It’s the pits to be stood up by a Rule. Rule 3002.1 is, in my opinion, the best thing that’s happened in bankruptcy in years. I’m a goggle-eyed fan. Whether you chalk mortgage servicing problems up to ineptitude or venality, it is indisputable that a mortgage servicer can’t audit a loan file and come up […]
Beyond Racism And Self Interest: Why Blacks File And Fail At Chapter 13
ProPublica’s study of the percentage of black debtors who file bankruptcy and fail at Chapter 13 misses the forest for the trees. The report contends that bankruptcy lawyers steer blacks to an inappropriate chapter for the benefit of the lawyers. In Memphis, an entrenched legal culture has made bankruptcy a boon for attorneys while miring […]
They’re Changing the Rules On Us
Come December, the Bankruptcy Rules will change again. So, I’ve got a shout out to Chapter 13 Trustee Beverly Burden who created a great table of the changes. Her chart includes the What, When, Where, and How, but also her comments on the effect of the change. I can add nothing to her great work, […]
The Smart Way To Cut The IRS Out
Like so much in life, it’s all about timing I revisited an older post here about delaying the filing of a bankruptcy til the New Year when the debtor expects to owe taxes in April. A Chapter 13 filed in January can include and pay the taxes associated with the tax year ending in December. […]
Mortgage Servicing Under the Microscope
The judge looked closely at the creditor’s accounting records and found the usual fright. Having looked, the court held secured creditor USDA in contempt of the automatic stay and the confirmation order for its loan servicing blunders. Two years after the debtor’s discharge, after an evidentiary hearing and a written opinion, the debtor still didn’t […]
Homeowners Face Down The Mortgage Servicer Over Their Request For Information
The homeowners beat the bank in the first round of RESPA/FDCPA litigation, upholding the private right of action under Reg. X. The case is Rios v. Rushmore, from the Southern District of Florida. The homeowners alleged that Rushmore Loan Management Services failed to adequately respond to their Notice of Error pursuant to 12 U.S.C. […]
Chronicles of Bankruptcy Rule 3002.1
A homeowner should emerge from Chapter 13 knowing exactly what she owes on her mortgage; thus we have FRBP 3002.1 said Judge Hannah Blumenstiel. At the end of my client’s Chapter 13, the lender’s response to the trustee’s notice of final cure payment failed to do that. The failure to adequately support its contentions in […]
