[CLBS] Effective Date of Bankruptcy Changes

Wed Apr 8 16:15:24 MDT 2020

All,

In addition to the exemption issues raised by Alex and Jon, the EOUST issued the attached guidance to Trustees yesterday.  Looks like a combination of an exemption claim, and the guidance by the EOUST should protect those funds for Debtors.

MTC

-----Original Message-----
From: CLBS <clbs-bounces at admws.idaho.gov> On Behalf Of Alexandra Caval
Sent: Friday, April 3, 2020 11:43 AM
To: Jon Wilson <jon at boiselaw.org>
Cc: Bankruptcy list <clbs at admws.idaho.gov>
Subject: Re: [CLBS] Effective Date of Bankruptcy Changes

I'm not aware of anything in the CARES act that keeps it out of the reach of a chapter 7 trustee. I don't think your wildcard exemption will protect it unless it's reduced to cold, hard cash because of the tangibility requirement. You might want to look at the Farnsworth case (the case that reversed course and held additional child tax credit were exempt under
11-603(4) back in 2016) and see if it meets the elements of public assistance under 11-603(4) and could be exempted that way.

~ Alex

On Fri, Apr 3, 2020 at 11:32 AM <jon at boiselaw.org> wrote:

> So the Stimulus funds are excluded from the definition of income, but 
> can the Trustee in a chapter 7 seized those funds if they have not 
> been received before filing or if received, would those funds need to 
> then be spent or held as part of debtor's wildcard at the time of filing?
>
> Thanks.
>
> Jon R. Wilson
> Attorney at Law
>
> Wilson Law Offices, P.C.
> 4614 W. Emerald St.
> Boise, ID 83706
> Tel. (208)343-8400
> Fax (208)424-5006
> Email:  jon at boiselaw.org
>
> CONFIDENTIALITY NOTICE:  The preceding message (including any 
> attachment, if any) is covered by the Electronic Communication Privacy Act, 18 U.S.C.
> sections 2510-2521, is CONFIDENTIAL, and may also be protected by the 
> ATTORNEY/CLIENT OR  OTHER PRIVILEGE.  If you believe that this message 
> has been sent to you in error, do not read any further portion of the 
> message other than the remainder of this notice, please reply to the 
> sender that you have received the message in error, and delete the 
> message.  If you are not the intended recipient, you are hereby 
> notified that any retention, dissemination, distribution, or copying 
> of this communication is strictly prohibited.  We do not waive any 
> attorney/client or work privilege by the transmission of this message.  Thank you.
>
>
>
> -----Original Message-----
> From: CLBS <clbs-bounces at admws.idaho.gov> On Behalf Of Steve Taggart
> Sent: Monday, March 30, 2020 5:56 PM
> To: clbs at admws.idaho.gov
> Subject: [CLBS] Effective Date of Bankruptcy Changes
>
> The effective date is the date of enactment, ie. 3/27/20.
>
> > Steven L. Taggart
> > Attorney at Law
> > MAYNES TAGGART PLLC
> > 525 Park Avenue, Suite 2E
> > Idaho Falls, ID 83402
> > Office:  (208) 552-6442
> > Cell: (208) 681-2464
> > Facsimile: (208) 524-6095
> > Website:  www.MaynesTaggart.com
> > Email: staggart101 at gmail.com
> >
> > Confidentiality Notice:  This message is intended only for the use 
> > of
> the individual or entity to which it is addressed.  It may contain 
> information that is privileged, confidential and exempt from 
> disclosure under applicable law.  If the reader of this message is not 
> the intended recipient, any dissemination or distribution of this 
> communication to other than the intended recipient is strictly 
