Trustee Admonished for Filing Suit Reflecting a ‘Disturbing Lack of Judgment’
Providing an adult child with room and board in the family home is not a fraudulent transfer.
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Former NFL Star Clinton Portis Files for Bankruptcy to Keep Gainesville Home
Former NFL running back Clinton Portis has filed for bankruptcy again in an effort to to keep his northeast Gainesville, Fla., home from being auctioned off, the Gainesville Sun reported. Alachua County, Fla., court records show Portis filed for chapter 11 bankruptcy protection on June 15, the same day the house at 3510 NE 156th Ave. was scheduled to be auctioned off online. Alachua County property records list Portis and his mother, Rhonnel Hearn, as the owners of the more than 8,000-square-foot purple mansion off County Road 225 near Gainesville Raceway. The property was foreclosed on in April 2022 due to roughly $1.6 million in unpaid principal, interest, insurance and taxes. The home was originally scheduled to be auctioned off on June 30, 2022, but a bankruptcy filing by Hearn — with Portis listed as an interested party — delayed the sale. Hearn's bankruptcy filing was eventually dropped over time. Portis' most recent bankruptcy filing lists more than $2.5 million in unsecured claims, including a $1 million mortgage deficiency, $390,000 owed to the IRS and a $287,000 debt to the MGM Grand Hotel in Las Vegas. The two-time Pro Bowler amassed more than $43 million during his nine-year NFL career, though all of that has been lost due to lavish spending, bad investments and poor financial management.
Supreme Court: The Bankruptcy Code Waived Tribes’ Sovereign Immunity
The Supreme Court resolved a split of circuits in an opinion that could give support to the notion that arbitration agreements are not enforceable in bankruptcy.
Two Circuits Now Hold: ‘13’ Trustees Aren’t Paid if Cases Dismiss Before Confirmation
The Ninth and Tenth Circuit disallow fees to chapter 13 trustee if the case is dismissed before confirmation. The identical issue is sub judice in the Second Circuit.
Accumulated, Identifiable Wages Were Held Exempt, Regardless of the Total Amount
Colorado allows the ‘stacking’ of exemptions, given the mandate to interpret exemptions liberally in favor of debtors.
New Orleans Man Pleads Guilty to Concealment of Bankruptcy-Related Assets
Joshua Borges of New Orleans pleaded guilty to one count of Concealment of Assets, in violation of Title 18, U.S. Code, Section 152(1), before U.S. District Judge Carl J. Barbier, announced U.S. Attorney Duane A. Evans, according to a DOJ Press release. According to court records, on or about April 17, 2018, Borges knowingly and fraudulently failed to disclose property that belonged to him in a bankruptcy case. Specifically, he knowingly and fraudulently failed to disclose to the trustee charged with control of the debtor’s property, and from the creditors and the U.S.Trustee, $9,000 in cash on hand, and his business interest in Elite Enterprise Holding, LLC, which had a value of at least approximately $89,771.08. Sentencing will be Sept. 28, 2023, and Borges faces a maximum penalty of five years of imprisonment, followed by up to three years of supervised release, a fine of up to $250,000, and a mandatory $100 special assessment fee.
Bankruptcy Code
State Exemption for Life Insurance Policies Continues to Be Under Attack in Texas
Defeated three times, a chapter 7 trustee is appealing to the Fifth Circuit to end the exemption for whole-life policies in Texas.
The Refund of an Early Withdrawal Penalty from an IRA Was Held Exempt
Although not held in an IRA, a refund by the IRS of a withdrawal penalty was exempt because state law permits tracing proceeds of exemptions, Judge Opperman says.