Bankruptcy Fee Increase

The Judicial Conference of the United States met on March 11, 2014, and approved changes to the Bankruptcy Court Miscellaneous Fee Schedule effective June 1, 2014. A summary of those changes follow:

The fee for filing a complaint increases to $350.00.
The following administrative fees are increased to the totals noted:
- For the filing of a petition under Chapter 7, 12, or 13, $75.00.
- For the filing of a petition under Chapter 9, 11, or 15, $550.00.
- When a motion to divide a joint case under Chapter 7, 12, or 13 is filed, $75.00.
- When a motion to divide a joint case under Chapter 11 is filed, $550.00.

As a consequence the increases effective June 1, 2014, the full fee for filing a -
Chapter 7 will be $335.00
Chapter 9 will be $1,717.00
Chapter 11 will be $1,717.00
Chapter 12 will be $275.00
Chapter 13 will be $310.00

Chapter 15 will be $1,717.00

FHA eases rules for borrowers after bankruptcy, foreclosure

The Federal Housing Administration wants to make it easier for people who have defaulted on their mortgages to get a new home loan with FHA backing.

But there's a catch, to qualify borrowers must show that their foreclosure or bankruptcy was caused by external economic factors, reducing their income by 20% or more for six months. You can't have quit your job or have been fired for cause.

If you can demonstrate such a pay cut, job loss or decline in business income now must spend only one year making timely rent and credit-card payments before they can apply to buy a home with an FHA-insured loan.

Generally borrowers are not eligible for a new FHA loan until three years after a foreclosure or two years after a bankruptcy. Previously, the death of a spouse or a medical emergency had been exceptions that could cut the wait to a year; now loss of income is listed as an extenuating circumstance as well.

Wells Fargo Slammed $3,1712,154 for Misapplying Payments in Chapter 13

Judge Elizabeth W. Magner’s  imposition of punitive damages  of $3,1712,154 against Wells Fargo Bank was recently affirmed by the district court in Jones v. Wells Fargo Home Mortgage Inc. 2013 WL 1155248 (E.D. La. 1/19/13).

The district court held that the bankruptcy court’s ruling was substantially supported by the record.  Wells Fargo had initially agreed to a systematic audit of its accounting of home loan payments after misapplying Chapter 13 payments against undisclosed post-petition fees and costs.

In awarding punitive damages, the bankruptcy court said: “After considering the compensatory damages of $24,441.65 awarded in this case, along with the litigation costs of $292,673.84; awards against Wells Fargo in other cases for the same behavior which did not deter its conduct; and the previous judgments in this case none of which deterred its actions; the Court finds that a punitive damage award of $3,171,154.00 is warranted to deter Wells Fargo from similar conduct in the future. This Court hopes that the relief granted will finally motivate Wells Fargo to rectify its practices and comply with the terms of court order, plans and the automatic stay.”

The district court agreed and stated, “Wells Fargo was on notice that its actions were impermissible and could incur significant legal penalties and assessing punitive damages at ten times the amount of compensatory damages is within the constitutional limits.”


Professor of Law, Michaela White is the source of information.

Check Your Credit Report After Bankruptcy

A Creditor May Continue to Report a Debt

The most common way in which credit reporting errors are discovered is at the most importune time, a new credit application rejection. Old debt discharged in bankruptcy may still be reported as delinquent when the debts should have been removed or a settled debt is still listed as owed to the creditor.

The Inaccurate Reporting Maybe the Result of Credit Reporting Agency Negligence
While the Fair Credit Reporting Act was designed to protect consumers from faulty credit reporting there are often allegations of negligence against the three main credit-reporting agencies. You will need to send demand letters to each agency to clear up the errors.  If they refuse a suit may be necessary.

The Bottom Line, Check your Credit Report After Bankruptcy or Debt Settlement
Do not wait until you hear from a lender that there is a problem with your credit report. While experienced counsel can resolve these issues, the time for resolution may be outside the time constraints of a real estate purchase or new car loan application.

Bankruptcy Form Changes April 1, 2013

Dollar amounts in title 11 and title 28 of the U.S. Code will be increased for cases commencing after April 1, 2013. Seven Official Bankruptcy Forms (1, 6C, 6E, 7, 10, 22A and 22C) and two Director's Forms (200 and 283).

Permissive Use of Negative Notice in Northern District

The “Permissive Use of Negative Notice” list will be 

updated to include additional items as needed. 

   http://www.flnb.uscourts.gov/sites/default/files/filing_requirements/negative_notice.pdf

Chapter 7 Special $600 plus Filing Fee

Good through February 28th, 2013 act now mention blog post

Casey Anthony Files Bankruptcy.

In Anthony’s bankruptcy petition, she reports less than $1,100 in assets and approximately $792,000 in liabilities.  Her largest liability is $500,000 in attorney fees and costs for her criminal defense. 

Other debts include $145,600 for the Orange County Sheriff’s Office (judgment for investigative fees and costs related to the case), $68,540 for the Internal Revenue Service for taxes, interest and penalties, and $61,505 for the Florida Department of Law Enforcement for Court costs.

To view Casey Anthony’s bankruptcy petition, click here.

