Yes. As reported by Robin Miller of CBAR, the Debtor’s bad faith is cause for dismissal of Chapter 7 case under Code § 707(a). The debtor exhibited bad faith in filing her Chapter 7 case, warranting the dismissal of the case for cause under Code § 707(a), where (1) there were deficiencies in the debtor’s…
Archives for February 2015
Does the Evidentiary presumption of validity of proof of claim extend to the claims priority status?
No. As reported by Robin Miller of CBAR, the evidentiary presumption of the validity of a claim that arises upon the proper filing of a proof of claim does not extend to the priority status of the claim. In re Hack, 2009 WL 1392068 (Bankr. C.D. Ill., May 14, 2009); In re Taranovich, 1994 WL 329429…
Under Illinois Law are Both the Refundable and Nonrefundable Portions of Debtor’s Federal Child Tax Credit are Exempt as “Public Assistance Benefit”?
Yes. As reported by Robin Miller of CBAR, disagreeing with both In re Koch, 299 B.R. 523 (Bankr. C.D. Ill. 2003) (holding that the nonrefundable general child tax credit is not exempt as a “public assistance benefit” under 735 Ill. Comp. Stat. 5/12–1001(g)(1), while the refundable additional child tax credit is exempt) and In re Hardy, 503…
Can a Debtor Avoid a Lien under Code § 522(f) on Debtor’s Contingent Future Interests in Property?
No. As reported by Robin Miller of CBAR, the Chapter 7 debtor could avoid, under Code § 522(f), a creditor’s judgment lien on homestead property owned by the debtor and his nondebtor wife as tenants by the entirety, insofar as the lien attached to the debtor’s interest in the property as a tenant by the…
Is the Sale of Property under Code § 363(f) Limited to Property of the Estate?
Yes. As reported by Robin Miller of CBAR, following the confirmation of the Chapter 13 debtor’s plan, the property of the estate revested in the debtor. Accordingly, the court could not grant the debtor’s motion, following the confirmation of his plan, to sell certain real property free and clear of liens under Code § 363(f),…
Does the Increase in the Value of an Asset considered income in a Chapter 13 Case?
As reported by Robin Miller of CBAR, any increase in the cash surrender value of the Chapter 13 debtor’s life insurance policy was neither income nor projected disposable income. Courts have repeatedly held that “[o]nly regular income and substitutes therefor can be counted in the determination of disposable income for the purposes of the chapter…
Can a Chapter 13 Debtor Treat an Equitable Mortgage (Land Contract) as a Mortgage Claim?
According to Robing Miller of CBAR, under Illinois law, a quitclaim deed given to the mortgage lender by the debtor prepetition in connection with a forbearance agreement was treated as an equitable mortgage rather than as a conveyance of the property. As a result, the debtor remained the owner of the property and could include…