Monday, February 27, 2012

N is for Negative Notice: Local Rule 2002-4, FLMB

UPDATE - Revised 9/29/2015
The Court has REVISED its Permissive Use of Negative Notice List effective September 25, 2015. The revised list was updated to indicate that all divisions now permit the use of negative notice in Chapter 13 cases for motions to modify confirmed Chapter 13 plans. Further it was updated to add to the Chapter 13 section, Motion to Retain Federal Tax Refunds. The revised list may be viewed on the Court's website or by clicking here.
 
                                                                                 Negative Notice

Yes, N is for Negative Notice.  I realize this page is really catering to attorneys where I practice, and as such, may not be very useful to others.  This page deals with procedural matters within in the Middle District of Florida only.  

The following is taken from the FLMB Newsletter, Volume 1, Issue 1, (No, not Willow Pond, as in the pic to the left) from Chief Judge Karen S. Jennemann.  This is a newsletter for the Middle District of Florida, and the following should not be used in other bankruptcy districts.  

 Local Rule 2002-4 provides for negative notice as permissible when filing certain pleadings in order to determine if a matter is contested. You must provide at least 21 days for responses unless the list provides otherwise. Check Local Rule 2002-4 for more details on how negative notice works in our district.
  • Application to Employ/Retain Professional
  • Interim Application for Payment of Administrative Expenses (Chapter 7)
  • Motion for Relief from Stay (Chapter 7)
  • Motion for Relief from Stay (Chapter 11) - (If plan surrenders)(Service to 1007-2 Parties In Interest list required)
  • Motion for Relief from Stay (Chapter 13) (Against co-debtor or debtor only (i) if plan surrenders property, or (ii) payments are made outside plan)
  • Motion for Turnover of Property (Chapter 7 Trustee) (30 day notice required)
  • Motion to Administratively Close Individual Ch 11 Case
  • Motion to Approve Agreements Relating to Relief from Stay, Prohibiting or Conditioning the Use, Sale or Lease of Property, Providing Adequate Protection, Use of Cash Collateral and Obtaining Credit pursuant to Fed. R. Bankr. P. 4001(d) (14 day notice allowed)
  • Motion to Approve Ch 7 Trustee's or Attorney’s App for Quantum Meruit Compensation
  • Motion to Approve Compromise or Settlement
  • Motion to Assume Lease/Executory Contract
  • Motion to Avoid Lien
  • Motion to Determine Secured Status /Value Property (30 day notice required) (Chapter 7 & 13 only)
  • Motion to Determine Secured Status and to Strip Lien (30 day notice required) (Chapter 13 only)
  • Motion to Modify Chapter 13 Confirmed Plan (Except in Tampa and Ft. Myers)
  • Motion to Modify Mortgage
  • Motion to Redeem
  • Motion to Sell or Lease Property (Except Ch 11)
  • Motion/Notice to Compel Abandonment
  • Objection to Claim (30 day notice required)
  • Objection to Exemptions (On objections relating solely to the value of the property claimed as exempt and except in Jacksonville,the Court will enter an order sustaining the objection without a hearing. Other objections may be filed on negative notice.)
  • Trustee's Motion to Determine Property is of Consequential/Inconsequential Value to Estate
  • Trustee's Motion to Dismiss for Failure to Attend 341 Meeting
  • Trustee's Motion to Sell 1st Mortgage Deed in Lieu of Foreclosure Ch 13
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    Other links to the letter "N" are as follows:
    Naked    New York Bankruptcy Lawyer, Jay S. Fleischman    
    Never    Cleveland Bankruptcy Attorney William Balena
    No Asset    Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein
    No Asset Report    Honolulu Bankruptcy Lawyer, Stuart T. Ing 
    Non-PMSI    Philadelphia Suburban Bankruptcy Lawyer, Chris Carr
    Nondischargeable    Northern California Bankruptcy Lawyer, Cathy Moran 
    Nondischargeable    Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein
    Nondischargeable Debt    Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell
    Notice    Colorado Springs Bankruptcy Attorney Bob Doig
    Non-exempt Property    Miami Bankruptcy Attorney, Dorota Trzeciecka  
    Notice    Taylor, Michigan Bankruptcy Attorney, Chris McAvoy




Friday, February 3, 2012

The Principal Paydown Plan Hits a Snag


Please find following, a letter from Billy Brewer, the President of the National Association of Consumer Bankruptcy Attorneys concerning the Principal Paydown Plan.  Despite the efforts of many, the Federal Housing Finance Agency does not favor the plan.  Hopefully with the help of those favoring the plan, it will move forward, but just not as fast as what we had hoped for.

Thanks to the good work of so many members, NACBA’s Principal Paydown Plan to help underwater homeowners in chapter 13 bankruptcy avoid foreclosure, has been endorsed by a substantial number of Members of Congress who in turn have pushed for action by the Federal Housing Finance Agency (FHFA) to implement the plan.  In a series of private meetings and in letters to FHFA, Senators and Members of Congress have asked the FHFA to use its authority over Fannie Mae and Freddie Mac to require them to agree to the Principal Paydown Plan when proposed by a homeowner trying to save a home in chapter 13 bankruptcy.

Despite FHFA Director DeMarco’s initial positive comments about the Principal Paydown Plan, which he said struck him as “being responsible,” and a “credible way to address the crisis while recognizing various interests mortgaged properties,” he recently wrote to Congress informing them that the agency would not be implementing the Principal Paydown Plan.  FHFA concluded that few GSE borrowers have filed for chapter 13 bankruptcy and are underwater and therefore the proposal would not be all that helpful.  They did, however, commit to doing what they can to help eligible borrowers in bankruptcy get the HAMP modifications they qualify for.

While the FHFA response is disappointing and inadequate, and we believe wrong, we are gratified that the many Members of Congress who have pushed for this solution continue to be engaged and are looking for ways to get the Principal Paydown Plan implemented despite the FHFA’s position.  These Members of Congress recognize, as so many of us do, that the foreclosure crisis is not going away anytime soon and so long as it continues, the nation will not enjoy the kind of recovery that is needed to stabilize the economy and get people back to work.

We hope you will join the Board of Directors and Legislative Committee in continuing to get the word out about the Principal Paydown Plan and to seek support for it.  Our allies on and off Capitol Hill are committed to keeping up the push.  We take some comfort in knowing that NACBA was among the first to sound the bell more than five years ago about the impending foreclosure crisis and to propose a widely embraced solution that would have helped minimize the damage that has been done to the economy.  We were right then in proposing legislation to permit modification of mortgages in bankruptcy, an idea that again is gaining currency among policymakers, economists and others.  The Principal Paydown Plan was designed to achieve the same desired result without engaging the same level of opposition to changes to the bankruptcy code.  

We look forward to continuing to work with you to build support for the Principal Paydown Plan.  Please contact either of us if you have questions or comments.

Billy Brewer
President