Where a proposed settlement would pay an unsecured creditor ahead of the Internal Revenue Service, which was a senior creditor, it violated the Bankruptcy Code’s priority schemes and was denied. Background In August of 2017, River House Enterprises LC obtained ...

Tagged with: Bankruptcy Judge Klinette H. Kindred U.S. Bankruptcy Court

Where attorneys’ fees incurred by the oversecured creditor were reasonable and necessary to protect its interest in the bankruptcy cases, and the debtors agreed the rates were reasonable, the creditor was entitled to recover its fees under section 506(b) of ...

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

Where the bankruptcy court relied on an exhibit that was not admitted into evidence in sustaining the debtor’s objection to claims filed by the appellant, and its error was not harmless, its decision was vacated. Background On July 10, 2018, ...

Tagged with: Bankruptcy Judge Rossie D. Alston Jr. U.S. District Court - Eastern District

A lawyer who sought to keep a divorce case from going dormant after the opposing party filed for bankruptcy has been hit with $6,050 in sanctions by a Richmond bankruptcy judge who concluded the actions of the lawyer and his ...

Tagged with: Bankruptcy Divorce Judge Keith L. Phillips Sanctions

Where the debtor’s husband filed several documents in their divorce case after the debtor filed for bankruptcy protection, including a request the state court rehear and reconsider issues of equitable distribution in light of the bankruptcy filing, the debtor was ...

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

Where five Chapter 13 debtors asserted “numerous and novel RICO claims” against Wells Fargo after it put their mortgages into forbearance as a response to the COVID-19 pandemic and the CARES Act, the reference to the adversary proceeding was withdrawn ...

Tagged with: Bankruptcy Judge Michael F. Urbanski U.S. District Court - Western District

Where the court-approved amended joint Chapter 11 plan included a provision releasing claims against the debtor and nondebtor defendants, but allowed opt-outs, there was no “inherent authority” allowing parties previously certified as lead plaintiffs in a securities class action to ...

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

Where a confessed judgment was the result of the debtor originally breaching a payment obligation in his separation agreement, the ex-wife’s complaint plausibly alleged it was nondischargeable as debt “in connection with” a divorce or separation. Background Kent David Burstein ...

Tagged with: Bankruptcy Judge Frank J. Santoro U.S. Bankruptcy Court

Where the debtor was found guilty of fraud in a Montana state court, and the elements for fraud under Montana law mirror the elements for fraud in this dischargeability proceeding, the Montana judgment debt is excepted from discharge. Background Laron ...

Tagged with: Bankruptcy Judge Rebecca B. Connelly U.S. Bankruptcy Court

A $7,500 first-time homebuyer credit that is recaptured by the IRS over the next 15 years is a tax that is not dischargeable in bankruptcy. Background The debtor purchased a home with his mother and his sister in 2008. In ...

Tagged with: Bankruptcy Judge Brian F. Kenney U.S. Bankruptcy Court