Trustee Cannot Avoid Transfer of Property that Was Not the Debtor’s

Trustee Cannot Avoid Transfer of Property that Was Not the Debtor’s

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Kanuit v. IRS (In re Lien), 415 B.R. 715 (Bankr. D. Minn. 9/11/09) (Kishel, J.). Case Summary: Trustee Cannot Avoid Transfer of Property that Was Not the Debtor’s The debtors were the sole shareholders…

Properly Recorded Notice of Default Gives Trustee Notice Where Mortgage Recording is Invalid

Properly Recorded Notice of Default Gives Trustee Notice Where Mortgage Recording is Invalid

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: BowlNebraska, L.L.C. v. Omaha State Bank (In re BowlNebraska, L.L.C.) 2010 WL 2606336 (B.A.P. 8th Cir. (Neb.) 7/1/10) (Federman, J.). Case Summary: Properly Recorded Notice of Default Gives Trustee Notice Where Mortgage Recording is…

Creditor Loses Lien Where Adding D/B/A to a Debtor’s Name

Creditor Loses Lien Where Adding D/B/A to a Debtor’s Name

Minnesota Bankruptcy Case: Creditor Loses Lien Where Adding D/B/A to a Debtor’s Name Rendered Name Seriously Misleading The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Hastings State Bank v. Stalnaker, (In re EDM Corporation), 431 B.R. 459 (B.A.P. 8th Cir. (Neb.) 5/14/10)…

Unrecorded Mortgage Avoidable as Preferential Transfer

Unrecorded Mortgage Avoidable as Preferential Transfer

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Wells Fargo Home Mortgage, Inc. v. Lindquist (In re Westlund), 592 F.3d 838 (8th Cir. (Minn.) 1/11/10) (Gruender, J.). Case Summary: Unrecorded Mortgage Avoidable as Preferential Transfer The Eighth Circuit Court of Appeals affirms…

ADA Claim Arose Prepetition and Was Discharged by Confirmation

ADA Claim Arose Prepetition and Was Discharged by Confirmation

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Sanchez v. Northwest Airlines, Inc., 432 B.R. 803 (D. Minn. 5/21/10) (Kyle, J.). Case Summary: ADA Claim Arose Prepetition and Was Discharged by Confirmation Sanchez, a former NWA employee, sued NWA for an alleged…

Damages for a Prepetition Default are Not Administrative Expenses

Damages for a Prepetition Default are Not Administrative Expenses

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: In re Twin Cities Stores, Inc., Twin Cities Avanti Stores, LLC, BKY 09-34468, BKY 09-34469 (Bankr. D. Minn. 3/19/10) (O’Brien, J.). Case Summary: Damages for a Prepetition Default are Not Administrative Expenses Marathon Petroleum…

Chapter 13 Debtor May Not Cram Down On a Creditor

Chapter 13 Debtor May Not Cram Down On a Creditor

September 2014 Update: Warning – Legal Reversal The 8th Circuit Court of Appeals recently issued a decision contrary to the information below. In the case of Minnesota Housing Finance Agency v. Schmidt (In re Schmidt), No. 13-2447 (8th Cir. 2014) the court held that “a Chapter 13 plan that reclassified the third-mortgage creditor’s claim as…

The Trustee and the Corporation, Sole Proprietor, and Partnership Debtor

The Trustee and the Corporation, Sole Proprietor, and Partnership Debtor

Chapter 11 bankruptcy is often also referred to as “reorganization” bankruptcy. Both individuals and businesses are given an opportunity to reorganize under Chapter 11 of the United States Bankruptcy Code in order to repay creditors and have some debt eliminated, or discharged. More often than not, it will be corporations, sole proprietorships, or partnerships that…

No Administrative Expense for Floor Plan Creditor in Debtor’s Repossession and Resale Of Boats

No Administrative Expense for Floor Plan Creditor in Debtor’s Repossession and Resale Of Boats

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: In re Genmar Holdings, Inc., et al., BKY 09-43537 (Bankr. D. Minn. 2/26/10) (O’Brien, J.). Case Summary: No Administrative Expense for Floor Plan Creditor for Debtor’s Repossession and Resale Of Boats Textron Financial Corporation…

Eighth Circuit Adopts Due-Date Test

Eighth Circuit Adopts Due-Date Test

Minnesota Bankruptcy Case: Eighth Circuit Adopts Due-Date Test for Post-Petition Rent Under § 365(D)(3) and Such Rent has Administrative Expense Priority The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Burival v. Roehrich (In re Burival), 2010 WL 2882222 (8th Cir. (Neb.) 7/23/10)…

Indenture Trustee Properly Exercised Both Lease and Indenture Remedies

Indenture Trustee Properly Exercised Both Lease and Indenture Remedies

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Bremer Bank, N.A. v. John Hancock Life Ins. Co., 601 F.3d 824 (8th Cir. (Minn.) 4/13/10) (Murphy, J.). Case Summary: Indenture Trustee Properly Exercised Both Lease and Indenture Remedies The Eighth Circuit Court of…

