Absent a statutory basis for doing so, a bankruptcy court may not deny a debtor’s homestead exemption based on bad faith or prejudice to creditors. Elliott v. Weil (In re Elliott), No. 14-1050, 14-1059 (consolidated) (B.A.P. 9th Cir. Dec. 10, 2014). [Read more…] about Homestead Exemption May Not Be Denied Based on Bad Faith, but . . .
Charitable Contribution in Excess of 15% Avoidable in its Entirety
In a sharply circumscribed opinion, the Tenth Circuit found that the trustee could avoid in their entirety charitable contributions in excess of 15% of the debtors’ gross annual income. Wadsworth v. The Word of Life Christian Center (In re McGough), No. 12-1142 (Dec. 16, 2013). [Read more…] about Charitable Contribution in Excess of 15% Avoidable in its Entirety
Debtor Not Responsible for Lender’s Rule 3002.1 Legal Fees
A bankruptcy court in Texas ruled that the legal fees incurred by a mortgage company in filing a Notice of Fees, Expenses, and Charges, could not be passed along to the debtor. In re Roife, No. 10-34070 (Bankr. S.D. Tex. Nov. 26, 2013). [Read more…] about Debtor Not Responsible for Lender’s Rule 3002.1 Legal Fees
Fifth Circuit Finds Defensive Appellate Rights Property of Estate
In a case of first impression, the Fifth Circuit Court of Appeals found that a chapter 7 debtor’s right to appeal a state court judgment against him was property of the estate that could be sold by the trustee. Croft v. Lowry (In re Croft), No. 13-50020 (Dec. 10, 2013). [Read more…] about Fifth Circuit Finds Defensive Appellate Rights Property of Estate
Good Faith in the Plan Modification Context
Two recent cases deal with the determination good faith in the context of a chapter 13 plan modification. In re Martin, No. 10-64790 (Bankr. N.D. Ohio November 27, 2013) and In re Maxwell, No. 11-17873 (Bankr. E.D. Cal. Nov. 8, 2013). [Read more…] about Good Faith in the Plan Modification Context
Supreme Court to Decide Inherited IRA Exemption Issue
In other Supreme Court news, the Court granted certiorari in the case of Clark v. Rameker (In re Clark), No. 13-299. In that case, the Seventh Circuit created a split in the circuits when it held that a debtor may not exempt her inherited IRA in bankruptcy. In re Clark, No. 12-1241 & 12-1255 (April 23, 2013). The Fifth Circuit had reached the opposite conclusion in Chilton v. Moser, 674 F.3d 486 (5th Cir. 2012). NCBRC will file an amicus brief on behalf of the NACBA membership in this important case.
Petition for Certiorari filed in Chapter 7 Lien Stripping Case
The issue of whether a wholly unsecured lien can be stripped off in chapter 7 bankruptcy was brought before the Supreme Court in a petition for certiorari filed on December 9, 2013, in the case of Bank of America v. Sinkfield. [Read more…] about Petition for Certiorari filed in Chapter 7 Lien Stripping Case
CFPB Takes Action Against Deferred-Interest Medical Credit Card
Following closely on the heels of the CFPB’s recent action against pay day lender Cash America, the CFPB has taken action against medical credit card company, CareCredit. CareCredit, a subsidiary of GE Capital Retail Bank, offers medical credit cards through over 175,000 offices of health care providers such as dentists and vision care professionals. In a consent order issued on December 10th, the CFPB ordered CareCredit to refund up to $34.1 million to more than one million patients who were deceptively enrolled for the medical credit card. [Read more…] about CFPB Takes Action Against Deferred-Interest Medical Credit Card
Private School Tuition Payments Not Constructively Fraudulent Conveyance
A New York bankruptcy court found that the chapter 7 trustee’s legal theory for recovery of private school tuition payments was “fundamentally flawed” and “at odds with common sense.” Getzler v. Xavierian High School (In re Okanmu), No. 11-43773, AP 13-01105, 13-01107 (Bankr. E.D. N.Y. Dec. 4, 2013). The trustee filed an adversary complaint seeking to avoid the debtors’ private school tuition payments for their minor children as constructively fraudulent transfers under sections 544 and 548(a)(1)(B). [Read more…] about Private School Tuition Payments Not Constructively Fraudulent Conveyance
California Law Precludes Claim of Nondischargeability
State law precluded a creditor’s claim of nondischargeability due to fraud in the case of Heritage Pac. Fin. v. Montano (In re Montano), __ B.R. __, 2013 W.L.5890681 (B.A.P. 9th Nov. 1, 2013). [Read more…] about California Law Precludes Claim of Nondischargeability