A Homeowners’ Association Is Not a ‘SARE’ and Is Eligible for Sub V of Chapter 11
A homeowners’ association is not a single asset real estate debtor because the HOA’s income doesn’t come from the common areas but from assessments paid by unit owners.
Chapter 13 Debtors Can’t Sell Co-Owned Property Under Section 363(h)
On a question where the courts are split, Bankruptcy Judge Pamela McAfee sides with the majority and holds that a chapter 13 debtor can’t sell co-owned property.
Being a ‘Net Winner’ in a Ponzi Scheme Doesn’t Automatically Mean Nondischargeability
Alleging that a debtor realized an ‘impossibly high’ rate of return in a Ponzi scheme isn’t enough to state a claim of nondischargeability for ‘actual fraud.’
Lack of Financial Distress Doesn’t Divest a Court of Subject Matter Jurisdiction
Two North Carolina Courts have held within two months that the Bankruptcy Clause doesn’t demand ‘financial distress’ to establish subject matter jurisdiction.
With Reservations, a Chapter 11 Debtor with No Financial Distress Avoids Dismissal
Bankruptcy Judge Whitley says that a no-opt-out plan for a solvent debtor might violate creditors’ due process and jury trial rights.
Scheduling a Home with a Low Value Didn’t Protect a ‘13’ Debtor When It Was Sold
In the Fourth Circuit, creditors are compensated when there is a ‘substantial improvement’ in a chapter 13 debtor’s financial condition.
Another Court Won’t Permit a Structured Sale to Eradicate a Homestead Exemption
Subordinated lenders can’t take a ‘haircut,’ give a ‘tip’ to the trustee, sell a home and eradicate the debtor’s homestead exemption.
A Section 542(b) Turnover Action Can’t Be Used to Compel Payment of a Judgment
Writs of execution and supplemental proceedings, not turnover actions, are the methods for enforcing a money judgment, Bankruptcy Judge Warren says.
Judge McAffee Agrees with Former Judge Sontchi on Authorized Corporate Actions
The automatic stay does not bar increasing authorized shares when the debtor is a minority shareholder.
The PBGC Isn’t a ‘Triggering Creditor’ for a Section 544(b) Suit by a Trustee
If the government isn’t suing on a claim originally owing to the U.S., a trustee can’t use the six-year statute of limitations in the FDCPA.