Bankruptcy Wizard
A Judge in Massachusetts finally put the hammer down on HHM's so-called back-door Chapter 7. In a ruling affecting several cases, the Judge stopped this practice of having "attorney only" fees in a Chapter 13. The Judge basically stated that the debtors otherwise qualified for Chapter 7 and the Chapter 13 was unnecessary.
The case was In re Buck, 2010 WL 2746217 (Bky.D.Mass. July 9, 2010). I think the Judge, indirectly, accused the attorney(s) in the cases of "fee" churning, since the argument was that the debtors couldn't pay the Chapter 7 fee due to indigence. The Court didn't buy that, noting that the indigent debtors would pay double the fees over 36 months.
It's on Bankruptcy Law Network. I don't have access to Westlaw where it is published, so I can't provide a copy. I can't provide a link to Bankruptcy Law Network either, since the site blocks the URL... sorry.
The case was In re Buck, 2010 WL 2746217 (Bky.D.Mass. July 9, 2010). I think the Judge, indirectly, accused the attorney(s) in the cases of "fee" churning, since the argument was that the debtors couldn't pay the Chapter 7 fee due to indigence. The Court didn't buy that, noting that the indigent debtors would pay double the fees over 36 months.
It's on Bankruptcy Law Network. I don't have access to Westlaw where it is published, so I can't provide a copy. I can't provide a link to Bankruptcy Law Network either, since the site blocks the URL... sorry.
