Consumer Bankruptcy

Annual Spring Meeting 2016: Consumer Bankruptcy/Health Care

Who Pays the Price for Health Care Insolvencies: the Consumer, the Vendors or the Public at Large?

Consumer Bankruptcy 2015 Year in Review

Consumer Bankruptcy December 2015

Consumer Bankruptcy November 2015

Consumer Bankruptcy August 2015

Consumer Bankruptcy February 2015

Harris v. Viegelahn (May 18, 2015).

Until 1994, three options existed for the disposition of plan contributions held by the chapter 13 trustee upon conversion to chapter 7: The funds could be given to (1) the chapter 7 estate, (2) to the debtor or (3) to creditors. Since the 1994 amendments to the Bankruptcy Code revised § 348(f), the first option for the disposition of funds from a converted chapter 13 case after confirmation of the plan was resolved: The chapter 7 estate is not a recipient of the funds unless the conversion to chapter 13 was made in bad faith.

Bank of America, N.A. v. Caulkett, 135 S. Ct. ____ (June 1, 2015).

In an opinion written by Justice Thomas, the Court declined to limit its prior opinion in Dewsnup v. Timm, 502 U.S. 410 (1992), to partially underwater liens, reversing the Eleventh Circuit in two cases and holding that chapter 7 debtors cannot use § 506(d) to void wholly unsecured junior liens. The amounts owing on first mortgage liens exceeded the current market values of the debtors’ homes, leaving the junior liens with no supporting value.

Wellness International Network, Ltd. v. Sharif (May 26, 2015).

Petitioner Wellness International had a long history of chasing debtor Sharif, including obtaining default judgment against him as a plaintiff in Texas, which led to discovery in aid of collection efforts. Sharif allegedly evaded answering discovery and ultimately filed a chapter 7 petition in Illinois. The debtor failed to list assets that he contended were the assets of a trust that his mother created and for which the debtor served as trustee and his sister as the beneficiary.

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