August 2010

28 Aug Creditor Garnishes Funds Held by Chapter 13 Trustee

Can a judgment creditor seek to garnish funds in the possession of the Chapter 13 Trustee after a Chapter 13 case is dismissed? The answer is yes in Orlando. A recent bankruptcy decision in the Orlando Division of the Middle District of Florida holds that if a Chapter 13 Debtor's case is dismissed and the Chapter 13 Trustee is still in possession of funds directed to go back to the debtor, a judgment creditor can run to the State Court and request an Order of Garnishment on the Chapter 13 Trustee. Wow, what a horrible result. I must admit that there is case law on both sides of this issue, but the Orlando Court followed the line of cases allowing the garnishment.
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28 Aug HAMP Program Failing Miserably in 2010

Approximately 16 months ago, President Obama made a pledge to help 7 to 9 million families avoid foreclosure. Well, the most recent statistics for May 2010 have been released and the statistics confirm that the HAMP program is failing miserably. Since that time, more people have been kicked out of the program (over 435,000 families) than have received permanent relief (approximately 339,000 families). More specifically, it appears that in the last month, 5 times as many families were kicked out of the program than were granted new relief. I'm not sure how this happens in a period of economic recovery. Hmmm.
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