In re Curtis (Curtis v. Shpak)  

A party cannot “remove” a case from federal district court to bankruptcy court; instead, the party must seek a discretionary transfer to the district in which the bankruptcy is pending and then a discretionary referral to the bankruptcy court.  28 USC 1452(a) permits removal from state courts to bankruptcy court of civil actions pending against…

DZ Bank, AG v. Meyer

Bankrupt debtor is considered to have transferred property with intent to defraud his creditors even though he moved the assets out of one of his wholly owned corporations rather than from his own possession.  The bankruptcy court correctly held that the bankrupt debtor had fraudulently transferred property with the actual intent to defraud his creditors. …

In re Anderson (Anderson v. Rainsdon)

Bankruptcy debtors’ real estate commissions for property deals they had negotiated pre-petition, but which closed post-petition, should be considered part of the bankruptcy estate.  Debtors were real estate agents.  They obtained prospective buyers for several properties before filing a Chapter 7 bankruptcy petition.  Their commissions for that work were paid post-petition and were contingent on…

Bank of New York Mellon v. Watt

A district court order vacating a bankruptcy court order confirming a bankruptcy plan and remanding for further proceedings is not a final order from which an appeal as of right may be taken to the Court of Appeals.  Following Bullard v. Blue Hill Bank (2015) 135 S.Ct. 1686, this decision holds that when a district…

In re Reynolds (Frealy v. Reynolds)

A debtor’s bankruptcy estate is entitled to the full amount of debtor’s spendthrift trust distributions due to be paid as of the petition date, except for the portion the beneficiary needs for his support or education if the trust instrument specifies the funds are to be used for that purpose.  After the California Supreme Court…

Crossroads Investors, L.P. v. Federal National Mortgage Assn.

Lender’s alleged failure to (1) provide reinstatement amounts in response to a defaulted borrower’s request or (2) respond to plaintiff’s claimed tender of arrearages under the deed of trust, were protected activity under the Anti-SLAPP statute, but only because they occurred in the context of the borrower’s bankruptcy proceeding.  In this case, the Court of…

In re Spanish Peaks Holdings II, LLC

A bankruptcy trustee may sell the bankrupt estate’s real property free and clear of unexpired leases, so the lessees’ interest and right to possession is ended by the sale free and clear.  A bankruptcy trustee may sell the bankrupt estate’s real property free and clear of unexpired leases under 11 USC 363(f).  This section does…

Weil v. Elliott (In re Elliott)

11 USC 727(e) sets a one-year-from-discharge time limit on a bankruptcy trustee’s request to revoke the discharge based on debtor’s fraud,  but since it is a statute of limitations, the debtor waives its protection if he fails to plead that defense in his answer.  Under 11 USC 727(d), a bankruptcy court must revoke the debtor’s…

In re Keller

Reporting to a credit agency on the deliquency or overdue status of a debt is not a per se violation of the automatic stay, which only forbids collection on the debt, not reports about it.  A creditor did not violate the automatic stay or the order confirming the debtor’s Chapter 13 plan by reporting a…

Midland Funding, LLC v. Johnson

Filing a facially time-barred creditor’s claim in a Chapter 13 is not a false, deceptive, misleading, unconscionable or unfair means of collecting a debt under the FCDPA, since Chapter 13 debtors are protected from paying dubious claims by the Chapter 13 trustee’s supervision of the case.  Filing a creditor’s claim in the debtor’s Chapter 13…

Mastan v. Salamon (In re Salamon)

If a junior lien securing a non-recourse debt is wiped out by a senior creditor’s foreclosure sale before the debtor files a Chapter 11 bankruptcy petition, the sold-out junior lienholder is not entitled to a recourse claim against the Chapter 11 bankruptcy estate.  Under 11 USC 1114(b), a creditor that holds a nonrecourse debt secured…

Porter v. Nabors Drilling USA, L.P.

Private citizen claims brought under the Private Attorney General Act are not exempt from the automatic stay in bankruptcy.  A private citizen’s suit under PAGA for statutory penalties payable to the state for non-payment of minimum wages or other Labor Code violations is not a government enforcement action that is exempt from the automatic stay…