Appeals Court Allows Final Chapter 13 Payment Beyond 60 Months
Few things in life are certain. Death. Taxes. Chapter 13 plan payments must be completed within 5 years. But wait – the Third Circuit Court of Appeals recently held that a Chapter 13 Debtor can receive a discharge, even if the final plan payment is made after 60 months. In a case of first impression […]
Pennsylvania Superior Court Holds Diversion to Bankruptcy Court Eliminates Dragonetti Act Claim
The Pennsylvania Superior Court has held that the removal of a state law claim from the state courts to the federal bankruptcy court pre-empted the defendants’ subsequent suit under the Dragonetti Act for wrongful use of civil proceedings. The facts are summarized as follows: Landlord commenced an action against Law Firm and its partners for […]
Supreme Court Rules Filing a Stale Claim is not an Unfair Debt Collection Practice
On May 15, 2017, the Supreme Court resolved a split among the Circuit Courts of Appeals, holding that the filing a time-barred / stale claim does not violate the Fair Debt Collection Practices Act. Midland Funding v. Johnson (U.S. May 15, 2017). The Fair Debt Collection Practices Act, 15 U. S. C. §§1692 et seq., […]
Emotional Distress Damages Upheld for Stay Violation
The current Bankruptcy Code went into effect on October 1, 1979. One of the fundamental provisions of the Bankruptcy Code is the automatic bankruptcy stay which, as its name implies, automatically halts almost all collection activity against the debtor and the debtor’s property. Even though the law has been around for close to 40 years, […]
Third Circuit Weighs in on Dischargeability of Late Filed Tax Debts
In a recent decision, the Third Circuit Court of Appeals determined whether Internal Revenue Service Forms 1040, filed after the IRS has made an assessment of the taxpayer’s liability, constitute “returns” for purposes of determining the dischargeability in bankruptcy of tax debts under 11 U.S.C. § 523(a)(1)(B). In plain language, the question before the Court […]
Supreme Court Issues Long Awaited Jevic Ruling, Ending Structured Dismissals in Bankruptcy
As a general proposition, Chapter 11 bankruptcy proceedings can conclude in one of three ways: (1) confirmation of a plan of reorganization (or liquidation); (2) conversion to Chapter 7; or (3) dismissal. Ideally, a plan is confirmed in which creditors receive payment as required under the distribution scheme embodied in the Bankruptcy Code. Plans can provide […]
No Retreat, Baby, When You Surrender
Under Section 521 of the Bankruptcy code, an individual debtor is obligated to choose how to treat the collateral of a secured creditor. Under the Code, the choices are: reaffirm the debt, redeem the collateral, surrender it, or claim the property as exempt. The debtor must file a Statement of Intention which explicitly lists the […]
Strategies For Dealing With Preference Claims In Bankruptcy Cases
Understanding and clearly conveying possible defenses will aid businesses confronting bankruptcy preference clams.
Strategies To Minimize Losses When A Customer Files Bankruptcy
Although some business losses are inevitable, there are tactics to minimize avoidable losses when a customer files bankruptcy.
NJ Bankruptcy Court Holds Inherited IRA Excluded from Bankruptcy Estate
An inherited IRA that meets the requirements of the NJ Statute and satisfies the 5-part Yuhas test is beyond the reach of bankruptcy trustees in New Jersey, per a recent decision from .