Cases have been piling up in the Eleventh Circuit challenging that court’s position that a Chapter 7 debtor may strip a wholly unsecured lien. See In re Brown No. 13-14298 (lead case). But that court’s recent decision in Bank of Amer. v. Toledo-Cardona, No. 13-15855 (May 15, 2014) (relying on McNeal), and more significantly, its denial of petitions for rehearing and rehearing en banc in the case of McNeal v. GMAC Mortg., LLC, 735 F.3d 1263 (11th Cir. 2012) pet. den. (May 20, 2014), suggest that movement toward Supreme Court resolution may be in the offing. [Read more…] about Chapter 7 Lien Strip Issue in Eleventh Circuit Unclogged
Filing Fee Increase
The Judicial Conference of the United States has approved several bankruptcy-related fee increases starting on June 1, 2014. The new fees will be:
Chapter 7: $335 (up from $ 306)
Chapter 9: $1,717 (up from $1,213)
Chapter 11: $1,717 (up from $1,213)
Chapter 12: $275 (up from $246)
Chapter 13: $310 (up from $281)
Chapter 15: $1,717 (up from $1,213)
The last increase in filing fees was on November 1, 2011.
Trustee Stands in Shoes of Creditor upon Avoidance of Lien
In a methodical and thorough opinion, the First Circuit found that “preservation of a lien entitles a bankruptcy estate to the full value of the preserved lien–no more and no less.” Under this principle, the court found that the trustee did not have the power to sell the debtor’s homestead where the trustee avoided the primary lien on the residence but the debtor was current on the mortgage, and her homestead exemption exceeded the value of the property. DeGiacomo v. Traverse (In re Traverse), No. 13-9002 (1st Cir. May 23, 2014). [Read more…] about Trustee Stands in Shoes of Creditor upon Avoidance of Lien
Petition for Cert. On Appealability of Confirmation Denial
The issue of whether denial of confirmation is a final, appealable order has made its way to the Supreme Court in a petition for certiorari filed by the debtors. Gordon v. Bank of Amer., S. Ct. No. ____ (filed May 22, 2014). [Read more…] about Petition for Cert. On Appealability of Confirmation Denial
Same-Sex Couple May File as Joint Debtors
The debtors, a same-sex couple, were legally married in Iowa but lived and filed for Chapter 13 bankruptcy as joint debtors in Wisconsin. Creditor, Seaway Bank, moved to dismiss or, in the alternative, to bifurcate the bankruptcy petition. Finding that a federal bankruptcy court must recognize the validity of a marriage that was legal in the state in which it took place, the court denied Seaway’s motion. In re Matson, No. 13-35361 (Bankr. E.D. Wisc. Apr. 29, 2014). [Read more…] about Same-Sex Couple May File as Joint Debtors
Tax Liability Nondischargeable Where Returns Filed Post-Assessment
Massachusetts law treats post-assessment, late-filed tax returns as “abatement applications” and, therefore, any tax liability based on those documents is nondischargeable. Pendergast v. Mass. Dept. of Rev. (In re Pendergast), No. 13-32 and Wood v. Mass. Dept of Rev. (In re Wood), No. 13-058 (B.A.P. 1st Cir. May 2, 2014). [Read more…] about Tax Liability Nondischargeable Where Returns Filed Post-Assessment
Denial of Confirmation Not Final, Appealable, Order
Where the debtor is free to propose an amended plan, the First Circuit found that denial of confirmation is not a final appealable order. Bullard v. Hyde Park Savings Bank, No. 13-9009 (May 14, 2014). [Read more…] about Denial of Confirmation Not Final, Appealable, Order
Undistributed Funds Returned to Debtor upon Dismissal
When a Chapter 13 case is dismissed, funds held by the trustee must be returned to the debtor. So said the district court in Williams v. Marshall (In re Williams), No. 13-2326 (N.D. Ill. Apr. 11, 2014). [Read more…] about Undistributed Funds Returned to Debtor upon Dismissal
Shortening Plan Duration without Decreasing Payment Amount Constitutes Modification
A proposed change to a confirmed Chapter 13 plan that would pay creditors the same amount owed through the confirmed plan over a shorter period of time constitutes a “modification” to which section 1329 applies. In re Refosco, No. 13-cv-01219 (W.D. Pa. April 9, 2014). [Read more…] about Shortening Plan Duration without Decreasing Payment Amount Constitutes Modification
No Older Vehicle Expense Deduction for Above-Median Debtors
An above-median debtor may not take the older vehicle expense deduction of $200.00 when calculating his projected disposable income. In re Luedtke, No. 13-1313 (B.A.P. 9th Cir. April 9, 2014). [Read more…] about No Older Vehicle Expense Deduction for Above-Median Debtors