BankruptcyProf Blog

Former Chapter 7 Trustee in Running for Supreme Court?

Judge Sidney Thomas from Billings, Montana is reputed to the on the "short list" of ten I believe for the soon-to-be vacant Supreme Court seat.  He was a chapter 7 trustee in the early 80s.  His Wiki biography can be accessed here.

Supreme Court Historical Society Annual Meeting

The Supreme Court Historical Society 35th Annual Meeting and Dinner

The Society will hold it's 35th Annual Meeting and Dinner on Monday, June 7, 2010. It is our privilege to host The Honorable Judith S. Kaye (Retired) as our Annual Lecture speaker. Chief Judge Kaye served on the Courts of the State of New York for 15 years, the first woman to serve in that position, she is also the first person to complete a full 14 year term. 

The Schedule of Events is as follows: 

2:00 pm - Annual Lecture The Supreme Court and Justice for Children, Judith S. Kaye (Retired)

6:00 pm - General Meeting of the Membership, Annual Trustees Meeting

7:00 pm - Reception (Attire: Black Tie)

8:00 pm - Thirty-fifth Annual Dinner

 Tours of the building will be offered before and after the lecture at 12:30 pm and 3:00 pm.

 There is no charge to attend the tours, the Annual Lecture or the Meeting of the Membership. However reservations are required and can be obtained by filling out response cards included with the invitation. Each active member of the Society will receive an invitation to the Annual Meeting in the mail approximately six weeks prior to the event. There is a charge for the Reception and Dinner and reservations are required. Response cards for the dinner will also be included in the invitation packet.

Bruce Schildkraut - UST Attorney

Dear Friends of Bruce,
 
After a long and courageous battle, my husband and your friend and colleague Bruce Schildkraut succumbed to his illness and peacefully passed away in his sleep Saturday morning, April 24. 
 
Despite that he made it difficult for many to be his friend, he cherished the time he worked with you, was forever appreciative of your friendship with and spoke highly of you over the years. 
 
Let us pray that his soul will be for a memory.
 
Final arrangements are pending but they will be private.  Should you wish to make a donation in his memory, please consider the UCLA Lung Transplant Program.
 
UCLA LUNG TRANSPLANT PROGRAM
c/o Stephanie Lackey
UCLA
1001 Westwood Blvd., Suite 200
Los Angeles, 90095
 
On a personal note, thank you for being one of his friends.  I know you made a positive difference in his life.
 
Best personal regards,
 
Peggy Schildkraut

Brown Bag with Judge Samuel Bufford

Judge Sam Bufford is having a "Brown Bag" on May 5, 2010 from Noon to 1:15pm in his courtroom.  The program is called "How to Get Your Orders Signed."  RSVP is Linda Quan, Judicial Assistant (213) 894-0992. 

Circuit Court of Appeals Cases from Last Week

7th Circuit Court of Appeals, April 15, 2010
In the Matter of Altheimer & Gray, --- F.3d ---, 2010 WL ----------------- (7th Cir 2010)(In a law firm chapter 11, partner's claim not paid as the reorganization plan subordinated partners' claim to those of other creditors, and here, petitioner is a non-unit partner under the plan)

8th Circuit Court of Appeals, April 13, 2010
Bremer Bank, N.A. v. John Hancock Life Ins. Co., --- F.3d ---, 2010 WL ----------------- (8th Cir 2010)(plaintiff's equity in an aircraft and lease was not improperly extinguished by a bank, acting on defendant's instructions, where: 1) the bank properly informed plaintiff that the lease of the aircraft was in default, as required by the lease agreement; 2) given the lease's expansive language, it was reasonable to consider as a remedy the 11 U.S.C. section 1110(b) stipulations requiring the airline to maintain the aircraft and to make monthly payments despite the bankruptcy stay)

9th Circuit Court of Appeals, April 13, 2010
In re Sabban, --- F.3d ---, 2010 WL ----------------- (9th Cir 2010)(monetary award under California's unlicensed contractor statute, Cal. Bus. & Prof. Code section 7031(b), was dischargeable, since under section 523(a)(2)(A) it was not premised on either fraud or actual harm)

Thanks to Findlaw.com. 

Pending Student Loan Legislation

Thanks to David Goch who posted this on the Bankruptcy Roundtable Listserve:

Yesterday, the House Judiciary Committee's Subcommittee on Commercial and Administrative Law held a hearing on H.R. 5043, "The Private Student Loan Bankruptcy Fairness Act of 2010".

