Cooper v. WPD Poplar Ridge, LLC (In re Poplar Ridge, LLC), 526 B.R. 147 (W.D. N.C. 2015) –
After a developer defaulted, the trustee under a deed of trust held a pre-petition foreclosure sale. The issue was whether the developer debtor’s “declarant rights” were included in the property that was transferred in the sale. The bankruptcy trustee contended that the rights should not have been transferred and sought to set aside the conveyance. Continue reading
Senior lienholders sued lenders holding junior liens on common collateral, arguing that the junior lienholders violated an intercreditor agreement. The bankruptcy court addressed the issues in the context of motions to dismiss the senior lienholder complaints. Continue reading
A chapter 13 debtor sought a court determination that a mortgage loan was unsecured because there was a small typo in her name when the mortgage was indexed. The mortgagee brought a motion to dismiss for failure to state a claim. Continue reading
In re Ramz Real Estate Co., LLC, 510 B.R. 712 (Bankr. S.D.N.Y. 2013) –
An undersecured mortgagee objected to a debtor’s proposed plan of reorganization on several grounds, including that (1) the plan was not approved by a proper impaired class and (2) retention of equity by the debtor’s members violated the absolute priority rule. Continue reading
State Bank of Toulon v. Covey (In re Duckworth), 776 F.3d 453 (7th Cir. 2014) –
A chapter 7 trustee sought to treat a secured lender as unsecured based on an error in the security agreement. The lender argued that the error was subject to reformation to conform to the intent of the parties. The bankruptcy court and the district court found in favor of the lender, and the trustee appealed to the 7th Circuit. Continue reading
In re Primes, 518 B.R. 466 (Bankr. N.D. Ill. 2014) –
A mortgagee moved for relief from the automatic stay, arguing that it acquired title to property prior to the bankruptcy under a quit claim deed given to it by the debtor. However, the bankruptcy court agreed with the debtor that the deed, which was given in connection with a forbearance agreement, should be treated as an equitable mortgage. Continue reading
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