> prohibited.  If you have received this communication in error, please 
> notify us immediately by reply email to the sender or collect telephone call to (208) 552-6442.
>
>
> > On Mar 30, 2020, at 3:06 PM, clbs-request at admws.idaho.gov wrote:
> >
> > Send CLBS mailing list submissions to
> >    clbs at admws.idaho.gov
> >
> > To subscribe or unsubscribe via the World Wide Web, visit
> >    http://admws.idaho.gov/mailman/listinfo/clbs
> > or, via email, send a message with subject or body 'help' to
> >    clbs-request at admws.idaho.gov
> >
> > You can reach the person managing the list at
> >    clbs-owner at admws.idaho.gov
> >
> > When replying, please edit your Subject line so it is more specific 
> > than "Re: Contents of CLBS digest..."
> >
> >
> > Today's Topics:
> >
> >   1. Re: Covid Stimulus Bill Changes Bankruptcy Code
> >      (Matthew Christensen)
> >   2. FW: Commercial Law and Bankruptcy Section ListServ (Patrick
> > Geile)
> >
> >
> > --------------------------------------------------------------------
> > --
> >
> > Message: 1
> > Date: Thu, 26 Mar 2020 18:42:54 +0000
> > From: Matthew Christensen <mtc at angstman.com>
> > To: Patrick Geile <PGeile at foleyfreeman.com>, "clbs at admws.idaho.gov"
> >    <clbs at admws.idaho.gov>
> > Subject: Re: [CLBS] Covid Stimulus Bill Changes Bankruptcy Code
> > Message-ID:
> >
> > <MWHPR16MB0045A7F9FE6EFD82C8E0C53CC2CF0 at MWHPR16MB0045.namprd16.prod.
> > ou
> > tlook.com>
> >
> > Content-Type: text/plain; charset="utf-8"
> >
> > Does anyone have good information on the effective date of the
> legislation?  I can't find it easily in the draft bill (800 pages!!).  
> Is this something that'll be immediately effective - or effective on a 
> later date?
> >
> > Matt
> >
> >
> > -----Original Message-----
> > From: CLBS <clbs-bounces at admws.idaho.gov> On Behalf Of Patrick Geile
> > Sent: Thursday, March 26, 2020 8:31 AM
> > To: clbs at admws.idaho.gov
> > Subject: [CLBS] FW: Covid Stimulus Bill Changes Bankruptcy Code
> >
> > Good Morning,
> >
> > Below are some important changes to the SBRA and chapter 13?s among
> others.  Thanks Judge Pappas for forwarding this on.
> >
> > Colleagues, Our Legislative Committee reports that the stimulus bill 
> > that will hopefully get passed this afternoon by the Senate contains 
> > changes to
> >
> > [Image removed by sender.]
> >
> >
> >
> > Colleagues,
> > Our Legislative Committee reports that the stimulus bill that will
> hopefully get passed this afternoon by the Senate contains changes to 
> the Bankruptcy Code to assist small business debtors and all 
> individual debtors. The House of Representatives will have to take up 
> the bill shortly after the Senate passage; however, the Committee 
> understands that while the House may want to add a liberalized 
> homestead provision, the leadership is on board with these changes.
> >
> > Here is a summary of those provisions, all of which sunset after one
> year:
> >
> > ? Amends the Small Business Reorganization Act to increase the
> eligibility threshold to file under subchapter V of chapter 11 of the U.S.
> Bankruptcy Code to businesses with less than $7,500,000 of debt.
> >
> > ? Amends the definition of income in the Bankruptcy Code for 
> > chapters 7
> and 13 to exclude coronavirus-related payments from the federal 
> government from being treated as ?income? for purposes of filing bankruptcy.
