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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Bond Financing Liens: Who’s on First?

Zucker v Wesbanco Bank, Inc. (In re Fairmont General Hospital, Inc.), 546 B.R. 659 (Bankr. N.D. W.Va. 2016)

A chapter 11 liquidating trustee and a bond trustee brought an adversary proceeding against the Marion County Commission (Commission) as the issuer of bonds to avoid certain transfers made in connection with the bonds. The bankruptcy court ruled against the plaintiffs on one count, but effectively gave them the relief they ask for in connection with a second count. Continue reading

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Plan Voting: Insiders – Do You Know One When You See One?

U.S. Bank N.A. v The Village at Lakeridge, LLC (In re The Village at Lakeridge, LLC), 814 F.3d 993 (9th Cir. 2016)

A secured creditor filed a motion to designate an unsecured creditor’s claim and disallow the creditor’s vote in favor of a plan of reorganization. The bankruptcy court granted the motion in part and denied in part. The parties cross appealed and the Bankruptcy Appellate Panel affirmed in part, reversed in part, and vacated in part. The secured creditor then appealed to the 9th Circuit. Continue reading

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Chapter 11 Bankruptcy Sale: So Who Needs a Plan of Reorganization Anyway?

In re Tempnology, LLC, 542 B.R. 50 (Bankr. D. N.H.)

After lining up a stalking horse bidder and holding on auction, a chapter 11 debtor sought court approval of a sale of substantially all of its assets prior to confirming a plan of reorganization. The bankruptcy court approved the sale over the objections of the losing bidder. Continue reading

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Consumer Foreclosure: Lawyers May Need to Tread Lightly

Jackson v ING Bank, FSB (In re Jackson), 545 B.R. 62 (Bankr. D. Mass 1916)

A chapter 13 debtor sued a mortgagee’s law firm asserting various claims based on the firm’s attempts to exercise remedies in connection with a defaulted mortgage loan, including wrongful foreclosure, breach of contract, deceit and misrepresentation, and violation of a bankruptcy discharge injunction and the Fair Debt Collection Practices Act (FDCPA). The debtor also objected to the mortgagee’s proof of claim. Continue reading

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Bankruptcy Appeal: Jumping Through Hoops for Standing

In re Terry, 543 B.R. 173 (E.D. Pa. 2015)

The bankruptcy court approved a settlement between the debtor and a tax sale purchaser of debtor’s real estate and confirmed the debtor’s chapter 13 plan, with the result that the debtor was allowed to redeem the real estate. The orders were entered over the objections of the city where the property was located, and it appealed to the district court. Continue reading

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