Issued: January 20, 2011 by Judge Doyle
Case #: 09 B 46723, 10 A 01292
The Issue: Whether an individual creditor has standing under § 523(a)(4) to bring a direct action against directors of an insolvent corporation for breach of fiduciary duty.
The Story: Debtor owned a plumbing company. Plaintiff claimed that Debtor breached his fiduciary duty to creditors after the plumbing company became insolvent due to the diversion of company funds to pay for the Debtor’s personal debts. Creditor claimed that the debt was non-dischargeable in bankruptcy under Rule 523(a)(4). The court held that the individual creditor lacked standing. Also a good walk thru on Illinois law about “Special Circumstances Fiduciary Duty.”
Click here to view and download the opinion in .pdf format.
Posted in 523, accounts receivable, adversary, assets, bad faith, bankruptcy, Bankruptcy Rules, business, business filings, ch 7, chapter 7, cir 7, corporation, creditor, debt, discharge, fiduciary, fraud, fraudulent transfers, ND, opinion, property, secured, small business, Uncategorized, unsecured
… but still in the national top 10, meaning that 1 in 550 housing units in Illinois is now in foreclosure. That in turn translates to roughly 1 out of every 10 residential homes.
But the real scourge of the real estate market is that is has hollowed out entire blocks and permanently affected the ability of homeowners to move, sell, divorce, or refinance. Most are stuck, and many are stuck paying for more house than they actually have.
Posted in current affairs, current-events, data, debt, default, depreciation, economy, foreclosure, IL, individual, investments, liability, lists, loan, Middle class, mortgage, obama, property, reaffirmation, real property, research, short sale, state court, statistics, stimulus package, subprime, subprime mortgage
Reed v. City of Arlington (Sep.17) (Cir. 5)
In a Chapter 7 case in which debtors omitted a pending $1 Million+ judgment from sworn statements and filings, district court’s order discharging debts and allowing the Trustee to collect on behalf of the Estate is reversed to protect the integrity of the judicial processes.
Deutsche Bank v. Tucker (Sep. 15) (Cr. 6)
Chapter 13 Debtor claims that she need only cure the amount of her mortgage default that is secured, and that all additional fees and expenses should be treated as unsecured. The bankruptcy court agreed, but the district court vacated and remanded. Following remand the bankruptcy court held that bank fees and advances allowed under the Note, Mortgage, and applicable State law, should be included in the cure amount set forth in the Chapter 13 Plan.
In re: Gebhart (Sept. 14) (Cir. 9)
Court may have property sold and any non-exempt equity distributed even if the property only rose in value after the filing date. In this case the value of debtors’ home increased during his Chapter 7 and the bankruptcy court’s order approving appointment of a broker was affirmed on appeal. The fact that the value of the debtor’s homestead exemption, plus encumbrances, had been equal to the market value of the residence at the time of filing did not prevent the trustee from taking advantage of the windfall.
Posted in adversary, amendment, assets, avoidance, bad faith, bankruptcy, Bankruptcy Rules, BAPCPA, ch 7, chapter 7, cir 5, cir 6, cir 9, confirmed plan, consumer, cramdown, current-events, data, discharge, dismissal, disposable, docket, due process, economics, economy, estate, Fed. R. Bankr. Proc., foreclosure, fraud, fraudulent transfers, individual, liability, Middle class, modification, mortgage, opinion, plan, property, reaffirmation, real property, state court, Westlaw
This is the list maintained by the FDIC of bank failures since October 2000. You can download the list as a CSV file as well. Below find a portion of the complete list …
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Posted in consumer, current-events, data, debt, default, fiduciary, foreclosure, government unit, liability, lists, loan, Middle class, modification, mortgage, property, real property, secured, short sale, subprime mortgage
BoA joins a growing number of mortgage companies whose employees signed key documents in foreclosure cases without verifying that information. GMAC Mortgage and JPMorgan Chase have halted 10’s of thousands as well.
The 23 states in which BoA is delaying foreclosures include Connecticut
, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana
, Maine, Nebraska, New Jersey
, New Mexico
, New York, North Dakota
, Ohio, Oklahoma, Pennsylvania, South Carolina
, South Dakota
, Vermont and Wisconsin.
Posted in 101, 1307, 1308, 1325(a)(5), 1325(a)(9), 1326(a)(1)(C), 1328, 15 USC 1692k(c), article, assets, attorneys, bailout, bank, bankruptcy, bubble, business, ch 13, ch 7, chapter 7, foreclosure, fraud, fraudulent transfers, IL, income, modification, property, sale
Posted in bank, chart, crisis, current affairs, current-events, data, debt, default, economy, estate, foreclosure, investments, loan, mortgage, property, real property, subprime, subprime mortgage
In an article that would only make sense to an economist, Bloomberg reported that fewer people this November have mortgages that exceed the value of their homes – that is, fewer people are “underwater” this year than last. That faint flicker of hope is supposed to mean that overall the housing market is stabilizing.
In related news, I came in 288th in the Chicago Marathon this year – better than I did last year so … I guess that means I’m a winner? Sure, let’s go with that.
Posted in article, assets, bailout, bubble, consumer, current-events, data, debt, depreciation, flipping, foreclosure, income, individual, investments, means test, Middle class, mortgage, property, real property, short sale