Lawyers USA Online » Bankruptcy

Lien-stripping allowed in ‘Chapter 20’ bankruptcy

Pat Murphy — Fri, 17 May 2013 18:29:33 +0000

The Bankruptcy Abuse Prevention and Consumer Protection Act did not create a per se rule barring lien-stripping in so-called “Chapter 20″ cases, the 4th U.S. Circuit Court of Appeals has ruled in affirming judgment.

“Chapter 20″ is a colloquial reference to a Chapter 13 bankruptcy filed within four years of
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BANKRUPTCY

Pat Murphy — Mon, 13 May 2013 22:11:23 +0000

Proof of malicious intent is not required to prevent the bankruptcy discharge of a debt that arose from a trustee’s self-dealing.

See “Court clarifies bankruptcy discharge standard for fiduciaries”

U.S. Supreme Court. Bullock v. BankChampaign, No. 11-1518. May
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Court clarifies bankruptcy discharge standard

Pat Murphy — Mon, 13 May 2013 21:02:36 +0000

The U.S. Supreme Court has clarified that proof of malicious intent is not required to prevent the bankruptcy discharge of a debt that arose from a trustee’s self-dealing.

“Where actual knowledge of wrongdoing is lacking, we
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Repossessing car lender violated bankruptcy stay

Pat Murphy — Fri, 10 May 2013 17:45:54 +0000

A car lender willfully violated the automatic stay in a Chapter 13 case by failing to return a repossessed vehicle to the debtor promptly after receiving notice of his bankruptcy petition, the 2nd U.S. Circuit Court of Appeals has ruled in affirming judgment.

The defendant held a loan secured in
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Banking lawyers uneasy about national loan data collection

Sylvia Hsieh — Tue, 07 May 2013 18:51:51 +0000

Recent Senate hearings have sparked renewed debate over a national mortgage database that will hold information about millions of mortgage, credit card and auto loans, loan terms, borrowers’ credit profiles and financial information.

The project — the largest database of its kind — was announced in November as a joint
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Inherited IRA isn’t exempt in bankruptcy

Pat Murphy — Mon, 29 Apr 2013 17:04:08 +0000

An IRA that a debtor inherited from her mother was not exempt from creditors’ claims in her bankruptcy case, the 7th U.S. Circuit Court of Appeals has ruled in reversing judgment.

The Bankruptcy Code generally exempts from creditors’ claims any “retirement funds to the extent that those funds are in
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Anna Nicole bankruptcy case still splitting the circuits

Kimberly Atkins — Thu, 18 Apr 2013 18:45:59 +0000

WASHINGTON – The fallout from the complicated legal battle between the late pinup model Anna Nicole Smith and the estate of the elderly oil magnate she married is still being felt by bankruptcy lawyers across the nation because a new circuit split has emerged, making an already complex legal issue
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Bankruptcy trustee’s avoidance actions untimely

Pat Murphy — Tue, 16 Apr 2013 19:35:35 +0000

The appointment of an interim trustee in a Chapter 7 case did not extend the time period for the bringing of avoidance actions to undo transactions that reduced the value of the bankruptcy estate, the 7th U.S. Circuit Court of Appeals has ruled in reversing judgment.

Under §546(a)(1)(A) of the
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Long-term unemployment justified discharge of student loans

Pat Murphy — Mon, 15 Apr 2013 17:17:40 +0000

A debtor who was unable to find a job after a decade-long search met the Bankruptcy Code’s standard for discharge of her student loan debt, the 7th U.S. Circuit Court of Appeals has ruled in reversing judgment.

The debtor is 53 years old and has not held a job since
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Chapter 13 plan satisfied ‘good faith’ standard

Pat Murphy — Mon, 01 Apr 2013 18:15:20 +0000

The Bankruptcy Abuse Prevention and Consumer Protection Act prohibited the consideration of debtors’ Social Security income in determining whether their Chapter 13 plan was proposed in good faith, the 9th U.S. Circuit of Appeals has ruled in affirming judgment.

The case involved a husband and wife who are “above median”
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