What New Bankruptcy Lawyers Need To Know: Beyond The Code

Shadow Players May Have Support Claims In Bankruptcy

By Cathy Moran, Esq. Filed Under: Family Law in Bankruptcy

What we know so far about domestic support obligations in bankruptcy is that they are non dischargeable and the bankruptcy court has the last word as to what is and is not support. But we just scratched the surface in looking at support when we considered obligations from one spouse to another. Debts owed to an extended cast of supporting characters may be "support" as well, non … [Continue reading...]

Getting Means Test Tax Projections Right

By Cathy Moran, Esq. Filed Under: Means test, Tax

The means test tax deduction offers fertile ground for passing the means test. But mention tax calculations to a bankruptcy attorney and 7 out of 10 freeze on the spot. I'm not a tax attorney, they retort. That's right, but, if you are a bankruptcy attorney, that doesn't relieve you from knowing enough tax to get the means test right. Not to mention not giving up your client's … [Continue reading...]

When Chapter 13 Debtors Run Amok

By Cathy Moran, Esq. Filed Under: Counseling clients

We've had a string of them.... [Hint: in a small practice, a "string" means "three. " ] But three clients in the past month with confirmed Chapter 13 plans have contracted to sell their homes without mentioning it to us, their attorneys. The degree of chaos varied: inadequate time to get approval of the sale from the trustee within the contractual closing date; … [Continue reading...]

Proofs of Claim, Res Judicata, And A Good Night’s Sleep

By Cathy Moran, Esq. Filed Under: lawyer skills

Trouble shared is trouble halved. Brainy Quotes attributes that bit of wisdom to writer Dorothy Sayers. (Also to Lee Iacocca; take your pick). One of the things that keeps me troubled at night is the preclusive effect of a filed proof of claim. So, I'll share my worries, and you can worry too. Filed claims deemed allowed Bankruptcy Code 502(a) is the source of the … [Continue reading...]

How Lien Stripping Differs From Lien Avoidance

By Cathy Moran, Esq. Filed Under: Real property

The draft of a lien avoidance motion my paralegal presented me was garbled. Lien stripping concepts sat next to a cite to §522. I doubt my staff is alone in missing the critical differences between lien stripping under (or despite) §1322 and lien avoidance pursuant to §522(f). So let's try some compare and contrast on liens we want to excise. Avoid liens that impair … [Continue reading...]

Use All Channels to Educate Bankruptcy Debtors

By Cathy Moran, Esq. Filed Under: Counseling clients

The skill set of a consumer bankruptcy lawyer must include a healthy dose of the skills of a teacher. The client has to master any number of legal issues and procedures to make informed decisions about the case. An effective lawyer has a plan for how to convey all those things the debtors need to know. As the parent of children with learning disabilities, I learned that each … [Continue reading...]

The Change We Need In Consumer Bankruptcy Practice

By Cathy Moran, Esq. Filed Under: Opinionated

The American Bankruptcy Institute under the leadership of retired Judge Eugene Wedoff is gathering input for a review of changes needed in consumer bankruptcy law. I was privileged to offer my thoughts at NACBA's 25th annual convention in May. Good Morning, I'm Cathy Moran. I've practiced bankruptcy law in the Silicon Valley, in California's Northern District, for 37 years. I've … [Continue reading...]

Hammered By Rule 3002.1

By Cathy Moran, Esq. Filed Under: Real property, Rule 3002.1

To my mind, Rule 3002.1 is the most powerful, most under-utilized tool in our tool box. And its power is coming to the fore as Chapter 13's filed during the Great Recession wind to a close. Don't let your home-owning client leave Chapter 13 without a determination that they are current. Or, if they are not current, without a plan for addressing the default. Rule spotlights mortgage … [Continue reading...]

Corporate Bankruptcy: So We Can Start Over

By Cathy Moran, Esq. Filed Under: Business bankruptcy

Thou shalt not file bankruptcy for a corporation. It's almost a commandment from on high in my practice. But for every rule, there is an exception and the man sitting in front of me called on the exception. He wanted, (or really "needed") to stay in the same line of construction work. But business was bad, there was a supplier suing the corporation, and then there was that pesky, … [Continue reading...]

Bubble, Bubble, Toil and Trouble

By Cathy Moran, Esq. Filed Under: Opinionated

I find I'm back at the Bankruptcy Mastery keyboard. Several years ago I thought I had said all there was to say here to new bankruptcy lawyers. But stuff just keeps bubbling to the forefront and my fingers itch. It seems there's more to say, perhaps not exclusively to newbies, but to the broader community of consumer bankruptcy lawyers. What's up in bankruptcy The law is changing. … [Continue reading...]

Picking Your Chapter 11 Teammates

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

Professionals in Chapter 11 have to be "disinterested"; make sure they are also capable. You should read this post here if you are keen about taxes. In two recent cases, the estate has employed professionals connected to the debtor in his pre filing past. It's often the case that accountants and tax preparers come with familiarity with the debtor that seems useful. You think that it's economic … [Continue reading...]

What Keeps Me Busy

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

The number of new cases through my doors is down, just like it is everywhere. But I'm staying busy. Busier some days than I would like to be. I thought it might be fun to look at the change in the composition of my cases over the past two years. More complicated cases There don't seem to be any simple cases anymore. Debtors who have managed to avoid filing bankruptcy til this late in … [Continue reading...]

Bankruptcy Sales Free And Clear

By Cathy Moran, Esq. Filed Under: Real property

Now that the real estate market in my area is improving, we are dusting off another of our little used skills to effect sales of property during a Chapter 13: the sale free and clear of liens. The ability to sell property subject to disputes and continue the fight over a bank account, rather than a piece of property, is one of the real treasures in the Bankruptcy Code. A sale free and … [Continue reading...]

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