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Editor's Note: In re Perl is a case that may have significant ramifications, which has drawn the following articles by Jesse Valdez, Esq., who examines why the Court reached the correct decision, and by Shannon Doyle, Esq., who argues that the decision missed the mark.

Chapter 7 debtors who own real property need to understand their options, and the potential consequences of their choices.  In Failla v. Citibank, 542 B.R. 606 (S.D. Fla. 2015),[1] the court held that a debtor who states his or her intention to surrender under Section 521(a)(2) cannot defend a subsequent foreclosure. This case summary will review the court’s analysis, and how this decision may impact future cases.

Background

In a 7-1 decision written by Justince Sotomayor, with Justice Thomas dissenting, the Supreme Court ruled that actual fraud under Section 523(a)(2)(A) of the Bankruptcy Code does not require a false representation and is broad enough to include a fraudulent conveyance.[1]

Editor's Note: In re Perl is a case that may have significant ramifications, which has drawn the following articles by Jesse Valdez, Esq., who examines why the Court reached the correct decision, and by Shannon Doyle, Esq., who argues that the decision missed the mark.

Re: Trustee Sales in the 1^st Circuit: A Reply to Attorney David G. Baker’s response to my article in the November 2015 issue of the American Bankruptcy Institute Journal[1] discussing In Re Traverse, 753 F.3d 19 (1^st Cir.) , cert. denied sub nom. DeGiacamo v. Traverse, 1358 S.Ct. 459, 190 L.Ed. 2d 332 (2014)

Dear Sirs:

Means testing was introduced to the world of bankruptcy with the adoption of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). The means test is set forth in 11 U.S.C. § 707‌(b)[1] and is applied to above-median debtors in chapter 13 through 11 U.S.C. § 1325‌(b).