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.
Having Nondischargeable Debts Doesn’t Entitle a Chapter 7 Debtor to Object to Claims
Courts are split on whether having nondischargeable debts gives an individual chapter 7 debtor standing to object to claims.
Brooklyn Decision Shows Why Litigation Finance Is Risky if the Plaintiff Files Bankruptcy
At least in New York, a litigation finance agreement can’t be written to remove all of the lender’s exposure to the borrower’s bankruptcy.
On Dismissal of a ‘13,’ Barton May (or May Not) Bar Garnishments
Section 1326(a)(2) by itself does not bar garnishment of funds held by a trustee on dismissal before confirmation.
Holding Impounded Cars Still Might Violate the Automatic Stay, Seventh Circuit Says
Seventh Circuit says that Fulton left open the question of whether holding an impounded car violates Sections 362(a)(4) or (a)(6).
Fourth Circuit Seems to Give the Government a Pass for Violating the Stay
Fourth Circuit expands federal government’s setoff rights under the Treasury Offset Program.
Courts Are Split on Whether Counsel Fees Are Considered in the Chapter 13 Best Interests Test
Deferred payments to unsecured creditors in a chapter 13 plan must equal the present value of the distributions required by the best interests test, Judge Halfenger says.