Bankruptcy Litigation Archives

11 USC 522(o) – Homestead Exemption Limitations in Bankruptcy

In bankruptcy, creditors can allege that debtors should lose the part of their homestead exemption that is allegedly “attributable to” an “intent to hinder, delay, or defraud a creditor” under 11 U.S.C. § 522(o). This is particularly important given the recent increase in California’s homestead exemption effective January 1, 2021, which is now as high … Read More

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Bankruptcy Lien Avoidance on Exempt Property for Nondischargeable Debts [11 USC 522(f)(1) & 523(a)]

Debtor’s Rights in Bankruptcy to Avoid Judgment Liens Under Section 522(f)(1) of the Bankruptcy Code Debtors are likely subject to bankruptcy due to their inability to satisfy outstanding obligations to unsatisfied creditors. Bankruptcy affords a debtor protections in furtherance of the bankruptcy code‘s central goal to provide a fresh start to good faith debtors subjected … Read More

Ordinary Course of Business Transfers Preference Defense Bankruptcy Attorney Lawyer California

Ordinary Course of Business Transfers – Preference Defense in Bankruptcy

Preference Actions in Bankruptcy For a simple explanation of what a preference action in bankruptcy is, click here. A preference action is undertaken by the trustee or debtor in possession in either chapter 7 or chapter 11 bankruptcy. In some ways, it is similar to a fraudulent transfer or fraudulent conveyance proceeding in that it … Read More

Preference Defenses Bankruptcy New Value Ordinary Course Attorney Lawyer California Chapter 7 11 13

Contemporaneous Exchange of New Value – Preference Defense in Bankruptcy

2 Preference Defenses in Bankruptcy: New Value & Ordinary Course – A Simple Guide to the Popular Defenses

What is a Preference in Bankruptcy? The trustee in bankruptcy is incentivized to claw-back any transfers made by the debtor before the bankruptcy petition is filed in order to maximize the trustee’s own compensation. In addition to the trustee’s ability to attack fraudulent conveyances and actions taken by creditors in violation of the automatic stay, … Read More

Sanctions for Violations of the Automatic Stay in Bankruptcy California Attorney

Automatic Stay Violation Sanctions in Bankruptcy [11 U.S.C. 362(k)(1)]

How to Recover Sanctions for Violations of the Automatic Stay in Bankruptcy Many bankruptcy practitioners think an automatic stay violation equals sanctions for every debtor. However, those sanctions are only available to “individuals,” not corporations, limited liability companies (LLCs), and others entities. What is the Automatic Stay in Bankruptcy? Upon the filing of a petition … Read More

Home Mortgage Consumer Debt Bankruptcy In re Kelly 707 Motion to Dismiss Cherrett

Is a Home Mortgage Consumer Debt in Bankruptcy? [In re Kelly]

What is Consumer Debt? – Consumer Debt Definition under the Bankruptcy Code Consumer debt is defined in the United State Bankruptcy Code as “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). An experienced bankruptcy attorney can help clarify this definition in addition to the guidance provided … Read More

Bankruptcy Fraudulent Transfer Attorney California

Fraudulent Transfers in California Bankruptcy [11 USC 548]

What is a Fraudulent Conveyance / Fraudulent Transfer? When a debtor filed a bankruptcy, an estate is created composed of all of the debtor’s rights in property. Among those rights is the ability to set aside transfers for less than fair market value. Indeed, sometimes debtors who realize they will be filing bankruptcy think it … Read More

Motion to Set Aside Default Judgment in Bankruptcy Adversary Entry of Judgment Template Form Sample

Motion to Set Aside Default & Judgment in Bankruptcy Adversary [Template Form Sample]

Tips to Filing a Motion to Set Aside a Default & Default Judgment in Bankruptcy Court (California, Ninth Circuit).

Bankruptcy Trustee Must “Recover” Property to Deny Debtor Exemption Under Section 522(g)

Bankruptcy trustees sometimes seek to create value for their bankruptcy estates at the expense of debtors by seeking to deny a bankruptcy exemption by claiming that the trustee “recovered” property of the estate. However, whether the Trustee can make such a claim depends on the facts of the case. The Bankruptcy Code, 11 U.S.C. § … Read More