Creditor with Scheduled Claim Still Must File a Proof of Claim in Chapter 13
Ninth Circuit finds no loopholes in chapter 13’s claim-filing requirement.
Judge Name - Do not use it.
N. Randy Smith
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Pending Circuit Court Appeals to Mold Consumer and ‘Reorg’ Bankruptcy Law
En banc rehearings headline upcoming circuit court decisions.
Discharge Denied for Omitting Name of a Retirement Account
Scheduling the amount of an asset isn’t enough. The name must be shown, too.
Supreme Court May Grant ‘Cert’ in Several More Bankruptcy Cases
Consumer and reorganization circuit splits are seeking Supreme Court review.
Jury Finds Wisconsin Man Guilty of Bankruptcy Fraud
John W. Vaudreuil, U.S. Attorney for the Western District of Wisconsin, announced that Leon Fadden of Madison, Wis., has been convicted of three counts related to bankruptcy fraud, according to a Department of Justice press release. The jury reached its verdict after 90 minutes of deliberation following a two-day trial in federal court in Madison. Fadden was convicted of fraudulently concealing property in connection with a bankruptcy case. In October 2013, he concealed from his creditors and the U.S. Trustee his interest in two life-insurance policies and his interest in the estate of a deceased relative. He was also convicted of making false declarations under penalty of perjury by submitting false Schedules of Assets and Liabilities, and a false Statement of Financial Affairs. Finally, Fadden was convicted of making false statements to an attorney of the U.S. Trustee’s Office in December 2013.
Judge Farris Disagrees with 11th Circuit on ‘Surrender’ as Waiver of Foreclosure Defenses
Less than a month after Failla, a circuit split is brewing on the effect of intention to surrender.
Judge Name - Do not use it.
Bankruptcy Judge Robert J. Farris
Sovereign Immunity Insulates Government from Emotional Distress Claims
Section 106’s sovereign immunity waiver is not clear enough for emotional distress claims.
Law Professors Disagree on How the Supreme Court Should Decide Jevic on Structured Dismissals
Is there flexibility to depart from bankruptcy priorities? Professors disagree.
Judge Name - Do not use it.
Supreme Court
Profit-Sharing Clause Unenforceable in a Bankruptcy Lease Auction
Provision depressing debtor’s income at a lease auction is unenforceable under Section 365(f).
Judge Name - Do not use it.
Nelson S. Román
ABI Endowment Fund Study: Did Expansion of Medicaid Through Affordable Care Act Reduce Consumer Bankruptcy Filings?
Alexandria, Va. — The American Bankruptcy Institute’s (ABI’s) Anthony H.N. Schnelling Endowment Fund has commissioned a study to examine whether the expansion of Medicaid through the Affordable Care Act (ACA) has had a correlative effect on the rate of consumer bankruptcy filings across the country. “Consumer Bankruptcy and The Patient Protection and Affordable Care Act: Placebo or Panacea?” will be the first mixed-methods study to determine what effect the ACA’s expanded Medicaid coverage has had on consumer bankruptcies. The data collection will take place over 2-3 years, and the results will be published in the ABI Law Review.
The principal researchers for the study are Prof. Brook E. Gotberg of the University of Missouri School of Law and Prof. Michael D. Sousa of the University of Denver Sturm College of Law. Prof. Gotberg teaches bankruptcy, secured transactions and securities regulations with a focus on debtor and creditor relations, both in and out of bankruptcy. Prof. Sousa teaches bankruptcy, commercial law and business reorganizations. He focuses his scholarship on the consumer bankruptcy system largely through an interdisciplinary lens, applying sociological theory and methods to study various aspects of the consumer bankruptcy system. Neither researcher is associated with any group or agency that is interested in the issues involved in the study.
The high cost of medical care and its potential financial devastation for individuals and families helped lead to the passage of the Patient Protection and Affordable Care Act in 2010. The new study will investigate the effects of Medicaid expansion through the ACA on rates of consumer bankruptcy in two comparative states: Colorado and Missouri. In addition to being where the researchers are located, the states will provide both good test cases and control groups: Colorado expanded its Medicaid coverage through the Affordable Care Act, while Missouri declined to expand coverage.
“While a few empirical studies have examined medical debt as a causal factor in the consumer bankruptcy system, most have focused on the same statistic, namely, the percentage of consumer bankruptcies attributable to medical debt,” according to Gotberg and Sousa. “While this figure is significant, there is an arguably more important research question: whether expanded health insurance coverage has any effect on the rate of consumer bankruptcy filings.”
Created in 1989, the ABI Endowment Fund provides a secure financial base for insolvency research and education. Projects eligible for funding include research relating to bankruptcy or insolvency; surveys or other analytical investigation; the education of judges, court personnel, other governmental personnel and the general public; scholarships or other educational grants; and any other projects with a material research or educational benefit to the bankruptcy and insolvency community. More than $2 million in grants and scholarships has been awarded.
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional conference information, visit http://www.abi.org/calendar-of-events.