Ch. 13: Case paid off early due to lack of claims
Posted: Mon Mar 02, 2015 11:38 am
Mark, youre right about the embarrassing part.
I believe there is a case cited in Schlegel in which the debtor paid off the plan early in a lump sum, i.e. the percentage to creditors, but had to continue payments for the rest of the 36 months.
Jason
Jason Wallach
jwallach@gladstonemichel.com
On Mar 2, 2015, at 11:30 AM, 'Mark J. Markus' bklawr@yahoo.com [cdcbaa] wrote:
>
> Schlegel is an embarrassing (for debtor's attorney) set of facts. The attorney had multiple opportunities throughout the case to fix the resultant problem. He could have objected to the claim and/or he could have filed a motion to modify the plan to reduce the percentage. Instead they waited until the end of the case and then tried to do a hardship discharge, which was denied. I think it might be a stretch to conclude that the language "failure to pay the plan percentage results in dismissal" mandates the result that IF you pay the percentage early, you don't have to pay anything further regardless of the stated plan term.
>
> *************************
> Mark J. Markus
> Law Office of Mark J. Markus
> Mailing Address Only:
> 11684 Ventura Blvd. PMB #403
> Studio City, CA 91604-2652
> (818)509-1173 (818)332-1180 (fax)
> web: http://www.bklaw.com/
> Certified Bankruptcy Law Specialist--The State Bar of California Board of Legal Specialization
> This Firm is a Qualified Federal Debt Relief Agency
> ________________________________________________
> NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
> On 3/2/2015 11:16 AM, mitnicklaw@aol.com [cdcbaa] wrote:
>> Schlegel 2015 DJDAR 2217 (2/27/15) - Debtor's failure to pay percentage in plan despite completion of specified monthly payments is a material default that warrants dismissal. Case has interesting language regarding the possibility of extending beyond 60 months to do so. Case really turns on Debtor not objection to late-filed unsecured lender's claim that created the payment percentage issue.
>>
>> Law Office of Eric Alan Mitnick
>> 21515 Hawthorne Boulevard, Ste. 1080
>> Torrance, California 90503
>> (310) 792-5864; 792-5866 (fax)
>> MitnickLaw@aol.com
>>
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>> -----Original Message-----
>> To: cdcbaa
>> Sent: Mon, Mar 2, 2015 11:07 am
>> Subject: RE: [cdcbaa] Ch. 13: Case paid off early due to lack of claims
>>
>>
>> Eric:
>>
>> Do you have a name or cite to this new BAP opinion?
>>
>> Jim
>>
>> James R. Selth
>> Certified Bankruptcy Specialist*
>> Weintraub & Selth, APC
>> 11766 Wilshire Boulevard, Suite 1170
>> Los Angeles, California 90025
>> Telephone: (310) 207-1494
>> Facsimile: (310) 442-0660
>> E-Mail: jim@wsrlaw.net
>>
>> *Certified by State Bar of California as Certified Legal Specialist in Bankruptcy Law
>>
>> NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.
>>
>> Sent: Friday, February 27, 2015 6:40 PM
>> To: cdcbaa@yahoogroups.com
>> Subject: Re: [cdcbaa] Ch. 13: Case paid off early due to lack of claims
>>
>>
>> There is a BAP opinion in today's LADJ DAR that can be read to say that the Debtor's obligation is the percentage in the confirmed plan. Seems consistent.
>>
>> Sent from my iPhone
>>
>> On Feb 27, 2015, at 6:13 PM, 'Stella Havkin' havkinlaw@earthlink.net [cdcbaa] wrote:
>>
>> I had the same thing last year with Nancy.
>>
>> Sent: Friday, February 27, 2015 6:12 PM
>> To: cdcbaa@yahoogroups.com
>> Subject: Re: [cdcbaa] Ch. 13: Case paid off early due to lack of claims
>>
>>
>> Your client got lucky. Really lucky.
