the7thirteen

The bankruptcy process can devolve into a complicated series of forms, procedures, hearings and deadlines.  The average American consumer is as likely to know the basic rules of cricket, be able to list all of the Marvel movies in chronological order, or sing the words to Auld Lang Syne, than to have a working knowledge of how the bankruptcy system works.  So it's not surprising that clients will frequently ask: "When will I know whether or not my creditors rejected my bankruptcy case?"   The short answer is this: Creditors do not get to "reject" your bankruptcy case, and creditors cannot unilaterally deny bankruptcy relief to anyone.    Bankruptcy laws are contained in the United States Bankruptcy Code and the Federal Rules of Bankruptcy Procedure.  This is federal law, which means bankruptcy cases are administered in the federal court system.  Each federal judicial district has one or more appointed Bankruptcy Judge.  Other professionals,...

Microf, LLC v. Cumbess (In re Cumbess) , No. 18-cv-00449-TES (M.D. Ga. May 2, 2019). Paul Cumbess leased HVAC equipment from Microf, which he used to heat and cool his residence.   When Paul filed bankruptcy, his Chapter 13 plan “assumed” the lease, meaning that he wanted to keep the equipment and would continue to pay for it directly ( i.e. , not included in the Chapter 13 bankruptcy payments).   After the bankruptcy plan was confirmed, Paul fell behind in lease payments.   Microf wanted the missed payments to be included in the Chapter 13 plan as an “administrative claim” and paid in full, but the Chapter 13 Trustee objected.   The Trustee argued the missed payments should not be allowed because, while Paul definitely needed the HVAC, the usage did not benefit the bankruptcy estate.   Therefore, the Trustee opposed using Chapter 13 plan payments to catch up the missed amounts.   As soon as a bankruptcy case is filed, an “estate” is created, ...