En Banc Hearing Tuesday in Pasadena

By | December 9, 2012 | Community | 2 Comments

It’s not exactly a bankruptcy issue but in the same ballpark.  On Tuesday, the 9th Circuit Court of Appeals will hear argument on the case below en banc, that is it will be 11 judges instead of three.  I have not had a chance to attend an en banc hearing.  The announcement is below.

December 11 10:00 a.m.
Kilgore v. Keybank National Association
Keybank National Association and others appeal the Northern California district court’s order denying Keybank’s motion to compel arbitration.  Plaintiffs are students who obtained student loans from Keybank to pay for training as helicopter pilots.  They seek to represent a putative class, alleging that Keybank engaged in predatory lending practices when it partnered with Silver State, a sham vocational school that offered the training.  Plaintiffs sought injunctive relief against Keybank to prevent collection of their individual student loan debt.  In a separate appeal, plaintiffs appeal the district court’s dismissal for failure to state a claim of their action. Cases 09-16703, 10-15934.

Central District Bankruptcy Filings Compared to New York and Texas

By | December 8, 2012 | Bankruptcy Data | 3 Comments

Total bankruptcy filings in the Central District of Cal in November 2012:  7,192

Total bankruptcy filings in November, 2012 for New York AND Texas: 6,576

TXEB 525
TXNB 1333
TXSB 1094
TXWB 892
NYEB 1029
NYNB 641
NYSB 664
NYWB 398
6576

Court Approves $100 million in DIP Financing for American Suzuki

By | December 7, 2012 | Chapter 11, Community | 1 Comment

BREA, Calif.–(BUSINESS WIRE)–American Suzuki Motor Corporation (“ASMC” or “the Company”) today announced that it has received Court approval for Debtor-In-Possession (“DIP”) financing.  As a result, the Company will be able to borrow up to $50 million for operations and up to $50 million for purchases of inventory from Suzuki Motor Corporation (“SMC”).  These funds will help ensure that ASMC has the cash necessary to operate its business during the pendency of the chapter 11 case.  The motion was previously granted Court approval, on an interim basis, on November 7, 2012.  The full article is here.

Some  great hearings coming up Thursday, December 20 in Santa Ana, including approval of the disclosure statement (already) and approval of the bid procedures for the upcoming auction.  The docket is here. 

Six Golden Bankruptcy Rules

By | December 7, 2012 | Books & Articles, Community | 1 Comment

I updated this article to include the 2005 Amendments.  6 Golden Rules

The 9th Circuit Weighs in on Stern v Marshall (In re Bellingham); What Isn't The Public Rights Exception?

By | December 7, 2012 | Supreme Court | 1 Comment

The 9th Circuit Weighs In On Stern v. Marshall (In re Bellingham)

What Isn’t The Public Rights Exception?

Since the establishment of the English monarchy, the “law of the land” provides a “public right” to assess and collect property from citizens, without the requirement of prior notice and a hearing.  Due process of law is satisfied by virtue of the “public right” to arbitrarily assess taxes, for example.

Under the “law of the land,” “private rights” were recognized under the English monarchy system, since the Magna Carta of 1215, as a limit to the government’s (the King’s) right to arbitrarily deprive citizens of property without a judgment resulting from prior notice and a hearing.  For a “private right” due process of law requires notice and an hearing before a judgment for money damages resulting from a cause of action for breach of contract or tort, for example.

In essence, this country was founded as the result of the citizens’ frustration with the arbitrary exercise of the “public right” under the English monarchy, “because the King of Great Britain ‘made Judges dependent on his will alone, for the tenure of their offices, and payment of their salaries.’”  Stern v. Marshall at 17-18 citing The Declaration of Independence ¶ 11.

The individual states first adopted the English system’s “law of the land” with the diversity of “public rights” and “private rights” and eventually the United States Constitution did the same and addressed the concern for arbitrary exercise of the “public right” by trifurcation the power of the monarchy using Article I (Legislative), Article II (Executive) and Article III (Judicial).

Read more…

Just Bragging About My Associate Roksana Moradi (Again)

By | December 7, 2012 | Firm Announcements | 1 Comment

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.

More Tips From Aki

By | December 6, 2012 | Chapter 13 | 3 Comments

Practice tip:  Cash Collateral Issues in Chapter 13 – if you believe that your client’s rental property may be subject to a note that give the secured creditor an interest in the rents generated by the property (cash collateral), you may wish to seek a stipulation for use of the rent as soon as the case is filed.  If you can’t get a stipulation, file a motion with the court.  Normally, this is a chapter 11 issue, but it has been appearing in chapter 13 matters on a regular basis.

Practice tip:  All of the chapter 13 trustees are now sending out Notices of Final Cure Payments pursuant to Rule 3002.1 sections f,g,h and i.  The secured creditor for the primary residence has a mandatory duty to respond to these Notices.  Please review their responses when you receive them and file a motion if your client disagrees with the secured creditor’s response.

Aki Koyama
Staff Attorney to Kathy Dockery, Chapter 13 Trustee

Revised LBR Forms Effective December 2012

By | December 6, 2012 | Court Clerk Information | 1 Comment

Public Notice

By December 14, 2012, the Court will post 80 revised LBR forms (Revised Forms) on its website, which include a new Proof of Service of Document as well as other non-substantive changes. The Revised Forms will become effective once posted. Prior versions of these forms, however, will be accepted for filing through December 31, 2012. A list of the Revised Forms is attached.

In addition to the new Proof of Service of Document that has been updated, the Revised Forms have also been modified as follows:

-Reformatted for better compatibility with the Court’s CM/ECF system;
-Non-substantive text revisions were made for improved consistency;
-The Revised Forms are fillable and may be saved using a PDF reader; and
-Many of the names of the Revised Forms have been changed to make them easier to identify. For example, F 1007-4 is now F 1007-4.CORP.OWNERSHIP.STMT.
-The attached list of Revised Forms includes both the new and old LBR form numbers. For your convenience, you may input the old LBR form number in the search box on the Court’s website to find the applicable Revised Form.

The Revised Forms will be available on the Court’s website www.cacb.uscourts.gov under the Forms tab, or for a fee at the Intake Section of all five of the Court’s divisions.

KATHLEEN J. CAMPBELL
CLERK OF COURT

How to Get Your Chapter 13 Plan Confirmed

By | December 6, 2012 | Chapter 13, Programs | No comments

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

By | December 6, 2012 | Community, Legislation | 1 Comment

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.

Bloomberg article is here.

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