Indenture Trustee Properly Exercised Both Lease and Indenture Remedies

Indenture Trustee Properly Exercised Both Lease and Indenture Remedies

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Bremer Bank, N.A. v. John Hancock Life Ins. Co., 601 F.3d 824 (8th Cir. (Minn.) 4/13/10) (Murphy, J.). Case Summary: Indenture Trustee Properly Exercised Both Lease and Indenture Remedies The Eighth Circuit Court of…

Minnesota Bankruptcy Case: Representation About Future Action Can Be Fraudulent if Speaker Lacks Intent to Act

Minnesota Bankruptcy Case: Representation About Future Action Can Be Fraudulent if Speaker Lacks Intent to Act

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: R&R Ready Mix v. Freier (In re Freier) 604 F.3d 583 (8th Cir. (Minn.) 5/10/10) (Melloy, J.). Case Summary: Representation About Future Action Can Be Fraudulent if Speaker Lacks Intent to Act The Eighth…

Minnesota Bankruptcy Case: Representation About Future Action Can Be Fraudulent if Speaker Lacks Intent to Act

Minnesota Bankruptcy Case: Representation About Future Action Can Be Fraudulent if Speaker Lacks Intent to Act

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: R&R Ready Mix v. Freier (In re Freier) 604 F.3d 583 (8th Cir. (Minn.) 5/10/10) (Melloy, J.). Case Summary: Representation About Future Action Can Be Fraudulent if Speaker Lacks Intent to Act The Eighth…

Minnesota Bankruptcy Discharge and Revocation: What Can Happen?

Minnesota Bankruptcy Discharge and Revocation: What Can Happen?

After a bankruptcy case is filed, creditors, the bankruptcy trustee, and the United States trustee are allowed time to object to the debts of the debtor being discharged through the bankruptcy process. If no one objects, dischargeable debt will usually be automatically discharged. This list of non-dischargeable debt differs based upon which type of bankruptcy…

Justifiable Reliance Entails No Duty to Investigate

Justifiable Reliance Entails No Duty to Investigate

Minnesota Bankruptcy Case: Justifiable Reliance Entails No Duty to Investigate; Husband is Not Vicariously Liable for Wife’s Fraud The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Treadwell v. Glenstone Lodge, Inc. (In re Treadwell), 423 B.R. 309 (B.A.P. 8th Cir. (Mo.) 2/1/10)…

Court May Consider Best Interests of Creditors

Court May Consider Best Interests of Creditors

Minnesota Bankruptcy Case: Court May Consider Best Interests of Creditors When Asked to Approve Debtor’s Waiver of Discharge The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case Asbury v. Alliant Bank (In re Asbury), 423 B.R. 525 (B.A.P. 8th Cir. (Mo.) 2/9/10) (Mahoney,…

Student Loan Discharge Action is Not an Improper Collateral Attack on Discharge Order

Student Loan Discharge Action is Not an Improper Collateral Attack on Discharge Order

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Walker v. Sallie Mae Servicing Corp.(ECMC) (In re Walker), 427 B.R. 471 (B.A.P. 8th Cir. (Minn.) 4/9/10) (Federman, J.). Case Summary: Student Loan Discharge Action is Not an Improper Collateral Attack on Discharge Order…

No Fraud Where Misrepresentations Made After Money Was Obtained

No Fraud Where Misrepresentations Made After Money Was Obtained

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Marcusen v. Glen (In re Glen), 427 B.R. 488 (B.A.P. 8th Cir. (Minn.) 4/9/10) (Schermer, J.). Case Summary: No Fraud Where Misrepresentations Made After Money Was Obtained The Eighth Circuit BAP reverses the bankruptcy…

Creditor Knowledge of Stock Market

Creditor Knowledge of Stock Market

Minnesota Bankruptcy Case: Creditor Knowledge of Stock Market Risk Does Not Moot Justifiable Reliance on Debtor Misrepresentations The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Islamov v. Ungar (In re Ungar), 429 B.R. 668 (B.A.P. 8th Cir. (Neb.) 5/21/10) (Schermer, J.). Case…

Court May Infer Intent to Deceive from Magnitude of Omission

Court May Infer Intent to Deceive from Magnitude of Omission

Minnesota Bankruptcy Case: Court May Infer Intent to Deceive from Magnitude of Omission from Scheduled Assets The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Bennington v. Thomas (In re Thomas), 431 B.R. 468 (B.A.P. 8th Cir. (Neb.) 6/22/10) (Kressel, C.J.). Case Summary:…

Minnesota Bankruptcy Petitions: The Limitations on Second Discharges

Minnesota Bankruptcy Petitions: The Limitations on Second Discharges

A “discharge” in bankruptcy occurs when the bankruptcy court gives the debtor permission to never repay all or some debts to creditors. When this happens, the debtor is no longer legally required to repay the debts. The creditors of discharged debts are no longer legally permitted to seek repayment of these debts from the debtors….

Failure to List Assets Also Results in Denial of Discharge

Failure to List Assets Also Results in Denial of Discharge

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Sullivan v. Bieniek (In re Bieniek), 417 B.R. 133 (Bankr. D. Minn. 10/9/09) (O’Brien, J.). Case Summary: Failure to List Assets Also Results in Denial of Discharge The trustee, Sullivan, objected to the Bienieks’…