Consumer Bankruptcy

Resolved: A “workaround” contract provision
is enforceable after Baker Botts v. ASARCO.

Resolved: If a mortgage includes a security
interest in a mortgage escrow account, the
mortgage loan can be modified under § 1322.

Resolved: Section 1129(a) requires an
impaired accepting class for each debtor.

This session will deal with a mixture of the most topical and unsettled issues in chapter 7 cases coming before the courts. What does a debtor do if the court denies a reaffirmation agreement but the debtor needs the car? If no reaffirmation agreement is signed, can a case be later reopened to permit a reaffirmation agreement at a creditor’s request? What are debtors’ attorneys’ responsibilities in counseling debtors about potential preferences and fraudulent transfers that they made to family members and friends?

Many individuals in bankruptcy are also involved in domestic-relations litigation. This panel will discuss the necessity for proper advice to potential clients about bankruptcy ramifications when filing for divorce and negotiating property settlements, and vice-versa. What obligations under a judgment of divorce or property settlement are nondischargeable? What claims under a judgment of divorce or property settlement can be exempted? What steps can be taken to enforce a judgment of divorce or property settlement after a bankruptcy petition is filed without violating the automatic stay?

Payment of property taxes remains a recurring problem for many homeowners. Frequently, they do not understand what taxes are required to be paid, what interest rates are being charged, and what the consequences of nonpayment are. What is the process for property tax foreclosure? How long is the redemption period? Is there a point when a chapter 13 case can no longer be effective in dealing with property taxes? What if the taxing authority enters into repayment plans during or after the redemption period?

This panel will deal with the various issues that arise when a debtor owns a cause of action and the distinctions that occur depending on whether the debtor’s cause of action arose pre-petition, post-petition, post-confirmation, post-discharge or at any other time. How are pre-petition causes of action valued for purposes of confirming a plan? What happens if the debtor’s cause of action pays off during a chapter 13 case (who gets the money)? What obligations do debtors have to amend their schedules to deal with post-petition events that create causes of action?