Articles from Foster Swift Collins & Smith

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Fraudulently Obtained Unemployment Benefits are not Dischargeable in Bankruptcy

Submitted by Anonymous (not verified) on Thu, 08/25/2016 - 19:00

State unemployment benefits are paid pursuant to a system that relies on trust. Benefits are paid based on representations made by claimants that they are out of work and that they continue to seek out full-time work. If a claimant finds part-time work, then benefits are reduced accordingly.

Chapter 13 Trustee Must Return Funds to Debtor Following Dismissal of Case

Submitted by Anonymous (not verified) on Mon, 07/04/2016 - 19:00

What happens to funds held by a Chapter 13 trustee (the “Trustee”) in the event that a Chapter 13 debtor dismisses her case voluntarily? That’s the question that was addressed by the United States Bankruptcy Court for the Eastern District of Michigan (the “Court”) in a recent opinion.[i] Read More ›
Tags: Chapter 13

The Provisional Nature of Discharge: Trustee's Knowledge of Fraud May Not Be Imputed to United States Trustee

Submitted by Anonymous (not verified) on Tue, 06/28/2016 - 19:00

The purpose of filing for Chapter 7 bankruptcy is to discharge debts. But even after obtaining a discharge, a debtor is not totally in the clear. A recent case in the United States Bankruptcy Court for the Western District of Michigan involves an adversary proceeding in which the United States Trustee sought to revoke a Chapter 7 debtor’s (the “Debtor”) discharge.[i] Read More ›

Supreme Court Adopts a Broad Reading of “Actual Fraud” Under the Bankruptcy Code

Submitted by Anonymous (not verified) on Tue, 05/31/2016 - 19:00

On May 16, the U.S. Supreme Court decided Husky International Electronics, Inc. v. Ritz[1], ruling that the term “actual fraud” in section 523(a)(2)(A) of the Bankruptcy Code includes forms of fraud that do not involve a fraudulent misrepresentation.

Bankruptcy Court Decision to Allow Late-Filed Claim in Chapter 13 Case Reversed on Appeal

Submitted by Anonymous (not verified) on Thu, 05/19/2016 - 19:00

Chapter 13 bankruptcy allows debtors to confirm plans that provide for the payment of their debts through future earnings while, at the same time, retaining their assets. If a creditor wishes to receive payments pursuant to a debtor’s plan, the creditor must file a proof of claim. And it must do so timely. Read More ›

Bankruptcy Court Considers Whether Chapter 7 Trustee May Bring Private Cause of Action For Alleged Breach of Debtor’s Duties

Submitted by Anonymous (not verified) on Mon, 05/09/2016 - 19:00

The U.S. Bankruptcy Court for the Eastern District of Michigan recently considered the issue of whether a Chapter 7 trustee may bring a cause of action against a debtor for damages caused to the bankruptcy estate by the debtor’s alleged failure to comply with the debtor’s duties under section 521 of the Bankruptcy Code.

Confirmation of Chapter 13 Plan that Favors Debtor's Attorney Over Homestead Mortgage Reversed on Appeal

Submitted by Anonymous (not verified) on Tue, 04/19/2016 - 19:00

Bankruptcy is all about the debtor’s assets, specifically how many and who gets them. The reason that many bankruptcy cases are contentious is that the parties often disagree about the amount of assets available for distribution to creditors, as well as how the assets should be divvied up. Read More ›

Bankruptcy Court Sanctions Lawyer, But Appeals Court Reverses and Rules that Lawyer’s Aggressive Advocacy Did Not Cross the Line

Submitted by Anonymous (not verified) on Tue, 03/22/2016 - 18:00

In a recent case, a lawyer was sanctioned by an Ohio bankruptcy judge for his conduct in connection with an adversary proceeding he brought on behalf of a client against a Chapter 7 debtor. The lawyer was vindicated, though, after the Bankruptcy Appellate Panel of the Sixth Circuit (the “BAP”) reversed the bankruptcy court on appeal. Read More ›

District Court Reverses Bankruptcy Court Ruling that State Criminal Restitution is Dischargeable

Submitted by Anonymous (not verified) on Thu, 03/10/2016 - 19:00

Bankruptcy is a process that permits people to discharge debts, but not all debts are dischargeable. In a recent opinion, the U.S. District Court for the Eastern District of Michigan (the “District Court”) reversed a U.S. Bankruptcy Court for the Eastern District of Michigan (the “Bankruptcy Court”) ruling that a state court criminal restitution claim is dischargeable. Read More ›

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