>>
>>
>> Law Office of Catherine Christiansen
>> Certified Specialist, Bankruptcy Law, The State Bar of California Board of Legal Specialization.
>>
>>
>>
>> On Friday, February 27, 2015 4:07 PM, "'Mark J. Markus' bklawr@yahoo.com [cdcbaa]" wrote:
>>
>>
>> I wonder if that's a mandate from Nancy's judges (i.e. Zurzolo and Bason?) or a decision her office made.
>>
>> I also wonder if this is something we should be advocating for pre-confirmation with the other trustees/judges.
>> *************************
>> Mark J. Markus
>> Law Office of Mark J. Markus
>> Mailing Address Only:
>> 11684 Ventura Blvd. PMB #403
>> Studio City, CA 91604-2652
>> (818)509-1173 (818)332-1180 (fax)
>> web: http://www.bklaw.com/
>> Certified Bankruptcy Law Specialist--The State Bar of California Board of Legal Specialization
>> This Firm is a Qualified Federal Debt Relief Agency
>> ________________________________________________
>> NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
>> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
>>
>>
>> On 2/27/2015 3:42 PM, Jim Selth jim@wsrlaw.net [cdcbaa] wrote:
>> It is my understanding that Nancy Curry is the only Chapter 13 Trustee in the Central District who closes a case when the required percentage under the Plan has been paid. If that happens before the term of the Plan, then the debtor is lucky. I believe all the other Chapter 13 Trustees include language in the Plan confirmation order similar to the following:
>>
>> The percentage to the allowed non-priority unsecured creditors at the time of confirmation is 16.00%. This percentage may be modified if the allowed claims filed by the non-priority unsecured creditors is less than the amount provided for them in the plan and the plan pays less than 100% to allowed non-priority unsecured claims. The Trustee shall disburse said amount in payment of allowed unsecured claims up to payment of 100% thereof. No further notice or hearing is required for the Trustee to adjust the percentage to be paid to allowed non-priority unsecured claims.
>>
>> James R. Selth
>> Certified Bankruptcy Specialist*
>> Weintraub & Selth, APC
>> 11766 Wilshire Boulevard, Suite 1170
>> Los Angeles, California 90025
>> Telephone: (310) 207-1494
>> Facsimile: (310) 442-0660
>> E-Mail: jim@wsrlaw.net
>>
>> *Certified by State Bar of California as Certified Legal Specialist in Bankruptcy Law
>>
>> NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.
>>
>> Sent: Tuesday, February 24, 2015 4:52 PM
>> To: CDCBAA List Serve
>> Subject: Re: [cdcbaa] Ch. 13: Case paid off early due to lack of claims
>>
>>
>> Very strange indeed. Chapter 13 land always amazes me. In a vacuum I would have said the Debtor owes a duty to momod the Plan. They force people with $0.00 in disposable income go all 5 years but then allow people who have income an early discharge!?
>>
>>
>> Sincerely,
>>
>> Michael Avanesian, Esq.
>> AVANESIAN LAW FIRM
>> 101 N. Brand Blvd., PH 1920
>> Glendale, California 91203
>> Tel: 818.276.2477 Fax: 818.208.4550
>>
>> Confidentiality: This electronic transmission and its contents are legally privileged and confidential information and intended solely for the use of the addressee. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution, copying or other use of this message and its contents is strictly prohibited. If you have received this transmission in error, please reply to us immediately and delete this message from your directory.
>> IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, please be advised that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used or relied upon, and cannot be used or relied upon, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
>>
>> On Tue, Feb 24, 2015 at 4:16 PM, 'Mark J. Markus' bklawr@yahoo.com [cdcbaa] wrote:
>>
>>
>>
>> -------- Forwarded Message --------
>> Subject:
>> Re: [cdcbaa] Ch. 13: Case paid off early due to lack of claims
>> Date:
>> Tue, 24 Feb 2015 16:08:48 -0800
>> From:
>> Mark Markus
>> To:
>> cdcbaa@yahoogroups.com
>>
>> Mine was also NC-VZ, Jason. I wonder if this is limited to that combination. It makes a difference when advising clients prior to filing a case for them, so if this is a global retreat from the prior modus operandi, I'd love to know.
