Wolf v. Firstmerit Bank, N.A. (In re Wolf), 535 B.R. 772 (N.D. Ill. 2015) –
Chapter 11 debtors filed a motion to allow them to use rents to pay their professional fees over the objection of a bank that held a mortgage on the underlying property. The bankruptcy court denied the motion, and the debtors appealed to the district court. Continue reading
In re Anthony, 534 B. R. 834 (Bankr. M.D. Fla. 2015) –
A debtor objected to a mortgage debt on the basis that the mortgage lien was invalid due to the mortgagee’s delay in foreclosing. The court held that the debtor had to bring an adversary proceeding in order to challenge the claim, but expressed its views on the merits of the issues anyway. Continue reading
In re Memory Lane of Bremen, LLC, 535 B. R. 901 (Bankr. N.D. Ga.) –
The chapter 11 debtors operated senior long-term care facilities on real property owned by a third party. The third party claimed that the debtors occupied the property under bona fide leases and sought (1) to compel the debtors to reject the leases and (2) relief from the automatic stay. Continue reading
Bell v. Brothers Properties Smyrna, LLC (In Re Bell) –
A landlord filed claims for prepetition rent and lease rejection damages after the general claims bar date. The chapter 13 trustee objected. The bankruptcy court considered whether it could use its equitable powers to allow a late claim and whether it was required to set a separate bar date for lease rejection damage claims. Continue reading
Default Interest: Do Not Take Enforceability for Granted
The chapter 11 debtors obtained prepetition CMBS loans backed by mortgages on commercial and industrial real estate owned by the debtors. The proof of claim filed by the lender included prepetition default interest, which the debtors challenged as unenforceable. The bankruptcy and district courts found in favor of the lender, and the debtors appealed to the 8th Circuit. Continue reading
In re Zair, 535 B.R. 15 (Bankr. E.D.N.Y. 2015) –
The debtors proposed a chapter 13 plan providing that certain real property was to be surrendered to the mortgagees and title to the property was to vest in the first mortgagee over its objection. The bankruptcy court confirmed the plan. Continue reading
Bankruptcy-RealEstate-Insights 