H.R. 5043, according to Rep. Cohen (D-TN), the bills sponsor along with Rep. Davis (D-Ill.), "is very narrowly tailored to make debt resulting from student loans issued by private, for-profit institutions dischargeable in bankruptcy."

H.R. 5043 amends Bankruptcy Code Section 523(a)(8), eliminating Section 523(a)(8)(B), which currently makes debt from private loans issued by for-profit lenders nondischargeable in bankruptcy absent undue debtor or debtor's dependents hardship. The bill also amends Section 523(a)(8)(A)(i) to clarify that only loans for which substantially all of the funds were provided by a nonprofit institution remain nondischargeble in bankruptcy.

Deanne Loonin, a staff attorney for the National Consumer Law Center, pointed out that student loan borrowers are a very diverse group of people but they chare one common trait: "they're all trying to better themselves through education" and are all struggling with student loan debt. However, Loonin stated "[B]ankruptcy is not and should not be the entire safety net" for borrowers who cannot repay their student loans."

Loonin said she supports H.R. 5043, not because bankruptcy is the best option, but because it is the only option some have to be able to move on with their lives.

According to John Hupalo, managing director at Ramirez Capital Advisors, a group specializing in student loan finance, whether or not to permit bankruptcy discharge of private student loan debt is a complex issue. Huppalo indicated he understood the intended benefit of repealing non-dischargeability of private student loans, but went on to state he is concerned the bill would be "counter-productive to the country's shared goal of making a college education more accessible to the greatest number of students possible."

Adrian Lapas, a solo practitioner testifying on behalf of the National Association of Consumer Bankruptcy Attorneys, voiced support of H.R. 5403, noting that the legislation will "restore fairness in student lending by treating privately issued student loans in bankruptcy the same as other types of private debt."

Meanwhile, in an April 21 letter to Cohen, more than two dozen organizations representing students, consumers, institutions of higher education and civil rights and public policy organizations expressed their support for the bill. Among the groups signing the letter: The American Council on Education, Consumer Action, Consumer Federation of America, Consumers Union, Demos: A Network for Ideas & Action, Rock the Vote, U.S. Public Information Research Group, UNCF, and the National Association for Equal Opportunity in Higher Education.

Changes to 9th Circuit Bankruptcy Appellate Panel

The 9th Circuit announcement re changes to the BAP can be accessed here.

Bankruptcy and Family Law Program in Riverside

Hosted by the Inland Empire Bankruptcy Forum

Bankruptcy and Family Law: When Do They Clash and When Do They Co-Exist 
May 18, 2010 Program

Panelists:
Christopher Celentino, Certified Bankruptcy Specialist
Bill Edgar, President of the Riverside County Family Law Section

Riverside Marriott
3400 Market Street, Riverside, CA 92501

No Host Cocktails 6:00 p.m.
Dinner 6:30 p.m.
Program 7:00 p.m.

Early Bird Reservations - Payment Required by May 11:
Members $65 • Non-Members $75 • Government Employees $30

Late Registration After May 11: Add $5
And email info@iebf.org This email address is being protected from spam bots, you need Javascript enabled to view it with your RSVP to ensure your space.
 

Supreme Court Grants Cert in Ransom

Title: Ransom v. MBNA, America Bank
Docket: 09-907

Issue: Whether, in calculating the debtor’s “projected disposable income” during the plan period, the bankruptcy court may allow an ownership cost deduction for vehicles only if the debtor is actually making payments on the vehicles.

Five bankruptcy cases in one year!!  This probably will not be heard until next term. 

Circuit Court of Appeals Cases from Last Week

2nd Circuit Court of Appeals, April 08, 2010
In re Kalikow, --- F.3d --- (2nd Cir. 2010)(Motion to reopen chapter 11 affirmed where: 1) service on creditors' law firm constituted proper service on them; and 2) creditors violated sections 1141 and 524 and the express terms of the Plan and Confirmation Order. However, the order is reversed where creditors were not holders of pre-confirmation claims discharged in bankruptcy who would normally be bound by the provisions of the Plan, and thus the sanctions awarded against them were improper)

Thanks to Findlaw.com

Original Owner of Land

This email is floating around.  Thx to Brett Curlee for sending it to me. 

Subject: FHA LOAN - You got to love this lawyer.....

Part of rebuilding New Orleans caused residents often to be challenged with the task of tracing home titles back potentially hundreds of years.  With a community rich with history stretching back over two centuries, houses have been passed along through generations of family, sometimes making it quite difficult to establish ownership. Here's a great letter an attorney wrote to the FHA on behalf of a client:  You have to love this lawyer...

