Zapotocky v. CIT Bank, N.A., 587 B.R. 589 (S.D.N.Y. 2018) –
A former debtor sued a mortgagee in federal district court claiming a breach of contract by the lender and challenging a foreclosure judgment entered in state court. This is one of several different proceedings used by the debtor as a forum to avoid a foreclosure sale. The lender moved to dismiss the case on various grounds. Continue reading
Goudelock v. Sixty-01 Ass’n of Apartment Owners, 895 F.3d 633 (9th Cir. 2018) –
A condominium association sought a determination of the dischargeability of a chapter 13 debtor’s personal liability for postpetition assessments on a condo unit. The bankruptcy court determined that the assessments are nondischargeable; the district court affirmed; and the debtor appealed to the Ninth Circuit. Continue reading
In response to repeated requests for comfort orders, a bankruptcy court issued a district wide administrative order confirming that the automatic stay did not apply to the post-petition sale of tax certificates for delinquent property taxes owed on property owned by a debtor in bankruptcy. Continue reading
Karim v. Bayview Loan Servicing, LLC (In re Karim), 582 B.R. 193 (Bankr. N.D. Ill. 2018) –
Chapter 11 debtors sought to avoid prepetition transfers to a judgment creditor as preferences. The debtors received a check in connection with the sale of real estate. The judgment creditor asserted a statutory lien and then obtained a state court order requiring the debtors to turn over the check to the creditor. Continue reading
Allison v. Centris Fed. Credit Union (In re Tri-State Financial, LLC), 885 F.3d 528 (8th Cir. 2018) –
A Chapter 11 trustee brought a proceeding to determine ownership of ~$1.2 million. Initially the bankruptcy court held that the funds were not property of the bankruptcy estate. After an appeal, a remand, a change in judges, a new opinion, and further appeals, the case ended up before the Eighth Circuit. In addition to the substantive issue, the procedural issues relating to the extent to which a judge may revisit decisions made earlier in the case became a focal point. Continue reading
In re Encore Prop. Mgmt. of Western N.Y., LLC, 585 B.R. 22 (Bankr. W.D. N.Y. 2018) –
A mortgage lender moved to dismiss a chapter 11 case on the grounds that it was filed in bad faith. This was the second time the debtor filed bankruptcy on the eve of a foreclosure sale. The mortgagee was previously successful in moving for dismissal of the first case for bad faith. Continue reading
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