BANKRUPTCY PROCEDURE UPDATE:
NEW RULE ON PROOF OF CLAIM FILINGS
Query: ARE YOU “PAPER FILING” YOUR PROOFS OF CLAIM?
(hint: Not Anymore!)
Effective December 1, 2008, mandatory electronic filing will apply to creditors who file, on the average, two or more proofs of claim per week. This new rule is called General Procedure Order 2008-5.
In addition, creditors are required to complete the Court’s registration form, obtain a procedure manual from the Court and be assigned an electronic login, in that order.
Click the link below for a full text of GPO 2008-5:
http://www.cob.uscourts.gov/orders/gpo2008-5_claims.pdf
Posted by: Doug Koktavy
June 26, 2008
Topic: Auto Finance Bankruptcy Update
As many of you are aware, courts are divided over the effect of a surrender of a “910″ motor vehicle in Chapter 13. A majority of courts allow the auto finance creditor to file an unsecured claim for the deficiency. A minority of courts provide the surrender is in full satisfaction of the debt.
Colorado has joined the majority by virtue of the decision of In re Ballard, 526 F.3d 634 (10th Cir. 2008), which was announced May 19, 2008. This positive creditor’s decision reversed several lower court rulings adverse to the auto finance industry.
Posted by: Douglas Koktavy
June 19, 2008
Topic: Lender Update
Strict foreclosure is a little known process where a lender can take back assets in satisfaction of the debt. It eliminates the costly legal and accounting requirements associated with a receivership. This article will explain the process in the context of a hypothetical business borrower in default.
Posted by: Douglas Koktavy
June 18, 2008
Topic: Auto Finance Bankruptcy Update
MY ATTORNEY SAID RETAIL VALUE APPLIES, RIGHT?
The value of collateral in bankruptcy has always been a point of contention. The new bankruptcy law, known as BAPCPA, became effective October 17, 2005, and sought to clarify this issue. One of the creditor friendly provisions of BAPCPA was contained in 506(a)(2) of the Bankruptcy Code, concerning A value and provides:
Posted by: Doug Koktavy
May 01, 2008
Topic: Auto Finance Bankruptcy Update
Effective May 1, 2008, a new Cover Sheet shall be required to when filing a Reaffirmation Agreement. This new rule is called General Procedure Order 2008-2.
Click the link below for a full text of GPO 2008-2, including the new form:
http://www.cob.uscourts.gov/orders/gpo2008-2andform.pdf
Thanks for visiting http://www.coloradocreditorblog.com/
Doug Koktavy
http://www.coloradocreditorlaw.com/
Posted by: Doug Koktavy
April 14, 2008
Topic: Auto Finance Bankruptcy Update
BANKRUPTCY UPDATE:
NEW RULE ON ROUTINE COMMUNICATIONS WITH DEBTOR
Borrowers and lenders sometimes find themselves being held hostage to the bankruptcy code. Consider the following example:
Borrower is current on a car loan and files bankruptcy for other reasons. Borrower wants to keep the car and work something out with the bank. However, the bank is advised by counsel not to send monthly statements anymore as such communication violates the automatic stay. The account then falls into default, a relief from stay motion is filed, and the car is picked up. Neither party wanted this result.