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§ 544(a)

Higgason v. Porter (In re New)

Ruling
Trustee could not avoid seller's legal interest in property that was never property of the estate.
Issue(s)
Whether chapter 7 trustee's strong arm powers under 11 U.S.C.S. § 544(a) allowed him to avoid an unrecorded land sale contract between the sellers and the debtors, as purchasers. [2]-The land sale contract gave the debtors an equitable interest in the property, but the sellers retained a legal interest; [2]- The sellers' legal interest was treated as a security interest under Kentucky law, which was evidenced by the properly recorded deed; [3]-The trustee's strong arm powers did not give the trustee any right to avoid the sellers' legal/security interest, which was never part of the debtors' property and never became property of the estate.

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Consumer opinion summary, case decided on September 03, 2013 , LexisNexis #0913-122

Highland Constr. Mgmt. Servs. v. Wells Fargo (In re Highland Constr. Mgmt. Servs.)

Ruling
Debtor could not avoid lapsed security interest that had been valid on petition date.
Issue(s)
What is the effect of a postpetition lapse of a secured creditor's financing statement on the creditor's secured status?

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Commercial opinion summary, case decided on July 30, 2013 , LexisNexis #0813-092

McCarty v. Toyota Motor Credit Corp. (In re Christopher)

Ruling
Valid pre-petition purchase money unperfected security interest in the debtors' vehicle was not avoidable.
Procedural posture

Debtors filed a voluntary petition for relief under the provisions of chapter 13. Plaintiff trustee filed an adversary proceeding seeking to determine the validity of defendant creditor's lien, to avoid the creditor's lien, and to object to the creditor's claim.

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Consumer opinion summary, case decided on June 25, 2013 , LexisNexis #0713-091

Baldiga v. Golemo (In re Golemo)

Ruling
Trustee could sell real properties and avoid unrecorded conveyances of the debtor's interests in the properties to spouse in divorce decree despite actual notice
Procedural posture

Bankruptcy trustee brought an adversary proceeding against defendant former spouse of a bankruptcy debtor, seeking authorization to sell real properties and to avoid conveyances of the debtor's interests in the properties to the spouse in a divorce decree. The trustee moved for partial summary judgment with regard to avoidance of the conveyances.

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Consumer opinion summary, case decided on June 06, 2013 , LexisNexis #0713-092

Leasure v. Norrthcutt (In re Mammoth Res. Partners)

Ruling
Trustee could avoid unrecorded assignment of oil and gas interests.
Procedural posture

Bankruptcy trustee brought an adversary proceeding against defendant principal of a bankruptcy debtor seeking to avoid an unrecorded assignment of oil and gas interests from the debtor to the principal. The trustee and the principal cross-moved for summary judgment.

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Commercial opinion summary, case decided on May 03, 2013 , LexisNexis #0513-126

Johnson v. Williams (In re Williams)

Ruling
Bank could foreclose in rem on mortgage not avoided in debtor's prior chapter 7 case.
Procedural posture

Chapter 7 trustee filed a motion for summary judgment seeking an order declaring that defendant bank's mortgage was void as a matter of law and that the trustee could administer the real property for the benefit of the debtor's estate. The bank filed a cross-motion for summary judgment, seeking a determination that its mortgage interest survived the debtor's first chapter 7 case and that it could pursue an in rem foreclosure action.

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Consumer opinion summary, case decided on April 01, 2013 , LexisNexis #0413-128

Banbury Metrolofts LLC v. BMO Harris Bank (In re Banbury Metrolofts LLC)

Ruling
Mortgage that provided constructive notice of lien could not be avoided.
Procedural posture

Chapter 11 debtor filed an adversary proceeding against bank, seeking to avoid under 11 U.S.C.S. § 544(a)(3) the lien the bank asserted against the debtor's property and a declaration that the bank was not the successor to the original lender in any event. The bank filed a motion to dismiss.

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Commercial opinion summary, case decided on March 25, 2013 , LexisNexis #0413-087

Terry v. Fidelity Natl Title Ins. Co. (In re Ware)

Ruling
Defective deed of trust that did not list debtor as grantor could be avoided.
Procedural posture

Plaintiff in a consolidated adversary proceeding, the chapter 7 trustee, moved for summary judgment, asserting he was entitled, under 11 U.S.C.S. §§ 544(a), 547, and Va. Code Ann. § 55-96 (2007), to avoid the interest of defendant creditor-lender, where the latter's construction deed of trust of record listed an incorrect grantor, and so was defective.

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Consumer opinion summary, case decided on March 20, 2013 , LexisNexis #0413-054

In re Mountaineer Bulk Servs.

Ruling
Trustee's proceeding to avoid allegedly improperly perfected auto liens barred as untimely.
Procedural posture

Plaintiff Trustee's complaint contained two counts. In Count II, the Trustee alleged that defendant creditor did not properly perfect its liens on debtor's motor vehicles, and therefore another defendant, the predecessor trustee, improperly distributed proceeds from the sale of debtor's motor vehicles. The Trustee requested recovery of these proceeds from the creditor. The Trustee and creditor filed summary judgment motions as to Count II.

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Commercial opinion summary, case decided on February 19, 2013 , LexisNexis #0313-070

Hutson v. Branch Banking & Trust Co. (In re Wilson)

Ruling
Trustee could not avoid deed of trust misstating date of underlying note where other information was sufficient.
Procedural posture

Plaintiff trustee filed an adversary proceeding against defendant bank, seeking a determination that he was allowed under 11 U.S.C.S. § 544(a) to avoid a lien the bank held on a residence that was owned by two debtors who declared bankruptcy. The bank filed a motion for summary judgment.

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Consumer opinion summary, case decided on February 08, 2013 , LexisNexis #0313-052