Debtor obtained judgment during Chapter 13 case that determined that mortgage creditor was deemed to be and would be treated as a general unsecured creditor in this case and for all purposes and not entitled to the protections of 11 U.S.C. § 1322(b)(2). Case was later converted to Chapter 7. Debtor sued creditor to avoid mortgage lien based on earlier judgment. Creditor defaulted. Held: Complaint failed to state a claim for relief because the determination that creditor was unsecured for purposes of section 1322(b)(2) did not affect lien.
NOT INTENDED FOR PUBLICATION
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Opinions
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Judge James E. Massey (Retired)
Prior to bankruptcy Debtor voluntarily gave a second mortgage to his father to secure a debt. Debtor did not claim an exemption in property, and property was worth no more than total mortgage debt. Trustee subsequently avoided the mortgage as a preference and preserved the lien for the estate. Debtor then amended Schedule C to claim full exemption. Trustee objected. Held: Trustee’s objection granted. Under section 551(g)(1), a debtor may claim exemption in property recovered by the trustee only if the debtor did not voluntarily make the transfer.
NOT INTENDED FOR PUBLICATION
Judge Joyce Bihary (Retired)
(Fed. R. Bankr. P. 9027; former debtor’s notice of removal of former husband’s state court motion alleging certain of debtor’s debts not dischargeable and wrongful prevention of his visitation rights with children remanded and remanded as debtor failed to comply with procedural requisites and state court has concurrent jurisdiction regarding marital debts and particular expertise with regard to visitation rights)
(debtor’s motion to reopen Chapter 7 case and add unadministered, pending, prepetition cause of action granted as otherwise asset remains unadministered in estate, is of potential benefit to creditors, and judicial estoppel argument is not relevant before bankruptcy court);
(imposition of sanction requiring attorney to offer to represent a debtor pro bono)
(allowance of Chapter 13 case to continue beyond 60 months)
summary judgment on creditor's section 523(a)(4) claim)
NOT INTENDED FOR PUBLICATION
(disbursement of unclaimed funds held Registry of Court)