Tag Archives: avoidance action

Foreclosure Sale As a Preference: “Strong Arm” Powers Strike Again

Nguyen v. Wells Fargo Home Mortgage (In re Nguyen), 490 B.R. 230 (Bankr. S.D. Tex. 2013) – An individual debtor in a chapter 7 bankruptcy brought an adversary proceeding seeking to recover from a mortgagee for negligent misrepresentation and to set aside … Continue reading

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Failure to Negotiate Mortgage Note: “Strong Arm” Powers With A Twist

Rogan v. Vanderbilt Mortgage & Finance, Inc. (In re Dorsey), 491 B.R. 464 (Bankr. E.D. Ky. 2013 – A chapter 7 trustee sought to use his “strong arm” powers as a hypothetical judgment lien creditor, arguing that a mortgage could be avoided … Continue reading

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Strong Arm Powers: What Happens When a Mortgage Is Avoided – Does It Go Poof?

DeGiacomo v. Traverse (In re Traverse), 45 B.R. 815 (1st Cir. B.A.P. 2013) – A chapter 7 trustee sought to avoid an unrecorded first mortgage on the debtor’s property and to preserve the mortgage lien for the benefit of the bankruptcy estate.  … Continue reading

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Fraudulently Conveyed Property: Part of the Bankruptcy Estate and Subject to the Automatic Stay (Or Not)?

Rajala v. Gardner, 709 F.3d 1031 (10th Cir. 2013) – A bankruptcy trustee claimed that $9 million held in escrow was fraudulently transferred property that could be recovered through an avoidance action in bankruptcy, and consequently constituted property of the bankruptcy … Continue reading

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Delinquent Property Tax Foreclosure: Is There “Reasonably Equivalent Value” or Not?

City of Milwaukee v. Gillespie, 47 B.R. 916 (E.D. Wis. 2013) – Under Wisconsin’s strict tax foreclosure procedure, a tax authority can obtain property in satisfaction of a delinquent property tax bill without any public sale or other competitive bidding.  Gillespie … Continue reading

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Mortgage Errors: How Not to Correct a “Boo-Boo”

Seelen v. Couillard (In re Couillard), 486 B.R. 466 (Bankr. W.D. Wis. 2012) – “Whether one is baking a cake, building a house, or recording a mortgage, sometimes even the slightest deviation from the directions can lead to catastrophe.  Cakes don’t … Continue reading

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