Bankruptcy Filing Veto: Better Follow the Playbook

In re Lake Michigan Beach Pottawattamie Resort LLC, 547 B.R. 899 (Bankr. N.D. Ill. 2016)

A mortgage lender moved to dismiss a chapter 11 bankruptcy case filed on the eve of foreclosure without the lender’s consent (in its role as a special member of the debtor) on the grounds that the case was filed in bad faith and the filing was not authorized. Continue reading

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Default Interest: There’s Prepetition Interest and Postconfirmation Plan Interest – Don’t Forget About What Happens in the Middle

Wells Fargo Bank, N.A. v. Beltway One Development Group, LLC (In re Beltway One Development Group, LLC), 547 B.R. 819 (9th Cir. BAP 2016)

A creditor objected to confirmation of a chapter 11 plan of reorganization because it did not include default interest for the period prior to the effective date of the plan. The bankruptcy court approved the plan over the creditor’s objections, and the creditor appealed to the 9th Circuit Bankruptcy Appellate Panel (BAP). Continue reading

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Broker Listing Agreement: Seller Beware – Be Sure You Get What You Paid For Before You Have To Pay

In re Cimarron Group, Inc., 545 B.R. 646 (Bankr. D. Mont. 2016)

A real estate broker filed a proof of claim in a chapter 7 bankruptcy contending that it was owed a commission based on a pre-bankruptcy listing agreement. The debtor objected, arguing that the broker had not earned the commission. Continue reading

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Abandonment: Better Think Twice Because There is No “Do Over”

In re Haber, 547 B.R. 252 (Bankr. S.D. Ohio 2016)

A foreclosure sale that occurred after a chapter 7 trustee abandoned the foreclosed property (and after the bankruptcy case was closed) unexpectedly resulted in surplus proceeds that were to be returned to the debtor. After the trustee intervened in the state court case to claim the proceeds and reopened the debtor’s bankruptcy case to administer the proceeds on behalf of the bankruptcy estate, the debtor amended his bankruptcy schedules to claim a homestead exemption in the proceeds. Continue reading

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Leases: How About Those Attorneys’ Fees?

Leases: How About Those Attorneys’ Fees?

In re FKA FC, LLC, 545 B.R. 567 (Bankr. W.D. Mich. 2016)

A chapter 11 debtor sought to assume and assign a lease. The debtor contended that the cost to cure defaults under the lease was $0. The landlord objected arguing among other things that the cure costs should have included the attorneys’ fees it incurred as a result of the bankruptcy. Continue reading

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When Is Involuntary Vesting Incompatible with Surrender? – When a Court Says So

In re Tosi, 546 B.R. 487 (Bankr. D. Mass 2016)

A mortgagee objected to a proposed chapter 13 plan which provided that the debtor’s title to the mortgaged property would automatically vest in the mortgagee if the debtor and his wife were not able to sell the property within 90 days after the plan became effective. The bankruptcy court concluded that the plan did not satisfy the requirements for treatment of a secured claim and could not be confirmed over the objection of the mortgagee. Continue reading

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Condominium Assessments: Dischargeable or Not?

In re Montalvo, 546 B.R. 880 (Bankr. M.D. Fl. 2016)

A chapter 13 debtor moved for sanctions against a condominium as one for violations of the automatic stay and discharge injunction based on collection of condominium assessments. The court’s decision turned on whether the condo declaration was a covenant running with the land or merely a personal contractual relationship. Continue reading

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