What happens when there is a lawsuit against you when you file bankruptcy? For most typical credit card, repossession, miscellaneous debt collection lawsuits, they are simply dismissed when the case is filed. Even if a judgment is obtained, the bankruptcy can usually eliminate these debts, though there is a risk that the creditor with a…
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….
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…
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…
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…
It is not terribly uncommon for a creditor to be omitted from the list of creditors when a case is filed. If it is a no asset case, often courts will allow the addition of the creditor, and such debt will be discharged (absent allegations of the type found in §523(a)(2), (a)(4), and (a)(6). However,…
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…
I understand why client’s may not want to just hire the least expensive attorney they can find. Unfortunately this can lead to problems both during the case and after. Even after getting a free consultation with a good attorney who does not see issues, there is much more work done by good attorneys both in…
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…
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…
