In a unanimous decision authored by Justice Scalia, the Supreme Court found that a bankruptcy court may not surcharge the homestead exemption as a result of the debtor’s misconduct. Law v. Siegel (In re Law), No. 12-5196, 571 U.S. ___ (March 4, 2014). [Read more…] about Supreme Court Finds that Court May Not Surcharge Homestead Exemption
Property of Estate Includes Inheritance More Than 180 Days Post-Petition
The chapter 13 debtor inherited $30,000.00 from his mother more than 180 days post-petition but before the close of his chapter 13 case. When the debtor failed to turn over the inheritance for the benefit of creditors, the trustee moved to dismiss. Finding that section 1306(a)(1) brought the inheritance into the estate, the court granted the motion. The BAP for the Ninth Circuit agreed. Dale v. Maney (In re Dale), No. 13-1251 (B.A.P. 9th Cir. Feb. 5, 2014). [Read more…] about Property of Estate Includes Inheritance More Than 180 Days Post-Petition
Refusal to Transfer Title in Jeep is Stay Violation
The creditor violated the automatic stay by refusing to take the steps necessary to transfer title of the vehicle he had sold to the debtor prior to bankruptcy. Parker v. Smith (In re Parker), No. 12-1324, AP 13-32 (Bankr. S.D. Miss. Jan. 6, 2014). [Read more…] about Refusal to Transfer Title in Jeep is Stay Violation
Denial of Confirmation of Fee-Only Plan
The Eleventh Circuit upheld the lower court’s denial of confirmation in the debtor’s fee-only chapter 13 plan finding that it did not satisfy the good faith requirements of section 1325(a)(3) and (7). Brown v. Gore (In re Brown), No. 13-10260 (11th Cir. Feb. 14, 2014). [Read more…] about Denial of Confirmation of Fee-Only Plan
Failure to Report SS Award Results in Dismissal
A debtor must report a new award of social security benefits during the course of her chapter 13 plan without regard to whether that income can be used to fund the plan. In re Wheeler, No. 09-13597 (Bankr. N.D. Ind. Dec. 18, 2013). [Read more…] about Failure to Report SS Award Results in Dismissal
Court Defines “Residence” Generously for Exemption Purposes
In two cases out of North Carolina, the bankruptcy court interpreted the state definition of “residence” for exemption purposes. In re Davila, No. 13-3246 (Bankr. E.D. N.C. Jan. 30, 2014) and In re Whitney, No. 13-05671 (Bankr. E.D. N.C. Jan. 15, 2014). [Read more…] about Court Defines “Residence” Generously for Exemption Purposes
Court Rejects Proposed Order for Payment of Attorney Fees in Event of Dismissal
Language in a proposed order for attorney fees that, in the event of dismissal or conversion, the fees were to be paid out of undistributed funds held by the trustee was rejected by the bankruptcy court as unsupported by the Code. In re Weatherspoon, No. 11-46755 (Bankr. W.D. Wash. Jan. 3, 2014). [Read more…] about Court Rejects Proposed Order for Payment of Attorney Fees in Event of Dismissal
Chapter 13 Debtor May Exercise Trustee’s Avoidance Power
A chapter 13 debtor may exercise the trustee’s avoidance powers under section 544 if doing so will benefit the bankruptcy estate. In re Aiwohi, 13-90038 (Bankr. Haw. Jan. 31, 2014). [Read more…] about Chapter 13 Debtor May Exercise Trustee’s Avoidance Power
Carve-Out Agreement Does Not Go to Debtors’ Homestead Exemption
Funds paid to the chapter 7 trustee out of the sale of debtors’ homestead could not be exempted where the sale did not fully satisfy outstanding liens. Baldridge v. Ellmann (In re Baldridge), No. 13-1700 (6th Cir. Feb. 3, 2014) (per curiam). [Read more…] about Carve-Out Agreement Does Not Go to Debtors’ Homestead Exemption
SSA Setoff Not Recoverable under Section 553(b)
After paying disability (SSDI) benefits to the debtor, Damas, for several years the SSA determined that it had overpaid him by $13,478. It therefore began deducting $605 from his monthly benefit. When Damas filed for bankruptcy he sought to recover the amount the SSA had collected toward this debt during the ninety day period preceding the petition date. The court granted summary judgment in favor of the SSA. Damas v. U.S.A., No. 12-15313, A.P. 12-1331 (Bankr. D. Mass. Jan. 6, 2014). [Read more…] about SSA Setoff Not Recoverable under Section 553(b)