Consumer Bankruptcy

IRS Standard Deduction for Housing Can Be Taken Without Mortgage or Rent Expense

Official Form 122C-2 could be read to deprive a chapter 13 debtor of the IRS standard housing deduction when the statute permits the deduction.

Everything You Ever Wanted to Know About Conversions

Review conversions "up and down" from all chapters (e.g., 7 to 11, 12, 13; 13 to 11; vice versa)
Sub V De-designation issues?
Eligibility?
Absolute right to convert?
Grounds for forcing conversion?
Standing to move to convert debtor's case?
Impact of converting?
Deadlines for exemptions?
What is property of the estate in the converted case?
Impact of omitted creditor in case converted to a "no asset" 7 (when, for ex. there were distributions in the 13)
Strategic considerations?
Attorney fees to convert? Disclosure of fees?
Competing motions to dismiss (by debtor) and to convert (by Trustee, for example). How handled? Absolute right to dismiss? Compare chapters

Other David Cox david@coxlawgroup.com Cox Law Group

Dismissing a Divorce Action Didn’t Result in an Unauthorized, Post-Petition Transfer

An inchoate interest in property created by filing a divorce action doesn’t survive dismissal of the divorce action, the Tenth Circuit BAP says.

Debtor May Amend a ‘13’ Plan to Modify the Treatment of a Secured Creditor’s Claim

Chicago Bankruptcy Judge David Cleary followed a decision by then-district Judge David Hamilton and “respectfully” disagreed with decisions by two predecessors on the same bankruptcy bench.

Assessing In re Topp’s Impact on Interest Rates for Secured Creditors

May 2024

Scheduling a Home with a Low Value Didn’t Protect a ‘13’ Debtor When It Was Sold

In the Fourth Circuit, creditors are compensated when there is a ‘substantial improvement’ in a chapter 13 debtor’s financial condition.