Skip to main content

§ 502(b)(1)

In re Residential Capital LLC

Ruling
Successor mortgagor and servicer could not maintain claim against debtor assignee under state law for fraudulent lending practices of original mortgagee.
Issue(s)
Could former mortgage holder that purchased debtor's mortgages, did not play any role in their origination, and sold the mortgages but retained servicing, contest the dischargeability of debtor's loan debts on grounds of misrepresentation?

ABI Membership is required to access the full summary of In re Residential Capital LLC Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on July 31, 2014 , LexisNexis #0814-118

Walston v. Pyod LLC (In re Walston)

Ruling
Proof of claim for assigned debt allowed over debtor's objection.
Issue(s)
Whether creditor's claims should be disallowed under 11 U.S.C.S. § 502(b)(1) based on debtor's allegations that proofs of claim failed to provide evidence of a written assignment of the underlying debt from a bank to creditor and that statements in an affidavit by creditor's officer were inadmissible as hearsay.

ABI Membership is required to access the full summary of Walston v. Pyod LLC (In re Walston) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on March 17, 2014 , LexisNexis #0614-112

Archdiocese of Milwaukee v. Appeal of Doe

Ruling
Bankruptcy court properly disallowed claim for sexual abuse that had been addressed in voluntary mediation program.
Issue(s)
Did Bankruptcy court properly disallow a claim for sexual abuse by a diocesan priest that had been settled in a voluntary mediation program, resulting in a release?

ABI Membership is required to access the full summary of Archdiocese of Milwaukee v. Appeal of Doe Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on February 25, 2014 , LexisNexis #0314-077

In re Residential Capital LLC

Ruling
Borrowers' claim against debtor mortgage company that acquired note and deed of trust and commenced foreclosure upon borrowers' default disallowed.
Issue(s)
Did creditor borrowers present a valid claim against debtor lender based on allegedly improper foreclosure?

ABI Membership is required to access the full summary of In re Residential Capital LLC Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on February 05, 2014 , LexisNexis #0214-112

Ball Four Inc. v. 2011-SIP-1 CRECADC Venture LLC (In re Ball Four Inc.)

Ruling
Predecessor bank's alleged inequitable conduct was not grounds for disallowance of claim by successor creditor.
Issue(s)
Was purchaser of debtor's construction loan subject to disallowance of its claim due to mishandling of loan by original lender.

ABI Membership is required to access the full summary of Ball Four Inc. v. 2011-SIP-1 CRECADC Venture LLC (In re Ball Four Inc.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on September 30, 2013 , LexisNexis #1113-077

In re M&M Mktg. LLC

Ruling
Creditor's claim allowed in part despite disclaimer of interest in subject assets by debtor one month before executing note.
Issue(s)
[1]-Whether a creditor's claim was unenforceable and should be disallowed under 11 U.S.C.S. § 502(b)(1) based upon an allegation that the debtor's owner had turned over all of the debtor's assets to a third party by executing a disclaimer of interest a month before he executed the promissory note.

ABI Membership is required to access the full summary of In re M&M Mktg. LLC Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on July 30, 2013 , LexisNexis #0813-079

In re Parrott Broad. Ltd. Pship

Ruling
Claim disallowed where state law waiver of claim for unpaid wages was effective.
Procedural posture

A chapter 7 trustee in a case filed by a limited partnership (LP) filed an objection to an amended proof of claim filed by a chapter 7 trustee in the bankruptcy case of the LP's general manager. The claim alleged that the LP owed the general manager unpaid wages, asserted a right to priority under 11 U.S.C.S. § 507(a)(4), asserted statutory penalties on unpaid wages under Idaho Code Ann. § 45-615(2), and asserted a claim for an unsecured loan.

ABI Membership is required to access the full summary of In re Parrott Broad. Ltd. Pship Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on June 26, 2013 , LexisNexis #0713-083

In re Crutchfield

Ruling
Proof of claim conforming to Rule 3001 allowed over debtor's objection.
Procedural posture

A chapter 13 debtor filed objections to certain claims under 11 U.S.C.S. § 502(b)(1) as unenforceable under Georgia law due to failure to produce a document showing assignment of the claims to the claimants.

ABI Membership is required to access the full summary of In re Crutchfield Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on April 26, 2013 , LexisNexis #0613-010

In re Castle Arch Real Estate Inv. Co. LLC

Ruling
Indemnification claims disallowed except for rent claim conceded by trustee.
Procedural posture

A claimant filed a claim against a debtor for over $7 million in wages, rent, and indemnification relating to his work with the company prior to bankruptcy, and the Trustee objected to the claim. The court conducted a trial of the Trustee's claim objection and took the matter under advisement.

ABI Membership is required to access the full summary of In re Castle Arch Real Estate Inv. Co. LLC Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on April 15, 2013 , LexisNexis #0513-008

In re Feaster & Sons Oil Distribs. Inc.

Ruling
Balance of claim that creditor agreed to cap at time of sale order disallowed as no longer secured by property of the estate.
Procedural posture

A chapter 7 trustee objected to two claims of a creditor, contending that the claims were filed as secured claims but there was no property of the estate to which a security interest attached.

ABI Membership is required to access the full summary of In re Feaster & Sons Oil Distribs. Inc. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on September 28, 2012 , LexisNexis #1212-007