It is hard to deny the growing sense of uncertainty that has developed since 2011 when the Bankruptcy Rules were amended to add Rule 3002.1 which requires, among other things, a notice to be filed itemizing any post-petition fees, expenses or charges incurred in connection with their claim. With more and more disputes arising between Chapter 13 creditors, debtors and trustees over the reasonableness and entitlement of those fees it is imperative that creditors understand the best practices for recovering the full amount of their fees and how to defend against any unwanted objections.
Finally, after several years of debate, major changes have been approved that will have a profound impact on consumer bankruptcy cases. On April 27, 2017, the Supreme Court of the United States, through Chief Justice John Roberts, submitted to Congress amendments to the Federal Rules of Bankruptcy Procedure which set forth extensive changes dealing with forms and filing of claims.
Imagine a creditor filing a claim in a chapter 13 bankruptcy case where neither the debtor nor the bankruptcy trustee objects to the claim. Imagine the chapter 13 plan is confirmed, including the claimed debt, though the creditor receives little to nothing in return for its claim. Can the debtor later bring a separate action under the Fair Debt Collection Practices Act or does res judicata bar the FDCPA claim?
On November 23, 2015, Southern District of Florida District Court Judge Kenneth A. Marra issued an opinion affirming an order granting a creditor's motion to compel surrender of real property pursuant to a statement of intention entered by Southern District of Florida Bankruptcy Judge Paul G. Hyman in the bankruptcy proceedings of David and Donna Failla. Failla v. Citibank, N.A. (In re Failla), Civ. No.: 15-80328-CIV-KAM, (S.D. Fla. Nov. 23, 2015), aff'd, 529 B.R. 786 (Bankr. S.D. Fla. 2014).
The first step to defending a debtor's objection to proof of claim is knowing one was filed. Debtors are required to provide notice to creditors. The Federal Rules of Bankruptcy Procedure contain numerous rules governing notice, each describing the form, content and time periods for establishing their adequacy. Deviating from these rules could result in the relief requested being denied, despite an otherwise justifiable claim. Conversely, a creditor's untimely recognition and response to a debtor's properly noticed objection may result in harsh consequences, wh
On May 13, 2015, Judge Michael G.
On June 1st, the Supreme Court of the United States released an opinion which settles a controversy in the lower courts over lien stripping in Chapter 7 bankruptcy cases. With Bank of America, N.A. v.