It’s rare that I take time to highlight a court case as there are very few landmark cases that impact our firm’s daily practice. This week the New York Court of Appeals overturned Bank of America v. Kessler, a case that many foreclosure defense practitioners were following. In the Kessler case, the borrower had successfully argued in lower courts that strict compliance with the mandatory pre-foreclosure notice Read More
Happy New Year!
With each new year, many of us take on resolutions to improve ourselves. Maybe we plan to start exercising, eat better, or spend more time with family and friends. These are noble goals but too often they last just a few weeks at best. We are now three days into 2023 and hopefully you’re still on target with any resolutions you’ve made. One resolution that doesn’t get much attention is eliminating debt. It’s not the Read More
Department of Justice issues new guidelines to (hopefully) ease the process for discharging student loans in bankruptcy
The Bankruptcy Code provides that student loans may be discharged if repayment of those loans “would impose an undue hardship on the debtor and the debtor’s dependents.” Unfortunately, for the past 35 years we’ve had to contend with the “Brunner Test” to determine what constitutes an undue hardship. The Brunner Test is a three-part analysis to determine what constitutes an undue burden. First, a debtor must show Read More
New law increases debt limits in Chapter 13s and small business Chapter 11s
On June 21, 2022, President Joe Biden signed S.3823 into law, increasing debt limits for Chapter 13 and small business Chapter 11 (Subchapter V) reorganizations. The bill passed in the House of Representatives on June 7, 2022, and passed in the Senate two months prior. The law took effect immediately, so all bankruptcy filings going forward get the benefit of these higher debt limits. This is big news for anyone who Read More
All Three Central Islip Bankruptcy Judges End Loss Mitigation
As of July 1, 2022, Judge Scarcella will no longer be participating in the Loss Mitigation Program within the bankruptcy courts of the Eastern District of New York. Judge Scarcella becomes the third judge out of the bankruptcy court in Central Islip to end participation in the Loss Mitigation Program. At this time, all three Central Islip judges no longer participate in loss mitigation. Read More
Changes to the Bankruptcy Code Starting April 1, 2022
Every three years, adjustments are made to the figures in the Bankruptcy Code based on changes to the consumer price index during that period. As noted about a year ago when New York State exemptions were updated, the federal bankruptcy exemptions will adjust on April 1, 2022. The debt limits in small business Chapter 11 cases (Subchapter V) and Chapter 13 cases will also be adjusted. The rising costs of consumer Read More
Judge Grossman Ends Participation In Loss Mitigation
Judge Grossman, bankruptcy judge for the Eastern District of New York, Central Islip division, will no longer entertain motions to participate in the Loss Mitigation Program. In a recent opinion (In re Tcherneva, 19-71413), Judge Grossman ruled on a fee application but noted that he will cease participation in this program that was designed to allow debtors and their mortgage lenders work in a court-supervised Read More
When it May Pay to Wait
There’s an old saying that good things come to those who wait. In our previous post, we explained why you should not wait to address your debt. While this remains true, it’s possible you may be guided to wait as part of a comprehensive strategy planned by you and your attorney. Here are some examples of when you may benefit from waiting: 1. To Protect Assets In a bankruptcy case, assets are reviewed to determine Read More
Time is Not on Your Side
There have been a number of reports recently about the uptick in foreclosures. This is due to the end of the pandemic moratorium and the temporary forbearances that lenders have been offering to assist homeowners during the pandemic. At the same time, bankruptcy filings continue to decline. This can be confusing, and even misleading, for those facing financial hardship. Whether you are dealing with credit card debt, Read More
Happy New Year!
2021 is finally behind us. It's time to look ahead to 2022. You may have made some resolutions about smart spending and sticking to a budget. Follow this blog for strategies to address debt and check out our free resource for more tips and tricks. It's never too early to start thinking about taxes. In the coming weeks, we will all start receiving our tax forms. Those expecting refunds will try to file as quickly Read More