>>
>>
>> On 2/24/2015 3:56 PM, Jason Wallach jwallach@gladstonemichel.com [cdcbaa] wrote:
>> I just finished aNC-VZ case in which it was paid off about 5 months early without any such motion. Be sure to file your second course certification and app for discharge promptly. Trustee will file final report at some point.
>> Jason
>>
>> Sent from my iPhone
>>
>> On Feb 24, 2015, at 1:04 PM, 'Mark J. Markus' bklawr@yahoo.com [cdcbaa] wrote:
>>
>> A Ch. 13 client of mine, who is in a confirmed 14% plan, and still has about 10 months left in his 60 month plan, just received a refund check from the Trustee and the case is in process of being closed.
>>
>> Since some creditors did not file claims, he reached his 14% quicker.
>>
>> My experience in these cases has been that the Trustees will just file a motion to increase the percentage, and the debtor still has to complete the plan term.
>>
>> Has that policy changed, or did my guy just get lucky?
>>
>> *************************
>> Mark J. Markus
>> Law Office of Mark J. Markus
>> Mailing Address Only:
>> 11684 Ventura Blvd. PMB #403
>> Studio City, CA 91604-2652
>> (818)509-1173 (818)332-1180 (fax)
>> web: http://www.bklaw.com/
>> Certified Bankruptcy Law Specialist--The State Bar of California Board of Legal Specialization
>> This Firm is a Qualified Federal Debt Relief Agency
>> ________________________________________________
>> NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
>> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
>>
>>
>> --
>>
>> *************************
>> Mark J. Markus
>> Law Office of Mark J. Markus
>> Mailing Address Only:
>> 11684 Ventura Blvd. PMB #403
>> Studio City, CA 91604-2652
>> (818)509-1173 (818)332-1180 (fax)
>> web: http://www.bklaw.com/
>> Certified Bankruptcy Law Specialist--The State Bar of California Board of Legal Specialization
>> This Firm is a Qualified Federal Debt Relief Agency
>> ________________________________________________
>> NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
>> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
>>
>> --
>>
>> *************************
>> Mark J. Markus
>> Law Office of Mark J. Markus
>> Mailing Address Only:
>> 11684 Ventura Blvd. PMB #403
>> Studio City, CA 91604-2652
>> (818)509-1173 (818)332-1180 (fax)
>> web: http://www.bklaw.com/
>> Certified Bankruptcy Law Specialist--The State Bar of California Board of Legal Specialization
>> This Firm is a Qualified Federal Debt Relief Agency
>> ________________________________________________
>> NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
>> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
>>
>>
>>
>>
>>
>>
>
>
>
Mark, youre right about the embarrassing part. I believe there is a case cited in Schlegel in which the debtor paid off the plan early in a lump sum, i.e. the percentage to creditors, but had to continue payments for the rest of the 36 months. Jason
Jason Wallachjwallach@gladstonemichel.com
On Mar 2, 2015, at 11:30 AM, 'Mark J. Markus' bklawr@yahoo.com [cdcbaa] <cdcbaa@yahoogroups.com> wrote:web: http://www.bklaw.com/Certified Bankruptcy Law Specialist--The State Bar of California Board of Legal SpecializationThis Firm is a Qualified Federal Debt Relief Agency________________________________________________NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.On 3/2/2015 11:16 AM, mitnicklaw@aol.com [cdcbaa] wrote:Schlegel 2015 DJDAR 2217 (2/27/15) - Debtor's failure to pay percentage in plan despite completion of specified monthly payments is a material default that warrants dismissal. Case has interesting language regarding the possibility of extending beyond 60 months to do so. Case really turns on Debtor not objection to late-filed unsecured lender's claim that created the payment percentage issue. Law Office of Eric Alan Mitnick21515 Hawthorne Boulevard, Ste. 1080Torrance, California 90503(310) 792-5864; 792-5866 (fax)MitnickLaw@aol.com Although this email and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by the sender for any loss or damage arising in any way from its use. The information contained in this email message and any attached files may be privileged, confidential and protected from disclosure. If you are not the intended recipient, any dissemination, distribution or copying is strictly prohibited. If you think that you have received this email message in error, please notify the sender by reply email, and delete the email message you received and all of the attached files.