Unfortunately, putting together a bankruptcy plan is not always as easy as writing it down and getting a judge to approve it. In some cases, the judge has the right to reject a plan, as was highlighted in a recent U.S. Supreme Court case.
In the case, the Supreme Court ruled against a Massachusetts man who was fighting against his mortgage lender over a bankruptcy plan. The man, Louis Bullard, even had the support of Bank of America Corp. and the Obama Administration, but the Supreme Court still ruled unanimously that Bullard could not file an appeal against a bankruptcy judge’s rejection of his bankruptcy plan.
Bullard owes Blue Hills Bancorp Inc. approximately $387,000 for his mortgage on a piece of property he owns in the town of Randolph, Massachusetts. Unlike Bullard, Blue Hills had little support from the business community in the case, but it made no difference in the result handed down by the Supreme Court.
Bank of America had offered an opinion stating that allowing appeals would be beneficial to both homeowners and creditors alike. Chief Justice John Roberts said there are certain occasions in which appeals could be allowed, including some types of cases with similarities to Bullard’s, but that his was not one of them.
It’s extremely important to work closely with a skilled bankruptcy attorney when attempting to put together a repayment plan under Chapter 13 bankruptcy. If judges believe there is anything unfair or unusual about your repayment plan, they could reject it, sending you back to the drawing board. The bankruptcy process is stressful enough without having to go through multiple revisions of your repayment plan.
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