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