On Monday, Alena Hammer obtained a $2 million jury verdict against Residential Credit Solutions, Inc. (RCS), a national mortgage loan servicer, for its breach of contract, violations of the Real Estate Settlement Procedures Act (RESPA), and violations of the unfairness and deception provisions of the Illinois Consumer Fraud and Deceptive Business Practices Act. All of Hammer’s claims […]
Author Archives: NCBRC
Cert. Denied in LVNV v. Crawford
April 20, 2015 – 4:30 pm
The Supreme Court has declined to take up the issue of whether filing a stale proof of claim in a bankruptcy case violates the FDCPA. Previously, the Eleventh Circuit found that a proof of claim to collect a stale debt in chapter 13 violates the Fair Debt Collection Practices Act. In Crawford, however, the Eleventh Circuit […]
Supreme Court Hears Oral Argument in Ch. 7 Lien Stripping Cases
March 24, 2015 – 6:32 pm
Today, the Supreme Court heard oral argument in Bank of America, N.A. v. Caulkett and Bank of America, N.A., v. Toledo-Cardona. At issue is whether chapter 7 debtors may strip off junior mortgages where there is no value in the collateral to support the junior lien. Here’s the transcript. Well worth the read!
Contrasting Cases on Undue Hardship and Summary Judgment
December 5, 2014 – 1:26 pm
Speculation, begging the question, and the absence of countervailing evidence doomed the debtor’s defense to a motion for summary judgment on her student loan discharge action. Markwood v. U.S. Dept. of Educ. (In re Markwood), No. 13-1390, Adv. Proc. 14-4 (Bankr. N.D. W.Va. Oct. 31, 2014). The court applied the three-part test developed in Brunner […]
Medical Debt Causes 18% – 26% of Bankruptcy Filings
December 1, 2014 – 1:24 pm
In his paper, “Medical Debt as a Cause of Consumer Bankruptcy,” Daniel A. Austin reports on the results of a study suggesting that “medical bills are the single largest causal factor in consumer bankruptcy—but not to the degree found in the study cited by President Obama.”
“Non-Routine” Fees for Objections to Late Claims Allowed
November 24, 2014 – 10:08 pm
In two nearly identical cases, the bankruptcy court granted the debtors’ attorney’s supplemental fee motions seeking compensation for work performed opposing proofs of claim for debts that were unenforceable due to the lapse of the state statute of limitations. In re Swilling, No. 13-12583 (Bankr. E.D. Tenn. Oct. 23, 2014), In re Alexander, No. 13-13462 […]
Rent-Stabilized Lease Is Exempt as Public Assistance Benefit
November 21, 2014 – 10:06 pm
The New York Court of Appeals determined that a rent-stabilized lease is a public assistance benefit subject to state exemption laws. Santiago-Monteverdi v. Pereira (In re Santiago-Monteverdi), 2014 NY Slip Op. 8051 (N.Y. Nov. 20, 2014).
Not Even the IRS Approves of McCoy
November 18, 2014 – 10:03 pm
The IRS has filed an amicus brief in the First Circuit taking the position that the Fifth Circuit erred in McCoy v. Miss. State Tax Comm’n, 666 F.3d 924 (5th Cir. 2012), when it held that a late-filed return can never be a “return” for dischargeability purposes unless filed under IRC section 6020(a). Wood v. […]
Supreme Court to Hear Chapter 7 Lien Stripping Cases
November 17, 2014 – 9:59 pm
The Supreme Court granted certiorari today in two of the three Chapter 7 lien-strip-off cases challenging the Eleventh Circuit decision in McNeal. Bank of Amer. v. Toledo-Cardona, No. 14-163 and Bank of Amer. v. Caulkett, No. 13-1421 (petition granted Nov. 17, 2014) (consolidated for argument) (Bank of Amer. v. Bello, No. 14-235 is still pending). […]
Arbitration Judgment Applies to Determination of Nondischargeability
November 13, 2014 – 9:56 pm
The doctrine of collateral estoppel mandated that findings in a state court arbitration judgment applied to the determination of nondischargeability of a debt in chapter 7 bankruptcy. Margolis v. Hensley (In re Hensley), No. 12-42785, Adv. Pro. 12-4180 (Bankr. E.D. Tex. Oct. 1, 2014).
