New York

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.

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.

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.