Tag Archives: avoidance action

Foreclosure Sales: Strong Arm Powers and the Subtleties of State Law

Weiss v. U.S. Bank, N.A. (In re Mularski), 565 B.R. 203 (Bankr. D. Mass. 2017) – A chapter 7 trustee sought to avoid a prepetition transfer of property resulting from a mortgage foreclosure sale. The mortgagee argued that the completed … Continue reading

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Avoiding Mortgages (Again): Consider Carefully the Form of Execution / Acknowledgment When Using a Power Of Attorney

HSBC Bank USA, N.A. v. Lassman (In re DeMore), 844 F.3d 292 (1st Cir. 2016) – A chapter 7 trustee sought to avoid a mortgage using his strong arm powers based on an improper acknowledgment by a person executing the … Continue reading

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Avoiding Judicial Liens: Existing But Unenforceable v. Nonexistent

CRP Holdings, A-1, LLC v. O’Sullivan (In re O’Sullivan), 841 F3d 786 (8th Cir. 2016) – A chapter 7 debtor sought to avoid a judgment lien on the grounds that the lien impaired the debtor’s exemption. The bankruptcy court granted … Continue reading

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Deeds: Not All “Freebies” Are Fraudulent

Rodriguez v. Nelabovige (In re Kirst), 559 B.R. 757 (Bankr. D. Colo. 2016) – About a year before filing bankruptcy, a debtor conveyed his interest as a joint tenant in a residential property to his mother-in-law in consideration for $10. … Continue reading

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Avoiding Mortgages: How Far Does a Bona Fide Purchaser Have To Go in Searching Records?

Wenzel v. Green Tree Servicing, LLC (In re Wenzel), 554 B.R. 861 (Bankr. W.D. Wis. 2016) – A chapter 7 trustee and a debtor sought to avoid as a preference a mortgage assignment that was recorded within 90 days prior … Continue reading

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Ordinary Course Preference Defense: How Hard Can You Push to Get Paid?

Satija v. C-T Plaster, Inc. (In re Sterry Industries, Inc.), 553 B.R. 96 (Bankr. W.D. Tex.. 2016) – “Summers are hot in Texas, so pools are a hot item. But not hot enough to help a pool installer named Sterry … Continue reading

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Foreclosure: Failure to Timely Record Sale Deed (Oops)

Cornell v Envoy Mortgage, Ltd. (In re Hosch), 551 B.R. 696 (Bankr. D. N.H. 2016) – A foreclosing mortgagee that was the successful bidder at the foreclosure sale delayed recording the sale deed. A chapter 7 trustee claimed that as … Continue reading

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