Bankruptcy cases frequently have transfers of the bankruptcy estate’s property through court- approved sales.[2] Sometimes those sales are challenged.[3] Often those challenges are overruled.[4] Sometimes the order approving the sale is appealed… The post Do Bankruptcy Settlements (Fed.R.Bankr.P. 9019) On Appeal Get The Same Protections (11 U.S.C. § 363(m)) As Bankruptcy Sales (11 U.S.C. § 363(b)) On Appeal? [1] appeared first on Wayne Greenwald, P.C..

 Harold Israel, Esq.  at Levenfeld Pearlstein, LLC is reporting that the Sub V Bankruptcy Debt limits, which had been temporarily increased to $7,500,000.00, are posed to be made permanent.The article can be found at https://lnkd.in/dYQ BsF EyA detailed article about Subchapter V bankruptcy can be found at our blog at:https://lnkd.in/ewxRU2T

 https://patch.com/new-york/new-york-city/hundreds-taxi-medallions-repossessed-despite-rescue-deal-ended-hunger-0

 https://www.forbes.com/advisor/debt-relief/types-of-bankruptcies/

 Interesting article in newsy.com (URL below) about how the Biden Administration is addressing student loan debt. https://www.newsy.com/stories/president-biden-s-policy-on-student-loan-debt-cancellation/

Bankruptcy has been likened to a class action. In a typical class action, a class representative files suit against a defendant seeking relief on behalf of a class of plaintiff. If class certification is not granted, the suit continues as a conventional suit. In bankruptcy, a debtor files for relief against his or her creditors. However, as shown by Fed.R.Bankr.P. 7023, it is possible to have a traditional class action within the collective proceeding of a bankruptcy. Sometimes this is done through the vehicle of filing a class proof of claim. However, unless an actual class of claims is certified, a "class" proof of claim is just a regular proof of claim. Several recent cases illustrate the difficult relationship between class actions and bankruptcy. In Patterson v. Mahway Bergen Retail Group, Inc., 2022 U.S. Dist. LEXIS 7431 (E.D. Va. 2022), a plan contained an opt out feature for third-party releases. The lead plaintiff in a securities class action objected to the plan. This resulted in that plaintiff being deemed to have opted out of the release. The plaintiff then attempted to appeal on behalf of the class. The District Court found lack of standing to appeal. Because the class had not been certified, the plaintiff lacked the ability to represent the class on appeal. Because the plaintiff had objected to the opt out provision, they were not harmed by it. The Court stated:However, the Securities Litigation Lead Plaintiffs' capacity as putative representatives of a class in the District of New Jersey does not confer standing to appeal in this Court. The Securities Litigation Lead Plaintiffs claim that they have standing "because they are fiduciaries for the Class, have rights closely aligned with those of Class members, and are the court-appointed advocate for Class members' rights." (Appellants' Reply at 19.) However, this argument puts too much weight on their role as putative class representatives. As lead plaintiffs in a putative class action, the Securities Litigation Lead Plaintiffs have no special status; consequently, they must establish individualized harm. Opinion, at *32. In In re Mallinckrodt, PLC, 2022 Bankr. LEXIS 273 (Bankr. D. Del. 2022), a putative class rep filed a class proof of claim and attempted to object to a proposed settlement on behalf of the class. The Court found that the gambit failed on several grounds. First, the Court found that a certified class representative must still request permission to file a class proof of claim. Second, the putative class rep had not been certified. Finally, the debtor had objected to the class proof of claim and it had been expunged. Given these mis-steps, what should be done to file a class proof of claim? In In re Legendary Field Exhibitions, LLC, 2021 Bankr. LEXIS 2947 (Bankr. W.D. Tex. 2021), a class action by football players was filed pre-petition and removed to bankruptcy court. The Bankruptcy Court granted preliminary class certification. The class representative filed a class proof of claim. The trustee objected to the class proof of claim. However, the trustee ultimately filed a motion to compromise and settle with the class. In this instance, certification of a class in an adversary proceeding was combined with filing a class proof of claim. The trustee made a tactical decision that it was better for the estate to settle with the class. Judge Gargotta found that it was an open question in the Fifth Circuit whether class proofs of claim were permissible. However, he found that he certainly had authority to approve a compromise and settlement.In W. Wilmington Oil Field v. CJ Holding Co., 2021 U.S. Dist. LEXIS 149292 (S. D. Tex. 2021), the court found that most courts that had considered the issue had found class proofs of claim to be permissible. In W. Wilmington Oil Field, the Court looked through the bankruptcy rules. Rule 9014 allows certain rules applicable to adversary proceedings to be applied to contested matters. Rule 7023, which allows class actions is one of these. As Judge Rosenthal stated:The majority of federal courts hold that "a class proof of claim is permissible under the Bankruptcy Code and Federal Rules of Bankruptcy Procedure," and that "Bankruptcy Rule 9014 allows bankruptcy courts to apply Bankruptcy Rule 7023 and Rule 23 to any stage of a contested matter, including the filing of a proof of claim." (citations omitted). The Fifth Circuit has not addressed this question, but it has held that bankruptcy courts have discretion as to whether to apply Rule 23 to contested matters. Opinion, at *29. In the specific case, the class representatives had filed class proofs of claim on the last day for filing claims. The Bankruptcy Court ruled that the claims were late-filed as to the class because the class was not certified prior to the claims bar date. The District Court reversed and directed the Bankruptcy Court to grant the motion for late-filed claims.Several conclusions arise from these cases. The first is that class actions are permissible in bankruptcy but must follow the rules for class certification. It is possible to file a class proof of claim. However, without class certification, a class proof of claim is just a proof of claim. Where a class proof of claim is filed prior to the bar date but the class is not certified prior to this time, the claim runs the risk of being untimely as to the class. In this instance, the class representative should either file the claim well before the bar date and seek class certification or move to extend the bar date for filing claims to allow for the class to be certified. A class proof of claim is possible in bankruptcy but it requires navigating a difficult procedural landscape. 

