Oral argument at 9th Circuit set in Taggart – June 16, 2020

The 9th Circuit is going to hear oral argument in the Taggart case on June 16, 2020 at 10:00am.  The hearing will be telephonic.  My post about what the dispute is exactly at this point is here.  The 9th Circuit is looking at the BAP’s ruling (again).  The BAP ruled for the creditor saying it did not violate the discharge injunction because it believed the injunction didn’t apply to it.  The 9th Circuit agreed saying – essentially – that it’s impossible to violate the discharge injunction.    The Supremes reversed thankfully saying there has to be a fair ground of doubt about whether the injunction applies.  We’ll see.

Central District bankruptcy filings plummet in April 2020

Petitions filed in the Central District fell by 56% vs last April and by 39% vs last month.

2020 2019 2018 2017 2016 2015 2014
Jan 2,828 2,745 2,741 2,839 2,872 3,364 4,704
Feb 2,781 2,754 2,708 2,795 3,299 3,829 4,574
March 2,736 3,481 3,363 3,782 3,923 4,496 5,430
April 1,669 3,631 3,277 3,209 3,584 4,486 5,364
May 3,347 3,226 3,384 3,484 3,971 5,500
June 2,967 2,981 3,252 3,545 3,966 4,386
July 3,270 3,057 2,953 3,239 3,731 4,701
Aug 3,274 3,337 3,387 3,543 3,544 4,540
Sept 2,934 2,772 3,071 3,168 3,493 4,317
Oct 3,355 3,259 3,170 3,235 3,751 4,554
Nov 2,636 2,821 3,004 3,025 3,531 3,642
Dec 2,723 2,419 2,416 2,902 2,718 3,733
Total 10,014 37,117 35,961 37,262 39,819 44,880 55,445

Filings by category year to date is:

Non-Comm’l Commercial Chapter 7 Chapter 13 Chapter 11
9,128 889 8,009 1,899 107
91% 9% 80% 19% 1%

Some interesting stuff in this month’s statistics.  The entire state of New York (four districts) had 1,201 filings.  The southern district of New York has 304 chapter 11s so far this year compared to our 107.

The entire state of Texas (four districts) had 1,840 total filings in April.  The southern district of Texas has had 384 chapter 11s so far this year.

The eastern district of Virginia had 943 total filings in April and only 26 chapter 11s this whole year and yet that is where J. Crew just filed.

Delaware has had 1,038 total filings this year of which 388 of those were chapter 11.  The state has had 424 chapter 7s and 221 chapter 13s this year.

Learn the ABCs of Bankruptcy – May 14, 2020 – Free through UWLA School of Law

UWLA Program Flyer rev

Chapter 13 Webinar featuring Cathy Moran

Another FREE Webinar in
The Academy’s Series
Prompted by COVID19 and The CARES Act

       
WEDNESDAY May 6th  
 1:00 eastern/12:00 central/11:00 mtn/10:00 pacific
 
As the economy lurches back into motion, bankruptcy lawyers will confront a clutch of troubled Chapter 13 cases.  In the face of disruption, distress, and the unknown, debtor attorneys will be called on to guide clients forward, in one direction or another.  In this webinar, with a combined SEVENTY-NINE years of experience representing individual and small business debtors, Certified Specialists Cathy Moran and Jill Michaux will review questions you will need to answer in order to provide the sharpest analysis for your clients.  This webinar is Part 2 and will focus on conversion and hardship discharge. Part 1 looked primarily at modification.

This webinar is part 2 of a 2-part series on COVID-19 and its impact on Chapter 13s.
If you cannot attend the live presentation, the Academy will post a recording of the webinar at ConsiderChapter13.org - Access to the recording will be free to Academy subscribers – or we offer a pay per view option.
Not a Subscriber?  Click here 
  (Registration for this webinar automatically places registrant on the Academy’s email list)      

AUSA position available

Email from Brendon Mockler, AUSA to Nina Javan

I saw your names listed on LACBA’s website as chair and vice chair of the Commercial Law and Bankruptcy Section.  I thought you might be able to help me pass along some information.

My section will soon post a vacancy announcement for an AUSA position in Los Angeles.  Although my section does not handle bankruptcy matters, our line of work has many similarities.  Our practice, which is mass volume, primarily involves enforcement of criminal restitution and fine obligations.  It would be particularly valuable to recruit a bankruptcy or collection lawyer, as many, if not all, of the essential skills overlap.

I was hoping you could pass along this email or my contact information to anyone who may be interested in the position.  I’m looking to generate some interest before posting the announcement on the Department of Justice website, and I’m happy to speak on the phone with all potential applicants so they can learn more about the position.

