RDM’s Roundup

Starting December 1, we all have to use the new national forms. Although you can hypothetically e-file a case using the old forms and get a case number (and automatic stay…) you will immediately be hit with a case deficiency notice requiring the uploading of the correct/missing forms within seventy-two hours or the case will be dismissed.

The general vibe I get is that attorneys are not that worried about the new forms as the BK software “we” (all!?) use will just spit them out organized correctly, after “we” have input the info the way we always have. Read more…

ORANGE COUNTY BAR ASSOCIATION COMMERCIAL LAW & BANKRUPTCY and BANKING & LENDING SECTIONS JOINT MEETING – November

ORANGE COUNTY BAR ASSOCIATION
COMMERCIAL LAW & BANKRUPTCY and
BANKING & LENDING SECTIONS
JOINT MEETING – November

*TUESDAY, NOVEMBER 24, 2015* 12:00 p.m. to 1:30 p.m.
(*Changed from previous meeting date of Thursday, 11-19-15*) Read more…

Trustee Sues USC For Fraudulent Transfer On Behalf of Debtors (Parents) Who Paid $180k For Kids Education

These Trojans have more to ‘fight on.”

This adversary fascinated me.   Mom and Dad paid $180,000 for their two kids to go to USC.   They graduated.  Two years later, Mom and Dad filed for Chapter 7 bankruptcy.  Trustee Geoffrey Richards was appointed.

Trustee sued USC demanding the school return the $180,000 the parents (debtors) paid to USC as a fraudulent transfer under §548 arguing the parents got no value from the school.   Wow!  (as a UCLA alum, I giggle). Read more…

Sometimes the State Court Gets it Right!

Instead of delving into the actual facts of In re Marriage of Walker, I will use similar facts as they will be easier to understand. You can find the actual case here.

House is worth $350,000 with a $150,000 1st priority lien. In a divorce proceeding,Výsledek obrázku pro divorce law aVýsledek obrázku pro divorce law judge will order the sale of the property with proceeds split evenly. Assuming no cost of sale, taxes, etc., this would mean husband is paid $100,000 and wife is paid $100,000. In divorce cases it is done with an specialist as it has many important things, not only property but if there is a child or more on the table, so if you’re thinking about getting a divorce, you should contact an attorney right away

Protect Your Rights with an Experienced Fort Worth Divorce Lawyers

Our Fort Worth divorce lawyers have been involved with this practice for over 20 years. The Law Office of William D. Pruett is a well-known law firm in the Fort Worth area, well-respected lawyer, practicing with integrity, compassion and competence. Our Fort Worth divorce attorney will help you make the decisions that are best for you and your family. If you need representation from an family law attorney who is an expert in their field.

The result should not be different if there was an intervening bankruptcy, or should it!? If you need help with your divorce case make sure you contact AEK Law firm.

Read more…

Comparison of Chapter 13 Plan Forms in the SD, CD and ND

Jon’s post here got me thinking about the attorney in the Southern District, who to me at least, seems to have committed malpractice by filing a bad Chapter 13 Plan.

The facts in the In re Schleger case, which you can read here, are dumb-bed down as follows: Chapter 13 Plan is filed where Debtors say they will pay 48% of unsecured claims. They know that they are about to void a 150k lien but they do not amend their plan to reduce the 48% or really do anything to deal with the claim. Five years passes and they want a discharge despite not paying anywhere close to 48% or amending their plan. That’s just a ridiculous position to take! But was it his fault or the system’s fault? This  case was an appeal from the Southern District which we will see has a confusing form.

Charging Extra Fees to Credit Card Users in California Soon to Be Legal

I wrote a three part article here which explained California law as it applied to a retailer’s ability to surcharge for the use of credit cards. The second part discussed the loopholes embedded into the law and discussed why the law is actually bad for consumers and retailers alike. In the final part, I discussed the importance for consumers to always make sure a cash register with scanner is being used everytime they pay.  Read more…

Does the Chapter 13 or Chapter 11 Plan Pay Some Percentage to Creditors or Some Specified Amount over the Term of the Plan?

In chapter 13s, the plan – the preprinted plan form – says the debtor will pay x amount per month “which is estimated to pay unsecured creditors x% over the plan period” (paraphrasing the quote).  There is a recent crazy BAP case, In re Schlegel, that says the debtor is promising, per the form, to pay the percentage to unsecured creditors, not just the amount specified.    So if a proof of claim is filed after the plan is confirmed, the debtor must object or amend his plan to change the percentage in the plan.  Assuming there is no basis to object, it is a complete waste of time if you ask me to amend the plan just to change the percentage.  Anyway, I was explaining this to one of the associates here and it occurred to me that the chapter 11 plan for an individual should include language that the debtor is not promising to pay some specific percentage to unsecured unsecured creditors, only some specific amount to the class as a whole.

Random Thoughts for the Week

I’m starting to believe that business is actually slowing down.   Gives me time to catch up on the fee apps and ding all the clients who have forgotten to pay us.

In our office, we have gone back to using the old time chapter 11 Disclosure Statement pleading that everyone used for about 20 years until someone came up with the brainstorm of preprinted forms.  The forms are too hard to follow, especially when there are 3 or 4 different “approved” versions and different judges have different views of each.  I believe Roksana and Judge Zurzolo and his staff, i.e., Jeff Cozad, have been working on a new one.  My old boss used to say, “Right idea, wrong execution.”  I don’t mind trying the forms again but for now, the old pleading worked just fine. Read more…

Request for Admissions Are a Powerful Tool Which Should Not Be Taken Lightly

I found the following case very interesting because based on my limited experience, litigators tend to take a deny everything and admit nothing approach. But as the litigators here found out, this can be a dangerous game.

This is a quick summary based on the California Court of Appeals decision in TIMOTHY GRACE et al. vs. LEVIK MANSOURIAN et al. which was published on September 15, 2015. You can find the case here.

Defendants were served with requests for admissions seeking admissions on negligence, causation, and damages. Plaintiffs asked defendants to admit defendant failed to stop at the red light and that the failure was negligent, the actual and legal cause of the accident, etc. Read more…

Credit Card Companies Beware, California Appellate Court Finds That Their Evidence of Debt May Not Be Admissible

This is a summary of Sierra Managed Asset Plan, LLC, vs. Hale which was published by the California Court of Appeals on August 20, 2015. You can find the case here.

Consumer opened a credit card account with Citibank, N.A. He accumulated an unpaid balance of $10,138.41. Through a series of assignments, Sierra acquired Citibank’s rights as creditor. Sierra sought to enforce those rights through a lawsuit. Consumer did not deny the account, but he testified that he did not recall any of the details of the purchases on or the accrued balance of the account.

To prove that the defendant owed the money, Sierra had its agent testify and attach exhibits which substantiated the assignments leading to Sierra’s acquisition of rights as creditor on the account in question, the account agreement, and the account statements reflecting all of the charges culminating in the unpaid balance due. The account statements reflect purchases by a “David C. Hale,” with a listed address the same as that acknowledged by appellant at trial.

Consumer objected to receipt of the credit account exhibits attached to Sierra’s agent’s declaration on a variety of grounds, including hearsay and the lack of any foundation which would support their admission under the business records exception. (Evid. Code, § 1271.)

The Appellate Court agreed with Consumer, finding that the testimony did not provide substantial evidence of the foundation necessary for admission of the records pursuant to the business records exception to the hearsay rule.

Read more…