Category Archives: Financing

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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Foreclosure Procedures: Dot Those i’s and Cross Those t’s… Or Else

In re AMRCO, Inc., 496 B.R. 442 (Bankr. W.D. Tex. 2013) – A mortgagee requested a comfort order from the bankruptcy court to confirm that the automatic stay did not apply to property that it had purchased at a non-judicial foreclosure … Continue reading

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Mortgage Acknowledgments: Tiny Deviation From Suggested Forms Can Spell Disaster

Weiss v. Wells Fargo Bank, N.A. (In re Kelley), 498 B.R. 392 (1st Cir. BAP 2013) – A chapter 7 trustee sought to avoid a mortgage granted by the debtors on the basis that the acknowledgment was defective.  After the bankruptcy court … Continue reading

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Treatment Under Plan of Reorganization: Mortgage Discharge May Take More Than You Might Expect

Acceptance Loan Co. v. S. White Transp., Inc. (In re S. White Transp., Inc.), 725 F.3d 494 (5th Cir. 2013) – The 5th Circuit upheld the district court decision with the result that notwithstanding the debtor’s attempt to discharge a mortgage … Continue reading

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UCC Financing Statements: Words to the Wise — Do Not Allow an Active UCC to Lapse

Highland Constr. Mgmt. Services, LP v Wells Fargo, N.A. (In re Highland Constr. Mgmt. Services LP), 497 B.R. 829 (Bankr. E.D. Va. 2013) – This opinion opens with a riddle:  “When is a financing statement that is no longer effective, still … Continue reading

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Letter of Credit: Not A Financial Accommodation, Executory Contract Or Even A Contract?

Rafool v. Evans, 497 B.R. 312 (C.D. Ill. 2013) – A chapter 7 trustee brought a legal malpractice case against a debtor’s prepetition attorneys for failing to advise the debtor to draw on letters of credit prior to filing bankruptcy.  The case turned … Continue reading

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