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Bankruptcy

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The Equal Access to Justice Act (28 U.S.C. § 2412(d)) does not authorize a fee award against the bankruptcy court that, sua sponte, refused to confirm movan't Chapter 13 plan because it did not state a definite end date for performance of the plan.  The EAJA does not treat courts as part of the "United States" for purposes of a… Read More

The bankruptcy court did not abuse its discretion in converting this Chapter 13 bankruptcy into a Chapter 7 bankruptcy despite the fact that the debtors had filed a motion to voluntarily dismiss their Chapter 13 case under 11 USC 1307(b).  That section gives the debtors an absolute right to leave Chapter 13, but not to leave the bankruptcy court.  And… Read More

A bankrupt may assume an existing lease of personal property (such as a car) under 11 USC 365(p).  This decision holds that the debtor may assume the lease, and the creditor may enforce it after the debtor is discharged without also complying with the rrequirements for reaffirming a debt under 11 USC 524(c). Read More

A trustee is not deemed to have abandoned property of the estate under 11 USC 554(c) on closure of a bankruptcy case unless that property has been scheduled.  Here, the bankrupt described his then-pending lawsuit against his home loan servicer in his statement of financial affairs and discussed the case with his bankruptcy trustee but did not list the lawsuit… Read More

A bankruptcy court may retroactively annul the automatic stay so as to validate actions taken before the order annulling the stay. This remains true even after Roman Catholic Archdiocese of San Juan, Puerto Rico v. Acevedo Feliciano (2020) 140 S. Ct. 696, which held that a federal district court could not retroactively remand a case to state court to validate… Read More

After a state court entered an $800,000 judgment against him for conversion, Delannoy filed a Chapter 7 petition.  The trustee in the bankruptcy case sold Delannoy's state court appeal rights to the state court plaintiff which then dismissed the appeal and asserted the state court judgment as issue preclusive in connection with its objection to discharge in the bankruptcy court. … Read More

If no objection is raised by the US Trustee or any creditor, it is permissible for a debtor to propose and obtain confirmation of a Chapter 13 plan with an estimated duration rather than a fixed term, so long as the plan duration does not exceed the statutory maximum of three or five years. Read More

Husband's debt owed to a family partnership of which wife is a limited partner was non-dischargeable in husband's Chapter 11 bankruptcy, even though the debt was owed to the partnership, not wife directly. Read More

Statutory one-year lien on a judgment debtor’s personal property is tolled by 11 U.S.C. 108(c), which extends the time for commencing or continuing a civil action on a pre-petition claim against the debtor during the automatic bankruptcy stay. Read More

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