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Newsletter of the ABA Business Law Section Committee on
  Consumer Bankruptcy
Join the Committee Online

Message from the Chair

Proposed Amendments to the Federal Rules of Bankruptcy and Civil Procedure

Links of Interest

Feature Articles
  Lending Intermediaries: The Implications of Fraud on Unsuspecting Debtors & Lessons from In Re Montano
  The Loss Mitigation Mediation Program Comes to the United States Bankruptcy Court for the Southern District of Florida
  Message from the Chair

Dear Fellow Consumer Bankruptcy Practitioners,

I want to welcome you to the inaugural Consumer Bankruptcy Newsletter. The newsletter will be distributed on a monthly basis and will be an avenue for committee members to submit original articles on current bankruptcy issues and to provide updates on consumer bankruptcy cases. We need your contributions to make this a success and we welcome any ideas as to how to improve the content of the newsletter.

We are pleased to present two articles in this issue. Christopher Priore authored an article entitled "Lending Intermediaries: The Implications of Fraud on Unsuspecting Debtors & Lessons from In Re Montano." Yasin Daneshfar contributed the article "The Loss Mitigation Mediation Program Comes to the United States Bankruptcy Court for the Southern District of Florida." Furthermore, we have also included information on the proposed amendments to the Federal Rules. Please note that the public comment period regarding these Rules expires on February 15, 2014.

Also, the ABA Business Law Section Spring Meeting is taking place in Los Angeles from April 10-12. The link to the information is below. The Consumer Bankruptcy Committee is co-sponsoring two programs: The View From the Bench: Judicial Perspective on Consumer Finance Litigation and The CFPB Rules on Debt Collection. Please plan on attending.

We hope that you enjoy this newsletter and find it beneficial to your practice.

Best Regards,

Ryan Starks, Esq.



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  Proposed Amendments to the Federal Rules of Bankruptcy and Civil Procedure

The ABA has formed a legislative task force to comment on the proposed amendments to the Federal Rules of Bankruptcy Procedure. These changes will affect your bankruptcy practice. The Task Force will be meeting in January. You can review the proposed changes on the Federal Court website. Please provide your comments to us as soon as possible.

To comment on the proposed Rule Changes and the Proposed National Chapter 13 Plan please click here.

Dates to Remember:

February 15, 2014: the time for public comment on the proposed amendments expires
December 1, 2015: the proposed amendments would become effective
December 1, 2014: the revisions to the Official Bankruptcy Forms would become effective on, except as otherwise noted


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  Links of Interest


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  Feature Articles
   
Lending Intermediaries: The Implications of Fraud on Unsuspecting Debtors & Lessons from In Re Montano

By Christopher Priore

Recall for a moment the first time you sought a loan to purchase a new car or home. Do you remember that voluminous mountain of forms needed to be filled out and signed before a bank agreed to lend you money? It is unlikely that the average consumer would take the time to read the fine print before placing their signature and initials all over these forms, especially when they have a skilled professional assisting in obtaining their financing.

Prior to 2008, the heyday of unscrupulous lending, a borrower (and arguably a lender) might solely rely upon a mortgage broker or car salesperson to present that potential borrower with the best financing options available to them. The only problem with this model is that an intermediary does not necessarily have the interest of the bank or the borrower at heart but rather closing as many loans as possible. According to the Ninth Circuit the absence of the borrower manually entering all of their financial histories and personal information on every line of every form, the veracity of these statements are ultimately on shaky footing. Read more...

The Loss Mitigation Mediation Program Comes to the United States Bankruptcy Court for the Southern District of Florida

By Yasin Daneshfar

The Southern District of Florida Bankruptcy Court has joined a wave of loss mitigation programs around the country by initiating the Loss Mitigation Mediation (the "LMM"), beginning April 30, 2013. The program is designed to facilitate communication and exchange of information in a confidential setting and encourage the parties to finalize a feasible and beneficial agreement with the assistance and supervision of the United States Bankruptcy Court for the Southern District of Florida. Loss mitigation options include modification of a mortgage or surrender of real property owned by an individual Debtor. Read more...

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