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In Re Reynaldo Acosta: Copy and Paste Is Bad Faith

Case AnalysisDeontae Wherry

Debtor, the owner of a trucking company, filed a total of three petitions seeking bankruptcy relief under chapter 13. The first two petitions failed and the debtor then filed an emergency motion for the automatic stay to be imposed. The court denied the emergency motion on grounds of bad faith, mainly because the debtor copied the plan from the previous petitions despite changes to the debtor's financial situations. 

Noram Res., Inc. v. Peterson: If creditors attempt to comply, a stay violation is limited to actual damages.

Case AnalysisDavid Kemper Helsabeck III

Creditors of the debtor sought damages for negligence and negligent misrepresentation in state court while the debtor was in bankruptcy. The settlement happened outside of the bankruptcy court, which violated the automatic stay, and the trustee sought damages. Since the creditors attempted to comply with the bankruptcy court’s orders, the trustee could only receive actual damages for the estate.

Neurology & Neurophysiology Assocs., P.A. v. Tarbox: Don’t Forget to File Your Brief

Case AnalysisBenjamin Petty

“Approximately five years after forfeiture, the debtor filed for bankruptcy and a creditor appealed, claiming the debtor did not qualify as a person under the Bankruptcy Code because it no longer held a corporate charter. The bankruptcy court dismissed the case after determining the debtor was not a person. The debtor appealed, but it did not file a brief. The bankruptcy court dismissed the case, and the district court affirmed.”

Thomas v. Cundiff: Nondischargeable Debts and Affirmative Misrepresentations

Case AnalysisMartha Posey

     The debtor filed for bankruptcy, the investor alleged that the debtor solicited investments through fraudulent means and was therefore liable for a nondischargeable debt. The investor specifically claimed that the business plan used to solicit his investment misrepresented the business’s mining rights, misrepresented the promise of royalty payments and the return on investment after its sale, and concealed the business’s financial condition.

 

Bank of America v. Caulkett: Chapter 7 Debtors May Not Void A Creditor's Secured Lien In Real Property

Case AnalysisNicole Holland

Both debtors had houses with value less than the amount owed on the senior mortgage liens, making the junior mortgage liens wholly underwater.[1] The debtors filed for Chapter 7 Bankruptcy and petitioned the court to strip off the junior mortgage liens. The Court found the claims were secured and could not be voided under § 506(d). Under this ruling, § 506(d)'s function is reduced to “voiding a lien whenever a claim secured by the lien itself has not been allowed.”

Wellness Int’l Network, Ltd. v. Sharif: Litigants May Consent to The Adjudication of Non-Core Counterclaims In Bankruptcy Proceedings

Case AnalysisWesley Gould

The Supreme Court of the United States granted writ of certiorari and held that allowing a party to consent to adjudication of non-core counterclaims in a bankruptcy proceeding does not violate Article III of the constitution. Sharif overruled Fifth Circuit precedent, and now litigants have more options when it comes to adjudicating non-core counterclaims that arise in a bankruptcy proceeding.