Is the value of the secured creditor’s claim in a Chapter 13 cramdown what the creditor would receive if it foreclosed its lien or what the debtor would pay to replace the collateral. It was 1997 before that question was resolved by the Supreme Court in Associates v. Rash, nearly 20 years after enactment of […]
But She’s Not a Creditor!
An unliquidated tort cause of action is just as much a “claim” for bankruptcy purposes as a credit card bill. Not all creditors send monthly bills I reminded my rookie lawyer friend. My friend’s fact pattern was a bit more complex than the more common unresolved auto accident: an exspouse was complaining that a title […]
Newbie Summer Reading: Johnson v. Home State Bank
After a Chapter 7 discharge, is there anything left of a mortgage to reorganize in Chapter 13? That’s the question that the Supreme Court resolved in Johnson v. Home State Bank, the next on our summer reading list for new bankruptcy lawyers. Believe it or not, it was 12 years after adoption of the 1978 […]
Lien on Phantom Property Upsets Debt Totals
Merely having a lien doesn’t make a lender a secured creditor for Chapter 13 eligibility purposes. The draft bankruptcy schedules I was reviewing for a rookie bankruptcy lawyer listed a mortgage loan but the plan didn’t mention the proposed treatment of the loan. Turns out, according to this link, it was because the house that secured […]
Clients to avoid: those with bankruptcy-adverse spouses
Do you scope out the world view of your prospect’s non filing spouse? I didn’t and I’m sorry. The client was full of guilt about the financial situation and kept insisting at our first meeting that “no one should be hurt but him” as a result of the financial predicament leading to bankruptcy. That situation […]
Who Needs To Learn More Bankruptcy Law?
Since the Fundamentals of Bankruptcy course came out, I’ve talked with a number of new bankruptcy attorneys who report that they are waiting for later offerings, since they’ve already filed a number of petitions and feel they have that aspect of the practice down pat. One lawyer reported that he had filed 10 cases, so […]
Bankruptcy Lawyers Needn’t Predict The Future
Do you feel exposed when bankruptcy clients ask about how filing will impact their ability to get credit post bankruptcy? One of the nice things about having practiced bankruptcy law as long as I have is the ability to draw on the outcomes of many prior cases. For years, I’ve had a patter about credit […]
