GMAC Mortgage – Residential Capital – Files Chapter 11 – Will Sell Its Assets

By | May 21, 2012 | Chapter 11, Current Events | 5 Comments

Here is a letter that was sent to a debtor by GMAC announcing the chapter 11 filing.

The declaration with the First Day Motions states:  “The purpose of these Chapter 11 cases is to facilitate an orderly sale of the Debtors’ most valuable assets and an orderly wind-down of Debtors’ remaining assets. The Debtors have negotiated and entered into two separate asset purchase agreements. The first, with Nationstar Mortgage LLC as the proposed stalking horse bidder (“Nationstar”), for the sale of their mortgage loan origination and servicing businesses (the “Platform Sale”), and the second, with AFI as the proposed stalking horse bidder for the sale of their legacy portfolio consisting mainly of mortgage loans and other residual financial assets (the “Legacy Sale” and collectively with the Platform Sale, the “Asset Sales”).”

U.S. Bankruptcy Court Southern District of New York (Manhattan) Bankruptcy Petition #: 12-12020-mg

Judge Martin Glenn

Date filed:   05/14/2012

Debtor Residential Capital, LLC 1177 Avenue of the Americas New York, NY 10036 NEW YORK-NY Tax ID / EIN: 20-1770738 aka Residential Capital Corporation

represented by  Larren M. Nashelsky Morrison & Foerster LLP 1290 Avenue of the Americas New York, NY 10104 212-468-8000 Fax : 212-468-7900 Email: lnashelsky@mofo.com

U.S. Trustee United States Trustee 33 Whitehall Street 21st Floor New York, NY 10004 (212) 510-0500

Summer Associate Begins at Munger, Tolles & Olsen

By | May 21, 2012 | Firm Announcements | No comments

My son Hunter Hayes began his summer associate term at Munger, Tolles & Olsen, LLP this morning.  I’m too excited.

cdcbaa Program on Chapter 13 a Great Success

By | May 19, 2012 | Chapter 13, Programs | 1 Comment

Omid Moezzi, Staff Attorney to Chapter 13 Trustee Nancy Curry and Angela Gill, Staff Attorney to Chapter 13 Trustee Kathy Dockery put on a great show this morning at Southwestern Law School.  The cdcbaa program was entitled Getting Your Chapter 13 Plan Confirmed and Post-Confirmation Issues.

Success: My Two Law Clerks Pass Bar Exam

By | May 19, 2012 | Current Events, Firm Announcements | 1 Comment

My two law clerks, Carolyn Afari and Elizabeth Roberson, found out yesterday that they passed the California Bar Exam.  They will join my firm as associate attorneys.  Both Carolyn and Elizabeth are graduates of University of West Los Angeles and both are former students of mine as is Roksana Moradi, my associate for nearly three years now.  Congratulations again.

Bankruptcy Appellate Panel — Staff Attorney Vacancy Announcement

By | May 18, 2012 | Courts | No comments

The Bankruptcy Appellate Panel for the Ninth Circuit Court of Appeals is seeking a temporary staff attorney to work in its Pasadena, CA office.

Information attached.

Judge Albert Tentative Ruling re Addendum to Chapter 13 Plan

By | May 18, 2012 | Chapter 13, Judges Corner | 11 Comments

May 16, 2012

Tentative Ruling:

This is the confirmation of the debtors’ Chapter 13 plan. The Bank of New York Mellon (“bank”) has filed an objection, primarily concerning the attachment of the optional Addendum promulgated by the Central District. The bank argues that the Addendum is superseded as inconsistent with revised FRBP 3002.1 which was adopted by the Supreme Court December 2011.

The bank’s argument is not persuasive on any of its points.

First, the bank argues that FRBP 3002.1(b) and (c) as amended is an Act of Congress. It is not, except insofar as it could be argued that 28 U.S.C. §2075, which requires that changed rules be submitted by the Supreme Court for Congressional review by May 1, becomes an “act of Congress” each year when Congress fails to respond (as here).

Second, it is equally true that no Local Rule can be enacted if it inconsistent with, or duplicative of, either an act of Congress or the Federal Rules of Bankruptcy Procedure. See FRBP 9029. But the court is not persuaded that the Addendum is inconsistent or duplicative of the Rules or any of them. Rule 3002.1 (b) and (c) governs proofs of claim, and the notices required there under are to be given as supplements to the proof of claim. The court is not sure this is quite the same thing as monthly mortgage statements particularly when the plan calls for monthly statements.

Read more…

“Tips” to Keep Your Judges in Santa Ana Happy

By | May 18, 2012 | Judges Corner | 1 Comment

Here is a nice list of “tips” from the judges and their clerks in Santa Ana.  You can access it here from the Orange County Bankruptcy Forum website.

