As a bankruptcy attorney in Mount Vernon, IL for over 20 years, I read through and analyze court rulings throughout the country, and pay particular attention to cases close to home!
Chapter 13—Allowance of attorney’s fees: Although Baker Botts L.L.P. v. ASARCO LLC, 135 S. Ct. 2158, 192 L.Ed.2d 208 (2015) was a Chapter 11 case, its reasoning applies equally in Chapter 13 cases. Accordingly, Code § 330(a)(4) does not permit an award of attorney’s fees to a Chapter 13 debtor’s attorney for defending a fee application unless one of the exceptions to the American Rule applies, and neither of the two general exceptions to the rule was applicable here. In re Rose, — B.R. —-, 2016 WL 6993738 (Bankr. W.D. Mich. Nov. 29, 2016) (case no. 1:14-bk-4308).
Chapter 13—Confirmation of plan—Effect on secured claim: The law has long recognized that, when a secured creditor elects to be paid as fully unsecured, that creditor’s right to later assert a secured claim is waived. The record here established such a waiver, where the creditor filed a wholly-unsecured proof of claim, the claim was expressly allowed as unsecured, and the claim was treated and paid as unsecured for five years under a confirmed Chapter 13 plan. In re Barrera, 2016 WL 6990876 (Bankr. M.D. Fla. Nov. 29, 2016) (case no. 8:10-bk-26730).
Chapter 13—Confirmation of plan—Treatment of secured claims—Cure of default: In a Chapter 11 case that will probably apply as well to Chapter 12 and 13 cases, the Ninth Circuit Court of Appeals held that, where the debtor seeks to cure a default on a secured claim, the amount necessary to cure the default is based on a default interest rate if the debtor’s default triggered a default interest rate and state law permits the imposition of such a rate. A debtor may not nullify a preexisting obligation to pay post-default interest solely by proposing a cure, although once a cure is effected, the debtor can return to pre-default conditions as to the remainder of the loan obligation. In re New Investments, Inc., 840 F.3d 1137 (9th Cir. Nov. 4, 2016) (case no. 13-36194).
Chapter 13—Confirmation of plan—Treatment of unsecured claims—Payment of interest: Addressing an issue as to which the courts and commentators disagree, the bankruptcy court held that, when a Chapter 13 plan pays unsecured claims in full under Code § 1325(b)(1)(A), the plan is not required to pay interest on those claims. In re Egger, 560 B.R. 797 (Bankr. W.D. Wash. Nov. 22, 2016) (case no. 3:16-bk-43428).
About the blogger:
Michael Curry of Curry Law Office in Mount Vernon, Illinois (http://michaelcurrylawoffice.com/) has helped thousands of individuals, family and small businesses in southern Illinois find protection under the Bankruptcy Code for almost twenty-five years. He is also available to help individuals and families with their estate planning (wills, power-of-attorney) and real estate and other sales transactions.
He is also the author of books on finance and bankruptcy available on Kindle through Amazon!
Whether you live in Mount Vernon, Salem, Waltonville, Woodlawn, Lawrenceville, Centralia, Louisville, Xenia, Grayville, Effingham, Dieterich, Vandalia, McLeansboro, Dahlgren, Albion, Flora, Clay City, Kinmundy, Chester, Sparta, Olney, Mount Carmel, Nashville, Fairfield, Cisne, Wayne City, Carmi, Grayville, or anywhere in Southern Illinois call Curry Law Office today at (618) 246-0993 and Finally Be Financially Free!
You can also find his website at http://www.mtvernonbankruptcylawyer.com.