Bankruptcy Code Section 502(b)(6) caps a landlord's claim against a debtor-tenant. Courts disagree on whether the provision caps damages for past breaches of non-rent lease covenants, such as a tenant's contractual obligation to maintain and repair the premises. This Article contends that 502(b)(6) caps only those damages authorized under applicable nonbankruptcy law that are triggered by the termination of the lease, regardless of whether termination occurs before or after the petition date.
In response to objections causing wasteful, unnecessary and inappropriate delay in the bankruptcy sale context, this article concludes that bankruptcy courts should employ a preliminary injunction-like standard for evaluating objections to bankruptcy sales. Employing a strict, preliminary injunction-like standard should decrease the possibility that parties-in-interest will introduce an improvident delay into the bankruptcy sale process. By preventing inappropriate delay, courts will ensure that parties receive an appropriate amou
Summary:
Creditors filed an involuntary Chapter 7 bankruptcy for SilverDeer. On the motion of SilverDeer, the bankruptcy court dismissed the involuntary bankruptcy finding that the pursuant to 11 U.S.C. § 303(b)(1), the claims of the creditors were subject to a bona fide dispute. Subsequently, the bankruptcy court awarded Howard Jacobson, the manager/member of SilverDeer, his attorney fees and costs incurred defending SilverDeer, pursuant to 11 U.S.C.
Summary:
Following a determination of the appropriate interest rate to pay on a secured claim, the creditor filed a Motion for Reconsideration under Rule 59(e). The reconsideration of an order, the moving party must show:
An intervening change in controlling law;
New evidence not available at trial; or
A clear error of law or prevent manifest injustice.
In essence finding that the secured creditor was merely seeking to relitigate the issue, the Court denied the Motion for Reconsideration, finding (again) that its previous ruling
Summary:
The Debtors’ home was damaged by Hurricane Irene while they were in Chapter 13. Their insurance issued a check for damages in the amount of $9,052.93 to the house and a second check for $1,376.54 for personal property, both payable jointly to the Debtors and Chase, the mortgage servicer.
The Debtors followed the instructions on Chase’s website for insurance checks in the amount less than $20,000.00, endorsing the check and forwarding it to Chase, believing that since they were current on their Chapter 13 payments, Chase would expeditiously return the money to
Summary:
Ms. Carson appealed the district court’s order compelling arbitration. The Court of Appeals held that the first step in determining if a dispute is subject to arbitration is determining whether the parties agreed to arbitration. Finding that Ms. Carson "affirmatively checked the box indicating that she agreed" to arbitration, the court then turned to whether such arbitration requirement was unenforceable due to unconscionability. As Ms. Carson had willing applied for services from Lending Tree, had indicated that she had read
Summary:
Ms. Strong was denied Social Security disability benefits by an administrative law judge and appealed to the District Court, which remanded the case finding that the denial was not supported by substantial evidence. The District Court, however, denied Ms. Strong’s request for attorneys fees and costs pursuant to the Equal Access to Justice Act ("EAJA") at 28 U.S.C.
Mrs. Warren’s husband died, owing a debt on a credit card to BB&T. Despite the credit card only being in the deceased husband’s name, BB&T, through its attorneys, Sessoms & Rogers, attempted on numerous occasions to collect the debt from Mrs. Warren.
Summary:
Property Agreement provided that the Debtor would be primarily liable for the mortgage debt and "[t]o the extent of any obligation contained herein is discharged in bankruptcy and the non-bankrupt party is held liable for said debt, the non-bankrupt party shall have the right to petition a court of competent jurisdiction for spousal support in an amount sufficient to cover any amounts so discharged." The Debtor, of course, filed Chapter 13 and disputed whether this created a domestic support obligation under 11 U.S.C.
