Consumer Bankruptcy

Individual chapter 11 cases pose a number of thorny legal and practical problems for the bankruptcy practitioner. While individual chapter 11 cases contain many elements of corporate chapter 11 and chapter 13 cases, they do not fit comfortably in either chapter. Following the enactment of BAPCPA, courts have struggled to strike the appropriate balance between the provisions of the Bankruptcy Code intended for corporations and those intended for human beings. The result is substantial uncertainty for debtors and creditors alike. This session will explore: Does the absolute priority rule apply to individual chapter 11 debtors? May creditors commence an involuntary chapter 11 case against an individual? May individual chapter 11 debtors pay their living expenses in the ordinary course of business, or is notice and a hearing required? What are the advantages and disadvantages for debtors and creditors in an individual chapter 11 case as compared to a corporate chapter 11 case or a chapter 13 case?

Practical pointers on how to deal with student loans in the context of a chapter 7 or 13 bankruptcy.

The transformation rule/negative equity, deficiency claims upon surrender of collateral, the applicable commitment period, contract interest, § 1322(b)(1) as it involves fixtures and personal property, and assignments of rent, § 1322(b)(2) as it involves the timing of the analysis.

Claims Resolution Rules 3001 & 3002.2, claim amendments, lien-stripping and mortgages.

Absolute priority rule, § 1115, disposable income, etc.

Nothing Is Impossible: The Complex Requirements and Ethical Duties of Representing Chapter 11 and/or Chapter 13 Consumer Debtors

Consumer Track: Consumer Class Actions This panel will explore the potential benefits and pitfalls of class actions by debtors/trustees against creditors in chapter 13 cases, which are highlighted by two recent decisions of the Fifth Circuit.