Monthly Archives: February 2013

Assignment of Rents: Can You Spend Rents and Still Provide Adequate Protection to the Mortgagee?

In re Putnal, 483 B.R. 799 (Bankr. M.D. Ga. 2012) – In Putnal the debtor proposed to use rents over the objection of an undersecured mortgagee.  As a result, the court was faced the question of determining what, if anything, was … Continue reading

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Assignment of Rents: Absolute May Not Be So Absolute

In re MRI Beltline Industrial, L.P., 476 B.R. 917 (Bankr. N.D. Tex. 2012) – In MRI Beltline the debtor moved for authority to use rents received from tenants of commercial buildings that it owned, and for a “carve out” to permit … Continue reading

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Mortgage Execution Errors: If You Make a Mistake, Try Not To Do It in Ohio

McClatchey v. GMAC Mortgage, LLC (In re Lacy), 483 B.R. 126 (Bankr. S.D. Ohio 2012) – Lacy is one more in a long list of cases where an Ohio mortgage was attacked based on defects in execution.  Although the Ohio statute … Continue reading

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Lease Rejection Damages: How to Avoid the Cap (Maybe)

In re Energy Conversion Devices, Inc., 483 B.R. 119 (Bankr. E.D. Mich. 2012) – Damages arising from the rejection of a lease by a tenant in bankruptcy are subject to a cap under Section 502(b)(6) of the Bankruptcy Code.  In this … Continue reading

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Tenant Security Deposits: You May Be Closer to Defalcation Than You Think

In re Hall, 483 B.R. 281 (Bankr. D. Conn. 2012) – In Hall a residential tenant argued that the debtor landlord’s failure to return a security deposit gave rise to a non-dischargeable debt in his chapter 7 bankruptcy.

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Attorneys’ Fees: Reasonable Is In the Eye of the Beholder

In re Sundale, Ltd., 483 B.R. 23 (Bankr. S.D. Fla. 2012) – Under Section 506(b) of the Bankruptcy Code, an oversecured mortgagee may be entitled to collect post-petition interest and reasonable attorney fees.  In Sundale there was a request for attorneys’ fees … Continue reading

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Mortgage Legal Descriptions: When Is a “Boo-Boo” Fatal (Round 2)?

Huskey v. Citimortgage, Inc. (In re Huskey), 479 B.R. 827 (Bankr. E.D. Ark. 2012) – Even minor errors can potentially lead to avoiding a mortgage in a bankruptcy.  In this case the debtors tried several avenues of attack to avoid a … Continue reading

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