by Devin Sawdayi | Oct 26, 2015
When a debtor files a bankruptcy petition, a bankruptcy estate is created that exists as a distinct legal entity. The court-appointed trustee has the authority to manage this estate, and the debtor’s non-exempt property becomes the estate’s property. Property obtained...
by Devin Sawdayi | Sep 18, 2015
A U.S. district court in Los Angeles affirmed a bankruptcy court’s order finding that a judgment creditor willfully violated the automatic stay in a Chapter 13 case. In re Bayley, No. 2:14-cv-07799, order (C.D. Cal., Jan. 14, 2015). The automatic stay takes effect the...
by Devin Sawdayi | Sep 12, 2015
“Lien stripping” is the process of eliminating some junior liens, such as a second mortgage, from real property during a bankruptcy case. Junior liens are, by definition, subordinate to senior liens securing a piece of real estate. The lien-stripping process...
by Devin Sawdayi | Aug 29, 2015
The City of San Bernardino joined a number of cities around the country by filing for bankruptcy in 2012. See In re City of San Bernardino, 499 B.R. 776 ((Bankr. C.D. Cal 2013). While a municipal bankruptcy differs from a personal or business bankruptcy in numerous...
by Devin Sawdayi | Aug 14, 2015
A California federal district court ruled that fines assessed under a California law that allows employees to enforce state labor law as “private attorneys general” are not dischargeable in a Chapter 7 bankruptcy proceeding. Medina v. Poel, No. 1:14-cv-01302, order...
by Devin Sawdayi | Aug 7, 2015
A bankruptcy court reopened a Chapter 7 case after granting a discharge on the debtor’s motion, although not for the reason stated by the debtor. In re Sullivan, No. 11-38246-A-7, memorandum (Bankr. E.D. Cal., Feb. 23, 2015). The debtor asked the court to reopen the...
by Devin Sawdayi | Jul 30, 2015
A bankruptcy court granted a Chapter 13 trustee’s motion to dismiss a debtor’s case and barred the debtor from further bankruptcy filings, in any district in the country, for a two-year period. In re Weik, No. 14-61298, mem. dec. (Bankr. D. Mont., Feb. 24, 2015). The...
by Devin Sawdayi | Jul 24, 2015
Federal bankruptcy law allows debtors to discharge tax penalties if they meet certain criteria. The Internal Revenue Service (IRS) may penalize individual taxpayers for failing to file a tax return by the April 15 due date, 26 U.S.C. § 6651(a)(1). These penalties are...
by Devin Sawdayi | Jul 16, 2015
A California bankruptcy court ruled that sales tax obligations owed by a debtor in connection with a convenience store she owned were subject to discharge in the debtor’s Chapter 7 bankruptcy case. In re Athar, No. 1:11-bk-23947, Adv. No. 1:12-ap-01038, memorandum...
by Devin Sawdayi | Jul 11, 2015
A bankruptcy judge in California considered a Chapter 7 trustee’s objection to a debtor’s exemption claim. The debtor claimed that a large retirement account was exempt from Chapter 7 liquidation under California law. The court identified two factual questions, but...