> >
> > ? Clarifies that the calculation of disposable income for purposes 
> > of
> confirming a chapter 13 plan shall not include coronavirus-related payments.
> >
> > ? Explicitly permits individuals and families currently in chapter 
> > 13 to
> seek payment plan modifications if they are experiencing a material 
> financial hardship due to the coronavirus pandemic, including 
> extending their payments for up to seven years after their initial 
> plan payment was due.
> >
> > Laurel Isicoff
> > NCBJ 2019-2020 President
> >
> >
> >
> > ?2020 NCBJ | 954 La Mirada, Laguna Beach, CA 92651
> >
> > Web
> > Version<https://sable.madmimi.com/c/17260?id=109744.1754.1.3c10d51d8
> > 0e 
> > 19339da6b92ff437b998a&p=eyJ7e21pbWktc2lnbmF0dXJlfX0iOiIxNTc1NTI5MTMt
> > Nz 
> > A2MTQyNzM2MS1kNmMzNWIyZDczNGY2ODM3Yzk3Y2Y1YTRjNGQxOGNlMmRkOWYzY2JhIi
> > wi e3tlbWFpbElkfX0iOiIxMDk3NDQifQ==> Web 
> > Version<https://sable.madmimi.com/c/17260?id=109744.1754.1.3c10d51d8
> > 0e 
> > 19339da6b92ff437b998a&p=eyJ7e21pbWktc2lnbmF0dXJlfX0iOiIxNTc1NTI5MTMt
> > Nz 
> > A2MTQyNzM2MS1kNmMzNWIyZDczNGY2ODM3Yzk3Y2Y1YTRjNGQxOGNlMmRkOWYzY2JhIi
> > wi
> > e3tlbWFpbElkfX0iOiIxMDk3NDQifQ==>
> > Preferences<https://sable.madmimi.com/c/17260?id=109744.1755.1.200f3
> > 53 
> > 534f22cbd7fb835e14545372a&p=eyJ7e21pbWktc2lnbmF0dXJlfX0iOiIxNTc1NTI5
> > MT 
> > MtNzA2MTQyNzM2MS1kNmMzNWIyZDczNGY2ODM3Yzk3Y2Y1YTRjNGQxOGNlMmRkOWYzY2
> > Jh 
> > Iiwie3ttZW1iZXItaWR9fSI6NzA2MTQyNzM2MSwie3tlbWFpbElkfX0iOiIxMDk3NDQi
> > fQ
> > ==>
> > Preferences<https://sable.madmimi.com/c/17260?id=109744.1755.1.200f3
> > 53 
> > 534f22cbd7fb835e14545372a&p=eyJ7e21pbWktc2lnbmF0dXJlfX0iOiIxNTc1NTI5
> > MT 
> > MtNzA2MTQyNzM2MS1kNmMzNWIyZDczNGY2ODM3Yzk3Y2Y1YTRjNGQxOGNlMmRkOWYzY2
> > Jh 
> > Iiwie3ttZW1iZXItaWR9fSI6NzA2MTQyNzM2MSwie3tlbWFpbElkfX0iOiIxMDk3NDQi
> > fQ
> > ==>
> > Forward<https://sable.madmimi.com/c/17260?id=109744.1756.1.eb565224b
> > a6 
> > 1da09022586438db8d00e&p=eyJ7e21pbWktc2lnbmF0dXJlfX0iOiIxNTc1NTI5MTMt
> > Nz 
> > A2MTQyNzM2MS1kNmMzNWIyZDczNGY2ODM3Yzk3Y2Y1YTRjNGQxOGNlMmRkOWYzY2JhIi
> > wi 
> > e3ttZW1iZXItaWR9fSI6NzA2MTQyNzM2MSwie3tlbWFpbElkfX0iOiIxMDk3NDQifQ==
> > >
> > Forward<https://sable.madmimi.com/c/17260?id=109744.1756.1.eb565224b
> > a6 
> > 1da09022586438db8d00e&p=eyJ7e21pbWktc2lnbmF0dXJlfX0iOiIxNTc1NTI5MTMt
> > Nz 
> > A2MTQyNzM2MS1kNmMzNWIyZDczNGY2ODM3Yzk3Y2Y1YTRjNGQxOGNlMmRkOWYzY2JhIi
> > wi 
> > e3ttZW1iZXItaWR9fSI6NzA2MTQyNzM2MSwie3tlbWFpbElkfX0iOiIxMDk3NDQifQ==
> > >
> > Unsubscribe<https://go.madmimi.com/opt_out?pact=109744-157552913-706
> > 14 27361-d6c35b2d734f6837c97cf5a4c4d18ce2dd9f3cba&amx=7061427361>
> > Unsubscribe<https://go.madmimi.com/opt_out?pact=109744-157552913-706
> > 14 27361-d6c35b2d734f6837c97cf5a4c4d18ce2dd9f3cba&amx=7061427361>
> >
> >
> > Powered by Mad Mimi?
> > A GoDaddy? company <https://madmimi.com/?>
> >
> >
> > ------------------------------
> >
> > Message: 2
> > Date: Mon, 30 Mar 2020 21:06:34 +0000
> > From: Patrick Geile <PGeile at foleyfreeman.com>
> > To: "clbs at admws.idaho.gov" <clbs at admws.idaho.gov>
> > Subject: [CLBS] FW: Commercial Law and Bankruptcy Section ListServ
> > Message-ID:
> >
> > <BY5PR19MB3827D0E5C6A8DEC1CC28434EA8CB0 at BY5PR19MB3827.namprd19.prod.
> > ou
> > tlook.com>
> >
> > Content-Type: text/plain; charset="us-ascii"
> >
> > Please review the attached Notice.
> >
> >
> >
> > Patrick J. Geile
> > Foley Freeman PLLC
> > (208) 947-1563
