March 29, 2008
Section 722 Redemption Lenders
Getting a chance to listen to Judge Keith Lundin, Chapter 13 expert extraordinaire from the Middle District of Tennessee, is worth the price of admission by itself to the Norton Institute Program in Las Vegas. My view of these programs is that if I learn a few things, the price and time was worth it.
Today I learned that there are "Section 722 Redemption Lenders" who will loan a debtor the amount needed to redeem a vehicle from a secured lender. I found one quickly on the internet and I intend to try it next week. Apparently the cost is $600 and the interest rate is reasonable. Someone today mentioned that some of the auto finance companies are fighting these obviously wanting the debtor to reaffirm the entire debt. So the debtor will need to factor in the additional attorneys fees to get the lender to take the "fair market value" in lieu of a reaffirmation.
March 26, 2008
Article From Judge Bruce Markell on Individual Chapter 11 Cases
Thanks to Bob Hiller for his post:
Subject: Individual Debtors in Chapter 11 after BAPCPA
"The Sub Rosa Subchapter: Individual Debtors in Chapter 11 after BAPCPA"
University of Illinois Law Review, Vol. 2007, p. 67
UNLV William S. Boyd School of Law Legal Studies Research Paper No. 08-03
BRUCE MARKELL, William S. Boyd School of Law, UNLV
In reforming the bankruptcy laws in 2005, Congress added several provisions to the Bankruptcy Code regarding the use of chapter 11 by individuals. These changes radically alter the basic chapter 11 rules with respect to individuals; among the most significant change is that postfiling service income, previously allocated to the individual debtor alone (and not available to pay prefiling creditor claims), was made property of the estate available to pay prefiling creditor claims. This article surveys the changes made and their possible impact, and suggests that they are sufficiently radical to have warranted a separate subchapter of chapter 11.