King Bankruptcy Media THE CONSUMER BANKRUPTCY LETTER
 In This Issue: Nov. 3, 2003 
•   BANKRUPTCY THIS WEEK . . .
•   CASE & COMMENT . . .
•   BankruptcyBooks.com
•   EVENTS & ANNOUNCEMENTS
•   LEGISLATION & REFORM NEWS . . .
•   BANKRUPTCY HUMOR
 BANKRUPTCY THIS WEEK . . .
BANKRUPTCY JUDGES SEEK TO INVESTIGATE NONDISCLOSURE OF ASSETS

The National Conference of Bankruptcy Judges Endowment for Education is soliciting and requesting proposals for grant awards "to investigate the extent to which assets administered by trustees in Chapter 7 cases were disclosed by debtors in their initial bankruptcy papers."

"In a preliminary investigation of this question in his court location, Bankruptcy Judges Steven Rhodes of Detroit found that in a group comprising all asset cases closed in Detroit in the second half of 1999 (103 cases), 41% of administered assets were not disclosed, and that 39% of those cases had undisclosed assets."

The investigation would undertake to determine the extent to which the obligation of full disclosure is fulfilled.

"The Board has also been advised that the Executive Office for United States Trustees might be interested in co-sponsoring this research."

bkThisWeek.com

 BankruptcyBooks.com
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 LEGISLATION & REFORM NEWS . . .
FINANCIAL LITERACY BILL ADVANCES IN SENATE

With numerous statistical studies indicating that in the field of personal finances, substantial numbers of Americans are financially illiterate, several bills are pending in the Senate to address the issue.

The "Financial Literacy and Education Coordinating Act of 2003" (S. 1470; Sarbanes D-Md.) would establish the Financial Literacy and Education Coordinating Committee within the Department of Treasury to improve the state of financial literacy and education among Americans. The committee, chaired by the Secretary of the Treasury, would develop and coordinate a national strategy, in cooperation with state and local governments, non-profit organizations and private enterprise, to improve financial education and literacy. The committee is required to review financial literacy efforts throughout the government and develop the strategy within one year, with annual reports thereafter.

Bankruptcy Reform News

 CASE & COMMENT . . .
FAXED DOCUMENT IMPROPER FILING

A faxed document did not constitute a proper way to commence a dischargeability action within the 523(c) period.  Federal Rule of Bankruptcy Procedure 5005(a)(2) authorizes local courts to permit electronic filing. However, the rule does not require courts to do so. If a court does not have a local rule authorizing fax filings, fax filings are not permitted. "Absent a local rule authorizing the practice, facsimile filings in a federal court are dead on arrival."

The Court lacked discretion to enlarge the 523(c) period after it had lapsed.

In re Harbaugh (8th Cir. BAP 2003)
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ATTORNEY'S FAILURE TO SCHEDULE ASSETS

The failure to comply with the Bankruptcy Code's disclosure duty is "inadvertent" only when a party either lacks knowledge of the undisclosed claim or has no motive for their concealment.

A debtor who failed to disclose the existence of her employment discrimination lawsuit during the pendency of her bankruptcy could not escape the consequences, even if it were her attorney's error.

Although it is undisputed that Barger's attorney failed to list Barger's discrimination suit on the schedule of assets despite the fact that Barger specifically told him about the suit, the attorney's omission is no panacea. As the Supreme Court stated in Link v. Wabash R.R. Co., "[t]here is certainly no merit to the contention that dismissal of petitioner's claim because of his counsel's unexcused conduct imposes an unjust penalty on the client. Petitioner voluntarily chose this attorney as his representative in the action, and he cannot now avoid the consequences of the acts or omissions of this freely selected agent." "[I]f an attorney's conduct falls substantially below what is reasonable under the circumstances, the client's remedy is against the attorney in a suit for malpractice. But keeping this suit alive merely because plaintiff should not be penalized for the omissions of his own attorney would be visiting the sins of plaintiff*s lawyer upon the defendant."

Barger v. City of Cartersville, Ga. (11th Cir. 2003)

LAW UPDATES

 EVENTS & ANNOUNCEMENTS
PACER: 30-PAGE CAP APPLIED TO DOCKET SHEETS

The Judicial Conference, at its September 2003 session, amended the language of Section I of the Electronic Public Access Fee Schedule for the appellate, district, and bankruptcy courts, the United States Court of Federal Claims, and the Judicial Panel on Multidistrict Litigation (adopted by the Judicial Conference pursuant to sections 1913, 1914, 1926, 1930, and 1932 of title 28, United States Code). The previous schedule placed a cap on the seven cents per page charge for Internet access to data obtained electronically from the public records of individual cases in the courts, with a maximum $2.10, the equivalent of 30 pages, for electronic access to any single document. The amendment extends this cap to all case documents, including docket sheets and case-specific reports, with the exception of transcripts of federal court proceedings. The cap will apply to all PACER, RACER, or CM/ECF sites. The actual implementation of the document cap extension will not take place until the necessary software changes have been completed. The implementation date of the cap extension will be announced shortly. Check back to this web site.
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DAVID TILEM RECEIVES DOUBLE APPOINTMENTS

Glendale, California bankruptcy attorney David A. Tilem has been appointed to NACBA's first Regional Chair for the Central District of California. NACBA (National Association of Consumer Bankruptcy Attorneys) is the nation's leading professional organization for consumer bankruptcy attorneys. NACBA has lead the fight to protect debtors' rights and oppose the so-called bankruptcy reform legislation that has been pending in Congress. NACBA undertakes significant efforts to upgrade the professionalism of consumer bankruptcy attorneys.

Tilem has also received appointment to the California State Bar Board of Legal Specialization - Personal and Small Business Advisory Commission. In this capacity Tilem will help draft and edit exam questions for attorneys seeking certified status.

SUBMIT YOUR PRESS RELEASE

 BANKRUPTCY HUMOR
LETTER TO A CREDIT CARD CARRIER -

So it is with deep regret and sadness that we advise you of our disappointment with you as a customer. Yes, disappointment. For despite our unmatched terms, you have not met your end of the bargain. Not only have you failed to use your card more than 3 times during the last 12 months, but on each occasion, you paid your bill in full and on time. This is inconsistent with your prior credit history and, frankly, we expected better of you.

Your prompt payments and inadequate use of your credit card force us to take the drastic action of converting your account to Non-Preferred Customer Status. As a Non-Preferred Customer, you will be assessed a ten dollar carrying charge for each month in which you fail to use your card and a five dollar surcharge on each paid-on-time monthly bill. Additionally your Preferred Customer Perks will be eliminated, except for our rebate program which will henceforth be limited to purchases made in Venezuela.

However, if you act quickly you can still qualify for Preferred Customer reinstatement. Simply use your card at least 12 times in the next 3 months, incur debt in the minimum sum of $3000, and pay no more than 10 percent of the amount owed on your card each month plus interest. Yes, that's all it takes to re-qualify for Easy Come Easy Go's Preferred Customer Perks.

PUBLISHED BY KING BANKRUPTCY MEDIA FOR BANKRUPTCY PROFESSIONALS
© King Bankruptcy Media 2003 CONTACT US AT editor@bankruptcymedia.com  BankruptcyMedia.com

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