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ABI Journal

February 05, 2021

Judge Kendig Implies that Failure to Run a Lien Search is Tantamount to Malpractice

The debtors’ lawyer’s lack of diligence allowed the creditor to invoke laches and beat a belated motion to avoid a lien that impaired a homestead exemption.

6th Circuit, Ohio, Ohio Northern District

January 19, 2021

Cross-Collateralization Turns Two Loans into One Claim in the Fifth Circuit

When personal property loans are cross-collateralized, a chapter 13 plan must use the same option for cramming down both loans, the Fifth Circuit says.

5th Circuit

January 13, 2021

Another Court Lets the Debtor Keep Appreciation in a Home on Conversion from 13 to 7

Where the courts are split, Idaho judge sides with the Tenth Circuit BAP and allows a chapter 13 debtor to retain post-petition appreciation in the value of a homestead following conversion to chapter 7.

9th Circuit, Idaho

November 10, 2020

Ninth Circuit Extinguishes Another Mortgage Where the Lender Had Fallen Asleep

The appeals court allows a tiny lien to wipe out a big mortgage if the bank wasn’t vigilant at the time of foreclosure.

9th Circuit

November 05, 2020

Creditors Lack Standing to Enforce the Automatic Stay in the Ninth Circuit

A subordinate lender lacked appellate standing to appeal the annulment of the automatic stay in favor of a senior lender.

9th Circuit

October 13, 2020

Unrepentant Lender Slammed with $260,000 in Damages for an ‘Egregious’ Stay Violation

Lender soon recognized that home foreclosure violated the stay but continued denying liability through seven years of litigation.

4th Circuit, North Carolina, North Carolina Western District

October 08, 2020

Chapter 13 Debtors Retain Appreciation in Property After Conversion or Plan Amendment

On an issue where the courts are split, the Tenth Circuit BAP sides with debtors and allows them to retain postpetition appreciation in the value of assets that were in the estate on filing.

10th Circuit

September 30, 2020

On a Split, Long Island Judge Allows Selling a Home Despite the Homeowner’s Objection

A homestead exemption does not bar selling a home when the chapter 7 debtor has no equity in the property, Judge Robert Grossman says.

2nd Circuit, New York, New York Eastern District

July 31, 2020

Tenth Circuit BAP Says that Section 364(d)(1) Can’t Be Used for Priming Lien in a Plan

In a SARE case, the BAP says that the bankruptcy court cannot deny a lift-stay motion without finding that confirmation is reasonably possible in a reasonable time.

10th Circuit

June 04, 2020

Ninth Circuit Narrowly Reads Section 506(d) on Voiding Liens After Claim Disallowance

A claim must be disallowed based on the invalidity of the debt before the associated lien can be voided under Section 506(d), the Ninth Circuit ruled in upholding the BAP.

9th Circuit