Monthly Archives: May 2013

What Comes After Stay Relief: The Disappearing Deficiency Claim (Round 1)

In re Wright, 486 B.R. 491 (Bankr. D. Ariz. 2012) – In Wright, a mortgage lender obtained relief from the automatic stay in a chapter 11 bankruptcy and proceeded with a state non-judicial foreclose sale on two properties.  However, it did … Continue reading

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Delinquent Property Tax Foreclosure: Is There “Reasonably Equivalent Value” or Not?

City of Milwaukee v. Gillespie, 47 B.R. 916 (E.D. Wis. 2013) – Under Wisconsin’s strict tax foreclosure procedure, a tax authority can obtain property in satisfaction of a delinquent property tax bill without any public sale or other competitive bidding.  Gillespie … Continue reading

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Bankruptcy Plan: Burgeoning “New Value” Competitive Bidding Requirement

In re Castleton Plaza, LP, 707 F.3d 821 (7th Cir. 2013) – A debtor that owned a shopping center proposed a plan of reorganization that gave the spouse of the debtor’s owner 100% of the equity of the reorganized debtor in … Continue reading

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Bankruptcy Purchasers Beware: Do Not Take For Granted That Your Sale Will Be “Free and Clear”

In re Jaussi, 488 B.R. 456 (Bankr. D. Colo. 2013) – A chapter 7 bankruptcy trustee requested court approval of a sale of vacant land to a bank that held a first lien on the property, with the sale to be … Continue reading

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Defalcation and Dischargeability: The Supreme Court Speaks

Bullock v. BankChampaign, N.A., 569 U.S. ___ (2013) – Although an individual debtor can generally obtain a discharge of debts in bankruptcy as part of a “fresh start,” there are certain exceptions.  In particular, Section 523(a)(4) of the Bankruptcy Code provides that … Continue reading

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Discharge Injunction Violation: Can a Lender Refuse to Foreclose, Release Its Lien, or Accept Surrender of a Property?

Canning v. Beneficial Maine, Inc. (In re Canning), 706 F.3d 64 (1st Cir. 2013) – After filing a chapter 7 bankruptcy, the debtors tried to surrender their residence to the mortgage lender.  After the bankruptcy the lender refused to accept a surrender, … Continue reading

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Proof of Claim: Itemization of Fees, Expenses, and Charges Means Itemization (or Else)

In re Jimenez, 487 B.R. 543 (Bankr. D. Colo. 2013) – A mortgage lender filed a proof of claim in a chapter 13 bankruptcy claiming total secured debt of $132,945.08, including $14,327.60 in prepetition expenses that were identified as $2,231.93 in late … Continue reading

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