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ABI Journal

April 10, 2018

Filing Date Controls Whether Residential Mortgages Can Be Modified

Courts are split on two issues regarding the antimodification provisions in Sections 1123(b)(5) and 1322(b)(2).

1st Circuit, Massachusetts

April 02, 2018

Chapter 13 Strip-Off Ok Even if Lienholder Does Not File a Claim, Fourth Circuit Holds

A contrary result would have obviated the judicially recognized right to strip off underwater subordinate liens in chapter 13.

4th Circuit

March 27, 2018

Rule 3001(c)(2)(D) Sanction Was 16 Times the Amount in Controversy

Innocent mistake turns into a $6,000 sanction for ‘willful failure to cooperate.’

10th Circuit, Kansas

March 08, 2018

Courts Split on Denying a Chapter 13 Discharge for Failure to Make Direct Payments

Illinois judge interprets Rule 3002.1 as being ‘debtor-friendly,’ not as creating new grounds for denial of a chapter 13 discharge.

7th Circuit, Illinois, Illinois Central District

February 08, 2018

Ninth Circuit Holds that One Accepting Class in Joint Plan Is Sufficient

A secured creditor making the 1111(b) election is not automatically entitled to a due-on-sale clause paying the claim in full if the property is sold after confirmation.

9th Circuit

January 23, 2018

Judge Refuses to Vacate Opinion Socking a Bank with $40 Million in ‘Punies’

California judge won’t bar the debtor from settling for more than the original $6 million in compensatory damages while forsaking $40 million in punitive damages earmarked for public interest groups.

9th Circuit, California, California Eastern District

January 22, 2018

BAP Upholds $119,000 in Contempt Sanctions; Tells Lender to Modify Its Forms

Lender cannot hide behind a disclaimer to avoid sanctions for violating the discharge injunction, Ninth Circuit BAP holds.

9th Circuit

January 10, 2018

BAP Declines to Rule on Waiver Resulting from Election to ‘Surrender’

Mortgage lender fails to export the Eleventh Circuit’s Failla decision to the Ninth Circuit.

9th Circuit

December 29, 2017

Boston Judge Allows Conversion to Chapter 13 Just to Prevent the Sale of a Home

Converting to chapter 13 to prevent the sale of a home in chapter 7 is not bad faith.

1st Circuit, Massachusetts

December 21, 2017

Courts Split on Ability to Redeem a Tax Deed Under a Plan

Another court rules on automatic removal of property from the estate under state law.

11th Circuit, Georgia, Georgia Northern District