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ABI Journal

January 26, 2023

Post-Petition Appreciation in the Value of a Home Goes to Creditors in Chapter 13

Courts are deeply split on a chapter 13 debtor’s ability to keep the appreciation in an exempt home, whether or not the case converts to chapter 7.

8th Circuit, Missouri, Missouri Western District

January 19, 2023

Dubious Eleventh Circuit Opinion Permits Collateral Attack on Final Confirmation Order

Although the chapter 13 confirmation order was concededly final and enforceable, the appeals court set aside a plan provision modifying a residential mortgage.

11th Circuit

January 18, 2023

Supreme Court to Hear Two More Bankruptcy Cases This Term

The high court will decide whether a real estate tax foreclosure can violate the Takings Clause and whether Section 106 abrogates sovereign immunity as to Native American tribes.

Supreme Court

November 30, 2022

Security Interests Are Assignments of Accounts Receivable, New York High Court Says

Once an account debtor is notified to pay the lender, not paying an account receivable to the lender can mean that the account debtor pays twice.

2nd Circuit, New York

November 23, 2022

Ninth Circuit Splits on Avoiding and Preserving a Lien on Exempt Property

The Ninth Circuit dissenter interpreted the statute to mean that the debtor must pay a tax lien twice if the lien was avoided and preserved.

9th Circuit

November 22, 2022

Chapter 7 Estate Takes Post-Petition Appreciation on Conversion from Chapter 13

Joining the ‘slight minority,’ Judge Fenimore rules that post-petition appreciation in the value of a homestead goes to the chapter 7 estate when the chapter 13 case converts.

8th Circuit, Missouri, Missouri Western District

November 08, 2022

Claiming ‘100% of FMV,' Debtors Keep Postpetition Appreciation in Exempt Assets

Ninth Circuit BAP interprets Taylor and Schwab to mean that a trustee cannot revisit the value of an exempt asset if the debtor claimed ‘100% of FMV’ and there was no timely objection.

9th Circuit

November 02, 2022

A Security Deposit Is an Unsecured Loan, Unless State Law or the Lease Says Otherwise

If a tenant’s security deposit was swept by the landlord’s secured creditor but was not held in trust, the tenant has no recourse other than to file an unsecured claim.

2nd Circuit, New York, New York Southern District

October 26, 2022

Sixth Circuit Holds that Tax Foreclosure Violates the Takings Clause of the Constitution

If tax foreclosures violate the Takings Clause, it stands to reason that they are also fraudulent transfers.

6th Circuit

September 29, 2022

Debtor Retains Appreciation in Nonexempt Property Sold During Chapter 13

Judge Rosania answered a question left open by the Tenth Circuit in Barrera.

10th Circuit, Colorado