Please let me know if you can help.  I really appreciate your time.  Much thanks!

Brendan T. Mockler | Assistant United States Attorney

213.894.5707 | brendan.mockler@usdoj.gov

Congratulations to Russ Stong

Resnik Hayes Moradi LLP long time associate Russ Stong has just been notified that he passed the California state bar Bankruptcy Specialist Exam!  Our congratulations to him.   That means four of the seven RHM attorneys are certified bankruptcy specialists (at least as soon as Russ can get the rest of the forms into the state bar).

In re Brace to be argued at the California Supreme Court on May 5, 2020

An email from the California Supreme Court:

IN RE CLIFFORD ALLEN BRACE, JR.
Case: S252473, Supreme Court of California

Date (YYYY-MM-DD): 2020-04-15
Event Description: Case ordered on calendar

Notes: To be argued on Tuesday, May 5, 2020, at 1:30 pm, in San Francisco. Counsel to appear via video or teleconference per Administrative Orders 2020-03-13 (March 16, 2020) and 2020-03-27 (March 27, 2020).

For more information on this case, go to:
https://appellatecases.courtinfo.ca.gov/search/case/dockets.cfm?dist=0&doc_id=2269894&doc_no=S252473&request_token=OCIwLSEmXkw7WyBZSCItSENIUEA0UDxTJiI%2BVz1TTDtJCg%3D%3D

Bankruptcy filings fall slightly in March, 2020

Total bankruptcy filings in the central district fell slightly in March, compared to February.  March typically sees a jump from February.

2020 2019 2018 2017 2016 2015 2014
Jan 2,828 2,745 2,741 2,839 2,872 3,364 4,704
Feb 2,781 2,754 2,708 2,795 3,299 3,829 4,574
March 2,736 3,481 3,363 3,782 3,923 4,496 5,430
April 3,631 3,277 3,209 3,584 4,486 5,364
May 3,347 3,226 3,384 3,484 3,971 5,500
June 2,967 2,981 3,252 3,545 3,966 4,386
July 3,270 3,057 2,953 3,239 3,731 4,701
Aug 3,274 3,337 3,387 3,543 3,544 4,540
Sept 2,934 2,772 3,071 3,168 3,493 4,317
Oct 3,355 3,259 3,170 3,235 3,751 4,554
Nov 2,636 2,821 3,004 3,025 3,531 3,642
Dec 2,723 2,419 2,416 2,902 2,718 3,733
Total 8,345 37,117 35,961 37,262 39,819 44,880 55,445

Filings by chapter cumulatively so far this year is:

Non-Comm’l Commercial Chapter 7 Chapter 13 Chapter 11
7,603 744 6,524 1,725 96
91% 9% 78% 21% 1%

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$608.34 for Fee Apps for Opposed Motions for Relief – thumbs down.

How much should you request in your fee application?  Judge Johnson, in a lengthy and researched opinion here, spent considerable time reviewing 168 fee applications to come up with a standard.

  • $140.69 for unopposed motions (i.e. car lender files MFR to sell vehicle in its possession).
  • $442.50 for limited/no opposition in fraudulently hijacked cases where debtor got partial interest (debtor has no interest in defeating the motion since the property is not theirs).
  • $608.34 for opposed motions for relief (requires opposition and appearance).

Fee applications require counsel to demonstrate why their fees are reasonable in light of the customary and standard practice of the consumer bar.  Confirms my position to never file a case in Riverside.

Stay safe and hope everyone is doing well.

Sevan Gorginian, Esq.

Chapter 13 info from Aki on tax refunds and economic relief payments

Post by Aki on Facebook:

*****IMPORTANT*****

There are two additional issues that our office has been requested to address which I now have answers for:

TAX REFUNDS

As the tax refund turnover requirement is mandated by the plan and the order confirming the plan, your client will need to file a motion to modify the plan (MOMOD) to suspend the turnover requirement for tax refunds from the 2019 tax year. The trustee does not have the legal authority to waive the tax refunds without a court order.

For the MOMOD, please indicate why your client needs to retain the tax refund. This will usually include evidence that your client’s income has been directly affected by employer actions taken to deal with the COVID-19 threat or business income being reduced due to loss of business directly related to COVID-19. Your client will not have to file the MOMOD immediately and please indicate in your motion if your client wants the relief Nunc Pro Tunc.

ECONOMIC RELIEF PAYMENTS

The Trustee will not be seeking a turn over of any economic relief payments related to the COVID-19 threat.