The Fourth Circuit confirmed the chapter 13 debtor’s standing to pursue a pre-petition cause of action against his former employer. Wilson v. Dollar General Corp., No. 12-1573 (4th Cir. May 17, 2013).
Author Archives: NCBRC
Fourth Circuit Allows Chapter 20 Lien Strip
May 20, 2013 – 2:22 pm
The Fourth Circuit is the first circuit court to find that a debtor may strip a wholly unsecured lien in chapter 13 where no discharge is available. In re Davis, No. 12-1184 (May 10, 2013).
Two Courts Reject Narrow Parameters for Rule 3002.1
May 17, 2013 – 6:38 pm
A bankruptcy court in Illinois found that JP Morgan Chase violated Rule 3002.1 by raising the debtors’ mortgage payments without providing proper notification even though there was no mortgage arrearage being cured through the chapter 13 plan. In re Tollios, No. 09-19329 (Bankr. N.D. Ill. May 13, 2013). In the Eastern District of Kentucky, the [...]
Supreme Court Determines Scienter for Defalcation
May 14, 2013 – 3:46 pm
Debts for “defalcation” have been excepted from discharge for almost one hundred and fifty years, yet only now has the Supreme Court resolved the question of what mental state is required for an actor to commit defalcation within the meaning of section 523(a)(4). Bullock v. BankChampaign, 569 U. S. ____ (2013), No. 11-1518 (May 13, [...]
Creditor Must Return Repossessed Vehicle upon Bankruptcy Filing
May 13, 2013 – 1:25 pm
The Second Circuit upheld sanctions against vehicle loan creditor, SEFCU, for refusing to return debtor’s repossessed vehicle without a court order and adequate protection. Weber v. SEFCU, No. 12-1632 (May 8, 2013). SEFCU had lawfully repossessed the debtor’s pick-up truck pursuant to the loan agreement but when the debtor filed for bankruptcy SEFCU refused to [...]
Chapter 20 Lien Stripping Goes to Circuit
May 8, 2013 – 4:02 pm
The Ninth Circuit is poised to be the first circuit court to address the issue of whether a lien may be stripped in a “chapter 20” case where discharge is unavailable. The Western District of Washington recently found that lien stripping was not contingent upon the availability of discharge. Litton Loan v. Blendheim, No. 11-2004 [...]
No Presumption of Validity for Payment Changes under Rule 3002.1
May 6, 2013 – 2:11 pm
The bankruptcy court for the Northern District of Mississippi differentiated between the shifting burdens of proof under Rule 3001, which deals with proofs of claim generally, and Rule 3002.1, relating to notice of changes to mortgage payments on debtor’s residence. In re Taylor, No. 12-11463 (March 27, 2013).
Creditor Sanctioned to the Tune of $50,000.00
May 1, 2013 – 3:09 pm
In In re Powell, No. 10–03859 (Bankr. E.D. N.C. June 26, 2012), the court put a leash on the creditor’s dogged pursuit of the debtors. The court found that the creditor, Bank of America and its servicer, violated the discharge injunction and the automatic stay when it foreclosed on the debtors’ residence after they filed [...]
Seventh Circuit Deals a Blow to Debtors Who Inherit IRAs
April 29, 2013 – 10:14 pm
In a departure from the majority of courts, the Seventh Circuit has found that debtors cannot exempt inherited IRAs. In re Clark, No. 12-1241 & 12-1255 (April 23, 2013).
Acceleration Clause Clears Way for Modification
April 22, 2013 – 4:33 pm
A bankruptcy court in Maryland found that an acceleration clause in a deed of trust making the remaining debt immediately due, triggered the modification clause of section 1322(c)(2). Fed’l Nat’l Mtg. Ass’n v. Griffin (In re Griffin), No. 12-19863 (March 18, 2013).
