Consumer Bankruptcy Committee Newsletter

vol 17, num 1 | April 2019

Consumer Bankruptcy

AN ABI COMMITTEE NEWSLETTER

Visit the Consumer Bankruptcy Committee page

► IN this issue:

The 90-Minute Tour that Never Ends: How to Address the Problems and Pitfalls Presented by Timeshares in Chapters 7 and 13
The Road Paved with Good Intentions: Tension Between the Equal-Monthly-Payments Requirement of § 1325(a)(5) and Debtors’ Attorneys Paid First in Chapter 13
Consumer Bankruptcy Commission to Release Final Report
Consumer Committee Panel and Reception at ASM

The 90-Minute Tour that Never Ends: How to Address the Problems and Pitfalls Presented by Timeshares in Chapters 7 and 13

Hannah White Hutman
Hoover Penrod
Harrisonburg, Va

It often comes as an unwelcome surprise when debtors discover that they cannot force a creditor to take something back that the debtors no longer want, no longer use and no longer intend to pay for. This is especially frustrating when retaining ownership of the property comes with ongoing financial obligations that the debtors expected to be relieved of as part of their bankruptcy. If there is a lien on the undesired property, the debtors can indicate their intention to surrender the property to the lienholder. But the Bankruptcy Code does not require a secured creditor to honor the debtors’ wishes or act upon a debtor’s statement of intention.

The Road Paved with Good Intentions: Tension Between the Equal-Monthly-Payments Requirement of § 1325(a)(5) and Debtors’ Attorneys Paid First in Chapter 13

Vanessa A. Leo
Shapiro Pendergast & Hasty, LLP
Atlanta

A split among courts continues to persist with respect to the statutory interpretation of 11 U.S.C. § 1325(a)(5)’s equal-monthly-payment provision and the prioritization of payments of the debtor’s attorney’s fees pursuant to 11 U.S.C. § 1326(b)(1). Two recent decisions with differing views on the issue highlight the tension between the “salutary goal” of paying debtor’s attorney’s fees on an expedited basis and the lienholder entitled to adequate protection and equal monthly payments. This article, provided in two parts, will first discuss In re Williams followed by In re Amaya.

Consumer Bankruptcy Commission to Release Final Report

The ABI Commission on Consumer Bankruptcy will unveil its Final Report of recommendations to improve the consumer bankruptcy system on Thursday, April 11. The report will be available at 9 a.m. EDT on April 11 at consumercommission.abi.org. Commission leadership will be holding a live press briefing at 10 a.m. EDT on April 11, and you can watch a live webstream of the event on the site.

The Commission researched and formulated recommended improvements to the consumer bankruptcy system. The recommendations identify updates to be made to the U.S. Bankruptcy Code and Rules so that the system is more accessible and efficient for both financially struggling Americans and the professionals who serve them.

Consumer Committee Panel and Reception at ASM

HOT TOPICS: THE FINAL REPORT OF THE ABI COMMISSION ON CONSUMER BANKRUPTCY

Hosted by the Consumer Bankruptcy Committee
The panelists will discuss the findings of the ABI Commission on Consumer Bankruptcy, focusing on three areas of great interest to the Commission: (1) student loans; (2) how attorneys get paid; and (3) a “reserve fund” for chapter 13s so that debtors can save for unexpected emergency expenses.

Prof. Bruce A. Markell, Moderator —
Northwestern University School of Law; Chicago
Michael T. Bates — JPMorgan Chase Bank, N.A.; Plano, Texas
Rudy J. Cerone — McGlinchey Stafford, PLLC; New Orleans
Hon. Randall L. Dunn — U.S. Bankruptcy Court (D. Ore.); Portland
Tara Twomey — National Consumer Law Center; San Jose, Ca.

Immediately following the panel, the committee will host a reception to celebrate the publication of the Commission on Consumer Bankruptcy Report:

Saturday, April 13
5:00 - 6:00 PM
Marriott Marquis
Washington, DC

RSVP for the reception here.

Special thanks to our sponsors:
Boleman Law Firm, PC; FactorLaw: Law Office of William J. Factor, Ltd.; Fastcase; Heavner, Beyers & Mihlar, LLC; Jon Lieberman; Kilpatrick & Associates, P.C.; Law Offices of John T. Orcutt, PC; McGlinchey Stafford, PLLC and Sullivan Hill Rez & Engel, APLC