A Delaware Bankruptcy Judge took on the task of calculating the debtors’ mortgage payment history in the face of erroneous calculations by Ocwen Loan Servicing, LLC. Judge Shannon found that the debtors were current on their payments when Ocwen initiated foreclosure proceedings and that Ocwen’s errors forced the debtors into bankruptcy to save their home. Williams v. Ocwen, No. 13-12234 (Bankr. D. Del. July 18, 2014). [Read more…] about Ocwen’s Errors Force Debtors into Bankruptcy
Bankruptcy Court Takes Compassionate View of Default
The evidence showed that the debtors’ breach of contract and conversion of collateral was not willful and malicious for purposes of nondischargeability under section 523(a)(6). Mountain Am. Credit Union v. Trujillo (In re Trujillo), No. 13-12434, Adv. No. 13-1095 (Bankr. D. N.M. July 3, 2014). [Read more…] about Bankruptcy Court Takes Compassionate View of Default
Debt for Fees Related to Incarceration of Minor Not Dischargeable
A Bankruptcy Appellate Panel for the Ninth Circuit found that debt based on expenses incurred by the county juvenile justice system for the care of the debtor’s son while incarcerated is nondischargeable Rivera v. Orange County Probation Dept. (In re Rivera), No. 13-1476 (B.A.P. 9th Cir. June 4, 2014). [Read more…] about Debt for Fees Related to Incarceration of Minor Not Dischargeable
Child Support Properly Deducted from Means Test
The debtor properly excluded $400.00/month in child support payments from her calculation of disposable income despite deducting child care expenses elsewhere on the means test. Clark v. Brooks (In re Brooks), No. 14-1031 (C.D. Ill. July 21, 2014). [Read more…] about Child Support Properly Deducted from Means Test
Cybersquatting Judgment Results in Nondischargeable Debt
A million-dollar-plus district court judgment against the debtor for intentional trademark infringement and cybersquatting resulted in a nondischargeable debt in bankruptcy under section 523(a)(6). Nguyen v. Biondo (In re Biondo) No. 13-1612 (Bankr. S.D. Fla. June 13, 2014). [Read more…] about Cybersquatting Judgment Results in Nondischargeable Debt
No Compelled Title Transfer for Surrendered Property. But . . .
A debtor may not require a secured creditor to take title to surrendered property. However, the creditor’s failure to object to the transfer of title may be construed as acceptance of the deed. In re Rose, No. 12-40743 (Bankr. W. D. N.C. July 8, 2014). The issue came before the court on the debtors’ motion to quitclaim the deed to their residence to the mortgagee, Small Business Association (SBA). [Read more…] about No Compelled Title Transfer for Surrendered Property. But . . .
Inadvertence as Subjective/Objective Question in Judicial Estoppel Analysis
In the context of judicial estoppel, courts are divided on the issue of whether, for purposes of analyzing the defense of mistake or inadvertence, a plaintiff’s subjective intent matters. Several recent cases touch on this issue. [Read more…] about Inadvertence as Subjective/Objective Question in Judicial Estoppel Analysis
Debtors Enjoying Growing Consensus on Chapter 20 Lien Strip Cases
Following closely on the heels of the Eleventh Circuit decision in In re Scantling, the BAP for the Sixth Circuit held that chapter 20 debtors may strip liens despite the unavailability of discharge. In re Cain, No. 13-8045 (July 14, 2014). [Read more…] about Debtors Enjoying Growing Consensus on Chapter 20 Lien Strip Cases
Eviction Is Violation of Stay even after Pre-Petition Foreclosure Sale
A debtor’s possessory interest in property sold through foreclosure is sufficient to support a cause of action for violation of the automatic stay even though that interest may have been insufficient to withstand a motion for relief from stay. Eden Place v. Perl (In re Perl), No. 13-1328 (B.A.P. 9th Cir. May 30, 2014). [Read more…] about Eviction Is Violation of Stay even after Pre-Petition Foreclosure Sale
Filing of Stale Claims in Bankruptcy Violates FDCPA
Addressing what it termed a “deluge that has swept through U.S. bankruptcy courts,” the Eleventh Circuit took on the question of “whether a proof of claim to collect a stale debt in Chapter 13 bankruptcy violates the Fair Debt Collection Practices Act (“FDCPA” or “Act”). 15 U.S.C. §§ 1692−1692p (2006). Based on the broad language of the FDCPA, Eleventh Circuit precedent, and the record before it, the court found that it does. Crawford v. LVNV Funding, No. 13-12389 (11th Cir. July 10, 2014). [Read more…] about Filing of Stale Claims in Bankruptcy Violates FDCPA