My associate, and my personal attorney forever, Roksana Moradi, will soon assume the Chairpersonship of the Los Angeles County Bar Association — Commercial Law and Bankruptcy Section DAP (Debtor Assistance Project)/Pro Bono Bankruptcy Sub-Committee, known colloquially as the DAP Committee. The DAP Committee is made up of several judges, the Clerk of the Court Cathy Campbell, reps of the US Trustee, and the powers to be of Public Counsel, Legal Neighborhood Services and various other programs around town than help indigent/needy people work their way through the bankruptcy thicket. Congratulations (again) to Roksana.
All posts in Community
How to Get Your Chapter 13 Plan Confirmed
San Fernando Valley Bar Association — Bankruptcy Law Section: How to Get Your Chapter 13 Plan Confirmed
December 20 @ 12:00 Noon
A panel of experienced and respected chapter 13 practitioners and representatives from the Chapter 13 Trustee’s Office will review the four crucial steps on the road to plan confirmation and will address common issues confronting chapter 13 practitioners. This event is a must for bankruptcy law attorneys who need to understand the chapter 13 process and how it has changed since the enactment of BAPCPA in 2005.
Click here to register. https://www.sfvba.org/Calendar/Signup.aspx?EventNo=1344
Possible “Drastic” Overhaul of Student Loan Collections
I’ll see it when I believe it – makes too much sense. As posted by Prof. Nathalie Martin on Credit Slips:
A new bill is pending in Congress that
would require employers to withhold payments from wages in the same way they do taxes, capping payments at 15 percent of borrowers’ income after basic living expenses. The bill follows growing concern about the burden of $1 trillion in outstanding student loans, which now exceed credit- card debt. Under the new system, the government would no longer need to hire thugs to collect, and I personally have found these student loan debt collectors to be quite formidable indeed. Never mind that the debt collectors fees can add up to 25 percent to borrowers’ loan balances, leaving defaulted former students even deeper in the hole. This new process would streamline the confusing process of getting on a reduced payment plan if a borrower is un or under-employed, but would still provide for repayment of the student debt.
Two Week Moratorium on Foreclosures (Some)
Fannie Mae and Freddie Mac said on Monday they would provide a break for borrowers facing foreclosure to ensure those having problems making monthly mortgage payments will remain in their homes during the holidays.
Fannie Mae said its eviction moratorium would apply to single-family homes and two- to four-unit properties from December 19 through January 2, 2013. Freddie Mac said it would offer the suspension from December 17 through January 2, 2013.
See the criticism of Prof. Adam Levitin on Credit Slips.
“I’ve got a beef with this foreclosure moratorium. It captures everything that is wrong with how the GSEs and FHFA have handled foreclosures.”
When the Bank Won’t Accept the Surrender – A Great New (Possible) Solution
Question: The Debtor surrendered the property in the plan and moved out. No one foreclosed. Is the Debtor still liable for the HOA fees?
“The First Circuit has held that ‘surrender’ only means that the collateral is made available to the creditor, but the creditor is not required to accept the property. See In re Pratt, 462 F3d 14 (1st Cir. 2006). I think that ‘surrender’ is not effective until the debtor actually vacates the property since so long as the debtor has actual possession, it isn’t really ‘available’ because the creditor/HOA would have to do an eviction case or take some other affirmative step to obtain actual possession.
“I think the better way to handle this is to provide in the chapter 13 plan that upon confirmation, the property will vest in the mortgagee or HOA (as the case may be), in accordance with §§1322(b)(8) and (9). See In re Bryant, 323 BR 635 (Bkrtcy.E.D.Pa. 2005). I did this in a plan recently, for the first time, and somewhat to my surprise, no one blinked, much less objected, so the plan was confirmed. I will record a copy of the Confirmation Order at the Registry of Deeds, and that will take the debtor off the title.”
David Baker
Boston
Additional comment for 9th Circuit readers (subtitle – “there’s always another side”):
You’ll want to do research in your jurisdiction to determine how the courts treat post-petition dues in a 13. Here in the 9th circuit, lower courts are leaning towards treating the dues as obligations that run with the land and are the personal obligation of the debtor despite the bankruptcy or inapplicability of 523(a)(16). See, e.g., In re Foster, 435 B.R. 650; 2010 Bankr. LEXIS 2468 .
I would caution trying to transfer title as part of a bankruptcy order. Transfer of title is a matter determined by state law and it’s unlikely the bankruptcy court has the authority/jurisdiction to do what you’ve proposed. Most HOA CC&R’s and most deeds of trust have attorneys fees provisions, so if you end up in court over it, your client may end up paying a lot more than they would have.
