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RECENT DEVELOPMENTS

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Much has happened since my last post.  It will take time for me to catch up, but in the meantime here is a list of a few “recent” developments.  I’ll write about several of these (and other topics) in more detail in the weeks to come.

  • The 2020 UK Consumer Bankruptcy Law Conference will be held on April 16-17, 2020, at the Marriott Griffin Gate. We could use a few sponsors.  Contact Kevin Bucknam, kbucknam@uky.edu.  To register, go to http://law.uky.edu/calendar/15th-biennial-consumer-bankruptcy-law-conference.
  • Interest rates:
    • The prime rate of interest is 4.75% as of Oct. 31, 2019.
    • The IRS interest rate on tax debts remains at 5% for the first quarter of 2020.
    • The interest rate on taxes owed to the Kentucky Department of Revenue is 7%.
  • New bankruptcy laws enacted in 2019:
    • Honoring American Veterans in Extreme Need Act of 2019 (the “HAVEN” Act):  excludes certain veterans’ disability benefits from current monthly income.  Related “means test” forms have been amended.
    • Small Business Reorganization Act of 2019 (“SBRA”):
      • creates a new Subchapter V to Chapter 11 to enable small businesses to reorganize more efficiently;
      • amends section 547(b) to require a trustee to consider potential affirmative defenses before suing to recover preferences;
      • increases some dollar amounts that affect the venue of certain recovery or avoidance actions.
    • Family Farmer Relief Act of 2019: increases the maximum debt allowed to qualify as a “family farmer” under Chapter 12.
    • National Guard and Reservists Debt Relief Extension Act of 2019: extends the exemption from the presumption of abuse under Chapter 7 for certain qualified service members.
  • Amended Bankruptcy Rules and Forms (eff. 12/01/2019):
    • Rule 4001(c)(4) – Rule’s requirements for obtaining credit are not applicable in a chapter 13 case.
    • Rule 6007(b) –provides a procedure for filing motion for abandonment.
    • Rule 9036 – permits notice and service by electronic means.
    • Rule 9037 – provides a new procedure for seeking to redact or restrict public access to a previously filed document.
    • New Director’s Form B1340 – application for payment of unclaimed funds.
  • 6th Circuit BAP opinion: include nonstandard provision in plan to preserve a 910-creditor’s lien retention rights.  In re Donnadio, 608 B.R. 507 (6th Cir. BAP, Nov. 25, 2019).
  • EDKY opinion on treatment of co-signed debts in Chapter 13 cases: In re Brown, Case No. 19-20011, ECF No. 56 (Bankr. E.D. Ky., slip op. Nov. 15, 2019), http://www2.kyeb.uscourts.gov/opin/wiseopin/19-20011%20In%20re%20Brown%20Memorandum%20Opinion%20and%20Order.pdf
  • EDKY opinions on late claims – a late claim filed by a creditor who was not scheduled or listed on the mailing matrix is disallowed in a chapter 13 case.
  • EDKY opinion disallowing claim related to property tax debt remaining after sale of property: In re Nagle, Case No. 19-20055, ECF No. 58 (Bankr. E.D. Ky., slip op. Dec. 5, 2019),
  • http://www2.kyeb.uscourts.gov/opin/wiseopin/19-20055%20In%20re%20Nagel%20Memorandum%20Opinion%20and%20Order%20Disallowing%20POC.pdf .

 

 

 

 

 

 

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