A debt owed to the county under a pay-to-stay incarceration cost recoupment program was held to be dischargeable under section 523(a)(7). County of Dakota v. Milan, No. 15-3034 (Bankr. D. Minn. March 1, 2016). [Read more…] about Pay-to-Stay Debt Dischargeable
Standing on Appeal, Redemption of Tax Sale Property, and More
The City of Philadelphia lacked standing to object to the debtor’s chapter 13 plan and lacked standing to appeal confirmation of the plan. City of Philadelphia v. Minor (In re Minor), No. 15-3562 (E.D. Pa. March 30, 2016). [Read more…] about Standing on Appeal, Redemption of Tax Sale Property, and More
Shielding Funds in Spouse’s Bank Account
Depositing paychecks into a non-debtor spouse’s bank account in order to shield the money from creditors constitutes a fraudulent transfer. Pearson v. Suiter (In re Suiter), No. 15-83, Adv. Proc. No. 15-90020 (Bankr. Haw. Feb. 16, 2016).
[Read more…] about Shielding Funds in Spouse’s Bank Account
Rule 60(b) Subject to Limitations in Bankruptcy
In the absence of fraud, court mistake of fact or clerical error, or due process violation, a bankruptcy court cannot revoke a confirmation order under Rule 60(b). Federal National Mortgage Ass’n v. Meeko, No. 15-1200 (D. Or. March 17, 2016). [Read more…] about Rule 60(b) Subject to Limitations in Bankruptcy
Debts for Newer High-Cost Vehicles Could Not Be Reaffirmed
The debtors failed to rebut the presumption of undue hardship in their motion to reaffirm two vehicle loans for newer, high-cost vehicles. In re Nielsen, 2016 Bankr. LEXIS 456, No. 15-1596 (Bankr. N.D. Iowa Feb. 12, 2016). [Read more…] about Debts for Newer High-Cost Vehicles Could Not Be Reaffirmed
Mere Delay without Prejudice Does Not Preclude Reopening
In the absence of evidence of prejudice, mere delay in moving to reopen is insufficient reason to deny the motion. In re Yonish, 15-8006 (B.A.P. 6th Cir. March 3, 2016). [Read more…] about Mere Delay without Prejudice Does Not Preclude Reopening
Kansas District Court Applies Brunner Test
The bankruptcy court failed to adequately consider all the relevant facts and circumstances when it granted discharge of the debtors’ student loan. Johnson v. ECMC, No. 15-2631 (D. Kans. March 2, 2016). [Read more…] about Kansas District Court Applies Brunner Test
Intent to Reside Necessary to California Homestead Exemption
California’s homestead exemption requires proof of intent to use the property as a residence rather than proof of actual occupancy, and a bankruptcy court must apply the state’s burden of proof when addressing a challenge to a state exemption. Diaz v. Kosmala (In re Diaz), No. 15-1219 (B.A.P. 9th Cir. March 11, 2016). [Read more…] about Intent to Reside Necessary to California Homestead Exemption
Chapter 7 Trustee Suspended
The Director of the Executive Office of the United States Trustee upheld the one-year suspension of a chapter 7 bankruptcy trustee for conduct in three separate 341 meetings that was egregiously aggressive, discourteous, and unprofessional. The trustee was also ordered to undergo diversity and sensitivity training. Final Agency Action 2015-0001 (March 4, 2016). [All identifying information was redacted from the decision]. The case was before the Director on appeal of a decision by the Regional United States Trustee issued September 10, 2014. [Read more…] about Chapter 7 Trustee Suspended
Same District, Same Day, Different Conclusions on Surrender Plus Vesting
Two bankruptcy courts in Massachusetts faced with objections to confirmation of plans that proposed the debtor’s surrender of residential property and vesting of title in that property in the mortgagee reached opposite conclusions. In re Brown, No. 14-12357 (Bankr. D. Mass. March 4, 2016). In re Tosi, No. 13-14017 (Bankr. D. Mass. March 4, 2016). [Read more…] about Same District, Same Day, Different Conclusions on Surrender Plus Vesting