Supremes Say "Defalcation" Requires Intentional Wrong
To
determine dischargeability under § 523(a)(4), defalcation in a fiduciary capacity requires an
intentional wrong: either “conduct that the fiduciary knows is improper . . . [or] reckless conduct of
the kind that the criminal law often treats as the equivalent." Bullock v. BankChampaign, N.A.,
No. 11-1518, 2013 WL 1942393, at *5 (May 13, 2013).
Fourth Circuit: Lien Strip Okay in No-Discharge Cases
BAPCPA
did not upset lien-stripping of wholly unsecured mortgage in no-discharge Chapter 20 case; good faith test
provides sufficient protection from abuse. Branigan v. Davis (In re Davis), No. 12-1184,
2013 WL 1926407 (4th Cir. May 10, 2013) (Diaz, Niemeyer; Keenan dissenting).
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Friday, April 26, 2013
357 New Cases Added to the Updater.
Saturday, January 26, 2013
372 New Cases Added to the Updater.
Wednesday, November 28, 2012
388 New Cases Added to the Updater.
Third Circuit: Debtor gets Refund at Conversion
At good-faith
conversion after confirmation, undistributed funds held by Chapter 13 trustee must be refunded to debtor.
In re Michael, No. 11-1992, 2012 WL 5278411 (3d Cir. Oct. 26, 2012) (Sloviter, Ambro, Roth).
Fifth Circuit Turns Judicial Estoppel on its Head
Mortgage
creditor that files inaccurate claim for arrearages is not judicially estopped to file a larger arrearage
claim in a subsequent case because mortgage creditor was not required by any statute or rule to claim all
of its arrears in the first case. Wells Fargo Bank, N.A. v. Oparaji (In re Oparaji), No. 11-20871,
2012 WL 4748957 (5th Cir. Oct. 5, 2012) (Reavley, Smith, Clement).
Latest Case Updates &
Revisions to Chapter 13 Bankruptcy, 4th Ed.
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Friday, April 26, 2013:
357 New Cases Added to the Updater.
Added
Saturday, January 26, 2013:
372 New Cases Added to the Updater.
Added
Wednesday, November 28, 2012:
388 New Cases Added to the Updater.
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178 New Cases Added to the Updater.
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174 New Cases Added to the Updater.
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159 New Cases Added to the Updater.
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207 New Cases Added to the Updater.
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Careful What You Wish For:
State Court Judgment Gives Debtor
Standing to Avoid Preference
You may remember the decision of the Bankruptcy Appellate Panel for the Sixth Circuit
in Dickson v. Countrywide Home Loans (In re Dickson), 427 B.R. 399
(B.A.P. 6th Cir. Apr. 12, 2010) (Fulton, McIvor, Shea-Stonum). The interesting
holding by the BAP in Dickson was that a Chapter 13 debtor had “derivative standing”
to pursue the preferential perfection of a lien on a manufactured home when the trustee
declined to bring the action. On further appeal, the United States Court of Appeals for the
Sixth Circuit has affirmed the BAP, but the Circuit found a different and equally
interesting logic: the Chapter 13 debtor has direct standing to avoid the
preferential perfection of a lien when the creditor took a default judgment during the
preference period. Dickson v. Countrywide Home Loans (In re Dickson), No. 10-5580,
2011 WL 3768684 (6th Cir. Aug. 26, 2011) (Norris, Gibbons, Griffin).
POSTPETITION DSOs
RUN AMOK IN EIGHTH CIRCUIT
Of course, it’s not uncommon for strange facts to make strange law.
But the outcome found by the United States Court of Appeals for
the Eighth Circuit in Burnett v. Burnett (In re Burnett), 646
F.3d 575 (8th Cir. July 20, 2011) (Smith, Beam, Benton), may be the
product of both strange law and strange facts with respect to the treatment
of domestic support obligations (DSOs) in Chapter 13 cases after BAPCPA.
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