Effective immediately, PLG's Texas operations and the firm's bankruptcy operations will be led by Keena Newmark, Esq., who has joined the firm as Managing Attorney of Bankruptcy Operations. The new Dallas office is also home to additional attorney hires Julian Cotton, Esq. and Mary Vitarkas, Esq. Over the coming weeks, additional Texas staff hires will be announced. Also effective immediately is the promotion of Evan S. Singer, Esq. to Managing Attorney of Default Services, a newly created firm-wide role. Evan remains based out of the firm’s Atlanta, GA office and will work closely with Keena across the firm's practices, operations, client relations, and business development efforts. ​

​Effective October 1, 2018, Florida Senate Bill 220, also known as Fla. Stat. 702.12 went into effect. One of the purposes behind this law was to curb the abusive bankruptcy filings that hinder and delay foreclosure actions.  Per the statute,  a lienholder,  in an action to foreclose a mortgage, may submit any document the defendant filed under penalty of perjury in the defendant’s bankruptcy case for use as an admission by the defendant to show a rebuttable presumption that the defendant has waived any defense to the foreclosure.  The rebuttable presumption is created when a lienholder files evidence of the defendant’s intention to surrender the subject property, and a final order in the bankruptcy case which discharges the defendant’s debts or confirms the defendant’s repayment plan that provides for the surrender of the property.
 
This law reinforces the already favorable decisions from the bankruptcy courts in Florida that have held that a debtor who surrenders his/her property is unable to contest the foreclosure. To go further, the Eleventh Circuit has recently held that if an election of surrender is made, the debtor is unable to contest a subsequent foreclosure, even if the foreclosure has not yet occurred. In fact, the Bankruptcy Court for the Middle District of Florida found that a Chapter 13 debtor acted in bad faith by filing a Chapter 13 and seeking to treat the property when that same debtor had surrendered the property in a previous Chapter 7 and received a discharge. The Court found this to be an extension of a foreclosure defense and violated the requirements of surrender.
 
Moving forward, it is imperative that PLG clients are being proactive in the bankruptcy cases (Chapters 7 and 13) in order to ensure that the following occur:

1. Debtor selects an option on his/her Statement of Intention and performs that option (retain and pay not permissible in the Eleventh Circuit);
2. In the event that the Debtor does not perform his/her Statement of Intention, it is important that you consult with counsel immediately in order to discuss available options;
3. If the Debtor surrenders via a confirmed Chapter 13 Plan—the confirmation order may be used to halt any defenses to the foreclosure.

 
It is to PLG clients' advantage to obtain a declaration of surrender (even if the loan is current) in order to stop endless litigation in the foreclosure.