NEW Bankruptcy Forms Effective 12/1/11

For your convenience, below are links that provide information concerning these changes. A brief summary of the amendments to the Bankruptcy Rules and forms may be found at the Court's website at:


http://www.flmb.uscourts.gov/announcements/


Other Links:

Link to Amendments to Federal Rules of Bankruptcy Procedure:

http://www.flmb.uscourts.gov/announcements/documents/amendments_2011.pdf


Link to Information Regarding Supreme Court Approved Rule Amendments (April 26, 2011):

http://www.uscourts.gov/RulesAndPolicies/FederalRulemaking/PendingRules/SupremeCourt042611.aspx


Link to Pending Changes in the Bankruptcy Forms:

http://www.uscourts.gov/FormsAndFees/Forms/BankruptcyForms/BankruptcyFormsPendingChanges.aspx

Bankruptcy Mediation Program

Orlando's two bankruptcy judges sent 295 cases to mediation last year and 60 cases received modifications. Through June this year, 190 of 415 received modifications.


By comparison, less than 4 percent of the nearly 58,000 cases sent to state mediation from March through November 2010 were successfully modified.

http://www.tampabay.com/news/business/realestate/federal-bankruptcy-program-works-to-keep-people-in-their-homes/1178939

In the Orlando federal program, home­owners pay a $350 mediation fee and some additional attorney fees. In contrast, lenders pay $750 for each case in state courts.


I recommend mediator :

Ken Bowen, Esq.

204 37th Ave. No., #313
St. Petersburg, FL 33704
727-481-2679
www.PinellasMediation.com

He is one of  three (3)  foreclosure mediators  on the Tampa Bankruptcy Court List and he has the best price.  Tampa's program does not have a price limit as of yet.

U.S. Senators Consider Ban On Bankruptcy "Forum Shopping"

U.S. lawmakers are considering a requirement that companies seed court protection where their primary operations are located rather than where they are incorporated, Dow Jones Daily Bankruptcy Review reported today. Sen. John Cornyn (R-Texas) is considering offering an amendment that would narrow where companies may file for bankruptcy protection. The amendment was one of 20 circulated among Senate Judiciary Committee members ahead of a business meeting last week. The amendments, only one of which--not Cornyn's--has been officially introduced, would apply to the Limiting Investor and Homeowner Loss in Foreclosure Act. Sen. Sheldon Whitehouse (D-R.I.) introduced the bill in late January to ensure that bankruptcy courts have authority to oversee mediation proceedings between home mortgage lenders and bankrupt borrowers.

U.S. Senators Consider Ban On Bankruptcy "Forum Shopping"

U.S. lawmakers are considering a requirement that companies seed court protection where their primary operations are located rather than where they are incorporated, Dow Jones Daily Bankruptcy Review reported today. Sen. John Cornyn (R-Texas) is considering offering an amendment that would narrow where companies may file for bankruptcy protection. The amendment was one of 20 circulated among Senate Judiciary Committee members ahead of a business meeting last week. The amendments, only one of which--not Cornyn's--has been officially introduced, would apply to the Limiting Investor and Homeowner Loss in Foreclosure Act. Sen. Sheldon Whitehouse (D-R.I.) introduced the bill in late January to ensure that bankruptcy courts have authority to oversee mediation proceedings between home mortgage lenders and bankrupt borrowers.

5-year-old federal bankruptcy reforms leaving some people deeper in debt

When tougher bankruptcy laws took effect more than five years ago, Congress wanted to raise the bar against perceived abuse of the system by ne’er-do-well debtors.


But since then?

Lawyers’ fees have more than doubled, online “credit counseling” is the norm, and the pace of personal bankruptcies is growing, nearing 2004 pre-reform levels.

The impact was not much — other than to make it more costly and make more hoops to jump through for anyone filing bankruptcy. 

One change is the means test in which debtor income over the previous six months is compared to the state median. Those deemed too wealthy are barred from liquidation in Chapter 7. Instead, they face a five-year repayment plan through Chapter 13 reorganization.  It’s a mechanical formula that uses the IRS standards.

Last month, Congress tried to edit the errors out of the 2005 reform, with the Bankruptcy Technical Corrections Act of 2010. It attempts to fix spelling errors, correct bad cross-references, and, in doing so, left at least a few ambiguities.


One question: When is the deadline for reform-ordered credit counseling — the day before filing or the day of filing?  No Answer.    I say day before.

Reform added mandatory credit advice for two reasons: to rule out other options short of bankruptcy, and to develop financial tools and budgeting ideas for the troubled debtors. 

These counseling courses are for those who have been financially irresponsible, not for those who have simply had a run of bad luck.  But Everyone must take them.

Across the United States, personal bankruptcies rose 9 percent in 2010, topping 1.5 million. That rate is forecast to go higher in 2011, according to the American Bankruptcy Institute.


Families continue to turn to bankruptcy as a result of high debt burdens and stagnant income growth.

Disaster strikes

Many families have been wedged between job loss and mortgage.

Credit rating? Not so good. Bankrutpcy does that to people. A lot of people need a chance to get back on their feet. As long as people are honest in the process, they ought to come out in better financial shape. You will recover in about 2 years.

Free consultation

Most bankruptcy attorneys provide a free initial consultation for people contemplating it.   Call me at (727) 410-2705 for a free  consultation in Clearwater, Florida.

Personal Bankruptcies Decline in January

The number of personal bankruptcy filings dropped in January to its lowest level since in two years, according to a report Tuesday.


Consumer bankruptcies fell 22% to 92,669 filings last month, compared to December, the American Bankruptcy Institute and the National Bankruptcy Research Center said Tuesday. Filings were down about 9% from the same month a year ago.

Monthly bankruptcy data isn’t adjusted for seasonal swings and there tend to be fewer filings at the beginning of the year. Still, the overall trend indicates that the rush of consumer bankruptcy filings appears to be slowing.

Consumer bankruptcies reached their highest level in five years in 2010 but experts predicted that filings would ease this year as Americans are less overwhelmed by their debt.