The bankruptcy court overruled the chapter 7 trustee's objection to the debtor Catherine Myatt's claimed exemption in her interest in her former husband's 401(k) retirement account.
As of February 14, 2024, the revised Department of Justice (DOJ) guidelines for discharging student loan debt are still under evaluation after their initial implementation in November 2022. Here's what we know:
Mortgage creditors struggle to properly service mortgages in chapter 13 cases, as evidenced by numerous cases describing violations of Bankruptcy Rule 3002.1. The consumer bankruptcy system, however, is not calibrated to compel system wide compliance from these large, institutional repeat actors. This Essay argues that the Consumer Financial Protection Bureau (CFPB) is well-suited to support the consumer bankruptcy system by exercising its monitoring and enforcement powers to promote, and even compel, mortgage creditor compliance in chapter 13 cases.
In a suit brought against Carrington Mortgage Services, LLC, the borrowers alleged that Carrington violated the Maryland Consumer Debt Collection Act (MCDCA), which largely incorporates the Fair Debt Collection Practices Act (FDCPA), and the Maryland Consumer Protection Act (MCPA) by charging $5 convenience fees to borrowers who paid monthly mortgage bills online or by phone.
The Trustee sought to avoid two transfers, in the total amount of $30,000, made by the Debtor from his wholly owned corporation to Michael Campbell.
The only issue in the avoidance action was whether the Debtor received less than equivalent value for the transfers. The Trustee asserted these were gifts and the Debtor that they were loans. The Trustee brought a Motion for Summary Judgment.
The Cooks filed a Chapter 13 bankruptcy and, being above median income, were required to calculate their "projected disposable income" using Official Form 122C-2. As their plan provided for the retention of their home and cure and maintenance of the on-going mortgage, they deducted their monthly mortgage payment of $2,233.34 from the Means Test, despite the IRS Local Standard for mortgage expenses being only $1,098.00.
