Consumer Bankruptcy

District Court Affirms: ‘13’ Debtors Lose Appreciation in a Home After Conversion to ‘7’

On an issue where the courts are split, a district judge in Washington State holds that the debtors lose the post-petition appreciation in the value of estate property when a chapter 13 case converts to chapter 7.

District Judge Effectively Bars a Short Sale Without Paying the Homestead Exemption

Reversing, a Long Island district judge credits value to a homeowner’s ability to delay foreclosure, taking a position contrary to a recent decision from a Ninth Circuit B.A.P.
2nd Circuit Jun 27, 2022

Four Circuits Now Permit Fraudulent Transfer Attacks on Real Estate Tax Foreclosures

Circuit courts are split 4/3 on their interpretation of Supreme Court precedent holding that regularly conducted mortgage foreclosures are immune from fraudulent transfer attack.

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.