. Shapiro v. Henson (In re Henson), No. 11-16019 (9th Cir. Jan. 9, 2014). [Read more…] about Current Possession of Bank Funds Not Necessary for Turnover
Debtor Need Not Commit All PDI in 100% Plan
It was not enough that the chapter 13 debtors committed to paying off their unsecured debts in their entirety, the trustee demanded that they comply with the disposable income test of section 1325(b)(1)(B). In re Bailey, No. 13-60782 (Bankr. E.D. Ky. Nov. 21, 2013). [Read more…] about Debtor Need Not Commit All PDI in 100% Plan
Exemption Allowed Where No Intent to Defraud
Actual intent to hinder, delay, or defraud a creditor is a required element for a reduction of homestead exemption under section 522(o). In re Halinga, No. 13-925 (Bankr. Idaho Nov. 27, 2013). [Read more…] about Exemption Allowed Where No Intent to Defraud