In a succinct opinion acknowledging a split in the courts, the district court for the Southern District of Florida found that section 707(b)(1) applies to cases that are converted from chapter 13 to chapter 7. Pollitzer v. Gebhardt (In re Pollitzer), No. 15-20376 (S.D. Fla. March 23, 2016).
Sale to Vulture Fails Business Judgment Test
Comparing the potential purchaser to a vulture, a bankruptcy court disapproved a sale of estate property as not passing the business judgment test. In re Pervine, 2016 Bankr. LEXIS 712, No. 13-2289 (Bankr. E.D. N.C. March 7, 2016). [Read more…] about Sale to Vulture Fails Business Judgment Test
Obligations Under Condo Declaration Run with the Land
Obligations under a Condominium Association Declaration agreement run with the land and a condominium association may rent properties surrendered in bankruptcy and apply rent monies to pre-petition assessments without violating the discharge injunction. In re Montalvo, No. 10-8338 (Bankr. M.D. Fla. Feb. 25, 2016). [Read more…] about Obligations Under Condo Declaration Run with the Land
Eleventh Circuit Adds its Voice to Late-Filed Return Issue
The Eleventh Circuit applied the Beard test to the question of whether and when a late-filed tax return is a “return” for purposes of dischargeability. The court adopted the middle ground finding that timing is relevant to the issue of the debtor’s “honest and reasonable” attempt to comply with tax laws. Justice v. U.S.A., No. 15-10273 (11th Cir. March 30, 2016). [Read more…] about Eleventh Circuit Adds its Voice to Late-Filed Return Issue
Pay-to-Stay Debt Dischargeable
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).
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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