About Me
“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”
Central Islip Bankruptcy Court & Judges
Brooklyn Bankruptcy Judge Milton E. Milton will be interred in St. Patricks Cemetery in Huntington. I took this image of my son, Max, there, several years ago.
Written by Craig D. Robins, Esq.
Judge Milton Funeral Information
The following is the latest information about the funeral service and visitation arrangements for the Honorable Judge Dennis E. Milton who passed away on May 31, 2010.
Obituary: Please see: Brooklyn Bankruptcy Judge Dennis E. Milton Passes Away
Home: Greenlawn, NY
Date of Death: May 31, 2010
Age: 59
Birthdate: March 15, 1951
Place of Birth: Staten Island, NY
Service Information: Saturday, June 19, 2010; St. Patricks Church, Huntington, NY
Visitation: M. A. Connell Funeral Home Inc., Huntington Station, NY
Thursday, June 17, 2010 7-9
Friday, June 18, 2010 7-9
Interment: St. Patricks Cemetery, Huntington, NY
Want to Be a Bankruptcy Judge?
Posted on
Bankruptcy Judge Position Available
Written by Craig D. Robins, Esq.
From time to time bankruptcy judgeships open up around the country for various reasons.
A judge may retire or sadly, as was the case with the late Judge Dennis E. Milton, a judge may pass away, leaving a vacant bench that must be filled. [Click here to see the Bankruptcy Judge Dennis E. Milton obituary that I wrote last week].
Bankruptcy judgeships may also open if Congress passes the Bankruptcy Judgeship Act of 2010, which I also wrote about last week: Pay a Buck — Get a Bankruptcy Judge .
I just received an e-mail about an opening in the Ninth Circuit for a bankruptcy judgeship in the Western District of Washington — Seattle.
Since most bankruptcy practitioners are curious about what’s involved with applying for a bankruptcy judgeship, even if they have no plans to do so, here’s some information:
How Far in Advance do Bankruptcy Judgeships Become Available?
The selection process usually takes a good 10 months to complete. The open position in Seattle is not available until January 2011.
How Long is the Term?
A bankruptcy judge is appointed to a term of 14 years which is renewable, subject to applicable reappointment procedures.
How Much is the Current Salary for a Bankruptcy Judge?
The current salary is $160,080 per year. If you are applying from here in New York, and are accepted, you will not get any relocation expenses.
I wrote a more detailed post last year: How Much Do Long Island Bankruptcy Judges Earn?
What is the Selection Process Like for Bankruptcy Judges?
It is open and very competitive. I wrote about this last year — How Are Long Island Bankruptcy Judges Appointed?
Basically, all applications are screened by a local Merit Screening Committee which then selects a limited number of judicial candidates for interviews. The committee also contacts references.
From this initial group, the Committee narrows down the applicants who then receive a further interview by a new committee composed of Circuit Judges. The judges then submit their recommendation to the Court of Appeals.
What Are the Basic Qualifications for a Bankruptcy Judge?
Applicants must be admitted to practice before the highest court of at least one state, be a member of good standing in every bar in which they are a member of, and have at least five years of legal practice experience.
What Checks to Bankruptcy Judge Applicants Go Through?
Nominated applicants must undergo both FBI and IRS background investigations prior to appointment.
Are You Actually Interested?
If so, contact the Ninth Circuit official website for more information. The deadline is August 5, 2010. Incidentally, there is also a judical bankruptcy opportunity in the Central District of California — Los Angeles — but the deadline is June 17, 2010.
Written by Craig D. Robins, Esq.
Brooklyn Bankruptcy Court Judge Dennis E. Milton passed away May 31, 2010
UPDATE: Click here for Bankruptcy Judge Dennis E. Milton Funeral Service Information
Last night, Judge Milton passed away. He had been battling cancer for several years. He had served as a bankruptcy judge in the Eastern District of New York, in the Brooklyn Bankruptcy Court.
