Security Interest Perfected on the Filing Date Remains Valid if It Lapses Later
The addition of Section 362(b)(3) is held not to affect the ‘freeze rule’ with regard to lapsing security interests.
Exemption Claim Overrides the Government’s Right of Setoff, District Judge Says
Courts are divided when an exemption claim collides with the government’s right of setoff.
Requiring Conduit Mortgage Payments Is Ok Despite Costing the Debtor $5,300
Bankruptcy judge says a chapter 13 debtor receives ‘several benefits’ from paying 8% in commissions on mortgage payments through the trustee.
Fourth Circuit Holds Local Rule Invalid for Dispensing with a Hearing
Fourth Circuit again shows itself to be a debtor-friendly venue.
Ninth and Fourth Circuits Issue Important Rulings on Sanctions and Exemptions
Ninth Circuit opinion is prime for Supreme Court review regarding the extent of a bankruptcy court’s contempt powers.
Three Circuits Approve Extraterritorial Application of a State’s Exemptions
Fourth Circuit avoids a result that would have left some debtors ineligible for any exemptions.
Failing to Purchase Health Insurance Won’t Result in a Priority Tax Claim
Another court rules that Sebelius isn’t controlling on the characterization of the individual mandate under the Bankruptcy Code.
Chapter 13 Strip-Off Ok Even if Lienholder Does Not File a Claim, Fourth Circuit Holds
A contrary result would have obviated the judicially recognized right to strip off underwater subordinate liens in chapter 13.
Unlicensed Debt Collectors May File Proof of Claim Despite State Law
Midland Funding expanded to allow unlicensed debt collectors to file claims.
Solvency May or May Not Result in Dismissal
The Fourth Circuit and a Delaware bankruptcy judge reach opposite conclusions on motions to dismiss petitions by solvent debtors.