***NOTICE OF EX PARTE HEARINGS WILL NOT BE ACCEPTED BY EMAIL***-----Original Message-----Eric: Do you have a name or cite to this new BAP opinion? Jim James R. SelthCertified Bankruptcy Specialist*Weintraub & Selth, APC11766 Wilshire Boulevard, Suite 1170Los Angeles, California 90025Telephone: (310) 207-1494Facsimile: (310) 442-0660E-Mail: jim@wsrlaw.net *Certified by State Bar of California as Certified Legal Specialist in Bankruptcy Law NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION. From: cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] Sent: Friday, February 27, 2015 6:40 PMTo: cdcbaa@yahoogroups.comSubject: Re: [cdcbaa] Ch. 13: Case paid off early due to lack of claims There is a BAP opinion in today's LADJ DAR that can be read to say that the Debtor's obligation is the percentage in the confirmed plan. Seems consistent. Sent from my iPhoneOn Feb 27, 2015, at 6:13 PM, 'Stella Havkin' From: cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] Sent: Friday, February 27, 2015 6:12 PMTo: cdcbaa@yahoogroups.comSubject: Re: [cdcbaa] Ch. 13: Case paid off early due to lack of claims Your client got lucky. Really lucky. Law Office of Catherine ChristiansenCertified Specialist, Bankruptcy Law, The State Bar of California Board of Legal Specialization. On Friday, February 27, 2015 4:07 PM, "'Mark J. Markus' bklawr@yahoo.com [cdcbaa]" <cdcbaa@yahoogroups.com> wrote: I wonder if that's a mandate from Nancy's judges (i.e. Zurzolo and Bason?) or a decision her office made.I also wonder if this is something we should be advocating for pre-confirmation with the other trustees/judges.*************************Mark J. MarkusLaw Office of Mark J. MarkusMailing Address Only:11684 Ventura Blvd. PMB #403Studio City, CA 91604-2652(818)509-1173 (818)332-1180 (fax)web: http://www.bklaw.com/Certified Bankruptcy Law Specialist--The State Bar of California Board of Legal SpecializationThis Firm is a Qualified Federal Debt Relief Agency________________________________________________NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.On 2/27/2015 3:42 PM, Jim Selth [cdcbaa] wrote:It is my understanding that Nancy Curry is the only Chapter 13 Trustee in the Central District who closes a case when the required percentage under the Plan has been paid. If that happens before the term of the Plan, then the debtor is lucky. I believe all the other Chapter 13 Trustees include language in the Plan confirmation order similar to the following: The percentage to the allowed non-priority unsecured creditors at the time of confirmation is 16.00%. This percentage may be modified if the allowed claims filed by the non-priority unsecured creditors is less than the amount provided for them in the plan and the plan pays less than 100% to allowed non-priority unsecured claims. The Trustee shall disburse said amount in payment of allowed unsecured claims up to payment of 100% thereof. No further notice or hearing is required for the Trustee to adjust the percentage to be paid to allowed non-priority unsecured claims. James R. SelthCertified Bankruptcy Specialist*Weintraub & Selth, APC11766 Wilshire Boulevard, Suite 1170Los Angeles, California 90025Telephone: (310) 207-1494Facsimile: (310) 442-0660E-Mail: *Certified by State Bar of California as Certified Legal Specialist in Bankruptcy Law NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION. Michael Avanesian, Esq. AVANESIAN LAW FIRM101 N. Brand Blvd., PH 1920Glendale, California 91203Tel: 818.276.2477 Fax: 818.208.4550
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