 Hundreds of Taxi Medallions Repossessed Despite Rescue Deal That Ended Hunger Strikehttps://www.thecity.nyc/economy/2022/2/20/22941508/hundreds-of-taxi-medallions-repossessed-despite-rescue-deal-that-ended-hunger-strike

Have you fallen behind on your mortgage because of the COVID-19 Pandemic? Illinois is offering help. Check out the IHDA Illinois Homeowner Assistance Fund LEARN MORE

Can I File Bankruptcy In Arizona Without My Spouse? When It Might Be Advantageous To File Bankruptcy Without Your Spouse & How To Proceed When you take your wedding vows, you’re agreeing to take part in almost every part of your spouse’s life. Arizona is also a community property state, which means that all debts and assets acquired during the marriage belong equally to both spouses. So it seems like with everything that spouses are expected to share, filing bankruptcy would be among them. However, contrary to what many people assume, you do NOT have to file bankruptcy with your spouse. Our Arizona bankruptcy team is here to discuss when it may be advantageous to file bankruptcy without your spouse, and how to proceed. If you have any more questions about filing bankruptcy sans spouse, call our firm at 480-833-8000 for your free consultation.  Filing Chapter 7 Bankruptcy Without Your Spouse Filing Chapter 7 bankruptcy without your spouse is much simpler than filing Chapter 13 bankruptcy without your spouse. That is, in part, because it doesn’t last as long from start to finish. A Chapter 7 bankruptcy will typically be discharged within three to six months. It wipes away unsecured, non-priority debts like credit cards, medical bills, and personal loans. So when might it make sense to file Chapter 7 bankruptcy without your spouse? Let’s say that before you got married, you had $5,000 in a credit card which has ballooned out of control due to interest. That debt is your separate property, and any debts incurred after the wedding are community property debt. If the majority of your debts are separate property and unsecured, an individual Chapter 7 could help you clear that debt without negative repercussions for your spouse. One of the issues with filing Chapter 7 bankruptcy as an individual when you are married is that your spouse’s income and belongings will still be included in your bankruptcy calculations. To qualify for Chapter 7 bankruptcy, your household income must be less than Arizona’s state median income, or you must pass the Means Test. When you file an individual bankruptcy as a married person, your household income still includes your spouse’s. Your income will be combined and averaged over the previous 6 months before you file. Qualifying for Chapter 7 bankruptcy can be tricky in these types of situations, especially in a dual earner household. Another issue when you file Chapter 7 bankruptcy with your spouse is that their property might not be protected by bankruptcy exemptions. Many of Arizona’s bankruptcy exemptions, including the $150,000 homestead exemption, don’t increase just because the debtor is married. Other Arizona bankruptcy exemptions only increase moderately when the debtor is married. For example, in Arizona, the motor vehicle exemption is $6,000. This increases to $12,000 in one vehicle or $6,000 each in two vehicles when the debtor(s) is married. If you and your spouse have disproportionate separate property debts, it’s highly likely that your spouse has some possessions that wouldn’t be protected by Arizona’s bankruptcy exemptions. Filing Chapter 13 Bankruptcy Without Your Spouse Filing Chapter 13 bankruptcy without your spouse is much more complicated than filing Chapter 7 without your spouse. There are several reasons for this. One is because your payment plan will last either three or five years, depending on how your household income compares to the state median. This is a long time for your financial situation to be frozen by the automatic stay. Another fact of the matter is that three to five years is enough time for a couple to fall out of love and decide to get a divorce, which will be almost impossible to complete during a Chapter 13 bankruptcy. When you file Chapter 13 bankruptcy, your debts are reorganized into a payment plan that is based on your disposable monthly income. This is another reason that filing Chapter 13 without your spouse can be complicated. Even if you file as an