Consumer Bankruptcy

The Limited Legacy of Lerbakken: Consumer Debtors Can Exempt Unencumbered, Qualified Retirement Funds Awarded in a Divorce

It has been two years since the Eighth Circuit Court of Appeals affirmed the BAP’s ruling [1] in In re Lerbakken [2] disallowing a debtor’s claimed exemption in retirement funds awarded by divorce dissolution under 11 U.S.C. § 522(b)(3)(C).

Court Outlines Bases for In Rem Relief Under Section 362(d)(4)

As the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (the Act) works through its rebellious teenage years, courts continue to address debtor behavior through the provisions of the Act impacting the applicability of the automatic stay. Without limitation, courts have grappled with the substantive and procedural implications of the Act’s “repeat filer” provisions set forth in §§ 362(c)(3) and 362(c)(4). However, there has been somewhat less court activity with respect to the Act’s addition of § 362(d)(4).

Consumer Bankruptcy December 2021

Consumer Bankruptcy - September 2021

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Consumer Bankruptcy - May 2021

Consumer Bankruptcy - March 2021

Hurlburt’s Unheralded Takeaways A Renewed Defense of Witt’s § 1322(c)(2) Limitations and a Revealing Clash of Interpretive Methodologies

In the wreck of the Great Recession, numerous borrowers sought to avoid their homestead’s foreclosure despite material payment defaults. Many took advantage of chapter 13, which empowers, inter alia, an individual with a regular income to cure precisely such failures over time under § 1322 (b)(5).

Income Disruption in an Ongoing Pandemic: Plan Modification, or Hardship Discharge?

One year into the economic crisis caused by the COVID-19 pandemic, unemployment rates have already surpassed the high levels seen during the Great Recession in 2009. [1] Like everyone in this country and around the world, debtors are struggling.

When Does a Reaffirmation Agreement Become Enforceable and Effective?

When a debtor reaffirms a dischargeable debt, this means the obligation will survive discharge and continue to be enforceable. [1] To protect debtors from compromising their fresh start by making unwise agreements to reaffirm and repay otherwise dischargeable debts, the Bankruptcy Code sets out lengthy disclosure requirements for reaffirmation agreements. [2]

Who CARES About Forbearance Claims?

The Consolidated Appropriations Act of 2021 (CAA), which passed in Congress on Dec. 27, 2020, introduced some noteworthy additions to the Bankruptcy Code. One such issue is the changing relationship between chapter 13 debtors and mortgage lenders when it comes to forbearance requests under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

The Code Gets More Defined