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BANKRUPTCY & COMMERCIAL LAW FEATURE

loan litigation is not prolific, but we do handle may see someone from DC or directly from penalties, managing a docket of over 2000 cases
those adversary proceedings. Typically, you the federal agency. with a total liability of more than $900,000,000.
can expect to receive our answer, initial The best help our office can provide is AUSA Koch represents and defends the United
disclosures, and discovery before the initial sometimes just to get you connected to the right States of America in chapter 7, 11, 12, and 13
pretrial conference. We also try to work with person at the right place. And we are happy to bankruptcy cases and adversary proceedings.
debtors’ counsel to see if an income based do that — feel free to call us at (216) 622-3600. She also protects the interests of the United
repayment plan will benefit the debtor. Most 1 No, it’s not. At best, this is something of a roadmap. And I’m writing States in over 400 28 U.S.C. § 2410 foreclosure
of our student loan adversary proceedings are in my individual capacity because this is not an official statement cases in county Courts of Common Pleas
of the United States of America, the Department of Justice, or any
resolved short of trial. federal agency. The information contained herein is provided solely throughout the Northern District of Ohio.
While we defend the Department of for informational purposes and is intended to be used strictly as a
basis for discussion and education. It is not intended to be a complete
Education in adversaries, we prosecute overview of the subject matter, it is not legal advice, and it is does not Prior to joining the Office of the United States
on behalf of the Social Security represent any sort of attorney-client relationship. Should you be in Attorney, AUSA Koch was a partner in a
need of legal advice, consult a paid professional. I have now complied
Administration. The SSA will ask our office with my standards of conduct. Back up to the article we go. regional law firm with a diverse commercial
to file a complaint objecting to discharge 2 Attorney General of the United States, Main Justice Building, 10th & litigation and transactional practice focused
Constitution Avenue, N.W., Washington, D.C. 20530.
in the case of fraud. No special rules here, 3 Office of the United States Attorney, Attn: Bankruptcy Section, Carl on commercial reorganization and corporate
but the SSA complaints are generally pled B. Stokes United States Court House, 801 West Superior Avenue, restructuring. She frequently lectures and
Suite 400, Cleveland, Ohio 44113-1852. (the “Attn: Bankruptcy
with particularity and no real discovery is Section” is the important bit here). publishes on bankruptcy and insolvency topics.
needed. The SSA will negotiate with debtors She also deeply enjoys the treasures of Northeast
or debtors’ counsel to come to an agreement Ohio — hiking in the Cuyahoga Valley National
on overpayment cases. These cases are also Suzana K. Koch is an Assistant Park, rowing on the Cuyahoga River, admiring
usually resolved short of trial. United States Attorney in the the beauty on display at the Cleveland Museum
In the case of a criminal restitution Office of the United States of Art, golfing at Sleepy Hollow, and, best of
matter, the United States has a statutory Attorney for the Northern District all, sunsets over Lake Erie in late July. She
lien that arises upon pronouncement of a of Ohio. She practices in the has been a CMBA member since 2003. She
criminal judgment. For federal criminal Financial Litigation Unit where she is responsible can be reached at (216) 622-3600 or suzana.
fines and restitution, the United States will for the civil enforcement of criminal monetary koch@usdoj.gov.
file a notice of lien, but generally you won’t
see a proof of claim. Part of the reason for
that is jurisdictional — the Title 18 statutes
take precedence over the Bankruptcy
Code. The automatic stay does not apply
to the enforcement of criminal judgments
and collection activities. Restitution is not
dischargeable. We can negotiate payments
during a bankruptcy if it makes sense
for the debtor, but the debtor’s payment
history will be a relevant factor in any
negotiation. Good faith payments are
always helpful.
The Small Business Administration (SBA)
and the Department of Housing and Urban
Development (HUD) will file liens to protect
loans they may have made. Our office will
protect their interests in any lien litigation,
but those are not usually hotly contested.
Generally, lien-filing dates will determine
the validity, extent, and priority issues. Title
work always helps in these kinds of cases.
The Department of Agriculture (USDA) can
also fall into this bucket.
Chapter 11 cases are their own category.
If a federal agency has an interest in cash
collateral, you’ll want to negotiate a cash
collateral order. Depending on the agency,
you may need agency approval for a 363
sale. Our office may be involved, or you

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