Monthly Archives: September 2012

Mortgage Foreclosure: Beware the Automatic Stay

Kline v. Deutsche Bank Nat’l Trust Co. (In re Kline), 172 B.R. 98 (B.A.P. 10th Cir. 2012) – Under Section 362 of the Bankruptcy Code, filing a bankruptcy case automatically stays a wide variety of actions, including commencing or continuing a … Continue reading

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Delinquent Property Tax Collection: Foreclosure May Be Vulnerable

Williams v. City of Milwaukee City Clerk (In re Williams), 473 B.R. 307 (Bankr. E.D. Wis. 2012) – Wisconsin has a strict tax foreclosure procedure in which the tax authority effectively obtains the property without any public or competitive bidding … Continue reading

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“Strong Arm” Powers Round 3: What Happens If A Mortgage Is Recorded Before a Deed?

Olsen v. Heaver (In re Heaver), 473 B.R. 734 (Bankr. N.D. Ill. 2012) – The short story is that when a deed and mortgage are executed at the same time, but the mortgage is recorded before the deed, the recorded mortgage … Continue reading

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Automatic Stay Is Not Absolute: You Can Still Go To Jail

In re D’Mello, 473 B.R. 207 (Bankr. E.D. Mich. 2011) – Although the stay that automatically arises under Section 362 of the Bankruptcy Code when a bankruptcy petition is filed is very broad, there are exceptions, including actions to enforce … Continue reading

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Property Interests / Subordination: Plan Ahead, Or You May Be Stuck Behind

Scotiabank De Puerto Rico v. Brito (In re Plaza Resort at Palmas), 469 B.R. 398 (B.A.P. 1st Cir. 2012) – In Plaza Resort at Palmas the timeshare owners asserted claims as secured creditors with liens on the resort that were senior … Continue reading

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Challenging a Bankruptcy Sale: You Snooze, You Lose

Reynolds v. Rushton, 473 B.R. 436 (D. Utah 2012) – Reynolds involves a challenge to a Chapter 7 trustee’s Section 363 sale of an underground coal mine together with an adjoining scale house located on leased land.  The scale house contained … Continue reading

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Can Default Interest And Late Fees Be Excluded From Secured Claims? … Maybe, Maybe Not

In re 785 Partners LLC, 470 B.R. 126 (S.D.N.Y. Bankr. 2012) – Although the general rule is that creditors are not entitled to post-petition interest and fees, that is not necessarily the case for an over-secured lender. In 785 Partners, the … Continue reading

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