No. As reported by Robin Miller of CBAR, a Court will decline to order substantive consolidation of Chapter 7 debtors with non-debtor LLC. Substantive consolidation, generally: Substantive consolidation is a judicially-created doctrine that treats separate legal entities as if they were merged into a single entity, pooling the assets and liabilities of the two entities,…
Archives for February 2015
Can a Debtor Reopen a Case to Avoid a Creditor’s Lien?
Yes. According to Robin Miller of CBAR, the granting of debtor’s motion to reopen case, for purpose of avoiding creditor’s lien, would be conditioned on debtor’s reimbursing creditor for expenses incurred as result of debtor’s delay. Generally, reopening a case for the purpose of avoiding judicial lien under Code § 522(f), Courts have long held…
Does the Homestead Exemption Extend to Mineral Rights?
Not in Ohio. As reported by Robin Miller of CBAR, under Ohio Rev. Code § 2329.66(A)(1)(b), which permits the exemption of “one parcel or item of real or personal property that the [debtor] … uses as a residence,” the debtors could claim a homestead exemption in two contiguous parcels where the debtors used both parcels…
Was the Dismissal of Chapter 7 Proper Where the Debtor Was Trying to Save Their Home?
No. As reported by Robin Miller of CBAR, the dismissal of the Chapter 7 debtor’s case for bad faith amounting to cause under Code § 707(a) was not warranted where there was no evidence that the debtor had concealed or misrepresented his own assets or income or that he lived or continued a lavish lifestyle…
Does a Creditor’s Filing a Proof of Claim for a Discharged Debt Violate the Discharge Injunction?
Yes. As reported by Robin Miller of CBAR, disagreeing with In re Surprise, 342 B.R. 119 (Bankr. N.D. N.Y. 2006) and In re Clayton, 2010 WL 4008335 (Bankr. E.D. Wash., Oct. 12, 2010), the court in In re Moore, 521 B.R. 280 (Bankr. E.D. Tenn., Sept. 29, 2014) held that a creditor’s filing a proof…
Does a Violation of Discharge Injunction Be Asserted by Filing a Motion for Contempt?
Yes. As reported by Robin Miller of CBAR, agreeing with In re Frambes, 454 B.R. 437 (Bankr. E.D. Ky. 2011) and disagreeing with Motichko v. Premium Asset Recovery Corp., 395 B.R. 25, 29 (Bankr. N.D. Ohio 2008), the court in In re Stevens, 2011 WL 6812807 (Bankr. E.D. Tenn., Dec. 28, 2011)held that an action for…
Does the Bankruptcy Code Preclude an FDCPA Remedy for Debt Collector’s Abuses?
As reported by Robin Miller of CBAR, the district court in Crawford v. LVNV Funding, LLC, 758 F.3d 1254 (11th Cir., July 10, 2014), reh’g and reh’g en banc denied (Sept. 18, 2014), pet. for cert. filed, LVNV Funding, LLC, v. Crawford, Case No. 14-858 (U.S. Sup. Ct., Jan. 15, 2015), held that the Bankruptcy Code does not…