Lien stripping is a way somebody in Chapter 13 bankruptcy can remove lower priority liens. It’s only allowed in cases where the value of the house is no longer enough to cover the outstanding mortgages on higher priority liens. Lien stripping turns the junior mortgage into an unsecured debt that may eventually be discharged. Basics […]
Statement Of Damages Served After BK Stay Lifted.
Instead of answering a medical malpractice complaint, a plastic surgeon filed bankruptcy. The plaintiff was granted relief by the bankruptcy court to proceed against the debtor “so long as recovery against debtor is limited to available insurance proceeds.” Plaintiff then served defendant’s insurer with a notice of default hearing, accompanied by a statement of damages […]
Chapter 13 Filing Does Not Preclude Appeal.
Following confirmation of an arbitration award, the trial court awarded defendants $19,826 in costs and later $158,471.25 in attorney’s fees. Plaintiff filed a chapter 13 bankruptcy petition which listed the trial court’s cost award, but not the attorney fee award. Defendants filed their proof of claim in the bankruptcy court, listing both the costs and the […]
Attorney-Client Privilege May Be Passed On To A Bankrupt Corporation’s Insurer.
A bankrupt corporation which purportedly only existed as a shell through which personal injury claims were passed on to its insurer for resolution was sued for personal injury. Pursuant to its reorganization plan, the action was submitted to its insurers, who provided a defense. When discovery was propounded to the corporation, the corporation’s attorney (who had […]
Non-Signatories Not Bound By Arbitration Agreement.
After a corporation went into bankruptcy, its short-term creditors brought suit against the corporation’s financial advisor alleging fraudulent misrepresentations. The financial advisor filed a petition to compel arbitration. The trial court denied the petition to compel and the appellate court affirmed because “the short-term creditors were not third-party beneficiaries of the contract between the financial […]
Foreclosure or Short Sale: Strategies for Homeowners Video Release
Attend the release viewing of Mark Mellor’s New DVD/ Informational Video “Foreclosure or Short Sale: Strategies for Homeowners” at our office tomorrow 5:30 p.m. 6800 Indiana Avenue, Suite 220, Riverside, CA 92506; (951) 221-4744. In return for the advanced viewing, Mr. Mellor wants to hear your constructive criticism for making improvements to the DVD before final […]