Recent Unanimous Supreme Court Decision Holds That Underwater Mortgages
Debtors David Caulkett and Edelmiro Toledo-Cardona (“Debtors”) each filed for Chapter 7 bankruptcy relief with “underwater” junior mortgages held by Bank of America, N.A. (“Bank”). In other words, even if Debtors sold their property, the Bank would not …
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Bankruptcy Code—disposition of funds held by Chapter 13 trustee after
At any time, however, a debtor may convert a Chapter 13 proceeding into a Chapter 7 proceeding—a common occurrence because debtors are often unsuccessful in getting Chapter 13 repayment plans approved and then meeting their obligations under …
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SCOTUS: Debtor Entitled to Chapter 13 Conversion Leftovers
The U.S. Supreme Court has resolved a circuit split by answering the question; what happens to post-petition wages held by a Chapter 13 trustee at the time a case is converted from Chapter 13 to a Chapter 7? In a unanimous ruling, the Court held that …
Read more on JD Supra (press release)