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
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
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
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
The Economic Well-being of U.S. Households
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 addresses many key topics, including household economic well-being, housing and living arrangements, credit behavior and access to credit, savings, education and student loans, retirement, and health insurance coverage and expenses.
Colorado AG Charges Foreclosure Mills with Fraud
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 their principals, conspired to charge fraudulent and inflated costs for posting of two statutorily-mandated notices on the homes of borrower’s facing foreclosure, and used affiliated companies to run up the costs of title products used in the foreclosures. The complaints also allege that these firms improperly and deceptively tacked on additional charges as “costs” for tasks already compensated by the maximum allowable fee paid to the law firm by the investor.
Complaints and the Final Consent Judgment with the Aronowitz defendants are available here.
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
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
Child Support Properly Deducted from Means Test
The debtor properly excluded $400.00/month in child support payments from her calculation of disposable income despite deducting child care expenses elsewhere on the means test. Clark v. Brooks (In re Brooks), No. 14-1031 (C.D. Ill. July 21, 2014). [Read more…] about Child Support Properly Deducted from Means Test
Cybersquatting Judgment Results in Nondischargeable Debt
A million-dollar-plus district court judgment against the debtor for intentional trademark infringement and cybersquatting resulted in a nondischargeable debt in bankruptcy under section 523(a)(6). Nguyen v. Biondo (In re Biondo) No. 13-1612 (Bankr. S.D. Fla. June 13, 2014). [Read more…] about Cybersquatting Judgment Results in Nondischargeable Debt