An above median income family didn’t include their 401K contributions and tax refunds into their disposable income calculation. The UST filed a Motion to Dismiss James and Heidi Kehl’s Ch. 7 filing in the Eastern District of MI, Southern Division. The UST argued at an evidentiary hearing the ability of the Debtors to pay on…
All posts by Mike Shovan
Major Fees And Damages After Failed Involuntary Chapter 7
The dismissal of an involuntary Ch. 7 resulted in a decision against petitioning creditor Kevin Adell, in favor of alleged debtor JRH LLC. The Honigman firm successfully defended JRH from the failed involuntary petition, obtaining a judgment against Adell for compensatory and punitive damages, plus being granted fees and costs under Sec. 303(i) of the…
No Automatic Stay For Child Custody Legal Fees
In the midst of a protracted child custody dispute, a Debtor filed a Ch. 13. Previously this Debtor was ordered to pay legal fees incurred from the custody case. A non-bankruptcy Court may determine if the automatic stay applies toward a debt. U.S. District Courts have appellate jurisdiction over decisions of the Bankruptcy Court. The…
Can a Chapter 13 Arrearage Claim on a Mortgage include late fees and penalities?
Yes. The obligation to repay an arrearage in a Chapter 13 can include late fees, penalties and the interest on these. These additional amounts would be added pursuant to the language in the mortgage contract. The mortgage company’s Proof of Claim will include these amounts.
Classes Of Claims In Ch. 11 Must Be Unique – Not Just Only For Plan Approval
An element of Ch. 11 is that through the Plan the sorting of creditor claims into a particular class, with other substantially similar claims is allowed. A legitimate business purpose must be shown to warrant creation of a separate class of claims though. If the Plan changes a claim holder’s legal or contract rights this…
IRS Penalties Still Apply When Business Is In Chapter 11
A Bankruptcy Appellate Panel of the 6th Circuit affirmed a Bankruptcy Court Order made regarding Southeast Waffles LLC. This Debtor had sought to avoid and recover penalty payments made to the IRS. After the Ch. 11 Plan was confirmed, an appointed Liquidating Agent sold assets accordingly, as Debtor S.E. Waffles operated business as a debtor-in-possession. …
Business debtor can’t hire lawyer once Ch. 11 Trustee appointed
Moohaven Dairy LLC filed bankruptcy in the Eastern District of MI, Northern Division, requesting legal representation from Attorney Dale Cubitt. The primary secured creditor Bank of America was granted relief from automatic stay, which permitted them to get an Order against non-debtors in the County Circuit Court. Under 11 U.S.C. Sec. 327 the Bankruptcy Court…