Think the Bankruptcy Business in California is Slow?

Total bankruptcy petitions filed in 2018:

Alaska – 441.

Vermont – 545.

Wyoming – 976.

South Dakota – 1068

Highest? Read more…

Bankruptcy Filings in the Central District Down Slightly for 2018

Total bankruptcy filings in 2018 in the Central District of California was about 3.5% less than the year before.

2018 2017 2016 2015 2014
Jan 2,741 2,839 2,872 3,364 4,704
Feb 2,708 2,795 3,299 3,829 4,574
March 3,363 3,782 3,923 4,496 5,430
April 3,277 3,209 3,584 4,486 5,364
May 3,226 3,384 3,484 3,971 5,500
June 2,981 3,252 3,545 3,966 4,386
July 3,057 2,953 3,239 3,731 4,701
Aug 3,337 3,387 3,543 3,544 4,540
Sept 2,772 3,071 3,168 3,493 4,317
Oct 3,259 3,170 3,235 3,751 4,554
Nov 2,821 3,004 3,025 3,531 3,642
Dec 2,419 2,416 2,902 2,718 3,733
Total 35,961 37,262 39,819 44,880 55,445

A breakdown of the total petitions:

Non-Comm’l Commercial Chapter 7 Chapter 13 Chapter 11
33,012 2,956 27,607 7,946 412
92% 8% 77% 22% 1%

Are you wondering about total “other chapters”?  three (3) which is either chapter 12 or chapter 15.

Supreme Court Grants Cert in Taggart!

Last Friday, the Supreme Court granted cert in the Taggart case.  That is the discharge violation case that says

“the creditor’s good faith belief that the discharge injunction does not apply to the creditor’s claim precludes a finding of contempt, even if the creditor’s belief is unreasonable.” [emphasis added] 888 F.3d at 444

Lorenzen v. Taggart (In re Taggart), 888 F.3d 438, (9th Cir. April, 2018)

Plan Payments Memo from Kathy Dockery Office

Email from Aki Koyama, Staff atty to Chapter 13 trustee Kathy Dockery

Hello Colleagues:

We are having a couple of issues with the evidence provided for electronic plan payments.

Issue No. 1
Scheduling Electronic Payments:
Your clients may be scheduling payments after the legal due date. Please make sure your clients are aware that they should schedule their plan payments to be paid prior to or on the date the payment is legally due. There appears to be some confusion caused by the ability to schedule electronic payments on the date of their choosing.

Issue No. 2
Adequacy of Electronic Plan Payment Evidence:
For the plan payment evidence to be adequate, your client must provide you with evidence that the electronic payment is at least being “processed”. We have been receiving evidence of plan payments “scheduled” for a particular date but a scheduled plan payment is not adequate evidence for the Trustee.

Thank you.

cdcbaa 9th Circuit Review Coming Up January 12, 2019

Saturday, January 12, 2019

11:00 a.m. to 1:00 p.m.

13th Annual Review of 9th Circuit Decisions on Bankruptcy in 2018


Hon. Neil Bason, U.S. Bankruptcy Court – Central District of California
Hon. Christopher M. Klein, U.S. Bankruptcy Court – Eastern District of California
M. Jonathan Hayes, Resnik Hayes Moradi, LLP

This program fills up a large classroom each year. This year we are privileged that Judge Neil Bason of the Central District of California and Judge Christopher Klein of the Eastern District of California will join us for the presentation. The materials will include a case summary of every published 9th Circuit and 9th Circuit BAP case in 2018 and of course the Supreme Court cases that are of interest to bankruptcy practitioners.

Program Location - Southwestern Law School

3050 Wilshire Blvd,
Los Angeles, CA 90010

Cost of ALL Programs: Free to current cdcbaa Members

Become a member by signing up at our website at  You may also mail your registration form and check to the address listed below or come to the program and pay then.

