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…

Can you get back fees and costs against someone who sues you in bankruptcy and loses?
202107.05
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Can you get back fees and costs against someone who sues you in bankruptcy and loses?

In rare cases a creditor may file suit against a debtor in bankruptcy asserting either that the debtor not be entitled to eliminate the debts in bankruptcy (a denial of discharge), or that the debt owed to the particular creditor not be eliminated (objection to dischargeability).  Either proceeding will likely significantly increase the cost of…

What happens if a creditor continues to report a debt after bankruptcy?
202106.25
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What happens if a creditor continues to report a debt after bankruptcy?

Occasionally a credit report may inaccurately continue to show liability on a debt that was discharged in bankruptcy. The Fair Credit Reporting Act is one possible remedy for this problem. While credit reporting agencies are initially required to ensure that information on the reports is accurate; they are under a more specific duty to investigate…

202106.18
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Creditor who was not represented by counsel ordered to pay over $41,000 for violating bankruptcy law in filing criminal embezzlement charges in attempt to collect debt

Creditor who was not represented by counsel ordered to pay over $41,000 for violating bankruptcy law in filing criminal embezzlement charges in attempt to collect debt: While criminal proceedings are not stayed by the bankruptcy laws, when a creditor files criminal charges simply in an attempt to collect a debt, they may face the wrath…

202106.18
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Massachusetts Federal appellate court determines that funds debtor held from an uncashed 401k loan check is property bankruptcy trustee can take and use to pay creditors

Massachusetts Federal appellate court determines that funds debtor held from an uncashed 401k loan check is property bankruptcy trustee can take and use to pay creditors: In reversing a bankruptcy court decision, the federal appellate court in Boston found that a $18,000 uncashed check for a loan from the Debtor’s 401k was property the trustee…

202106.18
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Chapter 13 can change interest rate and reduce debt on home to value of home when final payment on mortgage is due before final payment under plan

Chapter 13 can change interest rate and reduce debt on home to value of home when final payment on mortgage is due before final payment under plan: While the general rule in chapter 13 is that the debtor cannot modify the mortgage on a debt secured by the debtor’s principal residence (the debtor can cure…