A debt-buyer was out of luck when he could not establish the chain of title between himself and the original lender. Marx v. DeConne (In re DeConne), No. 15-175 (S.D. N.Y. Sept. 2, 2015). [Read more…] about Broken Chain of Title and Disallowed Claims
Debtor May Not Compel Sale of Property under Section 363(h)
A chapter 13 debtor does not have the authority under section 363(h) to sell estate property free and clear of a co-owner’s interest. Kao v. Kelly (In re Kao), No. 15-31193, Adv. Pro. 15-3114 (Bankr. S.D. Tex. July 7, 2015). [Read more…] about Debtor May Not Compel Sale of Property under Section 363(h)
Post-Discharge Agreement to Pay Unenforceable
A post-discharge debt repayment agreement violated the discharge injunction because it was neither voluntary nor supported by new considerations. Venture Bank v. Lapides, No. 14-3085 (8th Cir. Aug. 25, 2015).
[Read more…] about Post-Discharge Agreement to Pay Unenforceable
Court Denies Bank’s Motion to Reopen and Compel Surrender
Bank of America’s failure to provide the debtor with a written reaffirmation agreement during the pendency of her bankruptcy led the court to deny its motion to reopen and compel surrender. In re Rodriguez, No. 12-12043 (Bankr. S.D. Fla. Aug. 12, 2015). [Read more…] about Court Denies Bank’s Motion to Reopen and Compel Surrender
Harris Precludes Attorney Fee Payments Out of Undisbursed Funds
In two cases involving the courts’ practice of permitting the Chapter 13 trustee to distribute undisbursed funds to creditors upon conversion to Chapter 7, the courts found that Harris v. Viegelahn, 575 U.S. ___, 135 S.Ct. 1829 (2015), dictated a different result, even concerning the debtor’s Chapter 13 attorney fees and without regard to whether the case was converted before confirmation of the plan. In re Beauregard, No. 11-13069, consolidated with, In re Rule-Osburn, No. 14-13624, In re Montano, No. 14-12950 (Bankr. N. M. July 10, 2015); In re Sowell, No. 14-44130 (Bankr. D. Minn. Aug. 7, 2015). [Read more…] about Harris Precludes Attorney Fee Payments Out of Undisbursed Funds
Debtors’ Failure to Mitigate Dooms Contempt Action
Debtors’ failure to prove actual damages, in addition to an apparently deliberate failure to mitigate damages deprived them of an award of sanctions without regard to whether Solutions Finance willfully violated the stay. In re Phillips, No. 15-30632 (Bankr. E.D. Tenn. July 13, 2015). [Read more…] about Debtors’ Failure to Mitigate Dooms Contempt Action
Sale of Assets Results in Disposable Income
Gliding over the crucial question of whether the sale of an asset results in income, a Florida bankruptcy court ordered the debtors, Mr. and Mrs. McMillan, to distribute a portion of their sale proceeds to their creditors as disposable income. In re McMillan, No. 11-5348 (Bankr. M.D. Fla. July 2, 2015). [Read more…] about Sale of Assets Results in Disposable Income
Trustee’s Valuation of Unresolved Pre-Petition Cause of Action Rejected
A bankruptcy court rejected a Chapter 13 trustee’s valuation of the debtor’s pre-petition cause of action and found that an estimated value of the state court case should not be included in the plan distributions but that the plan may be modified if the debtor obtains a money judgment during the commitment period. In re Morales, No. 12-7296 (Bankr. P.R. July 2, 2015). [Read more…] about Trustee’s Valuation of Unresolved Pre-Petition Cause of Action Rejected
Chapter 7 Trustee Fee Application Denied
Where the Chapter 7 trustee did not make distributions or turn over any money to parties in interest he cannot recover fees for time spent before conversion to Chapter 13. In re Mingledorff, No. 12-41543 (Bankr. S.D. Ga. June 23, 2015). [Read more…] about Chapter 7 Trustee Fee Application Denied
Amici NCLC and NACBA Argue Brunner Test Outdated
NCLC and NACBA filed a joint amicus brief in the First Circuit Court of Appeals seeking to lessen the burden on debtors trying to discharge student loans based on undue hardship. Murphy v. U.S. Dept. of Educ., No. 14-1691 (filed July 29, 2015). [Read more…] about Amici NCLC and NACBA Argue Brunner Test Outdated