Consumer Bankruptcy Committee

ABI Committee News

Loss Mitigation in Bankruptcy: Judge-Made Programs that Need More Support

Editor's Note: The following article, "Loss Mitigation in Bankruptcy: Judge-Made Programs that Need More Support," won the prize for third place in the Fourth Annual ABI Law Student Writing Competition. The article discusses the limitations of, and steps taken to strengthen, loss mitigation. The author, Douglas Buckley, is a student at Brooklyn Law School. In addition to recognition and publication of his article in the Consumer Bankruptcy Committee Newsletter, Mr. Buckley receives a cash award of $750, sponsored by McGuireWoods, and a one-year ABI membership.

During the housing boom of the late 1990s until the bubble burst in 2007, the number of homeowners steadily increased each year, and the amount of home mortgage debt ballooned from 4 trillion dollars in 1998 to 10 trillion dollars in 2007.[2] Unfortunately, since the debt bubble burst in late 2007 home prices across the United States have fallen dramatically,[3] largely in response to high rates of residential mortgage foreclosures.[4] Banks served foreclosure notices on one in forty-five homes during 2010.[5] Like homeowners, many corporations were also hurt by the global recession that began in December 2007.[6] In the midst of the crisis, General Motors and Lehman Brothers filed for bankruptcy protection, creating two of the largest bankruptcy cases ever seen in the United States.[7] Another contingency that came to need bankruptcy relief included the many people who used the “easy credit” of the housing boom to buy vacation homes, or investment properties that they hoped to “flip” for a quick profit.[8] Assuming they did not use a corporation to buy these “extra” properties, they can file for individual Chapter 13 relief.[9]

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Journal Articles from the June 2012 Issue

Did you know that all articles published through the ABI are written by members? Read what your colleagues have to say about the latest bankruptcy-related issues in the ABI Journal online at journal.abi.org. This month there were several articles of relevance to the committee. Browse these articles below and visit the Journal online for the full June 2012 edition.

View Materials from Recent Conferences Online

Spring is a busy time of year at the ABI, and with a full conference schedule comes a plethora of educational materials. Recently, the Memphis Consumer Bankruptcy Conference was held at the University of Memphis School of Law in Memphis, Tennessee on June 1st. The event offered attendees sessions such as "U.S. Trustee Panel: Inside Perspective," which was led by Samuel K. Crocker and Sean M. Haynes, both of the Office of the U.S. Trustee in Memphis. The materials for this panel offered information on The National Mortgage Settlement and Bankruptcy and the roles played by a variety of involved professionals. Click here to view all materials from the Memphis Consumer Bankruptcy Conference.

The Central States Bankruptcy Workshop was held at the Grand Traverse Resort and Spa in Traverse City, Michigan, June 7 - 10. The event offered sessions such as "You Can Have the House if I Can Have the Dog: Divorce Issues in Bankruptcy," which was led by Charles D. Bullock of Stevenson & Bullock, PLC in Southfield, Mich., Lisa Sommers Gretchko of Howard & Howard Attorneys P.C. in Royal Oak, Mich., Hon. Margaret Dee McGarity of the U.S. Bankruptcy Court for the Eastern District of Wisconsin in Milwaukee and F. John Steffen, Jr. of Steffen & Kelly PC in Elgin, Ill. The panelists discussed related automatic stay issues, avoidance liens and nondischargable debts. Click here to view all materials related to the Consumer Bankruptcy Committee.

 

ABI Launches Retooled Newsroom

ABI recently launched its redesigned ABI Newsroom to provide members, press and the public with a new central location to find all of the latest bankruptcy news and information. When you visit the Newsroom, you will have one landing spot for the ABI Headlines (member log-in required), latest court decisions, breaking legislative news, ABI press materials, bankruptcy statistics, videos and more. No need to navigate to different areas of the ABI website for such items as the Chart of the Day, Blog Exchange, press briefings or the Quick Poll! You will also have access to the latest activity on ABI's Twitter and Facebook feeds, and will be able to watch videos from past ABI conferences. Stay on top of all the latest news and issues in bankruptcy by visiting ABI's Newsroom today.

 



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