Monthly Archives: December 2013

Options for an Underwater Mortgagee: The Mysteries of an 1111(b) Election

In re River Canyon Real Estate Investments, LLC, 495 B.R. 526 (Bankr. D. Colo. 2013) – A chapter 11 debtor’s plan of reorganization placed two secured creditors in the same class.  (No one objected to this classification.) One of the creditors attempted … Continue reading

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Mortgagee Relief From the Automatic Stay: “Cause” Is In the Eye of the Beholder – Namely the Court

In re Doug Wilson Ins. Agency, Inc., 495 B.R. 428 (Bankr. E.D. Ark. 2013) – A debtor that owned several properties filed a chapter 11 bankruptcy proceeding on April 1st.  A bank that had mortgages on two of the properties moved for relief … Continue reading

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Lease Termination: Say It Like You Mean It (Or Else)

Franklin Advisors LLC v. Sherwood Mgmt. Corp. (In re Whyco Finishing Technology, LLC), 500 B.R. 517 (Bankr. E.D. Mich. 2013) – A landlord filed an amended proof of claim for ~$700,000 based on a chapter 11 debtor’s breach of a real estate … Continue reading

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California Anti-Deficiency Laws: Is Your Trust Obligor a “True” Guarantor Or Merely a Primary Obligor in Disguise?

In re Brock, 494 B.R. 534 (Bankr. D. Colo. 2013) – Individual chapter 11 debtors objected to a deficiency claim filed by a bank.  They argued that California’s anti-deficiency laws prevented the bank from making a claim against the debtors under their … Continue reading

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Leases: Is Rejection the Same as Termination and Who is the Tenant Anyway?

John Hilsman Inv., LLC v. Quality Properties, LLC, 500 B.R. 105 (N.D. Ala. 2013) – A Chapter 11 debtor sought to assume a lease that had been assigned to it.  The landlord contended that rejection of the lease in a prior … Continue reading

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Missing Mortgage Details: This Time a Mortgage Survives the Trustee’s Attack

PNC Bank, Nat’l Ass’n v. Nordwall, 499 B.R. 599 (C.D. Ill. 2013) – A mortgagee moved for entry of a default judgment in its foreclosure action.  The mortgagor’s chapter 7 trustee intervened and claimed that the mortgage could be avoided using his … Continue reading

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Preferences: Surprise – Being Fully Secured May Not Be A Complete Defense

Gladstone v. Bank of America, N.A. (In re Vassau), 499 B.R. 864 (Bankr. S.D. Cal. 2013) – A chapter 7 trustee sought to avoid payments made to a fully secured senior mortgagee within 90 days prior to bankruptcy as preferential to an … Continue reading

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