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Nichols v. Marana Stockyard & Livestock Market Inc. et al (In re Nichols)
Nichols v. Marana Stockyard & Livestock Market Inc. et al (In re Nichols),___ F.4th___, 2021 WL 3891571 (9th Circ. 9/1/2021). Unanimous decision by 9th Circuit Court of Appeals holds that a Chapter 13 debtor has an absolute right to dismiss that debtor’s Chapter 13 case, even if the Chapter 13 debtor had engaged in bad faith or abuse of the bankruptcy process. Nicols decision rules that the Law v. Siegel US Supreme Court case effectively overrules refusing to let Chapter 13 debtors dismiss their Chapter 13 cases because the debtor had done bad thing. Nichols holds that a debtor who…
In re Lockhart-Johnson
In re Lockhart-Johnson, 2021 WL 3186115 (B.A.P. 9th Cir. 2021). Deciding a previously unresolved issue, the Ninth Circuit Bankruptcy Appellate Panel held that, to assert a nondischargeability claim against the non-filing spouse of a debtor, a plaintiff must affirmatively obtain a nondischargeability determination by commencing an adversary proceeding against the non-debtor spouse within 60 days after the meeting of creditors. The BAP acknowledged that neither the Federal Rules of Bankruptcy Procedure nor other courts had previously addressed how a creditor can assert its community claim when nondischargeable acts were committed by the non-filing spouse, or “expressly provide[d] the procedure for…
US Supreme Court Blocks CDC Eviction Moratorium
US Supreme Court Blocks CDC Eviction Moratorium, in decision issued 08/26/21 in Alabama Association of Realtors v. Department of Health and Human Services, ___ US ___ (08/26/21): Just one day after the US Ninth Circuit Court of Appeals refused to enjoin the residential eviction moratorium of the City of Los Angeles, the U.S. Supreme Court reinstated a lower court order blocking the Centers for Disease Control and Prevention’s (“CDC”) latest eviction moratorium on Thursday evening, granting a request from a group of landlords and Realtor associations claiming the CDC had overstepped its authority. The CDC has repeatedly renewed the eviction…
Residential Eviction Moratorium
On 8/25/21, the Ninth Circuit Court of Appeals issued its Opinion in the case: APARTMENT ASSOCIATION OF LOS ANGELES COUNTY, INC., DBA Apartment Association of Greater Los Angeles, Plaintiff-Appellant v. CITY OF LOS ANGELES; ERIC GARCETTI, in his official capacity as Mayor of Los Angeles; CITY COUNCIL OF THE CITY OF LOS ANGELES, in its official capacity; et al, Defendants-Appellees. The OPINION ruled against the landlords, refusing to enjoin the City of Los Angeles, residential eviction moratorium. The Opinion held the City of Los Angeles’ Residential Eviction Moratorium did NOT violate the Contract clause of the US Constitution. Even though…
Bankruptcy Code 11 USC 523(a)(3)(A)
There is a split in case law, on how courts read Bankruptcy Code 11 USC 523(a)(3)(A) (which is about nondischargeability of late filed claims, where creditor did not have knowledge or notice of existence of bankruptcy case in time to file a proof of claim before the deadline set by the Bankruptcy Court for filing proofs of claim), should be read in conjunction with 11 USC 726(a)(2)(C) (which is about paying late filed claims under some circumstances). A Bankruptcy Court decision from Florida, Creative Enterprises HK Ltd. v. Simmons (In re Simmons), ___BR___20-0081 (Bankr. M.D. Fla. Aug. 24, 2021). discusses…
The Family Farmer or Family Fisherman Chapter of the Bankruptcy Code
Chapter 12—the Family Farmer or Family Fisherman Chapter of the Bankruptcy Code (11 USC 1201 to 1232)–was added to the Bankruptcy Code in 1986 in response to the farm crisis of the 1980s. Chapter 12 became a permanent part of the Code in 2005. For many reasons, farmers have continued to struggle in the intervening years, causing this chapter to be more relevant than ever. In 2016, farm real estate debt surpassed the 1981 peak. In 2019, commodity prices were 50 percent lower than their peak in 2012, and the weather in 2019 — including massive Midwest floods — prevented…
Four Presidents of the United States Filed for Bankruptcy
Did You Know? Four Presidents of the United States filed for Bankruptcy: Thomas Jefferson, Abraham Lincoln, Ulysses S. Grant and William McKinley [as reported by Credit & Collection e-newsletter of 8/23/21].
$5.8 Billion in Automatic Federal Student Loan Forgiveness
American Bankruptcy Institute article reports that the Biden administration on 8/19/21 announced it would line up more than 323,000 borrowers with a total and permanent disability (TPD) for $5.8 billion in automatic federal student loan forgiveness. The Education Department announced that it would no longer make those classified as totally and permanently disabled by the Social Security Administration (SSA) apply for their federal student loans to be discharged. Instead, borrowers with TPDs will be able to receive automatic forgiveness thanks to a new rule allowing student loan servicers to match customer data with the SSA. “Today’s action removes a major…
Lockwood v. Wells Fargo NA
Lockwood v. Wells Fargo NA,___F.3d___ (US 5th Cir. Court of Appeals, decision issued 8/16/21), case 20-42324 It isn’t duress when a lender threatens to take action that the loan agreement allows, the circuit court says. In the Fifth Circuit and perhaps elsewhere, claiming duress won’t let someone escape from a personal guarantee, even if it’s $58 million. As Circuit Judge Gregg J. Costa said in an August 16 opinion: [U]sing leverage is what negotiation is all about. And difficult economic circumstances do not alone give rise to duress. If they did, then many loans would be voidable. [Citation omitted.] An…
American Bankruptcy Institute 8/12/21 e-newsletter reports that: With Tenants Who Won’t Pay or Leave, Small Landlords Face Struggles of Their Own
Advocates for renters celebrated last week when the Biden administration effectively extended a Centers for Disease Control and Prevention ban on most evictions. But for some small landlords — struggling to pay mortgages and taxes — it was the last straw, the Washington Post reported. The CDC’s ban legally protects only renters who have suffered financially because of the pandemic, who are at risk of homelessness and who meet other criteria. But landlords say some tenants are abusing the eviction ban to live rent-free. Others cannot be evicted for any reason because of state and local rules enacted in response…