June 21, 2023
‘13’ Debtors May Deduct their Actual Mortgage Expenses to Arrive at Disposable Income
The Fourth Circuit agreed with the Sixth and Ninth Circuits by allowing chapter 13 debtors to deduct their actual mortgage expenses, not limited by the local standard mortgage deduction.
4th CircuitJune 06, 2023
BAP Gives Post-Petition Appreciation to Chapter 7 Estate on Conversion from Chapter 13
In a rising real estate market, chapter 13 debtors risk losing their homes if they sell or convert to chapter 7.
8th CircuitMay 30, 2023
Supreme Court Holds that Real Estate Tax Foreclosures Can Violate the Takings Clause
The high court’s ruling on the Takings Clause also seems to mean that real estate tax foreclosures can be avoided as constructively fraudulent transfers.
Supreme CourtMay 24, 2023
Find and Fix the Flaws in Appraisals Before They Are Subjected to Cross Examination
An appraisal was rejected entirely as being ‘inherently unreliable’ when it gave the client the value that the client wanted.
9th Circuit, California, California Eastern DistrictMay 03, 2023
Bankruptcy Doesn’t Automatically Accelerate a Mortgage, State Supreme Court Says
A discharge in bankruptcy by itself does not start the statute of limitations running on a defaulted mortgage, Colorado Supreme Court holds.
10th Circuit, ColoradoApril 28, 2023
Supreme Court Argument: Can Real Estate Tax Foreclosure Violate the Takings Clause?
Eighteenth century ‘history and tradition’ might govern the constitutionality of real estate tax foreclosures where the government retains sale proceeds in excess of unpaid taxes.
Supreme CourtMarch 22, 2023
Renewing a Title Loan Just Before Chapter 13 Didn’t Make the Filing in Bad Faith
Ruling the other way would have barred chapter 13 filings after renewing title loans.
11th Circuit, Alabama, Alabama Middle DistrictMarch 21, 2023
Another Court Won’t Permit a Structured Sale to Eradicate a Homestead Exemption
Subordinated lenders can’t take a ‘haircut,’ give a ‘tip’ to the trustee, sell a home and eradicate the debtor’s homestead exemption.
4th Circuit, North Carolina, North Carolina Western DistrictMarch 14, 2023
Oversecured Creditor Granted ‘Default’ Interest on a Loan Purchased at Discount
District judge in Connecticut upheld an award of ‘default’ interest, even though the fully secured lender had opposed the chapter 11 process and resisted the use of its cash collateral.
2nd Circuit, ConnecticutFebruary 01, 2023
A UCC Lien on ‘Accounts’ Won’t Attach to a Postpetition Sale of Real Property
Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing
5th Circuit, Texas, Texas Southern District