Attorney Aaron Hall

Past and Future Social Security Benefits are not Property of the Estate

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Carpenter v. Ries (In re Carpenter), 2010 WL 2977388 (8th Cir. (Minn.) 7/30/10) (Riley, J.). Case Summary: Past and Future Social Security Benefits are not Property of the Estate The Eighth Circuit Court of…

Attorney Aaron Hall

Obtain Exemption from Pre-Petition Creditor Counseling

Minnesota Bankruptcy Case: Debtor Must Demonstrate Exigent Circumstances to Obtain Exemption from Pre-Petition Creditor Counseling The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Duncan v. LaBarge (In re Duncan), 418 B.R. 278 (B.A.P. 8th Cir. (Mo.) 11/5/09) (Kressel, C.J.). Case Summary: Debtor…

Attorney Aaron Hall

“Projected Disposable Income” is Forward Looking

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Hamilton v. Lanning, 130 S.Ct. 2464 (2010). Case Summary: “Projected Disposable Income” is Forward Looking In an 8-1 decision (Justice Scalia dissenting) delivered by Justice Alito, the Court held that a bankruptcy courts should…

Attorney Aaron Hall

Minnesota Bankruptcy Case: Yes, You are a Debt Relief Agency

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Milavetz, Gallop & Milavetz, P.A. v. U.S., 130 S.Ct. 1324 (2010). Case Summary: Yes, You are a Debt Relief Agency The Court affirmed the Eighth Circuit’s ruling that attorneys are “debt-relief agencies” under 11…

Attorney Aaron Hall

Bankruptcy Court Recomputes Disposable Income and Dismisses

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: In re Robrock, 430 B.R. 197 (Bankr. D. Minn. 5/21/2010) (Kishel, J.). Case Summary: Bankruptcy Court Recomputes Disposable Income and Dismisses The bankruptcy court granted the UST’s motion to dismiss the debtor’s chapter 7…

Attorney Aaron Hall

Assertion of 5th Amendment Right to Remain Silent in Bankrupt

Introduction The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Brown v. Manty (In re Brown), 427 B.R. 715 (D. Minn. 3/29/10) (Tunheim, J.). Case Summary: Assertion of 5th Amendment Right to Remain Silent Does Not Mean Debtor Did Not Have Full and…

Attorney Aaron Hall

Minnesota Bankruptcy Case: Ditto

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Polaroid Corp. v. Ritchie Capital Management, LLC (In re Polaroid Corp.), ADV 09-4032 (Bankr. D. Minn. 12/04/09)) (Kishel, J.). Case Summary: Ditto The Polaroid plaintiffs, as chapter 11 debtors-in-possession, commenced an adversary proceeding against…

Attorney Aaron Hall

What are the Effects of Chapter 7 Bankruptcy?

Bankruptcy proceedings begin with the filing of a petition with the bankruptcy court. The filing of the petitions creates a bankruptcy estate. If the debtor is an individual who files for bankruptcy under chapter 7 or 11, the bankruptcy estate is treated as a new taxable entity, separate from the individual taxpayer. Tax Obligations Created…

Attorney Aaron Hall

Compromise Which Includes Waiver of Preference Claims Approved

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Cornerstone Bank v. Seaver (In re Hecker), 2010 WL 3463417 (D. Minn. 8/30/10) (Tunheim, J.). Case Summary: Compromise Which Includes Waiver of Preference Claims Approved The trustee was party to an agreement that involved…

Attorney Aaron Hall

5th Amendment Privilege Does Not Apply to Production of Documents

Introduction The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Gustafson v. Seaver (In re Hecker), 2010 WL1875553 (D. Minn. 5/10/10) (Davis, J.). Case Summary: 5th Amendment Privilege Does Not Apply to Production of Documents The trustee in the Hecker bankruptcy case sought…

Attorney Aaron Hall

Bad Legal Description Results in Mortgage Being Avoidable

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Iannacone v. Household Indus. Fin. Co., (In re Stepka), 425 B.R. 820 (Bankr. D. Minn. 3/15/10) (O’Brien, J.). Case Summary: Bad Legal Description Results in Mortgage Being Avoidable The trustee sued the debtors and…

Attorney Aaron Hall

Payment in the Ordinary Course of Business is Not Avoidable

The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Christians v. Miller Waste Systems, Inc., (In re Victor Plastics, Inc.), ADV 09-4178 (Bankr. D. Minn. 3/8/10) (O’Brien, J.). Case Summary: Payment in The Ordinary Course of Business is Not Avoidable The bankruptcy court…

Attorney Aaron Hall

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…

Attorney Aaron Hall

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…

Attorney Aaron Hall

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)…

Attorney Aaron Hall

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…

Attorney Aaron Hall

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…

Attorney Aaron Hall

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…

Attorney Aaron Hall

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…

Attorney Aaron Hall

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…

Attorney Aaron Hall

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…

Attorney Aaron Hall

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)…

Attorney Aaron Hall

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…

Attorney Aaron Hall

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…

Attorney Aaron Hall

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…