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…

In re Dingley (Dingley v. Yellow Logistics, LLC)

Proceedings in non-bankruptcy courts to enforce sanctions against the debtor for litigation misconduct—including, as here, discovery sanctions—are exempt from the automatic stay.  Under 11 USC 362(b)(4), proceedings to enforce sanctions imposed by a non-bankruptcy court on the debtor for litigation misconduct—such as filing a frivolous appeal (see In re Berg (9th Cir. 2000) 230 F.3d…

PNC Bank v. Sterba (In re Sterba)

Bankruptcy courts should use federal choice-of-law rules to determine which state’s law to  apply (such as, here, which statute of limitations is applicable).  In diversity cases, federal courts use the forum state’s conflict of law rules to determine which state’s law applies.  However, in bankruptcy cases, bankruptcy courts should use a federal choice of law…

Czyzewski v. Jevic Holding Corp.

Normal Chapter 11 priority rules apply to structured dismissals of Chapter 11 cases, so that in a structured dismissal, lower priority creditors may not be paid over the objection of higher priority creditors whose claims have not been fully satisfied.  A Chapter 11 case may end three ways—with approval of a Chapter 11 plan, with…

In re Tenderloin Health

Bankruptcy trustee may recoup debtor’s mortgage payoff to lender, which was made less than 90 days before filing bankruptcy.  Tenderloin sold its real property, repaying Bank of the West $190,000 on a loan that was secured by that property and depositing a remaining sum of $526,000 in its Bank of the West checking account.  Then,…

Ozenne v. Chase Manhattan Bank (In re Ozene)

Debtor who failed to appeal within the 14-day bankruptcy appeal deadline from an order denying his third motion to reconsider denial of motion for sanctions for violation of the automatic stay, could not cure the untimeliness of the appeal by use of a petition for writ of mandate.  A petition for writ of mandate cannot…

In re Barker (Spokane Law Enforcement Federal Credit Union v. Barker)

A bankruptcy debtor’s acknowledgement in his schedules that he owes a debt to a creditor does not act as a substitute for that creditor’s timely proof of claim.  To participate in distributions from a bankrupt estate or receive benefits under a Chapter 11 or 13 plan, a creditor must timely file a proof of claim…