February 2013

28 Feb Bankruptcy Update – In Re McNeal Chapter 7 Stripping Unsecured 2nd Mortgage Lien

11th Circuit photo The saga continues for Chapter 7 bankruptcy practitioners in the 11th Circuit. The bankruptcy issue is whether a homeowner can strip a wholly unsecured second mortgage in a Chapter 7 bankruptcy proceeding. As we stand right now, the answer is Yes, we can. However, the 11th Circuit opinion in In Re McNeal 11-11352 was unpublished. There has been a recent development in the McNeal case. If you haven't been following the McNeal case, you probably don't live in the 11th Circuit. But, I'm here to tell you that it doesn't matter whether you are a creditors attorney, debtors attorney or a bankruptcytrustee you should be watching this case.
Read More

27 Feb Unlisted Debts Are Not Discharged in First Circuit

Debts which are not listed in bankruptcy schedules are not discharged in the First Circuit, which covers Puerto Rico and New England (except Connecticut and Vermont). The only exception is if that creditor otherwise knew of the bankruptcy filing when it happened. They are discharged...

Read More