RBS, Inc. v. Bell (In re Bell), 507 B.R. 898 (S.D. W.Va. 2014) –
The purchaser at a foreclosure sale sought relief from the automatic stay to complete the sale. The bankruptcy court denied the request on the basis that the debtors’ interest in the property was not extinguished prior to the bankruptcy filing. The purchaser appealed, and the district court reversed. Continue reading
In re Adams, 506 B.R. 688 (Bankr. E.D.N.C. 2014) –
An individual debtor owned commercial real estate with his wife as tenants by the entireties and co-owned some rental properties with his son as tenants in common. The chapter 7 trustee sought to compel turnover of rents from these properties. The debtor objected, arguing that the rents were exempt as entireties property and as “earnings for personal services” respectively. Continue reading
A&F Enterprises v. IHOP Franchising LLC, 742 F.3d 764 (7th Cir. 2014) –
Chapter 11 debtors appealed a determination that their building leases were deemed rejected because they were not timely assumed. Both the bankruptcy court and district court denied the request for a stay of the decision pending appeal. The 7th Circuit reversed and granted the stay. Continue reading
In re Crane, 742 F.3d 702 (7th Cir. 2013) –
Chapter 7 trustees sought to avoid mortgages in two separate cases using their strong-arm powers. They argued that failure to include the loan maturity date and interest rate in the mortgage meant that it did not provide constructive notice to a bona fide purchaser under Illinois law, and thus could be avoided. On appeal the 7th Circuit rejected this argument and affirmed summary judgments in favor of the mortgagees. Continue reading
Rushton v. ANR Company, Inc. (In re C.W. Mining Co.), 740 F.3d 548 (10th Cir. 2014) –
After a chapter 7 trustee sold assets of the debtor in a bankruptcy sale, he sought to dismiss various pending appeals involving issues relating to the sold assets. After the district court dismissed the appeals as moot, the parties appealed to the 10th Circuit. Continue reading
Garcia v. Garcia (In re Garcia), 507 B.R. 434 (Bankr. E.D.N.Y. 2014) –
Limited liability company (LLC) membership interests owned by a debtor were transferred to other LLC members after they expelled him shortly before his Chapter 11 bankruptcy. The debtor sought to set aside these transfers as fraudulent conveyances or preferences. After the bankruptcy court dismissed both claims, the debtor sought reconsideration of the preference theory. Continue reading
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