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
Supreme Court Finds that Court May Not Surcharge Homestead Exemption
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