A debtor must report a new award of social security benefits during the course of her chapter 13 plan without regard to whether that income can be used to fund the plan. In re Wheeler, No. 09-13597 (Bankr. N.D. Ind. Dec. 18, 2013). [Read more…] about Failure to Report SS Award Results in Dismissal
Court Defines “Residence” Generously for Exemption Purposes
In two cases out of North Carolina, the bankruptcy court interpreted the state definition of “residence” for exemption purposes. In re Davila, No. 13-3246 (Bankr. E.D. N.C. Jan. 30, 2014) and In re Whitney, No. 13-05671 (Bankr. E.D. N.C. Jan. 15, 2014). [Read more…] about Court Defines “Residence” Generously for Exemption Purposes
Court Rejects Proposed Order for Payment of Attorney Fees in Event of Dismissal
Language in a proposed order for attorney fees that, in the event of dismissal or conversion, the fees were to be paid out of undistributed funds held by the trustee was rejected by the bankruptcy court as unsupported by the Code. In re Weatherspoon, No. 11-46755 (Bankr. W.D. Wash. Jan. 3, 2014). [Read more…] about Court Rejects Proposed Order for Payment of Attorney Fees in Event of Dismissal
Chapter 13 Debtor May Exercise Trustee’s Avoidance Power
A chapter 13 debtor may exercise the trustee’s avoidance powers under section 544 if doing so will benefit the bankruptcy estate. In re Aiwohi, 13-90038 (Bankr. Haw. Jan. 31, 2014). [Read more…] about Chapter 13 Debtor May Exercise Trustee’s Avoidance Power
Carve-Out Agreement Does Not Go to Debtors’ Homestead Exemption
Funds paid to the chapter 7 trustee out of the sale of debtors’ homestead could not be exempted where the sale did not fully satisfy outstanding liens. Baldridge v. Ellmann (In re Baldridge), No. 13-1700 (6th Cir. Feb. 3, 2014) (per curiam). [Read more…] about Carve-Out Agreement Does Not Go to Debtors’ Homestead Exemption
SSA Setoff Not Recoverable under Section 553(b)
After paying disability (SSDI) benefits to the debtor, Damas, for several years the SSA determined that it had overpaid him by $13,478. It therefore began deducting $605 from his monthly benefit. When Damas filed for bankruptcy he sought to recover the amount the SSA had collected toward this debt during the ninety day period preceding the petition date. The court granted summary judgment in favor of the SSA. Damas v. U.S.A., No. 12-15313, A.P. 12-1331 (Bankr. D. Mass. Jan. 6, 2014). [Read more…] about SSA Setoff Not Recoverable under Section 553(b)
Court Allows Sale of Property in Joint Tenancy with Non-Debtors
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