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…
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…
A discharge is essentially an order from the bankruptcy court informing a debtor and the debtor’s creditors that the debtor is no longer legally required to repay the debt. The debtor is no longer legally responsible for the debt. Many common types of non-dischargeable debt include tax debt, debts the debtor did not list for…
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)…
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…
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…
The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: In re Feneis, 2010 WL 2620126 (Bankr. D. Minn. 6/24/10) (O’Brien, J.). Case Summary: Court Subordinates Claim for Contribution The debtor-in-possession sought subordination under 11 U.S.C. § 509(c) of a claim filed by Murray…
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…
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…
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…
Minnesota Bankruptcy Case: Exclusion of Creditor with Materially Adverse Interest Results in a Lack of Quorum for Election of Trustee The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: In re Petters Co., Inc., et al., 425 B.R. 534 (Bankr. D. Minn. 3/10/10)(Kishel,…
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…
The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: In re Rowell, 421 B.R. 524 (Bankr. D. Minn. 12/15/09) (Kishel, J.). Case Summary: IRS’S Claim Sufficient for Allowance The chapter 13 debtor, Rowell, filed bankruptcy in large part due to a federal tax…
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)…
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…
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…
The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: In re Meyer, 2010 WL3369375 (Bankr. D. Minn. 8/25/10) (O’Brien, J.) Case Summary: Structured Settlement Payments Found are Exempt Lynette Meyer was in a car accident. She suffered whiplash, a compression fracture of one…
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…
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…
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…
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)…
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,…
The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Wallace v. Marble (In re Marble), 426 B.R. 316 (B.A.P. 8th Cir. (Mo.) 3/31/10) (Kressel, C.J.). Case Summary: Indemnification Debt Arose in the Course of Divorce The Eighth Circuit BAP affirms the bankruptcy court’s…
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…
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…
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…
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:…
The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Olson v. Ingram (In re Ingram), ADV 08-3168 (Bankr. D. Minn. 9/21/09) (O’Brien, J.). Case Summary: Prepetition Transfers Result in Denial of Discharge Shortly before filing his bankruptcy petition, Ingram made a number of…
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….
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’…