No Violation by Lender’s Statement

Debtor Can Avoid Pre-Petition Transaction

By Deborah Elkins
Published: November 20, 2012
Tags: Bankruptcy, Judge Glen E. Conrad, U.S. District Court - Western District

A bankruptcy court did not err in rejecting the bankruptcy trustee’s complaint seeking to avoid a pre-petition transaction in which debtors gave their mortgage lender a “Deed of Confirmation of Deed of Trust,” guaranteeing the lender’s right to a first lien in debtors’ land, and the Charlottesville U.S. District Court affirms the bankruptcy court judgment [...]

Debtor Wins Lien Avoidance Appeal

By Deborah Elkins
Published: November 20, 2012
Tags: Bankruptcy, Judge Glen E. Conrad, U.S. District Court - Western District

The Danville U.S. District Court reverses the bankruptcy court’s denial of debtor’s complaint to avoid a secured judicial lien under 11 U.S.C. § 506(d); because the creditors in question filed an allowed proof of claim under § 501, the exception to the avoidance requirement in § 506(d)(2) does not apply in this case and the [...]

Petitioner’s Death Did Not Require Extra Fee

By Deborah Elkins
Published: October 25, 2012
Tags: Bankruptcy, Judge Glen E. Conrad, U.S. District Court - Western District

A bankruptcy court did not err in denying counsel’s request for fees of $9,572 after petitioner wife died during pendency of the bankruptcy proceeding; the Charlottesville U.S. District Court affirms awarding additional fees above the “no look” fee of $2,750 for a total of $3,000 in attorney’s fees. In a chapter 13 case, a bankruptcy [...]

Court Must Reconsider ‘Substantive’ Consolidation

By Deborah Elkins
Published: September 17, 2012
Tags: Bankruptcy, Judge Leonie Brinkema, U.S. District Court - Eastern District

In rejecting substantive consolidation of bankruptcy cases filed by two affiliated entities, a parent company that owned an Alexandria condominium property and the manager of the property, the bankruptcy court erred in its analysis of related state court proceedings and failed to consider whether consolidation would better serve equitable treatment of all creditors, and the [...]

Debtor Knew Bank Transfer Was Error

By Deborah Elkins
Published: September 10, 2012
Tags: Bankruptcy, Judge Gerald Bruce Lee, U.S. District Court - Eastern District

A debtor cannot discharge in bankruptcy her obligation to repay a bank for the $28,029.99 the bank mistakenly credited to debtor’s IRA; the Alexandria U.S. District Court says. After transferring the funds into debtor’s IRA, the bank then transferred the balance of debtor’s account, $56,043, to a checking account at another bank and closed debtor’s [...]

No Violation from Lender’s Account Statement

By Deborah Elkins
Published: September 10, 2012
Tags: Bankruptcy, Judge Norman K. Moon, U.S. District Court - Western District

Although debtor who obtained a Chapter 7 discharge received a post-discharge statement on her Bank of America mortgage that provided principal balances, estimated payments, payment instructions and information on how payments would be posted, the routine statement did not violate the discharge injunction against creditor action under 11 U.S.C. § 524(a), says the Charlottesville U.S. [...]

No Bank Suit After Bankruptcy

By Deborah Elkins
Published: August 17, 2012
Tags: Bankruptcy, Judge Michael F. Urbanski, U.S. District Court - Western District

A Harrisonburg U.S. District Court dismisses plaintiff’s suit alleging violations of the National Bank Act, as defendant’s bankruptcy discharge would cover any alleged obligation by debtor to plaintiff. Washington Mutual filed for Chapter 11 bankruptcy on Sept. 26, 2008, which triggered an automatic stay against commencement of any judicial action that could have been commenced [...]

Builder May Try to Reopen Case

By Deborah Elkins
Published: August 17, 2012
Tags: Bankruptcy, Judge Glen E. Conrad, U.S. District Court - Western District

A Roanoke U.S. District Court says a couple who operated a home-building company and who received a Chapter 7 bankruptcy discharge after they allegedly were told they had no insurance coverage or other protection for losses from a dishonest employee have their suit against their former CGL carrier stayed so they may ask the bankruptcy [...]

Debtor’s Plan Can’t Favor Student Loans

By Deborah Elkins
Published: August 8, 2012
Tags: Bankruptcy, Judge Leonie Brinkema, U.S. District Court - Eastern District

An Alexandria U.S. District Court approves the test used by the bankruptcy court to consider debtor’s Chapter 13 plan, but reverses its decision to confirm the plan because it unfairly discriminates against unsecured creditors by proposing to pay her student loans outside the plan. Section 1322(b)(5) permits a plan to provide for the curing of [...]