Category Archives: Financing

Property Surrender: Surrender Means Surrender – No If’s, And’s or But’s

Failla v. Citibank, N.A. (In re Failla), 838 F.3d 1170 (11th Cir. 2016) – After chapter 7 debtors filed a statement of intention to surrender their house to their mortgagee, they continued to oppose the lender in a state court … Continue reading

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Disposition of UCC Collateral: “Everybody Does It”

Morgantown Excavators, Inc. v The Huntington Nat’l Bank (In re Morgantown Excavators, Inc.), 557 B.R. 469 (Bankr. N.D. W.Va. 2016) – Chapter 7 debtors sued a lender alleging violations of the Uniform Commercial Code (UCC) and other state law based … Continue reading

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When the Debtor Holds a Junior Lien: Can a Senior Lien Creditor March On or Is It Stayed?

Invest Vegas, LLC v. 21st Mortgage Corp. (In re Residential Capital, LLC), 556 B.R. 555 (Bankr. S.D. N.Y. 2016) – A debtor held a note secured by a first priority deed of trust on property that was also subject to a … Continue reading

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Continuing a Foreclosure Sale: Violation of the Automatic Stay or Not?

Perez v. Deutsche Bank Nat’l Trust Co. (In re Perez), 550 B.R. 527 (1st Cir. BAP 2016) – A chapter 13 debtor sought damages for a mortgagee’s violation of the automatic stay, which he contended occurred when the mortgagee continued … Continue reading

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Time-Barred Proof of Claim: To File or Not to File, That Is the Question

Johnson v. Midland Funding, LLC, 823 F.3d 1334 (11th Cir. 2016) – In two chapter 13 bankruptcy cases that were consolidated on appeal the debtors claimed that a creditor violated the Fair Debt Collection Practices Act (FDCPA) by filing a … Continue reading

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Guarantors Beware: Ignore Boilerplate at Your Peril

Edwards Family P’ship v Dickson, 821 F.3d 614 (5th Cir. 2016) – Prior to bankruptcy the debtor obtained loans from two lenders totaling $16 million that were guaranteed by its CEO. After the debtor defaulted and filed bankruptcy, the lenders … Continue reading

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Authorizing a Bankruptcy: When Is a Vote Not Really a Vote?

In re Intervention Energy Holdings, LLC, 553 B.R. 258 (Bankr. D. Del. 2016) – A creditor objected to the bankruptcy filing of a limited liability company on the basis that the filing was unauthorized. Specifically, under the LLC’s operating agreement … Continue reading

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