In re Rosenfeld United States Bankruptcy Court, E.D. Michigan, Southern Division. July 31, 2015 — B.R. —- 2015 WL 4623586 BANKRUPTCY – Parties. Chapter 7 debtor’s former husband lacked standing to bring adversary proceeding for denial of debtor’s discharge.

As reported in Reuters on September 4, 2015, Walter Investment Management Corp agreed to pay $29.63 million to resolve allegations that it submitted false claims related to a U.S. Department of Housing and Urban Development program that insures reverse mortgages. The settlement announced on Friday by the U.S. Department of Justice resolved claims that Walter violated the federal False Claims Act through its servicing of mortgages insured under HUD’s Home Equity Conversion Mortgages program. The government alleged that Walter’s Reverse Mortgage Solutions Inc unit from August 2009 to March 2015 submitted fraudulent claims for interest payments to which it was not entitled. Walter’s submitted false claims to HUD for the reimbursement of unlawful referral fees by falsely representing them as lawful sales commissions, including through…

In re Lewiston United States District Court, E.D. Michigan, Southern Division. August 13, 2015 — F.Supp.3d —- 2015 WL 5009253 These are appeals from orders in a Chapter 7 bankruptcy, holding that the debtor’s interest in a living trust, or the debtor’s beneficial interest in the living trust is not exempt under the Bankruptcy Code.

As reorted by WestlawNext, Couple denied discharge for failing to disclose real property (Bkrtcy.D.Utah) (August 26, 2015) – A Utah couple’s failure to disclose their interest in two lots and their ownership of the entity that held the property warrants denial of a Chapter 7 discharge, a bankruptcy judge has ruled. In re Biorge et al., No. 10-23318; Rupp v. Biorge et al., Adv. No. 13-2430, 2015 WL 5016844 (Bankr. D. Utah Aug. 24, 2015). The debtors acted with reckless disregard for the truth, thus satisfying the requirement they knowingly and fraudulently made false statements in their bankruptcy filing, U.S. Bankruptcy Judge Joel T. Marker of the District of Utah said. Donald and Monica Biorge filed a Chapter 13 bankruptcy petition in March 2010. Ten days before…

As reported in WestlawNext, Mixup over debtor’s name no defense to discharge-violation claim (Bkrtcy.D.N.J.) (August 26, 2015) – A dental provider violated bankruptcy’s discharge injunction by attempting to collect a debt discharged in a couple’s bankruptcy, a New Jersey bankruptcy judge has ruled, rejecting the creditor’s contention it lacked knowledge of the bankruptcy because of variations in one spouse’s name. In re Andrade et al., No. 13-22850, 2015 WL 4940047 (Bankr. D.N.J. Aug. 18, 2015). U.S. Bankruptcy Judge John K. Sherwood of the District of New Jersey awarded the debtors damages and attorney fees, saying they proved they had notified the creditor of the discharge. Carlos Andrade and Mariella Nunez-Andrade filed for Chapter 7 bankruptcy in June 2013. One of the debts they listed in their court…

As reported in WestlawNext, Repossessed car belongs to couple’s estate, must be returned, judge says (Bkrtcy.S.D.Ga.) (August 26, 2015) – A dealership that repossessed a couple’s car after they filed their second Chapter 13 petition violated the automatic stay because the vehicle, bought under a valid contract between bankruptcy cases, belonged to their estate, a Georgia bankruptcy judge has ruled. In re Crosby et al., No. 15-20653; Southern Motors of Savannah Inc. v. Crosby et al., Adv. No. 15-2013, 2015 WL 4886732 (Bankr. S.D. Ga. Aug. 14, 2015). U.S. Bankruptcy Judge John S. Dalis of the Southern District of Georgia also refused to lift the stay, saying the debtors rebutted any presumption that they did not file their case in good faith with evidence about their…

As reported in WestlawNext, Debtors’ sailboat qualifies for homestead exemption (Bkrtcy.E.D.La.) (August 26, 2015) – A Louisiana couple who live full time on a sailboat that is moored at a marina can claim a homestead exemption on the vessel in their Chapter 7 bankruptcy, a bankruptcy judge has ruled in resolving an issue of first impression in the state. In re Housh et al., No. 15-10632, 2015 WL 4978725 (Bankr. E.D. La. Aug. 20, 2015). The boat serves as the couple’s primary residence as contemplated under Louisiana exemption law, U.S. Bankruptcy Judge Jerry A. Brown of the Eastern District of Louisiana said, denying the bankruptcy trustee’s motion to disallow the exemption. Kevin and Betty Housh filed for Chapter 7 relief in March 2015, claiming a…