Monthly Archives: April 2013

Escrow Funds: If You Aren’t Careful, Your Funds May Become Part of a Bankruptcy Estate

Quinlan v. AFI Services, LLC (In re AFI Services, LLC), 486 B.R. 827 (Bankr. S.D. Tex. 2013) – The debtor (AFIS) entered into a joint venture agreement with a third party (Quinlan) to acquire an apartment complex pursuant to a purchase … Continue reading

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Mortgage Errors: How Not to Correct a “Boo-Boo”

Seelen v. Couillard (In re Couillard), 486 B.R. 466 (Bankr. W.D. Wis. 2012) – “Whether one is baking a cake, building a house, or recording a mortgage, sometimes even the slightest deviation from the directions can lead to catastrophe.  Cakes don’t … Continue reading

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Equitable Subordination: Lenders Beware – It Is Not Enough That Actions Are Permitted Under the Loan Documents

In re Aida’s Paradise, LLC, 45 B.R. 806 (Bankr. M.D. Fla. 2013) – A chapter 11 debtor sought to equitably subordinate a lender’s unsecured deficiency claim based on actions that it claimed interfered with operation of its property.  The lender responded … Continue reading

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The Continuing Saga of Mortgage Errors: Not All “Boo-Boos” Are Fatal

The Willows II, LLC v. Branch Banking & Trust Co. (In re The Willows II, LLC), 485 B.R. 528 (Bankr. E.D.N.C. 2013) – A deed of trust defined the secured indebtedness as a note and related documents, together with future advances.  … Continue reading

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Classification of Mortgage Deficiency: The Difference Between a Veto Right and Disenfranchisement

In re 18 RVC, LLC, 45 B.R. 492 (Bankr. E.D.N.Y. 2012) – A chapter 11 debtor proposed to place a mortgagee’s deficiency claim into a separate class from general unsecured claims so that the deficiency claim could not prevent the unsecured class … Continue reading

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Bankruptcy Sales: Can LLC Interests Be Sold Over a Member’s Objections?

Horizons A Far, LLC v. Richard Webber (In re Soderstrom), 484 B.R. 874 (M.D. Fla. 2013) – The debtors (Soderstroms) owned 50% of Plaza N 15 Partners, LLC.  The bankruptcy trustee (Webber) proposed to sell the debtors’ interests in the limited … Continue reading

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