Avoiding Mortgages: Not All Typos Are Fatal

Fuhrman v. Wilmington Sav. Fund Society FSB (In re Fuhrman), 596 B.R. 343 (Bankr. E.D. Mich. 2018) –

A chapter 13 debtor sought disallowance of a mortgage claim based on an error in the mortgage legal description. The lender moved to dismiss, and after that was denied, moved for summary judgment on the issue of whether it had a valid lien on and enforceable claim against the mortgaged property. Continue reading

Posted in Financing, Real Estate | Tagged , | Leave a comment

Order in Aid of Sale of a Business: Can the Court Enjoin a Debtor from Competing with the Purchaser?

Butler v. Wojtkun (In re Wojtkun), 596 B.R. 74 (D. Mass. 2019) –

To facilitate the sale of a debtor’s dental practice, a chapter 7 trustee sought issuance of a noncompetition injunction against the debtor. The bankruptcy court declined to issue an order, and the trustee appealed to the district court. Continue reading

Posted in Bankruptcy Sales | Tagged | Leave a comment

Debt Recharacterization, Etc.: Standing, Standing and More Standing

Elswick Co., LLC v. Comm2013 CCRE12 Crossings Mall Road LLC (In re Tara Retail Group, LLC), 595 B.R. 215 (Bankr. N.D. W.Va. 2018) –

An unsecured tenant creditor brought an adversary proceeding to recharacterize or equitably subordinate a $17 million claim filed by the assignee of a deed of trust. The secured creditor moved to dismiss for lack of standing. Continue reading

Posted in Financing | Tagged , | Leave a comment

Joint Tenants: The Case of The Disappearing Interest

Cohen v. Chernushin (In re Chernushin), 911 F.3d 1265 (10th Cir. 2018) –

After a debtor’s postpetition death, a chapter 7 trustee brought an adversary proceeding seeking to sell a second home that had been owned by the debtor and his nondebtor wife as joint tenants with right of survivorship. The wife objected arguing that the bankruptcy estate no longer had any interest in the property. The bankruptcy court ruled in favor of the wife; the district court agreed; and the chapter 7 trustee appealed to the 10th Circuit. Continue reading

Posted in Real Estate | Tagged , | Leave a comment

Landlord Bankruptcy: A Tenant Is Not Out of Options If the Landlord Rejects Its Lease

IDEA Boardwalk, LLC v. Revel Entertainment Group, LLC (In re Revel AC Inc.), 909 F.3d 597 (3rd Cir. 2018) –

A tenant that elected to retain its rights under a commercial lease after a debtor landlord rejected the lease sought clarification of its rights and moved for summary judgment. The bankruptcy court granted the motion in part; a purchaser of the leased property appealed; the district court affirmed; and the purchaser appealed again to the Third Circuit. Continue reading

Posted in Real Estate | Tagged | Leave a comment

Discharge of Debt: A Seller Relying on a Buyer’s Assumption of Debt May Be Out of Luck If the Buyer Files Bankruptcy

Recanati v. Roberts (In re Roberts), 594 B.R. 484 (Bankr. N.D. Fla. 2018) –

In connection with acquisition of a restaurant the debtor agreed to assume debts of the business. After the debtor filed a chapter 7 bankruptcy, the former owners sought to except this obligation from discharge. Continue reading

Posted in Financing | Tagged | Leave a comment

Avoiding Mortgages: What Happens When A Stranger to The Transaction Files a Discharge in Error?

Kelley v. Ocwen Loan Servicing, LLC (In re Bowers), 595 B.R. 869 (Bankr. M.D. Ga. 2018) –

A chapter 7 trustee sought to avoid a security deed based on the fact that as of the petition date satisfactions of the security deed had been recorded. The secured party contended that its security interest was still enforceable because the satisfactions had been recorded in error, and alternatively asked for equitable recognition of its interest by subrogation or reinstatement. Continue reading

Posted in Financing, Real Estate | Tagged | Leave a comment