Justia Bankruptcy Opinion Summaries

Eden Place appealed the BAP's decision affirming the bankruptcy court’s determination that Eden Place violated the automatic stay provisions of the Bankruptcy Code by evicting debtor from a residential property. After considering the court's applicable precedent, SS Farms, LLC v. Sharp, and the clear language of the statute, the court held that the bankruptcy court’s order that Eden Place violated the automatic stay was final and appealable. On the merits, the court concluded that the unlawful detainer judgment and writ of possession entered pursuant to California Code Civil Procedure 415.46 bestowed legal title and all rights of possession upon Eden Place. Accordingly, the court concluded that the bankruptcy court erred when it ruled that Eden Place violated the automatic stay provisions of the Bankruptcy Code and reversed the bankruptcy court order. In this case, debtor had no legal or equitable interest remaining in the property after issuance of the unlawful detainer judgment and writ of possession in state court. View "Eden Place v. Perl" on Justia Law

The purchaser of viatical settlements paid approximately $507,000 for life settlements with the debtor and received $9,000,000 in death benefits when he died shortly thereafter. The bankruptcy trustee filed an adversary proceeding to recover the market value of the life settlements. The court held that debtor's interests in the term life insurance policies, including the secondary market value of the policies and resulting life settlements, constitute a recoverable “interest of the debtor in property” pursuant to 11 U.S.C. 548(a)(1). In this case, debtor had a legal and equitable interest in the property at issue within the meaning of section 541(a), the property was not excluded from the estate under section 541(b), and the property was not the subject of a proper exemption in this case. The court further concluded that the district court properly held that the trustee's avoidance action was not time-barred because debtor's fraudulent concealment equitably tolled the statute of limitations from commencing. Finally, the district court correctly concluded that the bankruptcy court should have granted the trustee leave to amend her avoidance action. View "Gladstone v. U.S. Bancorp" on Justia Law