    A New Orleans lawyer sought an FHA loan for a client. He was told the loan would be granted if he could prove satisfactory title to a parcel of property being offered as collateral. The title to the property dated back to 1803, which took the lawyer three months to track down.  After sending the information to the FHA, he received the following reply.

(Actual reply from FHA):

    "Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."  Annoyed, the lawyer responded as follows:  

(Actual response):
"Your letter regarding title in Case No.189156 has been received. I note that you wish to have title extended further than the 206 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased by the United States from France, in 1803 the year of origin identified in our application.  For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from Spain. The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Queen Isabella. The good Queen Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus' expedition... Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana.  God, therefore, would be the owner of origin and His origins date back to before the beginning of time, the world as we know it, and the FHA. I hope you find God's original claim to be satisfactory.  Now, may we have our damn loan?"

The loan was immediately approved.

Latest Law School Rankings

You can access the rankings here.  Hot off the press! 

12 Hours of Nuts and Bolts

University of West Los Angeles - School of Law

Consumer Bankruptcy Nuts and Bolts Program

Who:   This is a program for attorneys who have some basic knowledge of bankruptcy and are interested in learning more.  It will focus on chapter 7 and 13.  Paralegals and office staff are welcome. 

When:  May 14 and May 15, 2010
9:30 am to 12:30 pm and 1:30 pm to 4:30 pm
Lunch on your own.

Where:   UWLA, School of Law
  West Los Angeles Campus
  9800 S. La Cienega Blvd., 12th Floor
  Inglewood, CA  90301

To Register:  Gina Hawkins
  Telephone: 310-342-5254
  Email: ghawkins@uwla.edu or
  Kathyhao@sbcglobal.net

MCLE 12 Hours
Instructor:   Professor M. Jonathan Hayes, Senior Adjunct Professor of Law,
University of West Los Angeles School of Law

Prices:
Attorneys $250.00
Paralegals and government attorneys  $185.00
Law students  $100.00

Parking: $3.00 with validation each entry up to 4 hours or $13.50 per day. Saturday parking is free
 
Materials including sample schedules, and pleadings will be provided via email or CD.  Attendees should bring a Bankruptcy Code including the Bankruptcy Rules to each session.
 
Class Syllabus:  
 
Class 1: Overview; Role of the UST and trustee; Debt Relief Agency rules; Means Test; Property of the Estate; Exemptions; Rights of secured creditors

Class 2: Definition of claims or debts; Reaffirmation and redemption; Non-dischargeable debts; Motion practice

Class 3: Denial of Discharge; Discharge injunction and violations; Claims objections, Avoidance actions, Automatic stay, multiple filings; Adversary proceeding practice

Class 4:  Review and Overview of chapter 13; Role of the trustee; Computing and Completing the Chapter 13 Plan; Appeals

Detailed Syllabus:

Class 1: Overview; Means test and Section 707(a) and (b); Property of the Estate, Section 541(a), Section 544; Partial interest in property, leases, operating businesses; Executory contracts as property of the estate; Abandonment; Exemptions, Section 522, C.C.P. 703 and 704; Nature of secured debt; Avoidance of judgment liens, Section 522(f).

Class 2: Definition of “Claim”; Non-dischargeable debts, Section 523(a) Taxes; fraud, defalcation by fiduciary, spousal and child support, willful and malicious injury, student loans, marital debts, credit card issues; Reaffirmation and redemption, Sections 524 and 722;  Review and overview of motions practice, FRBP 2002 and 9013;

Class 3: Denial of Discharge, Section 727, concealment, fraudulent conveyances, false oath, lack of records; Discharge injunction and violations thereof; Claims objections, Section 502; Setoff, Section 553; Review and overview of bankruptcy litigation, FRBP 7001, FRCP 26, complaint, joint pre-trial orders, collateral estoppel; Removal and remand, Withdrawal of the reference; Avoidance actions, preferences Section 547; fraudulent conveyances, Section 548 

Class 4: Review and Overview of chapter 13, eligibility; Requirements for plan confirmation Chapter 13, Section 1322 and 1325; Discharge, Section 1328; Lam Motions; ; Modification of plan; Effect of the Order Confirming the Plan

Sponsored by the University of West Los Angeles Schools of Law and Paralegal Studies, an MCLE Approved Provider.  Approved for 12 hours of MCLE Credit

Program on "Sharpening Your Bankruptcy Skills"

Sharpening Your Bankruptcy Skills 
  
04/20/2010

Presented by: Barristers, Los Angeles County Bar Assn

Program Information:
To assist young lawyers in sharpening their skills in Bankruptcy Court.

