#chapter7

8th Circuit Distinguishes "Intraday Overdrafts" from "True Overdrafts" In Determ

Sarah Little

Jun 21, 2017
1 min

8th Circuit Distinguishes "Intraday Overdrafts" from "True Overdrafts" In Determ

In Saracheck v. Luna Savings Bank, the chapter 7 trustee sought to recover deposits made by corporate debtor AgriProcessors, Inc. to its bank account to cover overdrafts in the 90 day preference period. The bank's policy was to provisionally settle all checks and debit the account. When the provisional settlement caused or contributed to a negative account balance, an "intraday overdraft" occurred. Under Iowa law, the provisional settlement did not become final until

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9th Circuit BAP Determines Community Property Presumption Overrides Title Presumption in Bankruptcy

Sarah Little

Mar 22, 2017
2 min

9th Circuit BAP Determines Community Property Presumption Overrides Title Presumption in Bankruptcy

The Bankruptcy Appellate Panel for the Ninth Circuit published In re Brace (BAP No. CC 16-1041) on March 15, 2017. A Chapter 7 trustee sought to recover transfers of real estate from one debtor to an irrevocable trust with the non-debtor spouse as the sole beneficiary of the trust. Prior to the transfers, the properties were owned by husband and wife as joint tenants. The trustee argued that despite title presumptions, California marital law determines the property is com

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Sarah Little

Mar 20, 2017
1 min

9th Circuit Decides Money Deposited within 90 days can be an Avoidable Preference Where it creates a

Trustee wins preference action against creditor bank where Chapter 7 Debtor paid $190,595.50 to creditor bank on account of debt within 90 days of bankruptcy filing and also deposited $526,402.04 with same bank at the same time as payment. The bank tried to defend against the Trustee's adversary to recover the $190,595.50 payment by alleging it did not receive more than it would in a hypothetical liquidation scenario because if it had not been paid it would have had set-off

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Sarah Little

Oct 12, 2016
5 min

Why You Did Not Reaffirm Your Mortgage Loan in Bankruptcy

We occasionally get calls from former clients about reaffirming their mortgage loan. A reaffirmation agreement is an agreement made between a creditor and the debtor that waives discharge of a debt that would otherwise be discharged in bankruptcy. In California, there is no reason to reaffirm a mortgage debt which is secured by a first deed of trust on a person’s home. California’s foreclosure law provides that a lender who forecloses a person’s primary home in what is know

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Sarah Little

Sep 6, 2016
1 min

Court allows Chapter 7 Trustee to use IRS's 10 year statute of limitations to attack fraudulent

The Southern District of Florida Bankruptcy Court is allowing a Chapter 7 Trustee to go forward with his adversary proceeding to avoid transfers that occurred in 2005, which are time-barred under applicable Florida law. The Court found that section 544(b) is clear and allows a trustee to step into the shoes of the IRS and to pursue avoidance actions that the IRS, outside of bankruptcy, could have timely pursued on the petition date. For full case opinion, click here. #Chapt

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Sarah Little

Aug 30, 2016
1 min

Sarah Little presents at Best Practices of Consumer Practice - From Trustee's Perspective

On Tuesday, September 13, 2016 from 12:00 p.m. to 1 p.m., at the United States Trustee 341 meeting room, Sarah will be a panelist at brown bag lunch sponsored by the U.S. Trustee titled Best Practices of Consumer Practice - From Trustee's Perspective. CLE credit avialable. click here for more details. #Chapter7 #education

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