In re Brock, 494 B.R. 534 (Bankr. D. Colo. 2013) –
Individual chapter 11 debtors objected to a deficiency claim filed by a bank. They argued that California’s anti-deficiency laws prevented the bank from making a claim against the debtors under their guaranty after it foreclosed on real property securing the debt in a non-judicial foreclosure sale. Continue reading
John Hilsman Inv., LLC v. Quality Properties, LLC, 500 B.R. 105 (N.D. Ala. 2013) –
A Chapter 11 debtor sought to assume a lease that had been assigned to it. The landlord contended that rejection of the lease in a prior bankruptcy by the debtor’s assignor caused the lease to terminate so that there was nothing for the current debtor to assume. The bankruptcy court rejected the landlord’s arguments and approved assumption of the lease; and the landlord appealed to the district court. Continue reading
PNC Bank, Nat’l Ass’n v. Nordwall, 499 B.R. 599 (C.D. Ill. 2013) –
A mortgagee moved for entry of a default judgment in its foreclosure action. The mortgagor’s chapter 7 trustee intervened and claimed that the mortgage could be avoided using his strong arm powers because the mortgage did not include the interest rate or due date for the mortgage loan. Continue reading
Gladstone v. Bank of America, N.A. (In re Vassau), 499 B.R. 864 (Bankr. S.D. Cal. 2013) –
A chapter 7 trustee sought to avoid payments made to a fully secured senior mortgagee within 90 days prior to bankruptcy as preferential to an undersecured junior mortgagee. Continue reading
In re AMRCO, Inc., 496 B.R. 442 (Bankr. W.D. Tex. 2013) –
A mortgagee requested a comfort order from the bankruptcy court to confirm that the automatic stay did not apply to property that it had purchased at a non-judicial foreclosure sale immediately before the mortgagor filed bankruptcy. The debtor countered that the foreclosure sale was invalid. If the debtor was correct, the consequence was that the property would be part of the bankruptcy estate and protected by the automatic stay. Continue reading
Weiss v. Wells Fargo Bank, N.A. (In re Kelley), 498 B.R. 392 (1st Cir. BAP 2013) –
A chapter 7 trustee sought to avoid a mortgage granted by the debtors on the basis that the acknowledgment was defective. After the bankruptcy court granted the mortgagee’s motion for summary judgment, the trustee appealed to the 1st Cir. Bankruptcy Appellate Panel. Continue reading
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