202110.27
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Judge Jennemann rules that living in hotel where Debtors work does not result in abandonment of homestead

The trustee in In re Patel, 2021 Bankr. LEXIS 2897, Case No 6:18-bk-00036-KSJ (Bankr. M.D. Fl. 20 October 2021) had initially abandoned the property after discussing the residence situation at the 341 meeting, but then sought to withdraw the abandonment three years later.  While the court noted that the trustee failed to show fraud or newly…

202110.12
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Arizona court discusses requirements to remove case from state court to bankruptcy court in another state

In remanding a case back to Arizona state court, an Arizona district court decision found that the case was never properly removed to the federal district court, and it may not have jurisdiction over the matter.   Great Western Bank v. Clear Vision Express Tucson 2 LLC, 2021 U.S. Dist. LEXIS 193166, case No CV-21-00883-PHX-MTL (Dist….

202110.06
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Michigan district court rejects magistrate recommendation for dismissal of class action re refusal of reaffirmed mortgage to send statements

A class action suit was filed against PNC Bank alleging violations of the Truth in Lending Act and Real Estate Settlement Procedures Act for failing to send ongoing monthly statements during and after the  chapter 7 bankruptcy case despite the HELOC being reaffirmed.  Polonowski v. Pnc Bank, N.A., 2021 U.S. Dist. LEXIS 187910, 2021 WL…

202109.16
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Third Circuit affirms award of sanctions against University for willful stay violation in refusing to provide transcripts

The ruling came in  Cal Coast Univ. v. Alekna (In re Aleckna), 2021 U.S. App. LEXIS 27128, 2021 WL 4097155 (3rd Cir. 9 September 2021).  The debtor owed $6,300 toward tuition payments prepetition, and had scheduled the university as disputed.  Upon seeking transcripts and advising the university of the bankruptcy, the university eventually sent transcripts with…

202109.09
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Oregon bankruptcy court awards debtor fees for defending motion for relief from stay under state reciprocal fee statute

In a decision that may have reflected some frustration at the creditor’s conduct, the a bankruptcy court in Oregon granted the debtor’s request for $4,123.50 in fees for defending a motion for relief from stay on an automobile lease with a subsidiary of Nissan Motor Acceptance Company that had gone to final evidentiary hearing, when…

202108.16
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Submission of proposed order post-petition on state court ruling made pre-petition violates stay subjecting counsel to sanctions

Judge Specie in Pensacola, Florida sanctioned counsel for a creditor in a Subchapter V chapter 11 case for submitting a written order on the request of a state court judge substituting their client for the debtor in a pending lawsuit.  The background was a stipulated deficiency judgment against the debtor by NWE165, LLC in the…