Speakers:
Kathleen J. Campbell, Clerk of the Court
Hon. Maureen A. Tighe, United States Bankruptcy Court
Martin S. Zohn, Proskauer Rose LLP
Kate Bunker, Asst. U.S. Trustee  

Location:
Los Angeles County Bar Association
1055 West 7th Street, 27th Floor
Los Angeles, CA 90017

Times:
Registration: 6:30-7:00 PM
Meal/Reception: 6:30-7:00 PM
Program: 7:00-8:30 PM

Prices:
Law Student, Government & Non Profit Employee, Public Counsel $15.00
LACBA Member w/ Meal $20.00
All Others meal included $30.00

Jeffrey Turner Commercial Law Program

Financial Lawyers Conference
214 Main Street, #336, El Segundo, CA 90245 • (310) 322-1350 • Fax (310) 615-4581
FOR MORE INFORMATION: www.financiallawyers.org

NOTICE OF MEETING
THE JEFFREY S. TURNER MEMORIAL
COMMERCIAL LAW UPDATE

This meeting is jointly sponsored by The Financial Lawyers Conference and
The Los Angeles County Bar Association Commercial Law and Bankruptcy Section,
Commercial Law Committee

Thursday, May 6, 2010

Speakers: Steven O. Weise, Proskauer Rose LLP
Robert Goldschein, Mayer Brown LLP

Location: The Olympic Collection
11301 Olympic Boulevard
Los Angeles, California
click here for map

Time: 6:00pm - 6:45 pm - Registration and Cocktails
6:45pm - 7:30 pm - Dinner
7:30pm - 9:00 pm - Program

Cost: $70.00 FLC Members
$85.00 Nonmembers
$40.00 Lawyers in Gov’t Svc.

John Paul Stevens Retiring

Scotusblog.com has announced that Justice Stevens is retiring, "further information to follow."

Circuit Court of Appeals Cases from Last Week

5th Circuit Court of Appeals, March 30, 2010
In the Matter of: Laughlin, --- F.3d ---, 2010 WL -------- (5th Cir. 2010)(for purposes of section 727(a)(2), 1) the court was required to look to Louisiana law in order to determine whether debtor fraudulently transferred "property" or an "interest in property"; and 2) under Louisiana law, a valid pre-petition renunciation of an inheritance interest was not a transfer of the debtor's property under section 727(a)(2)

CJ Roberts Comments at University of Indiana

LA Times article here. WSJ article here. 

Some Quarterly Filing Statistics

	Total	7	11	12	13
3/31/2010	378,400
12/31/2009	366,000	258,100	3,615	145	104,200
9/30/2009	381,500	270,200	3,525	158	107,600
6/30/2009	375,100	270,700	4,338	131	99,900
3/31/2009	330,500	233,500	3,649	102	93,200
Total 2009	1,453,100	1,032,500	15,127	536	404,900
12/31/2008	301,300	202,100	3,175	90	95,900
9/30/2008	292,300	195,200	2,712	89	94,300
6/30/2008	276,500	187,400	1,888	85	87,100
3/31/2008	245,700	158,500	2,012	81	85,100
Total 2008	1,115,800	743,200	9,787	345	362,400
12/31/2007	226,400	137,600	1,793	77	86,900
9/30/2007	218,900	132,000	1,583	71	85,200
6/30/2007	210,400	131,500	1,574	112	77,200
3/31/2007	193,600	117,700	1,406	104	74,400
Total 2007	849,300	518,800	6,356	364	323,700
Statistics from 3/31/09 back come from US Courts.gov;
from 6/30/09 forward from Bankruptcy Data Project

News Flash - Monthly Filings Increase

	2008	2009	%	2010	%
Jan	70,300	89,000	27%	102,600	15%
Feb	79,500	102,000	28%	117,800	15%
March	90,400	131,000	45%	158,000	21%
April	93,200	128,700	38%
May	89,700	120,400	34%
June	89,900	124,800	39%
July	96,400	130,500	35%
Aug	94,300	120,000	27%
Sept	96,200	125,500	30%
Oct	108,900	130,200	20%
Nov	91,400	115,500	26%
Dec	95,900	117,000	22%
	1,096,100	1,434,600	31%