MB Financial Bank NA v. T-L Conyers, LLC

(N.D. Ind. Feb. 4, 2015)

In this consolidated appeal of four single asset real estate chapter 11 cases, the district court affirms the bankruptcy court’s denial of the secured creditor’s motion for stay relief. The debtors had proposed plans that consolidated claims against the separate debtors into a single class of claims. The bankruptcy court held the plans were unconfirmable with such a provision, although it was an issue of first impression. The debtor then appealed, proposed new plans without the consolidation provision, then dismissed the appeal. The creditor sought stay relief under § 362(d)(3), arguing that the debtor had not proposed a plan with a reasonable possibility of being confirmed within the timeframe of § 362(d)(3). The court holds that the debtor satisfied the requirements and stay relief was appropriately denied. The first proposed plan had a reasonable possibility of being confirmed following appeal, and the debtors’ decision to file new plans outside the timeframe actually expedited the reorganization process. Opinion below.

2015-02-04 – mb financial bank v t-l conyers llc

Author: Matt Lindblom

In re Morgan

(Bankr. E.D. Ky. Feb. 3, 2015)

The bankruptcy court grants the secured creditor’s motion for stay relief with respect to real property owned by the debtor and his daughter. The court finds that the debtor has no equity in the property and, because he claimed his principal residence was elsewhere (although the property was his principal residence only weeks before filing the chapter 13 petition), the property was not necessary to an effective reorganization. Opinion below.

2015-02-03 – in re morgan

Author: Matt Lindblom

Robinson v. Manufactured Housing Contract Senior/Subordinate Pass Through Certificate Trust 1999-5 (In re Robinson)

(Bankr. W.D. Ky. Dec. 17, 2014)

The bankruptcy court dismisses the lien avoidance action for lack of jurisdiction. The defendant obtained an order abandoning the trustee’s interest in and granting stay relief with respect to the debtors’ manufactured home on which the defendant claimed a lien. The debtors then filed the adversary proceeding, seeking to avoid the lien for failure to properly perfect the lien, and filed a motion to reconsider the court’s order granting stay relief. The court granted the motion to reconsider, leaving the stay in place pending further orders of the court. The defendant moved to dismiss the adversary proceeding, arguing the debtors did not have standing to pursue the avoidance action. The court granted the motion, but did so on the basis that it had ordered the trustee’s interest in the property abandoned. Thus, because the property was abandoned and no longer property of the estate, the court had no jurisdiction over it. Opinion below.

2014-12-17 – robinson v manufactured housing contract

In re Ripberger

(Bankr. E.D. Ky. Oct. 28, 2014)

The bankruptcy court denies the debtor’s ex-wife’s motion for stay relief to seek an order from the state court determining rights in the marital residence. The ex-wife argued that the divorce decree gave the debtor an option to purchase, which option was not exercised. Thus, the ex-wife argued, the state court needed to decide how the residence should be distributed. The bankruptcy court held that the state court’s divorce decree clearly gave the debtor title to the residence, which made the ex-wife simply a creditor of the estate for the purchase price, rather than a co-owner. Opinion below.

2014-10-28 – in re ripberger