Category Archives: Financing

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

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What It Means to Cure a Default: Never Take Anything for Granted, the Rules Can Always Change

Pacifica L 51 LLC v. New Investments Inc. (In re New Investments Inc.), 840 F.3d 1137 (9th Cir. 2016) – The debtor proposed a chapter 11 plan that included curing defaults under a mortgage loan. The lender objected because the … Continue reading

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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), 556 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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