> >
> > From: Cahoon, Brett R. (USTP) <Brett.R.Cahoon at usdoj.gov>
> > Sent: Monday, March 30, 2020 3:05 PM
> > To: Patrick Geile <PGeile at foleyfreeman.com>
> > Subject: Commercial Law and Bankruptcy Section ListServ
> >
> > Patrick,
> >
> > Will you please send the attached Notice to the Commercial Law and
> Bankruptcy Section mailing list? Thanks.
> >
> > Respectfully,
> >
> > Brett R. Cahoon
> > Trial Attorney
> > U.S. Department of Justice
> > Office of the United States Trustee
> > 720 Park Blvd., Ste. 220
> > Boise, ID 83712
> > (208) 334-1300 x 2226
> >
> > This message and any attachments are intended only for the addressee 
> > and
> may contain information that is privileged, "Limited Official Use," or 
> "Sensitive But Unclassified."  If the reader of the message is not the 
> intended recipient, then any dissemination of this communication is 
> strictly prohibited. If you have received this communication in error, 
> please notify us immediately by replying to this e-mail message or by 
> telephone at the number above, and delete the message and any 
> attachments from your system. Thank you.
> >
> > -------------- next part -------------- A non-text attachment was 
> > scrubbed...
> > Name: Boise notice - new ch 7 panel trustee.docx
> > Type:
> > application/vnd.openxmlformats-officedocument.wordprocessingml.docum
> > en
> > t
> > Size: 13198 bytes
> > Desc: Boise notice - new ch 7 panel trustee.docx
> > URL:
> > <http://admws.idaho.gov/pipermail/clbs/attachments/20200330/c6b2ac7b
> > /a
> > ttachment.docx>
> >
> > ------------------------------
> >
> > Subject: Digest Footer
> >
> > _______________________________________________
> > CLBS mailing list
> > CLBS at admws.idaho.gov
> > http://admws.idaho.gov/mailman/listinfo/clbs
> >
> >
> > ------------------------------
> >
> > End of CLBS Digest, Vol 155, Issue 8
> > ************************************
> _______________________________________________
> CLBS mailing list
> CLBS at admws.idaho.gov
> http://admws.idaho.gov/mailman/listinfo/clbs
>
> _______________________________________________
> CLBS mailing list
> CLBS at admws.idaho.gov
> http://admws.idaho.gov/mailman/listinfo/clbs
>

-- 

Alexandra O. Caval

Caval Law Office, P.C.

P.O. Box 1716

Twin Falls, ID 83303-01716

T: 208.733.2035

F: 208.733.3919

alex at cavallawoffice.com

*PRIVILEGE AND CONFIDENTIALITY NOTICE*
This e-mail is intended only for the use of the recipient named and may contain information that is confidential, privileged, and exempt from disclosure under applicable laws. If you are not the named recipient, you may have received this transmission in error. We ask that you immediately notify the sender and remove this and all attached file(s) from your system. Receipt by anyone other than the intended recipient is not a waiver of the attorney-client or work-product privileges. You are hereby notified that any disclosure, copying, distribution, or use of any of the information contained in this transmission if you are not the intended recipient is prohibited and may expose you to liability.
-------------- next part --------------
A non-text attachment was scrubbed...
Name: CARES Act Recovery Rebate Notice (April 7 2020).pdf
Type: application/pdf
Size: 13437 bytes
Desc: CARES Act Recovery Rebate Notice (April 7 2020).pdf
URL: <http://admws.idaho.gov/pipermail/clbs/attachments/20200408/36e7888a/attachment-0001.pdf>