in RE Crawford – No Chapter 13 Payments Required

in RE Crawford – No Chapter 13 Payments Required

By Daniel Edstrom
DTC Systems, Inc.

Thanks to Deontos for this case.  The property is not underwater and the debtor has agreed to pay all claims upon sale of the property in a reasonable time.  Until the property is sold, no payments will be made on the loan.  Plan approved by the bankruptcy judge.

Excerpt 1

The central question in this case is whether a Chapter 13 plan is confirmable where (a) the plan provides for payment in full of a first-mortgage lienholder upon sale of real property in which a debtor has substantial equity, but (b) where the debtor fails to provide for regular payments during the life of the plan. Put another way, may a debtor’s plan be confirmed where the debtor makes no regular payments through the plan, but, instead, makes payment, in full, to all creditors – secured an unsecured – upon sale of her real property under the plan, which property is valued far in excess of all creditors’ claims – secured and unsecured. Continue reading “in RE Crawford – No Chapter 13 Payments Required”

In RE Androes – World Savings Bank lien avoided in Kansas Bankruptcy in February 2008

Seal_of_KSIn RE Androes – World Savings Bank lien avoided in Kansas Bankruptcy in February 2008

By Daniel Edstrom
DTC Systems, Inc.

In this Chapter 7 bankruptcy the trustee was able to avoid the lien from a World Savings Bank loan because the mortgage acknowledgement was missing a date.  As such the lien was never perfected.

Excerpt 1

Trustee Carl B. Davis seeks summary judgment on his complaint against debtor Mark Androes and World Savings Bank (“World Bank”).1 Trustee’s complaint seeks (1) to avoid World Bank’s mortgage on Androes’ homestead as unperfected because the acknowledgment of the debtor’s signature is undated and (2) to avoid as preferential World Bank’s lis pendens to the extent it attached to the home. World Bank filed a response to the Trustee’s motion and a counter motion for summary judgment.2 The Trustee filed a reply to World Bank’s response, which also served as his response to World Bank’s motion for summary judgment.3 World Bank filed a reply to the Trustee’s response to its motion for summary judgment.4 Debtor filed no response. Continue reading “In RE Androes – World Savings Bank lien avoided in Kansas Bankruptcy in February 2008”