individual, your payment plan will be formulated using your disposable monthly household income. It is unlikely that your spouse wants all of their spare income going towards your Chapter 13 payment plan without being included. You and your spouse may need to work out another way to deal with your debts if Chapter 7 bankruptcy isn’t an option. You can discuss alternatives for free with our Arizona bankruptcy team. Give our Phoenix Bankruptcy Lawyers a call, 480-833-8000, and let us know when is most convenient for your free consultation. What Happens To Community Property Debt In An Individual Bankruptcy? Even if the reason you want to file bankruptcy is because of insurmountable separate property unsecured debts, you may still have community property debts that can’t be excluded from your bankruptcy. For example, filing Chapter 7 bankruptcy won’t erase the mortgage on your community property home. The balance for smaller secured community property debts, like cars, can be paid off in a Chapter 13 bankruptcy payment plan. But it can be more complicated if you discharge unsecured community property debts in an individual Chapter 7 bankruptcy. If you file bankruptcy individually, community property debts will only be discharged in your name.  If your spouse declines to join you in the bankruptcy filing, their separate property debts will not be discharged, and community property debts won’t be discharged in their name. Because of the protections provided by the automatic stay, the creditors for community property debts may not pursue you or your spouse during your bankruptcy. However, the automatic stay will end when your case is discharged or dismissed, or even sooner under special circumstances. If you ever divorce in Phoenix, your community property creditors are likely to pursue your spouse for the debts discharged in your bankruptcy. Therefore, declaring bankruptcy in AZ can help you further understand how your individual bankruptcy will impact community debts. How Can I Protect Myself If My Spouse Files Bankruptcy Without Me? Even if you don’t join your spouse in their bankruptcy filing, it’s best that you pick up at least some basic bankruptcy knowledge. Filing bankruptcy will likely take up much of your spouse’s time and attention for at least a few months. You simply won’t be able to talk to your spouse about their bankruptcy if you don’t learn some bankruptcy basics. If you want to be extra supportive, you may want to attend consultations and other meetings with your spouse’s bankruptcy attorney, or help them gather the documents necessary to draft their bankruptcy petition. Your spouse may also want your emotional support at their bankruptcy hearing, also known as a 341 Meeting of Creditors. You should also understand bankruptcy so that you can comprehend what will happen to any debts you may have when your spouse files bankruptcy. You may see no impact at all, or even some slight protections. However, it’s important to still understand the long term effects, i.e., if you get divorced in AZ. You also need to understand the nuances if you are a cosigner on loans that your spouse discharges in their bankruptcy. Therefore, your spouse’s bankruptcy attorney should be able to walk you through all of these issues. Contact An Experienced Bankruptcy Attorney In Arizona If you or your spouse is looking for a bankruptcy attorney with experience in specialized issues like filing without a spouse, our Arizona law office has what you need. Plus, our dedicated Phoenix Bankruptcy Lawyers and Tucson bankruptcy staff and attorneys will work tirelessly to file your bankruptcy with as few drawbacks for you as possible. We will keep you apprised each step of the way, so that you and your spouse can feel confident in whatever decision you make regarding your bankruptcy. To get started with our low-cost bankruptcy attorneys, call 480-833-8000 or use our online form to request your free consultation today. Arizona Offices: Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Email: info@myazlawyers.com Website: https://myazlawyers.com/ Phoenix Location: 343 West Roosevelt, Suite #100 Phoenix, AZ 85003 Office: (602) 609-7000 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 469-6603 The post Can I File Bankruptcy In Arizona Without My Spouse? appeared first on My AZ Lawyers.

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