We are now accepting payments for 2019 membership. Dues remain the same, just $250.  Membership includes up to 8 MCLE seminars at two hours each per calendar year (including the Sixth Annual James T. King Symposium). Those potential sixteen MCLE hours works out to under $20 per unit for MCLE in an area that is practical to your specialty.  Moreover, you’ll get one ticket to the annual Calvin Ashland Awards Dinner, remote webinar participation for MCLE programs (when available) and access to the listserv on which you can discuss the latest bankruptcy issues with knowledgeable and experienced members. Read more…

SFVBA Program This Friday – Supreme Court Opinions – Ahart and Hayes

Email from Steve Fox (obviously not written by me)

Dear All:

Friday’s bankruptcy program is the annual program on Supreme Court opinions.  What none of you get to enjoy (but I do) is the spirited back and forth discussion and argument which the two panelists, Judge Ahart and Jon Hayes, have had by email arguing about cases, what they mean and whether they have importance to bankruptcy practitioners.

Judge Ahart and Jon Hayes will discuss Lamer, Archer and its impact on litigation under Section 523(a)(2)(A).  They will also discuss the Village at Lakeridge opinion.  While the opinion itself may not seem that exciting, the standard of appellate review, it is important to us as practitioners because it is a good primer for when a trial is over and either your client or the other side intends to take an appeal.  The opinion is a good place to start when you have to tell your client about the standard of review on appeal.  Though the opinion is from 2016, Husky continues to reverberate and so the panel will go back to Husky and talk about what it held and its impact on practitioners.   Jon Hayes and Judge Ahart will also take a look ahead at cases being argued this term at the supreme court.  One case being argued comes out of the 9th Circuit, the Taggart case.  This is such an important case given the ruling which, in my opinion, interjects uncertainty for both creditors and debtors.

The panel is spirited.  You could not fall asleep at this program even if you brought a pillow.

Here are the particulars: Read more…

5 Things Dept. of Education Can Do If You Don’t Pay Student Loan

There are $1.2 trillion (that’s with a ‘t’) of student loans out there and growing at $3,000 per second!  Read this in a reputable book, don’t ask me for pin cite.

A student borrower is in default if you fail to make a payment for 9 months.

So, what can are 5 main things the Dept. of Education can do?

Read more…

Renewal of Judgment versus Revival of Judgment

In California, ten years is pretty common for the validity and duration of a judgment lien.  You can thereafter renew.   Some states have renewal of judgment and revival of judgments.  What’s the difference?

Read more…

Recording Federal Court Judgment against Property of Defendant in State

Plaintiff obtains a Nevada state court judgment against defendant who owns land in California (different state).   What authorizes plaintiff to be able to record that Nevada judgment against D’s property in California?  Yes — the Full Faith & Credit Clause in Article VI of the Constitution which says states must give full faith and credit to judgments from other states.

Curve ball — what authorizes a Nevada plaintiff to obtain and record a Nevada Federal Court judgment against D’s property in same state Nevada?

Read more…

Central District Bankruptcy filings in October, 2018

Total bankruptcy filings for October 2018 creeped past filings a year ago.

2018 2017 2016 2015 2014
Jan 2,741 2,839 2,872 3,364 4,704
Feb 2,708 2,795 3,299 3,829 4,574
March 3,363 3,782 3,923 4,496 5,430
April 3,277 3,209 3,584 4,486 5,364
May 3,226 3,384 3,484 3,971 5,500
June 2,981 3,252 3,545 3,966 4,386
July 3,057 2,953 3,239 3,731 4,701
Aug 3,337 3,387 3,543 3,544 4,540
Sept 2,772 3,071 3,168 3,493 4,317
Oct 3,258 3,170 3,235 3,751 4,554
Nov 3,004 3,025 3,531 3,642
Dec 2,416 2,902 2,718 3,733
Total 30,720 37,262 39,819 44,880 55,445

Filings by chapter year to date.

Non-Commercial Commercial Chapter 7 Chapter 13 Chapter 11
28,210 2,517 23,612 6,745 367
92% 8% 77% 22% 1%

Fun Facts:  Total filings so far in 2018, South Dakota, 941; North Dakota 660; Wyoming, 849; Montana, 1046.