Tag Archives: avoidance action

“Strong Arm” Powers Round 4: Manufactured Home Liens

Vanderbilt Mortgage & Finance, Inc. v. Higgason (In re Pierce), 471 B.R. 876 (B.A.P. 6th Cir. 2012) – Proper perfection of a lien is critical because typically an unperfected lien can be avoided in a bankruptcy using the strong arm … Continue reading

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Delinquent Property Tax Collection: Foreclosure May Be Vulnerable

Williams v. City of Milwaukee City Clerk (In re Williams), 473 B.R. 307 (Bankr. E.D. Wis. 2012) – Wisconsin has a strict tax foreclosure procedure in which the tax authority effectively obtains the property without any public or competitive bidding … Continue reading

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“Strong Arm” Powers Round 3: What Happens If A Mortgage Is Recorded Before a Deed?

Olsen v. Heaver (In re Heaver), 473 B.R. 734 (Bankr. N.D. Ill. 2012) – The short story is that when a deed and mortgage are executed at the same time, but the mortgage is recorded before the deed, the recorded mortgage … Continue reading

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“Strong Arm” Powers Round 2: This Time The Mortgage Survives

Hiraldo v. Banco Popular Depuerto Rico (In re Hiraldo), 471 B.R. 676 (D. P.R. 2012) – Hiraldo illustrates the key role that state law can play in determining the outcome of a bankruptcy case.  Despite the fact that a mortgage presented … Continue reading

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Accepting Payment Before A Construction Lien Is Filed: Catch-22?

Johnson Memorial Hospital, Inc. v. New England Radiator Works (In re Johnson Memorial Hospital, Inc.), 470 B.R. 119 (Bankr. D. Conn. 2012) – Creditors of a distressed company often look for strategies to reduce bankruptcy preference exposure, and construction contractors are … Continue reading

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Bankruptcy “Strong Arm” Powers: Bye Bye Mortgage

Rhiel v. Central Mortgage Co. (In re Kebe), 469 B.R. 778 (Bankr. S.D. Ohio 2012) – Kebe provides a classic example of the exercise of bankruptcy “strong arm” powers.  Based on a defective notarization, the lien of a mortgage was avoided, and … Continue reading

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