Author Archives: BankruptcyRealEstateInsights

About BankruptcyRealEstateInsights

Vicki R. Harding was a partner in the Detroit office of Pepper Hamilton LLP who moved to Arizona seeking warmer weather. Ms. Harding continues to handle commercial transactions with an emphasis on real estate and bankruptcy issues (but no longer owns a snow shovel).

Lease Rejection: What Happens When the Landlord and Tenant Are Both in Bankruptcy?

In re Railyard Co., LLC, 562 B.R. 481 (Bankr. D. N.M. 2016) – Both the landlord and an affiliated tenant filed bankruptcy. The landlord’s trustee filed a motion to reject the lease in the landlord’s case and filed a motion … Continue reading

Posted in Real Estate | Tagged | Leave a comment

Chapter 13 Plans: Start With The Standard Local Plan, And Then What? (Not Much)

In re Sperry, 562 B.R. 1 (Bankr. D. Mass. 2016) – The debtors’ chapter 13 plan included a provision requiring the first mortgagee to send the debtors monthly mortgage loan statements. The mortgagee argued that this made the plan unconfirmable.

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

UCC Debtor Name: To Avoid Disaster Dot All of The I’s and Don’t Forget the T’s

Mainsource Bank v. Leaf Capital Funding, LLC (In re Nay), 563 B.R. 535 (Bankr. S.D. Ind. 2017) – A bank brought an adversary proceeding seeking a determination of the validity and priority of the competing lien of an equipment lender. … Continue reading

Posted in Financing | Tagged | Leave a comment

Avoiding Mortgages (Again): Consider Carefully the Form of Execution / Acknowledgment When Using a Power Of Attorney

HSBC Bank USA, N.A. v. Lassman (In re DeMore), 844 F.3d 292 (1st Cir. 2016) – A chapter 7 trustee sought to avoid a mortgage using his strong arm powers based on an improper acknowledgment by a person executing the … Continue reading

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

Interpreting a Guaranty: Teeny Typo Turns Into a Colossal Pain

WBCMT 2007 C33 Office 9720, L.L.C. v. NNN Realty Advisors, Inc., 844 F.3d 473 (5th Cir. 2016) – A noteholder sought to enforce a guaranty of a $17.5 million loan made to various entities for the purpose of acquiring tenant-in-common … Continue reading

Posted in Financing | Tagged | Leave a comment

Surrendering Property: The Consequences of Surrender Are … Take Your Pick

In re Elkouby, 561 B.R. 551 (Bankr. S.D. Fla. 2016) – A chapter 7 debtor filed a statement that he intended to surrender real property securing a loan. After the bankruptcy case was closed, the debtor continued actively opposing a … Continue reading

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

Avoiding Judicial Liens: Existing But Unenforceable v. Nonexistent

CRP Holdings, A-1, LLC v. O’Sullivan (In re O’Sullivan), 841 F3d 786 (8th Cir. 2016) – A chapter 7 debtor sought to avoid a judgment lien on the grounds that the lien impaired the debtor’s exemption. The bankruptcy court granted … Continue reading

Posted in Real Estate | Tagged , | Leave a comment