All posts in Chapter 13

The Chapter 13 Rights and Responsibilities Agreement (RARA) Form Allows For What?!

When the Law Offices of M. Jonathan Hayes merged with Simon & Resnik in 2012 (has it really been 5 years!?) I began to work exclusively on petitions filed under my beloved chapter of the Bankruptcy Code, 11.  I recently began to again work on Chp. 13 cases, albeit on a fairly limited basis, and I am continually amazed at the differences between these two most popular reorganizing chapters of the code.

Take a look at the “no-look” fee form we use here in the Central District, the Rights and Responsibilities Agreement between Chapter 13 Debtors and their Attorneys (“RARA”) [court form F3015-1.7.RARA], specifically pages 5-6 (I have added emphasis):

The guidelines in this district for payment of costs incurred in performing the services described in bold face type in this agreement (“Included Costs”) and attorneys’ fees in chapter 13 cases without a detailed fee application provide for the following maximum Included Costs and fees for the services described in this agreement in bold face type (that is, the services described on pages 3 through 5 of this agreement)…

Other than the initial retainer, the attorney may not receive fees directly from the Debtor prior to confirmation. All other fees due through confirmation shall be paid through the plan unless otherwise ordered by the court. Read more…

Is Continuance of Hearing on MSJ a Violation of the Automatic Stay?

From the California Bankruptcy Specialists listserve:

Question:  Is it a violation to continue a hearing on a motion for summary judgment if a notice of stay is given to the Court before the hearing on the motion for summary judgment?

Answer from Wayne Silver, Santa Clara:

Eskanos & Adler, P.C. v. Leetien, 309 F.3d 1210 (9th Cir. 2002)
Under § 362(a), the prohibition against continuation of judicial actions requires that the action be automatically dismissed or stayed, and not merely that it not be pursued.

Should ‘No Money Down’ Chapter 7s Be Allowed?

I am quoted by Danny Gill in his Bloomberg Bankruptcy Law Reporter article.  He quotes me saying that I agree that there should be some way to permit bankruptcy attorneys to be paid post-petition for filing a chapter 7 petition and representing the debtor throughout.   The article is here.

“I talk to people all the time who don’t have the money to file a Chapter 7,” M. Jonathan Hayes told Bloomberg Law Oct. 16.  Hayes is a member of Simon Resnik & Hayes in Sherman Oaks, Calif., and has practiced consumer bankruptcy law for 37 years in the Central District of California. Read more…

QUICK REFERENCE GUIDE TO 2017 CHANGES TO THE FRBP AFFECTING CHAPTER 13 CASES ©Beverly M. Burden, Chapter 13 Trustee EDKY

Nice post by San Jose certified specialist Cathy Moran on the new rules.    In her post, Cathy has attached a very nice spreadsheet prepared by Chapter 13 Trustee Beverly Burden in Kentucky.  The spreadsheet identifies the rules changes that affect the chapter 13 practice.

F. Lee Bailey Files Chapter 13 In Portland Maine – Chapter 13 Trustee Annoyed

Think your chapter 13 trustee is tough?  This is what the trustee filed last week in F. Lee Bailey’s Chapter 13 case.

UNITED STATES BANKRUPTCY COURT District of Maine

In the matter of F. LEE BAILEY Chapter 13 Debtor Case # 17-20323

TRUSTEE’S COMMENTS ON CONFIRMATION OF DEBTOR’S PLAN

NOW COMES the standing Chapter 13 trustee Peter C. Fessenden and submits the following comments in connection with confirmation of the debtor’s plan. Read more…

Nice Tentative from Judge Houle on Converting Case from Chapter 7 to Chapter 13 Postdischarge

BACKGROUND
On February 28, 2013, Michael & Maricar Santos (“Debtors”) filed a Chapter 7 voluntary petition.  On June 17, 2013, Debtors received a standard discharge.  The Chapter 7 case, however, remained open.

On October 4, 2016, Debtors filed a motion to convert case from Chapter 7 to 13.  On October 12, 2016, Trustee filed his opposition.  On November 2, 2016, Debtors filed a reply.  A hearing on the matter was held on November 9, 2016.  The hearing was continued to allow for additional briefing on the issue whether, and in what circumstances, a Chapter 7 case could be converted to a Chapter 13 post-discharge.  Debtor filed their response on November 18, 2016.  Trustee filed their response on November 29, 2016. Read more…

CDCBAA Program: Fundamentals for “Finalizing” a Chapter 13 Case

Central District Consumer Bankruptcy Attorney Association (“cdcbaa”) present: FUNDAMENTALS FOR “FINALIZING” A CHAPTER 13 CASE

July 23, 2016 Read more…

National Chapter 13 Plan Form Getting Closer

I understand that the “national form,” once approved will not be required in the Central District.  An article updating the progress on the new form is here.

Judge Zurzolo Brown Bag – July 25, 2016

Bankruptcy Judge Zurzolo Brown Bag Discussion

12:00 noon – July 25th

Room 1268 – Roybal Building Read more…

Yikes!! Attorney Sentenced to 34 Months in Prison For Failing to Disclose Receipt of Filing Fees for Chapter 13 Cases

The article is here.

MONROE, La (US Atty Office) - United States Attorney Stephanie A. Finley announced today that a bankruptcy attorney was sentenced to 34 months in prison for collecting filing fees from clients without informing the bankruptcy court.

Glay H. Collier II, 53, of Benton, La., was sentenced by U.S. District Judge Robert G. James on one count of bankruptcy fraud. He was also sentenced to three years of supervised release and ordered to pay $69,063.05 restitution. According to evidence presented at the November 10, 2015 guilty plea, Collier filed records into the bankruptcy court stating that he would accept “No Look” fees as payment for his services. The “No Look” fee caps attorney’s fees in bankruptcy proceedings to $2,800. In excess of that limit, Collier charged up to $281 in filing fees to some clients, which he did not disclose to the court. Between March 2010 and November 2013, Collier filed 983 Chapter 13 bankruptcy cases in Monroe, and during the same time period, he filed 2,160 Chapter 13 bankruptcy cases in Shreveport. In approximately 479 of these cases, Collier fraudulently collected and attempted to collect filing fees.

The FBI and the U.S. Trustee’s Office, Region 5, conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.