A bankruptcy court rejected the tax lender’s challenge to the district’s Mandatory Form Chapter 13 Plan where it found the lender, whose claim would be fully paid through that plan, simply did “not want this Court’s oversight in approving claims for reimbursement for any post-petition expense charges.” In re Martin, No. 22-30148 (Bankr. S.D. Tex. […]
Author Archives: NCBRC
Pawn Contract Disavowing Bankruptcy Intent Is Enforceable
November 14, 2022 – 9:04 pm
A pawn agreement requiring the borrower to affirm that she was not in bankruptcy and did not intend to file for bankruptcy was not unenforceable as against public policy because the agreement did not commit the borrower to an agreement not to file for bankruptcy at a later date. TitleMax v. Roby, No. 21-630 (M.D. […]
Post-petition Appreciation Not Part of Chapter 13 Estate
November 11, 2022 – 6:13 pm
The “estate termination theory” allows the debtors to retain proceeds from the post-confirmation sale of prepetition property, where the value of the property appreciated and was sold after the property had revested in the debtors. In re Klein, No. 17-19106 (Bankr. D. Colo. Aug. 23, 2022).
Absent Objection 100% FMV Exemption May Exceed Statutory Cap
November 8, 2022 – 6:00 pm
A claimed exemption for 100% of FMV is allowed when no party in interest objects despite the fact that once the property appreciated post-petition, the exemption was greater than the statutory limit. Masingale v. Munding (In re Masingale), No. 22-1016 (B.A.P. 9th Cir. Nov. 2, 2022).
Plan’s Discriminatory Treatment of Student Lender not Unfair
November 3, 2022 – 7:14 pm
Two chapter 13 plans providing for maintenance of the debtors’ student loans outside the plan satisfied section 1325(b)(1)(A)’s requirement that claims be paid at 100%, and did not unfairly discriminate against the class of student lenders even though they would receive smaller monthly payments than other unsecured claims and not be fully paid at the […]
No D/C of Post-D/C Transaction Based on Pre-Bankruptcy Guaranty
November 2, 2022 – 1:18 pm
A post-discharge liability arising out of pre-petition personal guaranty was not discharged in the debtors’ bankruptcy where the debt was based on transactions occurring four years after the debtors received their discharge. Reinhart Foodservice, LLC v. Schlundt, No. 21-1027 (E.D. Wisc. Oct. 27, 2022).
Statutory vs. Judicial Lien
October 28, 2022 – 1:08 pm
Where the state workers’ compensation procedure involves quasi-judicial steps including the right to notice, an opportunity to be heard, and the right to appeal an unfavorable decision, a lien arising out of that process is “judicial” rather than “statutory.” In re Shippy, No. 22-40706 (Bankr. W.D. Wash. Oct. 24, 2022).
Sixth Circuit All But Eliminates Defense to Judicial Estoppel
October 26, 2022 – 3:18 pm
Stating that it “is always in a Chapter 13 petitioner’s interest to minimize income and assets,” and speculating that “had the bankruptcy court and Stanley’s creditors known about [his civil] claim, the outcome of Stanley’s bankruptcy petition could have been less favorable to Stanley,” the Sixth Circuit all but eliminated a bankruptcy debtor’s defense against […]
Bifurcated Fee Agreement Violates Rules
October 24, 2022 – 7:13 pm
A prepetition fee agreement where the debtor agreed to have the law firm pay the filing fee postpetition at which time the debtor would reimburse the firm, was unenforceable in that it was predicated on ignoring Bankruptcy Rule 1006(a) which requires the fee to be paid when the petition is filed. In re Digregorio, No. […]
Tax Debt Strict Foreclosures as Takings Clause Violations
October 19, 2022 – 5:15 pm
Does a state law permitting the government to take and sell a debtor’s home to satisfy a tax debt, and keep the surplus value as a windfall, violate the Takings Clause? That is the question before the Supreme Court in two separate cert. petitions. Fair v. Continental Resources, No. 22-160 (filed Aug. 19, 2022) and […]
