Three recent cases involve sanctions for violation of the discharge injunction by a creditor filing suit in state court over a debt discharged in bankruptcy. King v. Williams (In re King), No. 12-3701 (8th Cir. March 5, 2014); In re Gracia, No. 13-1373 (B.A.P. 9th Cir. April 4, 2014); In re Hopkins, No. 09-5835 (Bankr. S.D. Ia. April 1, 2014). [Read more…] about Three Cases of Discharge Injunction Violations
Competing Equities Must Be Considered in Claims Allowance Process
Under the claims allowance process, a bankruptcy court must consider competing equities even where the mortgage is “inoperative” under state law. GMAC Mortgage v. Orcutt, No. 13-82 and 13-83 (D. Vt. Feb. 28, 2014). [Read more…] about Competing Equities Must Be Considered in Claims Allowance Process
Certiorari Denied in Lien Strip Case
The Supreme Court denied cert. in the lien strip case of Bank of America v. Sinkfield, No. 13-700, involving the issue of whether section 506(d) permits the strip off of a wholly unsecured lien in chapter 7. [Read more…] about Certiorari Denied in Lien Strip Case
Applicable Commitment Period Applies where No Disposable Income
Adding to a growing trend among the circuits courts, the Fourth Circuit found that above-median debtors with negative disposable income must commit to a 60 month plan under section 1325(b)(1). Pliler v. Stearns (In re Pliler), No. 13-1445 (4th Cir. March 28, 2014), on direct appeal from, In re Pliler, 487 B.R. 682 (Bankr. E.D. N.C. Feb. 21, 2013). [Read more…] about Applicable Commitment Period Applies where No Disposable Income
Broken Chain of Title Defeats Creditor’s Claim
A broken chain of title defeated a bank’s right to enforce the Note and mortgage for debtors’ residence. In re Dorsey, No. 13-8036 (B.A.P. 6th Cir. March 7, 2014). [Read more…] about Broken Chain of Title Defeats Creditor’s Claim
A Couple Cases Concerning Child Care and Confirmation
The expense of the debtor/father’s involvement in scout camp was found not deductible as a necessary expense for the support of the debtors’ dependents. In re Knorr, No. 12-3704, 2013 WL 5550209 (Bankr. M.D. Pa. 2013). [Read more…] about A Couple Cases Concerning Child Care and Confirmation
Effect of Foreclosure Sale on Right to Cure and Maintain
A couple recent cases deal with application of the automatic stay when the debtor files his bankruptcy petition in the no-man’s-land between a foreclosure sale and the legal transfer of title through recordation. TD Bank v. LaPointe, No. 13-29 (B.A.P. 1st Cir. Feb. 24, 2014) and In re Comer, No. 13-12148 (Bankr. E.D. Tenn. March 10, 2014). [Read more…] about Effect of Foreclosure Sale on Right to Cure and Maintain
NACBA Files Amicus on Rolled Over Annuity
The NACBA membership has filed an amicus brief in the Eighth Circuit case of Running v. Miller (In re Miller), No. 13-3682, arguing that the debtor’s single premium annuity funded by a rolled over tax exempt IRA qualifies as an individual retirement annuity that is subject to exemption in bankruptcy under section 522(b)(3)(C). [Read more…] about NACBA Files Amicus on Rolled Over Annuity
Two Cases on Late-Filed Tax Returns – McCoy Limps On
One step forward, two steps back. Two courts out of Massachusetts reached opposite conclusions on the issue of whether a late-filed tax return may be discharged in bankruptcy. Although both courts ostensibly relied on the same Massachusetts tax law, the issue ultimately came down to differing interpretation of language in BAPCPA. In a parenthetical that packs a punch, section 523(a)(*) defines a return as “a return that satisfies the requirements of applicable nonbankruptcy law (including applicable filing requirements).” The question before both courts was whether “applicable filing requirements” refers only to proper forms and documentation, or includes a timeliness factor. The BAP for the First Circuit found the former, Gonzalez v. Mass. Dept. of Rev., No. 13-26 (March 6, 2014), while a Massachusetts District Court found the latter, Perkins v. Mass. Dept. of Rev. (In re Perkins), No. 13-30107, consolidated with, Fahey v. Mass. Dept. of Rev. (In re Fahey), No. 13-11875 (D. Mass. March 7, 2014). [Read more…] about Two Cases on Late-Filed Tax Returns – McCoy Limps On
Bankruptcy Specific Exemption Triumphs Again
For the seventh time Kansas’s bankruptcy-specific exemption for earned income tax credit (EITC) has emerged unscathed from constitutional challenge. Williamson v. Murray (In re Murray), No. 13-34 and Williamson v. Beach (In re Beach) No. 13-37 (B.A.P. 10th Cir. March 4, 2014) (cases administratively merged). [Read more…] about Bankruptcy Specific Exemption Triumphs Again