I’ve long campaigned for compensation of bankruptcy practitioners that recognizes the practitioner’s skill set and the complexities of this practice. Without real-world compensation, bankruptcy can’t compete for legal talent. Alongside that campaign, I’ve expressed my concern about what Bill Rochelle calls the overlegalization of consumer bankruptcy. I see that in the increasing, and needless in […]
Debt Buyers Pay A Lot Post-Taggart
You know it won’t go well for the creditor in a discharge violation case when the opinion opens by characterizing the debtor as a single mother and registered nurse who discovers her $20K bank balance is now negative. And sure enough, the debt buyer trying to collect a two-decade-old credit card debt ended up $64,000 […]
Sua Sponte Monetary Sanctions Against Counsel
The 9th CIr. BAP erected a high bar for the imposition of monetary sanctions against counsel in its recent decision in Franz. Despite some ugly facts and imperfect lawyering, the BAP overturned $5000 in sanctions against a Chapter 13 debtor’s lawyer, finding counsel’s conduct did not rise to a level akin to contempt of court. […]
What Goes Into The Liquidation Analysis
The liquidation analysis is central to every form of consumer bankruptcy. Yet too many attorneys think the formula is Assets minus Secured Debts minus Exemptions = Distributable estate Not by a long shot. So let’s walk through the elements of a comprehensive liquidation analysis. You need it if you’re assessing the vulnerability of assets to […]
Getting Started In Bankruptcy Law
Everyone new to bankruptcy needs a guide to this specialized legal realm. Just as you can’t tell the players without a scorecard, it’s hard to make heads or tails of bankruptcy law when it’s new to you. Jon Hayes has what you need to tell priorities from the absolute priority rule. Exemptions from exclusions. Denial […]
All Bankruptcy Roads Pass Through Chapter 5
Regardless of the ultimate destination, all bankruptcy roads run through Chapter 5. A few bankruptcy cases are derailed there. Because Chapter 5 provisions tell you what comes into the bankruptcy estate, what can be exempted, and what can be changed using Chapter 5. Sometimes the results tell you that bankruptcy is not the right choice […]
What Bankruptcy Counsel Forgot
How do you forget capital gains taxes? More easily than you would think, apparently. When I see the same blunder twice in two months and the price tag to the client approaches $100,000, it’s time to write about it. It surfaced in two Chapter 11 cases for individuals where I have subbed upon conversion to […]
