Yes. An Ohio bankruptcy court ruled that the debtor’s mortgage creditor violated the discharge injunction by including in its proof of claim charges that had been discharged in the debtor’s prior Chapter 13 case. In making its decision, the court noted that the creditor refused to amend the proof of claim unless the debtor agreed…
Does the Collection of Does the Collection of Postpetition Attorney’s Fees by a Condominium Association Violate the Discharge Injunction?
The 6th Circuit Court of Appeals (BAP) held that attorney’s fees incurred by the condominium association in connection with a post-discharge sheriff’s sale of the debtor’s unit became “due and payable” postpetition. As a result, the fees were not discharged and the association’s attempt to collect the fees from the debtor did not violate the…
Does a Post-Discharge Sheriff’s Sale of a Debtor’s Condominium Unit Violate the Discharge Injunction?
The 6th Circuit Court of Appeals (BAP) held that the condominium associations scheduling of a post-discharge sheriff’s sale of the debtor’s unit to get a new paying homeowner into the unit did not violate the discharge injunction. The court rejected the debtor’s argument that the sale was a disguised in personam collection of a discharged…
Can the tax sale redemption amount be paid over the term of Chapter 13 plan?
In a divided district, a Georgia bankruptcy court held that the tax sale purchaser held a secured claim that the plan could modify under Code § 1322(b)(2) and pay over the term of the plan. The court reasoned that under state law, legal title to the property remained with the debtor. As a result, the…
Can a Bankruptcy Court Award Emotional Distress Damages of $119,000 for Discharge Injunction Violations?
Yes. The 9th Circuit Court recently held that the bankruptcy court’s award of $119,000 in emotional distress damages to a Chapter 7 debtor was reasonable given the facts and circumstances of the mortgage servicer violations, The Court upheld the bankruptcy court’s decision finding that award was reasonable and supported by the evidence. As a result…
Can a Bankruptcy Court Impose Refiling Bar if a Debtor Files Four Consecutive Bare-Bones Bankruptcy Cases to Stop a Foreclosure Proceeding?
Yes. In a recent decision, a North Carolina Bankruptcy Court imposed a one (1) year bar on the debtor’s ability to refile their case. The court imposed this bar where the debtor had filed four (4) consecutive bare-bones bankruptcy cases in order to stop a foreclosure proceeding. The court noted that all of the “bare-bones”…
Does a Credit Union’s policy of requiring payment of a discharged debt before the debtor can open a new account violate the Discharge Injunction?
No. A New York bankruptcy court held that a credit union’s policy of not permitting a bankrupt debtor to open an account at the credit union unless the debtor repaid the debt that was owed to the credit union and discharged in the debtor’s bankruptcy case did not violate the discharge injunction. The court reasonned…