Because Code § 506(a) states that “[a]n allowed claim of a creditor secured by a lien on property in which the estate has an interest … is a secured claim to the extent of the value of such creditor’s interest in the estate’s interest in such property,” a claim may be valued under § 506(a)…
Can a Claim may be “provided for” in a Chapter 13 plan be Discharged even where no proof of claim is filed?
Yes, according to a recent decision from the ND of Illinios, the Court reld on the 10th Ciruict holding in In re Dixon, 218 B.R. 150 (10th Cir. B.A.P. 1998). The Illinois Bankruptcy Court held that a claim that is treated in the debtor’s plan will be “provided for” in the plan and discharged under…
What Chapter 13 provision allows for the “stripping” of unsecured liens? And, when is the lien actually stripped?
Chapter 13 debtor may strip unsecured lien under Code § 1322(b)(2), but not § 506(d). Further, stripping an unsecured lien in Chapter 13 requires that debtor receive discharge. A lien cannot be avoided before the Chapter 13 debtor’s discharge is entered.
Is Social-Host Liability Non-Dischargeable under Code § 523(a)(6)?
In a recent Wisconsin cae, the Bankrupcy Court said no. The creditors failed to show that the debtor’s potential social-host liability for the death of a partygoer in an automobile accident was the result of a willful and malicious injury by the debtor that would be nondischargeable under Code § 523(a)(6). In re Weihert, 2013…
A Chapter 13 Debtor Cannot Use Income Available from Paying Off a 401(k) Loan to Contribute to Their 401(k) Plan!
In Seaport v Burden, a 6th Circuit case from 2012, the Court held that Chapter 13 of the Bankruptcy Code permits individuals with regular income can keep their property if they agree to a court-approved plan to pay creditors out of their future “disposable income. The Code requires, however, that a Chapter 13 plan can…
If you the US Government any money, make sure you file Bankruptcy before you file your Income Tax Return!
In a recent case in the Western District of Michigan, a Bankruptcy judge ruled that the US Government had the right to set off a debt under 11 USC 553 even when the Setoff was listed as an asset and exempted under 11 USC 522. The Judge ruled that 11 USC 553 Setoff provision trumps…
What is the basis for Judicial Estoppel in the 6th Circuit?
The test for judicial estoppel in Sixth Circuit was set forth in Stephenson v. Malloy, 700 F.3d 265 (6th Cir., Oct. 30, 2012). The Stephenson court stated: To support a finding of judicial estoppel, the court must find that: (1) the debtor assumed a position that was contrary to the one that he asserted under oath…