Oregon Supreme Court allows substitution of a bankruptcy trustee as the real party in interest because denial would chiefly punish the debtor’s creditors.
Bankruptcy Rule 7070, incorporating Federal Rule 70 along with 28 U.S.C. § 1655, gives bankruptcy courts power to remove liens of record when the lenders don’t do so voluntarily.
What will become of the chapter 13 system if standing trustees must refund all fees collected in cases dismissed before confirmation? The answer is perhaps unexpected: Unsecured creditors in confirmed chapter 13 cases will pay the administrative expenses of cases that fail.
With four circuits in agreement, the Supreme Court isn’t likely to grant cert to rule on whether chapter 11 debtors are entitled to refunds for overpayment of U.S. Trustees fees that were held unconstitutional in Siegel.
Splitting with the Tenth Circuit, the Ninth Circuit holds that chapter 13 debtors lose post-petition appreciation in a home if the case converts to chapter 7.
With claims for abuse of process not available in a bankruptcy case, the offended party must pursue contempt or other sanctions created by the Bankruptcy Code, a California district judge says.
