Showing 23 posts in Eastern District of Michigan.
Bankruptcy courts split as to dischargeability of personal guaranty liability
In re Lipa, E.D. Mich., Aug. 17, 2010 (Case No. 04-74608, Hon. Steven Rhodes).
In re Weeks, W.D. Mich., Jan. 23, 2009 (Case No. 05-02298, 400 B.R. 117, Hon. Jeffrey R. Hughes).
It is not uncommon for debtors - particularly those who own businesses - to sign personal guaranties before their bankruptcy filing. Pre-petition obligations under those guaranties are generally discharged in bankruptcy. But when a post-petition obligation arises under such a guaranty, the Bankruptcy Courts for the Western and Eastern Districts of Michigan are divided as to whether a guarantor-debtor is protected by his or her discharge. Read More ›
Categories: Eastern District of Michigan, Western District of Michigan
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Bankruptcy Court Rejects Chapter 7 Trustee's Efforts to Revoke Abandonment of Property
In re Reiman, Bankr. E.D. Mich., July 16, 2010 (Case No. 09-70776, Hon. Phillip J. Shefferly).
Because of the high volume of foreclosures in Michigan, some lenders are bidding less than fair market value at foreclosure sales, particularly on the east side of the state. This has created a conundrum for Chapter 7 trustees who close cases as "no asset" cases, only to discover after the foreclosure sale that they could have sold the property at market value, paid the redemption amount, and still had money remaining to distribute to unsecured creditors. Read More ›
Categories: Chapter 7, Eastern District of Michigan
Chapter 7 Trustee is Not a "Lien Creditor" as to Lien Preserved for the Benefit of the Estate
In re Neal, Bankr. E.D. Mich., Feb. 8, 2010 (Case No. 08-57254, Hon. Steven Rhodes).
In this case, the chapter 7 debtors claimed an exemption in their house, which was also subject to an unperfected mortgage. The trustee commenced an adversary proceeding, and the court set aside the mortgage. The trustee then tried to sell the house, but the debtors allegedly failed to cooperate with the trustee and refused to vacate the house. Read More ›
Categories: Chapter 7, Eastern District of Michigan
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