Michigan Bankruptcy Court Judge Rules that Unemployment Insurance Agency Quadruple Damage Penalties are Dischargeable in Chapter 13!

Eastern District of Michigan Bankruptcy Court Judge Mark Randon ruled that the “super discharge” provisions of Chapter 13 operate to discharge the quadruple damage penalty assessed by the Michigan Unemployment Insurance Agency. The Michigan Unemployment Insurance Agency (“the Agency”) determined that the debtor was overpaid $6,897.00 in unemployment benefits because she intentionally failed to report…

What does a Proof of Claim regarding an automobile have to show to allow for treatment as a secured claim?

In a recent case before Judge Daniel S. Opperman, Chapter 13 Trustee, Thomas W. McDonald, Jr., objected to the Proof of Claim filed by the Wanigas Credit Union on a “secured” auto loan. Wanigas claimed that its lien was perfected despite the absence of a title stamp. Wanigas argued that because the Debtor had failed…

What happens to my Federal Income Tax Refund after I file a Chapter 13 Bankruptcy and I still owe the IRS Pre-Petition Income Taxes?

In the Eastern District of Michigan, Judge Opperman concluded that the IRS permitted to set off prepetition tax refunds against prepetition debts. However, the IRS is not permitted to offset postpetition tax refunds against prepetition debt, without first obtaining relief from the Automatic Stay. See In re Marcola, No. 07-23438-dob, 2011 WL 7789569 (Bankr. E.D. Mich….

Consumer Financial Protection Bureau Develop the First Ever Industry-Wide Standards for Student Loan Servicing Companies

As reported by DeWayne Sheaffer, President of NEA’s National Council for Higher Education, this past summer the Consumer Financial Protection Bureau (CFPB) listened to the voices of more than 30,000 frustrated Americans, including thousands of NEA members, who were tired of receiving bad or unclear information from their student loan servicers. Thanks to the efforts of…

In re: Harris: What should the Chapter 13 trustee do with funds that the trustee has received but not yet distributed

Harris v. Viegelahn : Basic House-Keeping in Consumer Bankruptcy Bankruptcy Law Letter July 2015 35 No. 7 Bankruptcy Law Letter NL 1 In a rare unanimous case, the Supreme Court has finally resolved a question that has nagged courts for decades. Harris v. Viegelahn,[ ] involved a Chapter 13 case that was converted to Chapter 7. The…

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