Upon recently becoming unable to continue regularly appear on the bench, visiting Judge Joel B. Rosenthal was recalled to serve in his place. Judge Rosenthal has been sitting in Brooklyn since May 17, 2010 and, for now, will continue to do so until September 3, 2010.
Judge Dennis E. Milton became a bankruptcy judge on April 30, 2001. Before his appointment, he practiced for more than 25 years as a litigator in a broad variety of areas, which included criminal defense, criminal prosecution, municipal law, bankruptcy, intellectual property and labor law.
Judge Milton attended Regis High School in New York City, Columbia College and the Fordham University School of Law, where he served as Notes Editor on the Urban Law Journal.
After graduating law school, Judge Milton joined the white collar criminal defense firm of McGuire & Lawler, which was counsel in many prominent cases, including the successful defense of two Warner-Lambert executives following an explosion at the American Chicle facility in Long Island City in 1977 and the representation of the co-defendant in the Reverend Moon federal tax evasion trial and appeal.
Thereafter, Judge Milton served as an Assistant United States Attorney for the Eastern District of New York, where he was one of the three attorneys who founded the Long Island satellite office in 1985.
As an Assistant United States Attorney in the Criminal Division, Judge Milton obtained the indictment, extradition and conviction of defense contractors selling military helicopter parts to a European supplier for trans-shipment to Iran in violation of the Arms Export Control Act; and prosecuted matters such as tax evasion; bank frauds involving check kiting schemes, credit card fraud, false entries on bank records, money laundering, illegal transfers and sale of firearms; criminal trademark infringement; and crimes related to the obstruction of justice.
From 1988 through 1991, Judge Milton served as Chief Deputy County Attorney for the County of Suffolk Department of Law. Judge Milton was the chief administrative officer for an office consisting of 57 municipal attorneys and was the chief liaison officer with county agencies in contract, labor and tax matters. He argued several tax and bankruptcy appeals before the Second Circuit Court of Appeals, including In re Parr Meadows Racing Association, Inc. and was trial counsel in the defense of several federal civil rights cases. Judge Milton negotiated municipal contracts for county agencies, including a complete overhaul of the county health center hospital contracts.
In 1992, Judge Milton became Special Counsel to Bryan Levitin Franzino & Rosenberg. Judge Milton represented commercial clients as plaintiffs in commercial mortgage foreclosure proceedings and related litigation in bankruptcy court and in enforcement of contractual obligations in federal court. In criminal matters, Judge Milton represented professionals and business executives in federal and state investigations, as well as defendants in federal and state courts. From November 1996 to his appointment, Judge Milton served as Special Counsel to the Chief Investigator of the Independent Review Board, which oversees the International Brotherhood of Teamsters pursuant to a Consent Order entered in the Southern District.
Written by Craig D. Robins, Esq.
One Long Island Bankruptcy Judge Permits Cram-Down; Two Do Not
Several months ago I was excited to report that Central Islip Bankruptcy Judge Dorothy T. Eisenberg issued a decision permitting a Chapter 7 debtor to cram-down a second mortgage. (See my December Suffolk Lawyer article, “Chapter 7 Cram-Down of Second Mortgages”.)
That decision was very newsworthy, as it permitted homeowners whose homes were underwater to “strip-off” and remove a wholly-unsecured second mortgage.
However, we have since heard from our two other Long Island Bankruptcy Court judges.
Judge Eisenberg Permits Chapter 7 Cram-down
The decision granting this relief was In re Lavelle, No. 09-72389-478, 2009 WL 4043089 (E.D.N.Y. November 25, 2009). In that case, Judge Eisenberg determined that a Chapter 7 debtor may avoid a subordinate mortgage lien if that lien is wholly unsecured, based on an analysis of Bankruptcy Code section 506.
Judge Eisenberg, in her decision, also commented on the seminal Supreme Court case of Dewsnup v. Timm, 502 U.S. 410 (1992), stating that she found no authority in it that prevents a Chapter 7 debtor from cramming down a second mortgage in a Chapter 7 case.
