Monthly Archives: August 2013

Plan Options and the Absolute Priority Rule: What Is the Difference Between an Individual and an Entity Debtor (If Any)?

In re Lively, 717 F.3d 406 (5th Cir 2013) – An individual debtor that ended up in chapter 11 bankruptcy after his debts exceeded the chapter 13 limits proposed a plan of reorganization that allowed him to keep all of his … Continue reading

Posted in Uncategorized | Tagged | Leave a comment

Misrepresentations to a Mortgagee: Does Assignment of a Loan Constitute a Get Out Of Jail Free Card for Fraud?

Pazdzierz v. First Am. Title Ins. Co., 718 F.3d 582 (6th Cir. 2013) – First American Title Insurance Company (First American) contended that an individual debtor should not receive a discharge for several mortgage loans based on false statements he made … Continue reading

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

Standing to Appeal Sale: “Person Aggrieved” Is In the Eye of the Beholder

Gentile v. DeGiacomo (In re Gentile), 492 B.R. 580 (1st Cir. BAP 2013) – A chapter 7 trustee sought c0urt approval to sell several investment properties.  The debtors objected, arguing that the sales should be suspended until a pending state court appeal … Continue reading

Posted in Bankruptcy Sales, Real Estate | Tagged , | Leave a comment

Property Tax Interest Rate: Does “Nonbankruptcy Law” Include Law Specifically Limited to Bankruptcy?

In re Fowler, 493 B.R. 148 (Bankr. E.D. Cal. 2012) – A chapter 13 debtor had two secured creditors:  a bank that held a deed of trust on the debtor’s residence, and a county that had a lien on the residence … Continue reading

Posted in Real Estate | Tagged , | Leave a comment

Fraudulent Transfer: “Reasonably Equivalent Value” Meets the Internal Revenue Code

Crumpton v. Stephens (In re Northlake Foods, Inc.), 715 F.3d 1251 (11th Cir. 2013) – The trustee of a distribution trust (created under a debtor’s confirmed chapter 11 plan of reorganization) sought to recover a dividend paid to a shareholder as a … Continue reading

Posted in Uncategorized | Tagged , , | Leave a comment

Fraudulent Transfer: “Reasonably Equivalent Value” Meets Debt Recharacterization

Official Comm. of Unsecured Creditors v. Hancock Park Capital II, L.P. (In re Fitness Holdings International, Inc.), 714 F.3d 1141 (9th Cir. 2013) – A chapter 11 unsecured creditors’ committee sought to recover payments made to the debtor’s shareholder as a fraudulent … Continue reading

Posted in Financing | Tagged , , | Leave a comment

Cross-Collateralization: Your Dragnet Clause May Have at Least a Little Hole In It

Peoples National Bank, N.A. v. Banterra Bank, 719 F.3d 608 (7th Cir. 2013) – In this case, the district court had reversed the bankruptcy court – holding that a standard dragnet clause in a mortgage was not sufficient to secure a … Continue reading

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