A Colorado Bankruptcy Court found that a debtor whose only non-social security income was generated through the marijuana industry could not avail himself of bankruptcy relief. In re Arenas, — B.R. —-, 2014 WL 4288991 (Bankr. D. Colo. Aug. 28, 2014). The chapter 7 debtors’ income sources were $4,265.16 from Mr. Arenas’ marijuana growing business […]
Author Archives: NCBRC
Bankruptcy as Social Insurance Program
October 1, 2014 – 3:05 pm
Fortune Magazine reported yesterday on the results of a recent study conducted by the National Bureau of Economic Research in which the NBER examined 500,000 U.S. bankruptcy filings to determine the overall effect on consumers. The study found that Chapter 13 bankruptcy protection “increases annual earnings by $5,562, decreases five-year mortality by 1.2 percentage points, […]
Galaxies Apart…
September 11, 2014 – 6:26 pm
Men Are From Mars, Women Are From Venus is the classic guide to understanding relationships between men and women. A similar resource is desperately needed for consumer advocates and some federal regulators (Treasury and the NMS Monitor, specifically) because it seems we are not even working in the same galaxy! As evidence of this cosmic disconnect, […]
The Economic Well-being of U.S. Households
August 26, 2014 – 3:25 am
The Board of Governors for the Federal Reserve System has released a new report on the economic well-being of U.S. households. For those interested in consumer bankruptcy and trends in credit behavior and savings, it is worth taking a look. The report provides a snapshot of the self-perceived financial and economic well-being of U.S. households and […]
Colorado AG Charges Foreclosure Mills with Fraud
August 13, 2014 – 7:21 pm
Colorado AG’s Consumer Protection Section charged The Castle Law Group, its principals and affiliated foreclosure-related businesses, as well as Aronowitz & Mecklenburg, its principals and affiliated foreclosure-related businesses with violating the Colorado Consumer Protection Act, the Colorado Antitrust Act, and the Colorado Fair Debt Collection Practices Act. The complaints allege that these law firms, and […]
Eleventh Circuit Joins Fourth in Allowing Chapter 20 Lien Strip
June 19, 2014 – 3:35 pm
Yesterday, the Eleventh Circuit joined the Fourth Circuit in affirming the debtor’s ability to strip a wholly unsecured lien in chapter 13 where no discharge is available. In re Scantling, No. 13-10558 (June 18, 2014). After reviewing the historical development of lien stripping under the Bankruptcy Code, the court, relying on its previous decision in […]
Going to Jail for Being Poor
May 21, 2014 – 2:45 pm
NPR did a story this week about how the poor are being saddled by increasing fees associated with the criminal justice system. The story highlights a disturbing trend in which people are facing jail time that is disproportionate to their crime because they are too poor to pay assessed fees, such as electronic monitoring fees, […]
Debtor’s Prison in the 21st Century?
March 27, 2014 – 4:35 pm
Prof. Vivian Berger, Nash Professor of Law Emerita at Columbia Law School, writes here about the misuse of civil contempt proceedings to obtain the repayment of debts. She’s right that despite our common belief that debtors’ prisons have been eliminated in America, it just isn’t so.
CFPB Circumvents Rulemaking Process to Create A Bankruptcy Exemption in Servicing Rules
October 16, 2013 – 5:46 pm
Without advance notice and with no opportunity to comment, the CFPB yesterday issued an interim final rule concerning the mortgage servicing regulations that take effect January 2014. The new rule now exempts servicers from the periodic statement requirement when the borrower is a debtor in bankruptcy. The CFPB states that the interim final rule “clarifies” its […]
HAMP Trial Period Plans – Wells Fargo’s Fraudulent Coin Toss
August 9, 2013 – 3:33 pm
Yesterday, the Ninth Circuit Court of Appeals held in Corvello v. Wells Fargo Bank, N.A., No. 11-16234, that Wells Fargo was contractually obligated under the terms of a HAMP trial period plan (TPP) to offer permanent modifications to borrowers who complied with the TPP by submitting accurate documentation and making trial payments. Such an interpretation […]
