The Absolute Priority Rule (APR) is a long-established principle that in Chapter 11 cases creditors’ claims take priority over shareholders’ claims. Pre-BAPCPA, cases such as In re Gosman, 282 B.R. 45 (Bankr. S.D. Fla. 2002) held that the retention of even exempt property by an individual debtor in a Chapter 11 Plan violates the absolute […]

Brett Weiss has filed an amicus brief on behalf of NACBA, in a case before the Maryland Bankruptcy Court, In re Bellamy, Case No. 07-11332, The brief argues that debtor’s counsel’s fees must be paid as a priority administrative expense, before claims of secured and unsecured creditors; concurrent payment is not […]

BusinessWeek published online (and will publish in its magazine) an amazing article, “Prisoners of Debt.” This major story talks about the increased selling and collection of debt discharged in Chapter 7 cases. A must read.
BusinessWeek has two companion articles: “Conveniently Not Updating,” about improper credit reporting of discharged debt, and “Whose Second Chance,” about improper […]

My friend, California State Bankruptcy Attorney Cathy Moran, wrote a recent blog titled, “To Tell the Truth,” talking about the information that is now required from clients to file under the new bankruptcy law (BAPCPA).
Cathy correctly notes that, “Calling for gobs of only marginally relevant information was one strategy that creditors included in the bankruptcy […]

During the third quarter of 2007, more than 635,000 foreclosure filings were reported nationwide. This works out to one foreclosure for every 196 households. The filings include everything from default notices to auction sale notices to actual bank repossessions.
According to Realtytrac, a foreclosure tracking service, “August and September were the two highest monthly foreclosure filing […]

Just about everyone, regardless of how much debt they have, can qualify for Chapter 7 bankruptcy (so long as they are eligible under the Means Test). But Chapter 13 bankruptcy is different. In a Chapter 13 case, you have to owe less than a certain amount of debt to qualify.

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On October 19, 2007, the Bankruptcy Court announced changes to Local Rules applying to Chapter 13 cases and to the form Chapter 13 Plan. These changes take effect on November 1, 2007, and are fairly significant. (The new/changed language is in italics):

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I am often told by potential clients that they want to file a “medical bankruptcy.” Is there such a special type of bankruptcy designed to deal only with medical debts? No. But a recent blog I posted to the Bankruptcy Law Network discusses how someone with crushing medical bills can file for bankruptcy relief while, […]

The Honorable Nancy V. Alquist, a Judge on the United States Bankruptcy Court for the District of Maryland, entered a ruling on September 28, 2007 in an important case I argued, In re Baker. This case deals with international bankruptcy at the individual level—it lets people living outside the United States file for bankruptcy […]

On November 29, 2007, Brett Weiss will lecture and co-Chair the MICPEL Advanced Consumer Bankruptcy Institute, a full-day session to be held in Columbia, Maryland.
Mr. Weiss will appear on two panels, Chapter 11 for Individuals (with the Honorable Thomas J. Catliota, , Assistant U.S. trustee Mark A. Neal, Stanton J. Levinson, Esquire and James A. […]