Applicable Commitment Period Appeal

By | May 18, 2012 | Appeals, Chapter 13 | No comments

Last Friday, May 11th, 2012, Nancy Clark of Borowitz & Clark and Beth Schneider of Rod Danielson’s Office argued the applicable commitment issue before the 9th circuit.  I’ve been told that the three panel judge stated on the record that they did not have much knowledge of bankruptcy law and both attorneys had to spend some time explaining how things work in chapter 13 bankruptcy.  Hopefully, we will have some clarity on this last major issue in the near future.  We have been waiting for about seven years since BAPCPA was enacted for the courts to tell us what the “applicable commitment period” actually means.  Keep your fingers crossed.

Aki Koyama

Public Notice PN 12-009 Re: New & Revised LBR Forms Effective June 1, 2012

By | May 16, 2012 | Court Clerk Information | No comments

Attached please find the new Public Notice PN 12-009 Re: New & Revised LBR Forms that will become Effective June 1, 2012. Any questions may be directed to the ECF Help Desk at: ECF_support@cacb.uscourts.gov.

Best regards, ECF Help Desk (213) 894-2365

 LBR Form Number LBR Form Title
F 2081-1.5.MOTION.

EMPLOYMENT (New)

Notice of Motion and Motion In Individual Chapter 11 Case For Order Employing Professional [LBR 2014-1]
F 2081-1.5.ORDER.

EMPLOYMENT (New)

Order RE Motion In Individual Chapter 11 Case For Order Employing Professional [LBR 2014-1]
F 2081-1.6.MOTION.

BARDATE (New)

Notice of Motion and Motion In Individual Chapter 11 Case For Order Setting Bar Date For Filing Proofs of Claim
F 2081-1.6.ORDER.

BARDATE (New)

Order Setting Bar Date for Filing Proofs of Claim In An Individual Chapter 11 Case
F 2081-1.6.NOTICE.

BARDATE (New)

Notice of Bar Date for Filing Proof of Claim In An Individual Chapter 11 Case [LBR 3001-1]
F 3015-1.4.DEC.

PRECONF.PAYMTS

(Replaces F 3015-1.4 and F 3015-1.10)

Declaration Setting Forth Postpetition, Preconfirmation Payments on: 1) Deeds of Trust [or Mortgages]; 2) Leases on Personal Property; 3) Purchase Money Security Liens on Personal Property [LBR 3015-1(e) and LBR 3015-1(m)]
F 7004-1.SUMMONS.

ADV.PROC

 Summons and Notice of Status Conference in Adversary Proceeding [LBR 7004-1]
F 9013-3.1.PROOF.

SERVICE

 Proof of Service of Document
F 9021-1.1.NOTICE.

ENTERED.ORDER

 Notice of Entered Order and Service List

Consumer Bankruptcy Practice – Helping Others In Need

By | May 12, 2012 | Community | 16 Comments

There is no better feeling that giving to someone in need and helping to relieve the pain and suffering of others.

Those of us who practice consumer bankruptcy law often refer to our practice area as financial and emotional triage.

Typically consumer clients do not make the first call to seek help from bankruptcy counsel until they have exhausted all of the own financial resources (savings, credit, retirement and gifts and loans from family) and many have lost trust in “professionals” because increasing numbers have been taken advantage of through scams and unscrupluous attorneys and others presenting themselves as attorneys who are not licensed.  Over the past several years, with the world’s trouble increasing, I’ve witnessed that the average anxiety level of consumer debtors has steadily increased, people started to use the korean panax ginseng in order to get rid of fatigue.

The stress of financial problems are exhausting and invariably lead to lack of sleep which compounds the stress and make consumer debtor feel overwhelmed.  Persistent stress and lack of sleep can cause even the average person to become despressed; those who suffer from mental health issues are impacted the worst as their conditions worsen.  Persistent creditor collection activity can become very scary to these people, especially given that collection agents can be very aggressive and often threaten horrible things to extract funds.  It is not uncommon for these problems to lead consumer debtor to have trouble concentrating and remembering fact necessary for proper prepration and administration of their bankruptcy cases.

In instances like these, the process of representing consumer debtors involves a special combination of counseling and legal representation whereby consumer bankrupcy attorneys must first presuade the consumer debtor that we are here to help them figure out all of their options and that letting go of their credit score and certain real and personal property possessions, if necessary, isn’t always as bad as they may think.

Next, consumer bankruptcy attorneys must instill a certain level of trust in the consumer debtors that we are, in fact, trying to help.  Throughtout this process, we must extract necessary informaton from these overwhelmed consumers to address emergency matters such as imminent foreclosure sales, repossesion, law suits, etc.

The process of gathering information from overwhelmed consumer debtors often requires significant time and patience.

Consumber bankrutpcy practitioners are the interface between overwhelmed consumers and a relatively rigid Federal legal process.  We work to help these people comply with the fast pace process which has many deadlines and serious consequences for missing same.

The consumber bankruptcy attorney and client relationship does not always progress smoothly.

My perception is that most of the Central District judges, clerks, and trustees are mindful of these facts.  Those who are not, should.

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