Tag Archives: financing

Discharge Injunction Violation: Can a Lender Refuse to Foreclose, Release Its Lien, or Accept Surrender of a Property?

Canning v. Beneficial Maine, Inc. (In re Canning), 706 F.3d 64 (1st Cir. 2013) – After filing a chapter 7 bankruptcy, the debtors tried to surrender their residence to the mortgage lender.  After the bankruptcy the lender refused to accept a surrender, … Continue reading

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Proof of Claim: Itemization of Fees, Expenses, and Charges Means Itemization (or Else)

In re Jimenez, 487 B.R. 543 (Bankr. D. Colo. 2013) – A mortgage lender filed a proof of claim in a chapter 13 bankruptcy claiming total secured debt of $132,945.08, including $14,327.60 in prepetition expenses that were identified as $2,231.93 in late … 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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Equitable Subordination: Lenders Beware – It Is Not Enough That Actions Are Permitted Under the Loan Documents

In re Aida’s Paradise, LLC, 45 B.R. 806 (Bankr. M.D. Fla. 2013) – A chapter 11 debtor sought to equitably subordinate a lender’s unsecured deficiency claim based on actions that it claimed interfered with operation of its property.  The lender responded … Continue reading

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The Continuing Saga of Mortgage Errors: Not All “Boo-Boos” Are Fatal

The Willows II, LLC v. Branch Banking & Trust Co. (In re The Willows II, LLC), 485 B.R. 528 (Bankr. E.D.N.C. 2013) – A deed of trust defined the secured indebtedness as a note and related documents, together with future advances.  … Continue reading

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Classification of Mortgage Deficiency: The Difference Between a Veto Right and Disenfranchisement

In re 18 RVC, LLC, 45 B.R. 492 (Bankr. E.D.N.Y. 2012) – A chapter 11 debtor proposed to place a mortgagee’s deficiency claim into a separate class from general unsecured claims so that the deficiency claim could not prevent the unsecured class … Continue reading

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