The Distinction Between ‘Strip-Down” and “Strip-Off”
Judge Eisenberg focused a large part of her decision on Dewsnup which held that a Chapter 7 debtor may not “strip down” a first mortgage to the fair market value of the property. However, she pointed out that there is a difference between “stripping down” a mortgage and “stripping off” a mortgage.
Stripping-down refers to removing that portion of a mortgage that is unsecured, which is done pursuant to § 506. On the other hand, “stripping off” is essentially cramming down a mortgage, which means removing its lien status altogether. She determined that stripping-off was permissible in Chapter 7 cases.
Our Two Other Bankruptcy Judges Have Since Held Differently
Once Judge Eisenberg released the Lavelle decision, the Long Island bankruptcy bar was abuzz about the possibility of being able to cram-down undersecured second mortgages for their Chapter 7 debtor clients. However, there was no guarantee that our other two bankruptcy judges would follow Lavelle. Now we know that they will not.
Judge Grossman Denies Cram-down
Just last month, Judge Robert E. Grossman issued a decision in a case involving a somewhat similar set of facts and denied the debtor’s application to cram-down and strip-off the second mortgage – even though the mortgage lender defaulted and failed to file any response whatsoever. In re Pomilio, —B.R.—, No. 09-72389-reg, 2010 WL 681300 (E.D.N.Y. February 23, 2010).
Judge Grossman discussed Judge Eisenberg’s Lavelle decision, stating that she set forth a “well reasoned argument which finds support in a number of scholarly articles.” However, he felt constrained to apply her argument to the facts of his case.
In Pomilio, Judge Grossman began his analysis with Bankruptcy Code Sections 506(a) and (d), and the Supreme Court’s holding in Dewsnup, that a Chapter 7 debtor cannot bifurcate a secured creditor’s claim into a secured claim to the extent of the fair market value of the subject real property, and an unsecured claim for the remaining balance
He reached a different conclusion than Judge Eisenberg, determining that the “stripping down” process was simply not available to a Chapter 7 debtor.
Judge Trust Adopts Judge Grossman’s Position Denying Cram-down
Last week, Judge Alan S. Trust issued the Caliguri decision in which he expressed his position against Chapter 7 cram-downs. In re Caliguri, No. 09-75657-ast, slip op. (E.D.N.Y. March 16, 2010). In that decision, Judge Trust referred to both the Lavelle and Pomilio decisions and stated, “This Court adopts the analysis in Pomilio and concludes that a Chapter 7 debtor may not avoid the lien of a wholly undersecured, consensual mortgage lien holder.”
Judge Trust pointed out that post-Dewsnup courts have generally interpreted Dewsnup to prohibit Chapter 7 debtors from avoiding (stripping off) liens which are wholly undersecured for the same reasons that a Chapter 7 debtor may not reduce a secured mortgage claim to the fair market value of the property.
He further pointed out that such a reading of Dewsnup is a proper and consistent application of Section 506.
Practical Tips
Practical Tips
A debtor has a one in three chance of having his or her case land in Judge Eisenberg’s Court, in which event, the debtor will likely be able to successfully bring a Chapter 7 cram-down proceeding. If the case is pending before Judges Trust or Grossman, their position is clear that the debtor cannot.
However, at some point down the road, there will certainly be a higher court decision establishing the issue for sure, at which point all of our judges will be obligated to follow it.
Get Copies of Bankruptcy Decisions Reported in this Article
Check back to view this post in a few days and I will have copies of the Long Island Bankruptcy Court decisions that I cited in this post.
About the Author. Long Island Bankruptcy Attorney Craig D. Robins, Esq., is a regular columnist for the Suffolk Lawyer, the official publication of the Suffolk County Bar Association in New York. This article appeared in the APRIL 2010 issue of the Suffolk Lawyer. Mr. Robins is a bankruptcy lawyer who has represented thousands of consumer and business clients during the past twenty years. He has offices in Patchogue, Commack, West Babylon, Coram, Woodbury and Valley Stream. (516) 496-0800. For information about filing bankruptcy on Long Island, please visit his Bankruptcy web site: http://www.BankruptcyCanHelp.com.
