Where an order of sale approved a purchase agreement for debtors to sell certain property, and the agreement provided that the lease for the property would be transferred to the buyer pursuant to assumption and assignment and the debtors would ...

Tagged with: Bankruptcy Judge Keith L. Phillips U.S. Bankruptcy Court

A debtor in a Chapter 7 bankruptcy case was unable to recover garnished wages as an avoidable preference even though the wages were turned over to the judgment creditor within the 90-day preference period because the wages were garnished and ...

Tagged with: Bankruptcy Judge Paul M. Black U.S. Bankruptcy Court

Although the debtor admittedly made false statements and breached a deed of trust, he did not act with the requisite fraudulent intent and therefore the civil judgment is discharged. Background James Young filed a voluntary Chapter 7 petition in this ...

Tagged with: Bankruptcy Judge Paul M. Black U.S. Bankruptcy Court

A debtor who settled her personal injury claim may keep the funds because they were acquired after the petition date but prior to the conversion date, meaning the money was not property of the debtors’ bankruptcy estate. Background The debtors ...

Tagged with: Bankruptcy Judge Kevin R. Huennekens U.S. Bankruptcy Court

The trustee could not sell the real property, which a debtor owned with his spouse as tenants by the entireties, and use the proceeds to benefit unsecured creditors. Background The debtor claimed an exemption in real property owned as tenants ...

Tagged with: Bankruptcy Judge Paul M. Black U.S. Bankruptcy Court

A subcontractor that provided equipment, and received over $2.1 million in exchange, lost its attempt to keep those funds after the court agreed the money was paid as an avoidable transfer. Background Clark Construction Group LLC subcontracted work on a ...

Tagged with: Bankruptcy Judge Leonie Brinkema U.S. District Court - Eastern District

Where a creditor was not entitled to a distribution of excess cash entering the bankruptcy estate in the future pursuant to the express terms of the approved reorganization plan, the creditor lacked standing to obtain relief from judgment in order ...

Tagged with: Bankruptcy Judge Kevin R. Huennekens U.S. Bankruptcy Court

A majority of the en banc court held a Chapter 13 plan may bifurcate a claim based on an undersecured homestead mortgage into secured and unsecured components and cram down the unsecured component, overruling a 1997 decision that had been ...

Tagged with: 4th U.S. Circuit Court of Appeals Bankruptcy Judge James A. Wynn Jr.

BY CORREY E. STEPHENSON BridgeTower Media Newswires Overruling 22 years of precedent, the en banc 4th U.S. Circuit Court of Appeals has ruled that Chapter 13 debtors may divide some undersecured home mortgage loans into secured and unsecured claims and ...

Tagged with: 4th U.S. Circuit Court of Appeals News Bankruptcy Real Estate

A debtor might be able to discharge a $20 million plus judgment through a Chapter 7 bankruptcy. The district court found the debt nondischargeable under principles of collateral estoppel, reasoning that, because the debtor was found liable for misappropriating trade ...

Tagged with: 4th U.S. Circuit Court of Appeals Bankruptcy Judge Stephanie Dawn Thacker