In re Baber, 523 B.R. 156 (Bankr. E.D. Ark. 2014) –
The debtors objected to a proof of claim filed on behalf of a mortgagee based on issues arising from assignment of the mortgage note by the lender that originated the loan. The mortgagee responded by, among other things, challenging the standing of the debtors to raise these issues. Continue reading
In re Appalachian Fuel, LLC, 521 B.R. 779 (Bankr. E.D. Ky. 2014) –
A state department of environmental protection (DEP) filed an administrative expense application in the bankruptcy cases of coal mining debtors for reclamation costs and penalties for postpetition environmental violations. After the initial ruling of the bankruptcy court was affirmed in part and vacated in part, the bankruptcy court addressed on remand (1) the liability of one of the debtors in connection with permits held by another debtor, and (2) whether the DEP claims should be given administrative expense priority. Continue reading
Bombart v. The Family Center at Sunrise, LLC, 520 B.R. 300 (S.D. Fla. 2014) –
The owner of assets purchased in a bankruptcy sale sought to reopen a closed bankruptcy case to obtain an order enjoining the owner of the debtor entities from pursuing state litigation requesting relief in contravention of the sale order. The bankruptcy court agreed and ordered the owner of the debtors to withdraw the state court claims. The debtors’ owner appealed. Continue reading
In re Carroll, 520 B.R. 491 (Bankr. M.D. La. 2014) –
A chapter 7 trustee sought to substantively consolidate the bankruptcy estates of individual chapter 7 debtors with the separate bankruptcy estate of their wholly owned limited liability company (LLC). Only the debtors, and none of the creditors, objected to substantive consolidation. Continue reading
Liebzeit v. Intercity State Bank (In re Blanchard), 520 B.R. 740 (Bankr. E.D. Wis. 2014) –
A Chapter 7 trustee sought to avoid a mortgage on the debtors’ property using the “strong arm” powers of a hypothetical bona fide purchaser of real estate. The complication was that the debtors sold the real estate on land contract before they granted the mortgage. Continue reading
The debtor made claims against a surety that issued a performance bond in connection with a construction contract. The surety contended that it was not liable for the consequential damage claims. Continue reading
Bankruptcy-RealEstate-Insights 