Consumer Bankruptcy Journal Fall 2015 - Page 24

CHAPTER 13 DEBTORS rule beyond the Rule 3002(c) parameters. f. Conclusion The U.S. Court of Appeals for the Seventh Circuit provided NACBA members with another strategy to help homeowners prevent foreclosure. NACBA attorneys should consider the Pajian ruling in any case where debtor does not have the ability to cure the prepetition mortgage arrearage or strategically decides not to pay the arrearage---either because a debtor does not have sufficient net income to cure the arrearage, or debtor would rather pay non-dischargeable debt instead. ABOUT THE AUTHOR: Robert V. Schaller is the President of the Schaller Law Firm, P.C. in Oak Brook, Illinois. He was prevailing counsel in the Seventh Circuit’s In re Pajian case. Schaller is a Registered CPA and author of Bankruptcy, Why Your Neighbor Had to File (2012). Robert Schaller earned the Bankruptcy Scholar designation from the National Bankruptcy Academy. (Endnotes) 1 In re Schmidt, 765 F.3d 877 (8th Cir. 2014); In re Davis, 716 F.3d 331, 334-39 (4th Cir. 2013); In re Zimmer, 313 F.3d 1220, 122227 (9th Cir. 2002); In re Lane, 280 F.3d 663, 665-69 (6th Cir. 2002); In re Pond, 252 F.3d 122, 124-27 (2nd Cir. 2001); In re Tanner, 217 F.3d 1357, 1358-60 (11th Cir. 2000); In 24 CONSUMER BANKRUPTCY JOURNAL re Bartee, 212 F.3d 277, 284-95 (5th Cir. 2000); In re McDonald, 205 F.3d 606,609-15 (3rd Cir. 2000). 2 11 U.S.C. §§1322(b) and 1325(a)(5). 3 Id. 4 11 U.S.C. §§1322(c)(2). 5 11 U.S.C. §1325(a)(5)(C). 6 11 U.S.C. §1325(a)(5)(A). 7 “Foaming the Runway” for Homeowners: U.S. Bankruptcy Courts “Preserving Homeownership” in the Wake of the Home Affordable Modification Program, 23 American Bankruptcy Institute Law Review 421 (2015) (Coco, Linda) 8 In Re Pajian, No. 14-2052 (7th Cir. May 11, 2015). 9 Fed. R. Bankr. P. 3002(c). 10 11 U.S.C. §362(c)(3)(B). 11 See 11 U.S.C. §1322(b) (5), which provides for the curing of any default within a reasonable time and maintenance of paymen ts while the case is pending. 12 See 11 U.S.C. §1323(a), which allows for the filing of a modified plan before confirmation. 21 See 11 U.S.C. §1328(a)(2) incorporating 11 U.S.C. §523(a)(5). 22 See 11 U.S.C. §1328(a)(2) incorporating 11 U.S.C. §523(a)(1). 23 See 11 U.S.C. §1328(a)(2) incorporating 11 U.S.C. §523(a)(2). 24 See 11 U.S.C. §1328(a)(2) incorporating 11 U.S.C. §523(a)(4). 25 See 11 U.S.C. §1328(a)(2) incorporating 11 U.S.C. §523(a)(9). 26 27 28 (1). See 11 U.S.C. §1328(a)(3). See 11 U.S.C. §1328(a)(4). Fed. R. Bankr. P. 3002(c) 29 30 (3). 11 U.S.C. §1308. Fed. R. Bankr. P. 9006(b) 13 See In re Penrod, 50 F.3d 459, 461-62 (7th Cir. 1995). 14 11 U.S.C. §502(a), (b)(9). 15 Fed. R. Bankr. P. 3002(a). 16 11 U.S.C. §101(5)(A). 17 11 U.S.C. §523(a)(1), (a) (2). 18 See 11 U.S.C. §1328(a). 19 See 11 U.S.C. §1328(a)(2) incorporating 11 U.S.C. §1322(b) (5). 20 See 11 U.S.C. §1328(a)(2) incorporating 11 U.S.C. §523(a)(8). Winter 2015 National Association of Consumer Bankruptcy Attorneys