Chapter 11 cramdown plans that provide for the sale of debtor’s collateral free and clear of a bank’s lien must allow the bank to credit-bid at the sale, the U.S. Supreme Court has ruled.
The U.S. Supreme Court will decide whether a Chapter 11 debtor may pursue a reorganization plan that proposes to sell encumbered assets at auction free and clear of liens without allowing a secured lender to bid its credit.
WASHINGTON – Six months after a bill that would have allowed bankruptcy judges to rewrite the terms of mortgage contracts to help homeowners avoid foreclosure failed in Congress, Sen. Dick Durbin, D-Ill., is considering an amendment to the financial regulatory reform bill that would have a similar effect, according to a Huffington Post report.
Published: April 1, 2010
Tags: "hanging paragraph", Bankruptcy Abuse Prevention and Consumer Protection Act, cramdown
The negative equity that Chapter 13 debtors had in a trade-in vehicle was not subject to the “cramdown” power of the bankruptcy judge, the 6th Circuit has ruled in reversing judgment.
A Chapter 13 debtor’s negative equity in a trade-in vehicle can be part of a purchase money security interest not subject to the cramdown power of the bankruptcy judge, the 7th Circuit has ruled.
WASHINGTON – In Washington, 2009 was filled with legal-related issues on the agendas of members of Congress, White House officials and federal agency heads. Here’s a look at some of the biggest legal news out of Washington this year.
WASHINGTON – A bill that would have given bankruptcy judges the power to rewrite the terms of mortgage contracts to help homeowners avoid foreclosure has been rejected by the House.
The negative equity that New York debtors had in their trade-in vehicles could not be treated as unsecured claims in their Chapter 13 bankruptcy cases, the 2nd Circuit has ruled.