Written by Craig D. Robins, Esq.Can a Judge Who Writes Sophisticated Bankruptcy Decisions, Pen Witty Song Lyrics?
You Betcha !!!
The Bankruptcy Bill Song Contest has announced its winner. First place goes to our very own Long Island Bankruptcy Court Judge Alan S. Trust.
Judge Trust’s Song Recalls His Days in Texas
The Judge’s entry, “Debts in Wrong Places,” is a humorous take-off of Garth Brooks’ country music hit song, “Friends in Low Places” — certainly a popular song in Texas, where Judge Trust practiced before ascending to the bench here in the Eastern District of New York.
Steven Horowitz and Gideon Kendall, creators of the Bankruptcy Bill cartoon strip, sponsored the contest and came up with a great new cartoon featuring the comic likeness of Judge Trust that you absolutely must see!!! Click this link to see this new comic strip: Bankruptcy Bill Song Contest Cartoon.
My Wife Had to Enter the Contest, too
When I had told my wife, Arlene, of the contest last fall, she said she had to enter — just to poke fun at me. Her song, “A Bankruptcy Wife’s Lament,” is about a bankruptcy attorney who is so busy that he ignores his wife and family (me???).
Her song won second place! It is a hilarious take-off on “Sunrise Sunset” from Fiddler on the Roof.
My song, “Debt Free Girl,” a take-off on Billy Joel’s hit, “Uptown Girl,”didn’t win a prize, but I still think it’s great fun in any event.
I created the photo illustration from a photo I took of Judge Trust several weeks ago at a bankruptcy seminar.
Written by Craig D. Robins, Esq.Our very own bankruptcy judge from Long Island, Alan S. Trust, sitting in the Central Islip Bankruptcy Courthouse in the Eastern District of New York, has entered the Bankruptcy Bill Song Contest.
His song is one of nine in the song competition which also includes songs by my wife, Arlene, about being neglected by a hard-working bankruptcy attorney (A Bankruptcy Wife’s Lament), and by me (Debt-Free Girl) about a debt-free girl whose bankruptcy man has eliminated her debts.
Judge Trust, who usually tries to inflect his courtroom proceedings with subtle humour, poked great fun at the means test.
To get the tune in your head, click on this link to see a version of Friends in Low Places on Youtube.
“DEBTS IN WRONG PLACES”
(To the tune of “Friends in Low Places,” with apologies to Garth Brooks)
To see the actual lyrics, please visit the Bankruptcy Bill site by clicking this link: “Debts in Wrong Places”
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Written by Craig D. Robins, Esq.Everyone these days is Googling everyone else. Many of my Long Island bankruptcy clients have commented to me that they have searched the internet for information about their bankruptcy judge and trustee.
People want to know about the judges and trustees they have to appear before. Often a debtor wants to know more about their trustee after having interacted with him or her for the first time at the meeting of creditors. Sometimes colleagues who do not regularly practice in the Central Islip Bankruptcy Court contact me to inquire about what I know of a certain judge or trustee.
And even those who regularly practice in our court are curious about the backgrounds of those they regularly appear before. Some of my readers have suggested that I provide something along the line of biographies of those affiliated with the bankruptcy court.
I have therefore decided to post profiles of all of the key players in Central Islip Bankruptcy Matters — the trustees, the judges, and eventually, perhaps, some others.
The Central Islip Bankruptcy Court, which is one of the two bankruptcy courts in the Eastern District of New York, currently has a panel of nine chapter 7 trustees, two standing Chapter 13 trustees, and three bankruptcy judges.
