Consumer Bankruptcy

Hosted by ABI's Consumer Bankruptcy Committee With the climate of COVID-19 in the rearview mirror, the consumer bankruptcy process now largely resembles the normalcy that had been elusive during the pandemic. However, remnants of COVID legislation have influenced escrow accounts of consumer debtors and consequently impacted mortgage creditor proofs of claim. Starting with Regulation X and how to perform an escrow analysis, this presentation will discuss escrow and proofs of claim, post-petition escrow accounting (payment change notices under Bankruptcy Rule 3002.1(b)), and the effects of the CARES Act on the treatment of escrow in chapter 13 proceedings.

This panel will delve into emerging issues in bankruptcy cases, offering perspectives from practitioners, chapter 13 trustees and the bench. The panelists will focus on post-confirmation appreciation in asset values, such as who gets the appreciation if the house sells during the chapter 13 or if the case converts to chapter 7; early plan payouts, evaluating final payments before the end of the commitment period, hardship discharges and creative plan modifications; no-look and bifurcated fees; and end-of-case mortgage issue solutions.

ABI Editor-at-Large Bill Rochelle, author of Rochelle’s Daily Wire, will lead a discussion with a panel of judges regarding recent significant cases involving subchapter V case law, simultaneous representation, and the need for financial distress before filing.

This panel will discuss the forthcoming SCOTUS opinion in Purdue and other seminal cases of the year.

This panel will discuss current ethical issues confronting attorneys who practice predominantly in the consumer bankruptcy arena, including attorney compensation and fees, potential conflicts of interest, limited representation/engagements, and counsel’s duty to investigate/"reasonable inquiry."

This panel will provide guidance and shortcuts on finding, recalling and complying with a variety of bankruptcy rules that are easily overlooked or misunderstood. What critical deadlines must you know? When can you not get an extension of time? Under what circumstances can you limit notice or service?

This panel will examine a host of real estate issues, including the intersection of reverse mortgages and bankruptcy, and the rights of heirs when a borrower files for bankruptcy; the distribution of equity in post-petition real estate sales, and how to determine who is entitled to the proceeds; whether, since Toth, the prime rate is the best measure of risk when applying the Till rate for total debt claims in bankruptcy; the classification of conduit payments, and whether direct mortgage payments should be considered part of bankruptcy plan payments; and effective strategies for addressing and resolving mortgage issues to guarantee that debtors achieve a fresh start post-bankruptcy.

This panel will discuss the factors that attorneys who represent debtors should consider in deciding whether to file chapter 7, chapter 13 or subchapter V cases for their individual clients.

In recent years, chapter 11 proceedings have garnered increasing attention from the media and the public in general. With congressional hearings on mass-tort bankruptcies, Texas-Two Steps and venue reform, politicians have sought soundbites about bankruptcy law to drive media coverage. Additionally, high-profile events tied to bankruptcy filings, like the collapse of FTX and other cryptocurrency firms, have drawn the attention of many who otherwise ignore the goings on of bankruptcy courts. This panel will discuss these current public perceptions (and misperceptions) of bankruptcy proceedings and how they affect the day-to-day practices of lawyers and judges.