A reverse mortgage payable upon the pre-petition death of the borrower was modifiable under section 1322(c). In re Michaud, No. 14-23406 (Bankr. S.D. Fla. March 29, 2016). [Read more…] about Reverse Mortgage May Be Modified
Bleak House Comes to the Bankruptcy Court
In a scenario worthy of Dickens, a once-thriving family business, Ainsworth Feed Yards (AFY), was liquidated and distributed to creditors while the family members engaged in six years of legal battles with each other. In the Matter of Sears, 2016 Bankr. LEXIS 926, No. 10-40275 (Bankr. D. Neb. March 23, 2016). [Read more…] about Bleak House Comes to the Bankruptcy Court
Section 707(b) applies to Converted Case
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).
[Read more…] about Shielding Funds in Spouse’s Bank Account
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