In re Hassen Imports P’ship, 502 B.R. 851 (C.D. Cal. 2013) –
A chapter 7 trustee sought to sell real estate “free and clear” of certain prepetition contracts and covenants between the debtor and a city, as successor of a redevelopment agency. The bankruptcy court ruled in favor of the trustee, and the city appealed to the district court. Continue reading
County of Clinton v. Warehouse at Van Buren Street, Inc., 492 B.R. 278 (N.D.N.Y. 2013) –
A chapter 11 debtor sought to recover real estate that was transferred prepetition to the county following the debtor’s default in a property tax foreclosure proceeding. The bankruptcy court agreed with the debtor that this was a fraudulent conveyance, and ordered the county to reconvey the property. On appeal, the district court also agreed that the transfer was avoidable as a fraudulent conveyance. Continue reading
In re B.R. Brookfield Commons No. 1 LLC, 735 F.3d 596 (7th Cir. 2013) –
A chapter 11 debtor sought to disallow the claim of a second mortgagee that held a nonrecourse loan that was totally underwater (i.e., the property was worth less than the first mortgage). The bankruptcy and district courts held that the claim should be allowed, and the debtor appealed to the 7th Circuit. Continue reading
McNeal v. GMAC Mortgage, LLC (In re McNeal), 735 F.3d 1263 (11th Cir. 2012) –
A chapter 7 debtor sought to “strip off” the second mortgage lien on her home. The bankruptcy and district courts declined, and the debtor appealed to the 11th Circuit. Continue reading
Shelton v. Citimortgage, Inc. (In re Shelton), 735 F.3d 747 (8th Cir. 2013) –
A secured creditor holding a mortgage on the residence of two chapter 13 debtors filed a proof of claim almost seven months after the claims bar date. The debtors objected on the basis that the claim was untimely, and the parties agreed to entry of an order disallowing the claim. The debtors then sought to avoid the mortgagee’s lien. The lower courts dismissed the debtors’ claims, and they appealed to the 8th Circuit. Continue reading
Smith v. SIPI, LLC (In re Smith), 501 B.R. 843 (Bankr. N.D. Ill. 2013) –
Chapter 13 debtors (the Smiths) lost their residential property in a pre-petition delinquent property tax sale. The tax sale purchaser (SIPI) resold the property to a third party (Midwest). The Smiths sought to avoid the tax sale as a fraudulent transfer. Continue reading
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