Disclosing Assets: You Cannot Have Your Cake and Eat It Too

Fornesa v. Fifth Third Mtg. Co., 897 F.3d 624 (5th Cir. 2018) –

A debtor and his son sued a bank for foreclosing on property that the debtor acquired from his son postpetition while the automatic stay was in effect. Litigation that began in state court and the bankruptcy court were removed, withdrawn and consolidated in the district court. After the district court ruled in favor of the bank, the debtor and his son appealed to the Fifth Circuit. Continue reading

Posted in Uncategorized | Tagged , | Leave a comment

Strong Arm Powers: Watch out for That Hypothetical Bona Fide Purchaser – It Can Do More Than Void Transfers and Obligations

Fallon Family, L.P. v. Goodrich Petroleum Corp. (In re Goodrich Petroleum Corp.), 894 F.3d 192 (5th Cir. 2018) –

A non-debtor party filed a motion to either (1) compel the debtor to assume or reject a settlement agreement, or (2) “dissolve” the settlement agreement based on the debtor’s nonpayment, thus stripping the bankruptcy estate of rights to a mineral lease. The bankruptcy court denied the motion, finding that the debtor’s strong arm powers protected it from the challenge to the lease. The district court affirmed and the non-debtor party appealed to the Fifth Circuit. Continue reading

Posted in Real Estate | Tagged | Leave a comment

Automatic Stay Relief: Where Best to Untangle Joint Ownership Interests?

In re Guy, 587 B.R. 475 (Bankr. E.D.N.C. 2018) –

A chapter 7 debtor and his sister jointly owned real property as tenants-in-common. The sister moved for relief from the automatic stay in order to commence a state court action for partition by forced judicial sale. Continue reading

Posted in Real Estate | Tagged , | Leave a comment

Exemption for Government Assistance: How Needy Is Needy?

Hanson v. Seaver (In re Hanson), 903 F.3d 793 (8th Cir. 2018) –

A chapter 7 trustee objected to a debtor’s exemption claim for a state property tax refund. The bankruptcy court sustained the objection; the Bankruptcy Appellate Panel affirmed on appeal; and the debtor filed a further appeal to the Eighth Circuit. Continue reading

Posted in Real Estate | Tagged | Leave a comment

Valuing a Secured Claim: Who Knew That Retail Price Could Be So Elusive

21st Mortgage Corp. v. Glenn (In re Glenn), 900 F.3d 187 (5th Cir. 2018) –

In valuing a mobile home for purposes of determining the amount of a secured claim for a chapter 13 plan, the bankruptcy court declined to include delivery and setup costs. The district court affirmed, and the mortgagee appealed to the Fifth Circuit. Continue reading

Posted in Financing | Tagged | Leave a comment

Plan Enforcement: Beware of Advisory Opinions

In re Cubic Energy, Inc., 587 B.R. 849 (Bankr. D. Del. 2018) –

Two nondebtor parties sought a bankruptcy court order interpreting and enforcing provisions in a confirmed plan of reorganization that addressed certain litigation and barred further claims. The court declined to rule on the matter on the grounds that it would constitute an advisory opinion. Continue reading

Posted in Uncategorized | Tagged , | Leave a comment

Mortgage Preference: Dilly-Dally Around with Recording and You May Lose

USAA Fed. Sav. Bank v. Hope, 589 B.R. 914 (M.D. Ga. 2018) –

A bankruptcy trustee sought to avoid a security deed granted to a refinancing lender as a preference. In defense the lender asserted that there was a substantially contemporaneous exchange of the grant of the lien for the new loan. The bankruptcy court granted the trustee’s motion for summary judgment and the lender appealed to the district court. Continue reading

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