Chapter 13 Creditors Get Exempt Assets that Produce Income
Exempt assets are included in the calculation of chapter 13 projected disposable income to the extent that the exempt asset produces income.
Lender Defaulted on the Merits for ‘Prolonged, Extraordinary’ Discovery Violations
Despite contrary Second Circuit dicta, retiring Judge Robert Drain certified a nationwide class in a suit for violation of the discharge injunction.
Long Island Judge Ends ‘Loss Mitigation’ in His Courtroom
No more informal ‘no-look’ fees in the courtroom of Bankruptcy Judge Robert Grossman.
‘13’ Trustees Are Paid Even if Dismissal Comes Before Confirmation, District Judge Says
A chapter 13 trustee is not a federal employee for the purposes of the Federal Tort Claims Act.
Another District Judge Rules that Tax Foreclosures Can Be Fraudulent Transfers
The circuits are split on whether the Supreme Court’s BFP opinion can be extended to bar fraudulent transfer attacks on in rem real estate tax foreclosures.
On Student Loan Discharge, District Judge Requires Responses to Unasserted Defenses
New York district judge requires a student loan debtor to prove the reasonableness of living expenses when the lender never objected.
Estate Claims Can’t Be Sold for Trivial Recovery by Unsecured Creditors
Had the purchaser of estate claims offered to waive its own unsecured claim, the sale might have been approved.
Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1
Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.
In ‘Chapter 20,’ Discharged Mortgage Claim Resurrects as Unsecured, EDNY Judge Says
Judge Grossman didn’t abolish ‘chapter 20’ entirely. He required the debtor to treat the subordinate mortgage lender like all other unsecured creditors, even though the debtor’s personal liability to the lender had been discharged in the prior chapter 7 case.
Treble Damages for ‘Willfulness’ Won’t Automatically Result in Nondischargeability
The lack of specific findings of fact by the arbitrator meant that a treble damage award for willful breach of contract was dischargeable.