I previously posted an article about Long Island Chapter 7 Bankruptcy Trustees which contained a list of all of the Chapter 7 trustees that are currently on the Chapter 7 panel for the Eastern District of New York and assigned to the Central Islip Bankruptcy Court, as well as those who are no longer on the Chapter 7 panel.
Most of the information I’ll be providing is public information and readily accessible to anyone willing to spend the time to do so. Obviously I don’t want to provide any sensitive personal information. However, I will try to offer some of my own opinions about each trustee I profile.
In addition, with each trustee, I will also post contact info such as their office address and phone number.
The first post will be about our senior-most Chapter 7 trustee, Ken Kirschenbaum, who has a particularly colorful background. All trustee profiles will be accessable on the page, Long Island Bankruptcy Trustee Profiles , which you can get to by clicking the link.
One final thing: lots of people Google me, too. So here’s the link to my bio — information about Craig D. Robins, Esq., Long Island Bankruptcy Attorney.
Written by Craig D. Robins, Esq.The Chief Judge of New York, Jonathon Lippman, announced today that he will be providing all New York State judges with an allowance of $10,000 in addition to their regular salary. This is a welcome addition considering that this is the 11th straight year that New York judges have not gotten a pay raise. However, this does not apply to Bankruptcy judges.
Bankruptcy judges, who are federal employees, have not gotten significant pay raises for quite some time as well. The current salary for a bankruptcy judge is $160,080, and this amount is set by Congress. The salary is actually based on 92% of the salary of a United States District Court judge, which is currently $174,000.
Incidentally, New York State Court judges in the Supreme Court currently have a salary of $136,700, and County District Court judges earn slightly less than that.
Many of the Long Island bankruptcy attorneys appearing before Judges Robert E. Grossman, Alan S. Trust, and Dorothy T. Eisenberg in the Central Islip Bankruptcy Court therefore earn more than the judge.
Although a judge’s salary, when compared to the typical salary of a Long Island resident, may seem pretty good, it is relatively less than what the judge can earn in private practice. This is the main reason why former Chief Bankruptcy Judge Melanie S. Cyganowski retired from the bench two years ago. (See the my interview of her: Chief Bankruptcy Judge Melanie Cyganowski Stepping Down )
For more information about the Central Islip Bankruptcy Court judges, please see my post: How Are Long Island Bankruptcy Judges Appointed?.
Written by Craig D. Robins, Esq.When I started my bankruptcy blog, I thought it would be a great idea to provide a summary of each new Chapter 11 bankruptcy case filed in Central Islip Bankruptcy Court, which is part of the United States Bankruptcy Court for the Eastern District of New York. I am proud to announce that I have begun to do this.
You will now be able to find information about all Chapter 11 cases filed in the Central Islip Bankruptcy Court after August 1, 2009 by reading posts in the Long Island Bankruptcy Blog. Most information is obtained from public documents filed in the bankruptcy case.
All Chapter 11 case information posts are in the category Chapter 11 Filings on Long Island .
Several weeks after the close of each month, I will also provide a monthly index of those Chapter 11 cases filed on Long Island the previous month.
Written by Craig D. Robins, Esq.The meeting of creditors is open to the public and anyone can attend — except one very important person — the bankruptcy judge assigned to the case.
You’d think that the bankruptcy judge might want to know what’s going on in the meeting of creditors, which is the informal hearing conducted by the trustee to examine the debtor. However, bankruptcy judges are barred by law from doing so.
This prohibition didn’t always exist. Our current bankruptcy code went into effect in 1979. Prior to that time, judges were able to attend the meeting of creditors. However, Congress thought it was necessary to prohibit judges from attending the meeting to avoid any bias.
Accordingly, Bankruptcy Code section 341(c) provides that “the court may not preside at, and may not attend, any meeting under this section.”
Although the meeting of creditors is held in the courthouse, it is not a court hearing and the trustee presiding over the meeting is not a judicial officer. Incidentally, in most Chapter 7 consumer cases, the debtor will never even appear before the judge assigned to the case and will never meet their judge.