The Portal LM/MM process continues to be a successful means for debtors and creditors to address mortgage debt as recent statistics suggest that more than 70% of completed reviews result in trial modifications, permanent loan modifications and other arrangements beneficial to the parties.

In an effort to continue to improve the Portal LM/MM process and after input from members of the Bar who are most active in the LM/MM program, Judge Waites has made certain changes to the applicable Chambers Guidelines to be effective July 1, 2018.*

The changes primarily provide more time for the completion of the Debtor’s Prepared Package, and the scheduling of court hearings as backstops to ensure the timely exchange of information. More complete information will allow for a more effective mediation process when needed.

The updated LM/MM guidelines are attached below. Updated forms and orders will be forthcoming. In addition, chambers will be hosting bar meetings in June for the Charleston and Columbia divisions to review these LM/MM changes.

In the meantime, members of the Bar may provide comments or suggestions in writing to Andrew Powell (Andrew_Powell@scb.uscourts.gov) no later than June 14, 2018.

* In anticipation of these updated guidelines, the Court has revised and is presently using LM/MM orders that reflect these modified procedures.

On behalf of the Judges and Clerk of Court, thanks to the South Carolina Bankruptcy Law Association for a most educational and enjoyable weekend at Isle of Palms. The Annual Seminar is open to all and is a must attend event for many in our practice area. The speakers this year included a United States District Judge, The U. S. Attorney nominee for our District, and two Masters in Equity. Several sessions involved an added state law focus with panelists we don’t ordinarily see. There were excellent sessions on lawyer succession planning and wellness. The 2019 seminar has been announced for March 29-31 in Savannah, Ga.

A highlight of the annual meeting is the presentation of the Association’s awards.

The William E.S. Robinson Public Service Award is named for Billy Robinson and is presented annually by the Board of Directors to a member rendering distinguished public service to the legal profession and community. Eddie McDonnell of South Carolina Legal Services was recognized. Eddie practices in the upstate and has been with Legal Services in various capacities since 1977. He is currently Director of Litigation. Among his many contributions over the years, a highlight has been his work in establishing and nurturing the “Foreclosure Friday” partnership between Legal Services and The United States Bankruptcy Court. This program provides last minute help to those facing foreclosure and considering bankruptcy. According to Thomas L. Bruce, the General Counsel Emeritus for S. C. Legal Services, Eddie is the trusted authority on bankruptcy matters for many of the other lawyers at Legal Services, often taking over the more difficult cases around the state to ensure excellent representation for the clients served by Legal Services.

The J. Bratton Davis Professionalism Award is in honor of our first Bankruptcy Judge and is awarded from time to time by the Board of Directors to an individual exhibiting unimpeachable integrity, devotion to legal scholarship, civility to all, unfailing professionalism, and impressive contributions and improvements to the legal profession. William H. Short, Jr. was recognized. Bill is a long time bankruptcy practitioner and was involved with the formation of the South Carolina Bankruptcy Law Association, having been President of the predecessor Richland County Bar Bankruptcy Section. He was in the first class of specialists certified by the S. C. Supreme Court in Bankruptcy and Debtor – Creditor Law and has been active with the Turnaround Management Association, South Carolina Bankers Association, South Carolina Local Government Attorneys Institute and National Business Institute. Recognized by Best Lawyers in America and Super Lawyers, Bill also has been active with several Bible studies, Boy Scouts, the board of Jubilee Academy, Ducks Unlimited, and Congaree Land Trust.  The nomination letter noted Bill’s “dedication to others, dogged pursuit of what he believes his friends and others need to hear . . . and his love and compassion for his wife, family and friends is extraordinary. In sum, he comes quite close to epitomizing the very characteristics that made Judge Davis such an amazing person.”  Bill suffered a stroke in the fall of 2017 and it is inspiring to see the recovery he continues to make.

At the request of the debtors' bar, the Request for Order Authorizing Loss Mitigation/Mortgage Modification event is now available for use in chapter 7 cases (Judge Duncan and Judge Burris cases only).  The event may be used one time only, and can only be filed once the chapter 7 trustee has filed a report of no distribution or a report of abandonment of the specific property on which the debtor intends to pursue loss mitigation.  A copy of the resulting order is available here.  Note that the chapter 7 order provides that “the issuance of this order does not extend any time period or deadline in this case.” Additionally, the language of the Request for Order Authorizing Loss Mitigation/Mortgage Modification in Judge Duncan and Judge Burris chapter 13 cases has changed slightly to conform to the language of the chapter 7 order and to provide clarity.  The title of the Order has changed from "Order Authorizing Loss Mitigation/Mediation" to "Order Authorizing Loss Mitigation/Mortgage Modification", and the second sentence of the order has been revised to add "at their discretion" after "Debtor(s) and Creditor", reflecting that although the stay is lifted to allow the parties to engage in loss mitigation, doing so  is within the discretion of the parties.  A copy of the revised order is available here.

The judges and staff of the United States Bankruptcy Court extend congratulations and best wishes to Judge John E. Waites on his induction as a Fellow of the American College of Bankruptcy in a ceremony held today. Judge Waites is the first Bankruptcy Judge in South Carolina to be awarded this honor.  The American College of Bankruptcy is an honorary association of bankruptcy and insolvency professionals whose fellows include bankruptcy judges, attorneys, and other practitioners in the bankruptcy and insolvency community.  Those selected as Fellows demonstrate the highest standards of professionalism, ethics, character, integrity, professional expertise, leadership, and scholarship contributing to the enhancement of the insolvency field.