Federal law has long excepted student loans from discharge in bankruptcy in all but the rarest instances, recognizing the problems (and costs) associated with allowing borrowers to wipe out defaulted debts through a...more
The Supreme Court reminded bankrupt debtors on Monday that mere rejection of a contract does not turn back the clock to avoid contractual obligations. This was the thrust of its holding in Mission Product Holdings, Inc. v....more
6/7/2019
/ Bankruptcy Appellate Panel (BAP) ,
Bankruptcy Code ,
Breach of Contract ,
Commercial Bankruptcy ,
Debtors ,
Exclusions ,
Executory Contracts ,
IP License ,
Mission Product Holdings Inc v Tempnology LLC ,
Rescission ,
Reversal ,
SCOTUS ,
Section 365 ,
Split of Authority ,
Trademark Licenses ,
Trademarks ,
Trustees
We previously provided you with some of the American Bankruptcy Institute’s Commission on Consumer Bankruptcy’s recommendations to improve the consumer bankruptcy system. As the commission noted, changes in bankruptcy law...more
The American Bankruptcy Institute’s Commission on Consumer Bankruptcy released its Final Report and recommendations on April 12, 2019. The commission was created in 2016 to research and develop recommendations to improve the...more
Chicagoans have found a new avenue through which to regain possession of their vehicle after it has been impounded by the City: file a chapter 13 bankruptcy case. In 2018, 17,603 new chapter 13 bankruptcy cases were filed in...more
The Consumer Financial Protection Bureau’s (CFPB) new Prepaid Rule went into effect on April 1, 2019. At a high level, the Prepaid Rule amends portions of the Truth in Lending Act and the Electronic Funds Transfer Act by...more
Welcome to Part IV of our series on servicing discharged mortgage debt. This part will discuss modifying a borrower’s loan post-discharge. (If you missed Part I, Part II or Part III, go ahead and catch up.) Part III discussed...more
4/17/2019
/ Bankruptcy Plans ,
Consumer Bankruptcy ,
Contracts Clause ,
Default ,
Fannie Mae ,
Loan Modifications ,
Loss Mitigation ,
Mortgage Lenders ,
Mortgage Servicers ,
Mortgages ,
Property Surrender
Amidst privacy concerns and booming technological innovation, Sens. Roy Blunt (R-Mo.) and Brian Schatz (D-Hawaii) have introduced a bill proposed as the “Commercial Facial Recognition Privacy Act of 2019” (CFRPA) targeting...more
Part III: Modifications Post-Discharge -
Welcome to Part III of our series on the servicing of discharged mortgage debt. This part will discuss modifying a borrower’s loan after a discharge. (If you missed Part I or Part...more
Individuals have several options when filing bankruptcy. Chapter 13 is often preferred for individuals with regular income who wish to keep their homes and other secured assets. In a Chapter 13 filing, the court will approve...more
2/21/2019
/ Appeals ,
Bankruptcy Code ,
Chapter 11 ,
Chapter 13 ,
Chapter 7 ,
Commercial Bankruptcy ,
Consumer Bankruptcy ,
Debt Restructuring ,
Debtors ,
Spouses ,
Student Loans ,
Unsecured Debt
Welcome to Part II of our series on the servicing of discharged mortgage debt (catch up on Part I). This part will discuss communications to discharged borrowers and evaluate various disclaimers that can be utilized.
The...more
2/12/2019
/ Borrowers ,
Debt Collection ,
Debtors ,
Dischargeable Debts ,
FDCPA ,
Foreclosure ,
Mortgage Servicers ,
Mortgages ,
Notice Requirements ,
Personal Liability ,
RESPA
Mortgage servicers are plagued by their nebulous relationships with the borrowers who discharge their personal liability in bankruptcy. Issues arise when the borrower whose debt has been discharged continues to engage with...more
1/29/2019
/ Chapter 13 ,
Chapter 7 ,
Consumer Bankruptcy ,
Debt Collection ,
Debtors ,
Dischargeable Debts ,
FDCPA ,
Foreclosure ,
Mortgage Servicers ,
Mortgages ,
Personal Liability ,
Safe Harbors
On December 22, 2018, the federal funding for certain agencies lapsed, and the United States government entered into a partial shutdown. The U.S. Department of Justice (DOJ), including the United States Trustee Program...more
Your tenant files for bankruptcy-what’s your move? Debtors who are lessees under real property leases have certain rights regarding their lease under § 365 of the Bankruptcy Code. Essentially, the debtor has two options: 1)...more
7/31/2015
/ Assignments ,
Chapter 11 ,
Chapter 7 ,
Commercial Bankruptcy ,
Commercial Leases ,
Consumer Bankruptcy ,
Debtors ,
Landlords ,
Leases ,
Proof of Claims ,
Section 365 ,
Tenants
Timely proof of claim filings by secured creditors have “been a thorn in the side of many Chapter 13 cases involving secured creditors,” according to Judge Wood in In re Pajian. However, a recent Seventh Circuit decision may...more