July 4, 2009
Bankruptcy Filings Rise Slightly in June
Total bankruptcy filings for June, 2009 increased 3.6% to 124,800 from 120,400 in May which was down from 128,720 petitions filed in April. That's 374,000 for the second quarter up 16% from 322,000 for the first quarter. The June rate equates to 1,497,600 for the year compared to 1,597,000 in 2004, 1,660,000 in 2003 and 1,578,000 in 2002.
July 3, 2009
California State Budget Balancer
Thanks to UCLA Prof. Steve Bainbridge for locating this. Its a "Sim City" sort of program where you can figure out, using real numbers, how to balance the California State Budget. The program is here.
Aram Ordubegian Moves to Arent Fox
I have moved my practice to Arent Fox LLP. My new contact information is below, please update your records. Thank you.
Aram is a good friend and a great bankruptcy lawyer.
Aram Ordubegian | Partner, Bankruptcy & Financial Restructuring
Arent Fox LLP | 555 West Fifth Street, 48th Floor | Los Angeles, CA 90013
Tel: 213.629.7400 | Fax: 213.629.7401
email@example.com | www.arentfox.com
July 1, 2009
Circuit Court of Appeals Cases from Last Week
9th Circuit Court of Appeals, June 25, 2009
Batlan v. Bledsoe, --- F.3d ---, 2009 WL --------------- (9th Cir. 2009)(trustee must allege and prove "extrinsic fraud" to establish fraudulent conveyance included in dissolution judgment)
9th Circuit Court of Appeals, June 26, 2009
Cunning v. Rucker, --- F.3d ---, 2009 WL --------------- (9th Cir. 2009)(no exemption for Debtor's assets in pension and 401(k) plans, where the retirement plans were not designed and used primarily for retirement purposes)
Thanks to Findlaw.com.
Secured Debt When Converting from 13 to 7
From the Bankruptcy Roundtable List Serve:
We have a scenario where our clients filed a chapter 13 bankruptcy back in 2007. Since the filing, the debtors have separated, making them now eligible for conversion (given the separate living expenses).
1) The home and the two vehicles were in arrears at the time of the chapter 13 filing and the arrearage was included in the chapter 13 plan as unsecured debt. If we convert, what impact does the conversion have on those assets (do they have to surrender, given the arrearage?).
2) If one of the debtors accumulated more debt post filing (and we know that they were not supposed to without the trustee’s permission – hence the separation)… can the debt accumulated post filing the chapter 13 but prior to conversion be discharged in the chapter 7?
I’d appreciate any/all input here.
Calhoun, Kademenos, & Childress, Co. L.P.A.
502 West Washington Street
Sandusky, OH 44870
One of the very unfortunate amendments perpetrated by the 2005 act is a change in section 348, effect of conversion, when a 13 is converted to a 7. New section 348(f)(1)(C) means that when the debtor converts, he or she loses the benefit of the treatment of the secured claim under the plan, and the crediting of the payments pursuant to the plan.
You can try redeeming the vehicles for current replacement value (no longer wholesale value), but even that could be a problem. See section 506(a)(2)
David S. Yen
Legal Assistance Foundation of Chicago
reply to: firstname.lastname@example.org
June 29, 2009
Two Los Angeles Times Articles Today on the Supreme Court
Supreme Court Voting for this Term
The last two cases decided this term were both 5-4 and in both, Kennedy sided with Roberts, Scalia, Thomas and Alito.
June 28, 2009
Supreme Court Voting for This Term
The term is not quite over yet but I enjoy fooling around with the numbers - all the data is at scotusblog.com.
Of the 77 times the court has voted this term, Roberts was in the majority 63 times meaning he chose the author of the opinion 63 times. Stevens chose the author 12 times when he was in the majority and Roberts was not and Scalia chose the author two times - the two times Stevens and Roberts were on the minority side togther. Of the 12 times Stevens chose the author, he chose himself 4 times, Ginsburg 2, Kennedy 2, Thomas, Souter, and Scalia once. There was one per curiam opinion in this group.
Kennedy was in the minority on only 5 cases the whole term. Of the 21 5-4 rulings, Kennedy was in the majority 17 times. Of those 17, he alligned with the "right," i.e., Scalia, Alito, Roberts and Thomas 10 times. He aligned with the "left," 5 times, and only two times were there 5-4 opinions with some alignment other the expected right and left.
I better go get some exercise.