Post-Confirmation Bankruptcy Sale Matters: Will the Bankruptcy Court Be Willing and Able to Referee?

Emerald Capital Advisors v. Karma Automotive LLC (In re FAH Liquidating Corp.), 567 B.R. 464 (Bankr. D. Del. 2017) –

The trustee of a liquidating trust established under a plan of reorganization brought an action against a purchaser to enforce the terms of the plan and asset purchase agreement. The purchaser moved to dismiss on the basis that the bankruptcy court did not have continuing post-confirmation jurisdiction, or alternatively asked the court to abstain. Continue reading

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Plan Requirements: What Can You Do When a Party Fails To Comply With a Plan? – Good Question

In re Fierke, 567 B.R. 322 (Bankr. W.D. Mich. 2017)

A chapter 13 debtor requested sanctions against a creditor for a delay in releasing its lien on the debtor’s manufactured home as required under the debtor’s confirmed plan. After completing the payments required under the plan, the debtor had asked the lender to release its lien as required under the plan and applicable state law. The lender failed to act in a timely manner despite more than one request from debtor’s counsel. Continue reading

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Federal Tax Liens: Be on the Lookout for Tax Lien Notices – Perfection and Priority Can Be Tricky

In re Aquatic Pools, Inc., 567 B.R. 376 (Bankr. D. N.M. 2017)

The IRS filed a proof of claim that included unpaid taxes, prepetition penalties and prepetition interest. The chapter 11 debtor objected to the IRS’ proof of claim to the extent that it included a secured claim for prepetition penalties accruing after the IRS filed its notice of tax lien – contending that it was not properly perfected. Continue reading

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“Duly Acknowledged” Is Not Enough: Play It Again Sam

James B. Nutter & Co. v. DeGiacomo (In re Reznikov), 567 B.R. 239 (D. Mass. 2017) –

A chapter 7 trustee sought to avoid a mortgage – alleging that there was a defective acknowledgment certificate based on a failure to state that the acknowledgment was voluntary. The bankruptcy court found in favor of the trustee, and the mortgagee appealed. The district court agreed with the bankruptcy court in a decision that paralleled the lower court opinion with a few nuances. Continue reading

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Automatic Stay: Relief Permitting Foreclosure Does Not Give a Mortgagee Carte Blanche

Haugren v. Multibank 2009-1 CRE Venture, LLC (In re Laprade’s Marina, LLC), 566 B.R. 84 (Bankr. N.D. Ga. 2017)

A mortgagee that obtained relief from the automatic stay and conducted a nonjudicial foreclosure sale of the real estate securing its claim subsequently filed a deficiency claim in the bankruptcy. Two other creditors objected on the grounds that it was not entitled to a deficiency claim since it did not comply with state law requirements. Continue reading

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Property Tax Claims: One More Effort to Collect As Much Is Possible

Metro. Govt. of Nashville & Davidson County v. Hildebrand (In re Corrin), 849 F.3rd 653 (6th Cir. 2017)

A debtor’s chapter 13 plan proposed to pay 12% interest on an oversecured delinquent property tax claim. The taxing authority objected on the basis that a recent amendment to a state statute required payment of an 18% interest rate. The bankruptcy court found in favor of the debtor on the basis that the statute violated the Supremacy Clause. The bankruptcy appellate panel (BAP) affirmed relying on a statutory interpretation, and the tax authorities appealed to the Sixth Circuit. Continue reading

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Defective Mortgage Acknowledgments: Variations on a Theme

Harker v. PNC Mtg. Co. (In re Oakes), 565 B.R. 616 (Bankr. S.D. Ohio 2017)

A chapter 7 trustee sought to avoid a defectively acknowledged mortgage using his “strong-arm” powers. The mortgagee countered that a state “savings” statute prevented the trustee from achieving the desired result. Continue reading

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