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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
