Author Archives: NCBRC

En Banc Rehearing Granted on Sternberg Issue

The Ninth Circuit Court of Appeals has granted America’s Servicing Company’s petition for rehearing en banc in In re Schwartz-Tallard, No. 12-60052 (Petition granted, Dec. 19, 2014). The case arose out of the debtor’s motion for attorney fees relating to ASC’s appeal of a finding that it had violated the automatic stay. The Ninth Circuit found […]

College Students Underestimate Their Student Loan Debt

Based on a study using data drawn from two sources linking student survey responses to administrative records on cost and borrowing, a Brookings Institution report has concluded that “a significant share of undergraduate students do not understand how much they are paying for college or how much debt they are taking on.” The report indicated […]

Court Removes Wells Fargo’s Brass Knuckles

Like a ray of sunshine through a storm of obfuscation and false compliance, the Bankruptcy Court for the Southern District of New York found that Wells Fargo’s administrative freeze on bankruptcy debtors’ accounts violates the automatic stay, and debtors injured by the violation have standing to seek damages. In re Weidenbenner, No. 14-35443, 2014 Bankr. […]

Maintaining Foreclosure Status Quo Does Not Violate Automatic Stay

Where foreclosure is commenced pre-petition, continuance of the state foreclosure process does not violate the automatic stay. Witkowski v. Knight (In re Witkowski), No. 14-34, __ B.R. __ (B.A.P. 1st Cir. Nov. 13, 2014).

Cert. Granted in Two Bankruptcy Cases

The Supreme Court has granted certiorari in Bullard v. Hyde Park Savings Bank, No. 14-116, and Viegelahn v. Harris (In re Harris), No. 14-400. Bullard asks whether denial of confirmation is a final appealable order. The First Circuit Court of Appeals found that it was not. Bullard, No. 13-9009 (May 14, 2014) (disagreeing with Mort Ranta […]

Student Loan Debtor May Reject Zero-Payment Plan in Good Faith

Finding the debtor to be “honest but unfortunate,” the bankruptcy court discharged her student loans so that she could “sleep at night without these unpayable debts continuing to hang over her head for the next 25 years.” Lamento v. U.S. Dept. of Educ. No. 14-1054 (Bankr. N.D. Ohio Oct. 31, 2014).

Revocation of Technical Abandonment

Technical abandonment of an estate asset may be revoked if the abandonment was caused by deception by the debtor or inadvertence or mistake on the part of the trustee. Miller v. Reaves (In re Miller), No. 13-1307 (B.A.P. 9th Cir. Dec. 5, 2014).

In re Wolf, No. 14-1346 (4th Cir.)

Type: Amicus Date: August 4, 2014 Description: Whether above-median debtor’s projected disposable income should be calculated from the statutory formula rather than schedules I and J. Results: Pending Wolf 4th Cir. NACBA amicus  

Mass. Dept. of Rev. v. Fahey, No. 14-1328 (1st Cir.)

Type: Amicus Date: July 7, 2014 Description: Whether late-filed taxes are dischargeable. Result: Pending Fahey 1st Cir. NACBA amicus

Mass. Dept of Rev. v. Perkins, No. 14-1350 (1st Cir.)

Type: Amicus Date: July 7, 2014 Description: Whether late-filed taxes are dischargeable. Result: Pending Perkins 1st Cir NACBA amicus