Stephen M. Smith
Seattle, WA
Fighting Predatory Mortgage Scam Artists – Notes from Public Counsel
Hi everyone,
The California Department of Corporations (DOC) and the California Department of Real Estate (DRE) are providing assistance to financially stressed homeowners who are often targeted by predatory mortgage scam artists. The DOC and DRE license and regulate a variety of entities involved with the mortgage process. Helpful referrals below:
1) Before hiring anyone to help modify a loan, anyone may contact the DRE at (877) DRE-4LIC. Their website is www.dre.ca.gov.
2) To file a complaint against a mortgage loan modification consultant, you may contact the Attorney General’s Office, Public Inquiry Unit at (800) 952-5225. Their website is www.oag.ca.gov.
3) To verify the license of someone servicing or negotiating terms of your mortgage loan, you may contact the DOC at (866) ASK-CORP. Their website is www.corp.ca.gov
Also, the Foreclosure Reduction Act will be effective starting Jan. 1, 2013. The Act accomplishes four main goals:
1) Prohibits “dual tracking” that occurs when a mortgage loan services initiates the foreclosure process on a homeowner who is still negotiating a loan modification;
2) Provides a homeowner with a single point of contact to assist them throughout the loan modification process;
3) Requires mortgage services to review competent and reliable evidence to substantiate their right to foreclose; and
4) Creates a remedy for borrowers to seek legal action against their loan services for material violations of the law.
I have attached a flyer with additional information.
Have a great weekend!
Best,
Maggie
Magdalena Reyes Bordeaux
Senior Staff Attorney
Public Counsel
Consumer Law Project & Debtor Assistance Project
Proposed New Rules and Forms
The 458 page report of the Advisory Committee on Bankruptcy Rules can be accessed here. A proposed new Chapter 13 plan form can be found at page 186. The proposed new forms begin at page 215. I understand that these forms are getting pretty close. The proposed new rules will be “published” in August 2013. According to a press release:
These are going to be the most important changes to Chapter 13 practice and procedure since the enactment of BAPCPA. PLEASE take time to read the Draft Form and Working Group comments below. Send your suggestions and comments to: Troy McKenzie at troy.mckenzie@nyu.edu and/or Hon. Eugene Wedoff at eugene_wedoff@ilnb.uscourts.gov.
Los Angeles Federal Bar Association — 9th Annual Bankruptcy Ethics Symposium
Friday, December 14, 2012; Registration: 8:30 a.m.; Program: 9:00 a.m. – 12:45 p.m.
United States Trustee 341(a) Meeting Room; 725 South Figueroa St., Los Angeles
Topics:
Inducing Attorney Conduct
Marketing a Bankruptcy Practice (Effectively and Ethically): The Lawyer, Her Technology, and Techno-Ethical Issues
An Ethics Conversation with Judge Russell
Special Afternoon Program: Substance Abuse MCLE (1 hr.) and Elimination of Bias MCLE (1 hr.)
Speakers:
Hon. Barry Russell, United States Bankruptcy Court
Hon. Catherine E. Bauer, United States Bankruptcy Court
J. Scott Bovitz, Esq., Bovitz & Spitzer
Christie L. Cronenweth, Esq., Law Offices of Christie Cronenweth
Jay S. Fleischman, Esq
Jeffrey I. Golden, Esq., Weiland, Golden, LLP
M. Jonathan Hayes, Esq., Law Offices of M. Jonathan Hayes
Natella Royzman, Esq., Royzman Law Firm
Jill M. Sturtevant, Assistant United States Trustee
Lawyer Bio is the Most Important Part of Your Website
According to this fascinating Lexis-Nexis article, 38 percent of law firm marketing expenditures are spent on online efforts. It says, “When asked about the most popular content on their website, lawyer biographies are the most visited pages (85% of respondents), followed by information about practice area/sector expertise (52%) and thought leadership articles, case histories, etc. (50%).”
Download the full report of “The Use of Websites in Law Firm Marketing: Examining how corporate law firms use their websites in marketing and business development” here.
July Bar Exam Results Are In
SAN FRANCISCO, Nov. 16, 2012, 6 p.m. – The State Bar of California’s Committee of Bar Examiners reported today that 55.3 percent of the applicants passed the July 2012 General Bar Examination (GBX). If the 4,834 people who passed the July 2012 exam satisfy other requirements for admission, they will become members of the State Bar.
Preliminary statistical analyses show that of the 8,737 applicants who took the GBX, 74.2 percent were first-time takers. The passing rate for 6,485 first-time applicants was 68 percent overall. The passing rate for the 2,252 applicants repeating the examination was 18 percent overall.
What jumped out at me is this fact:
Out of the total taking the Attorneys’ Examination, 25 were disciplined lawyers who took the examination as a condition of reinstatement; one (1) disciplined lawyer passed.
M. Jonathan Hayes Books
Publisher
Senior Contributor
Contributors
