New Jersey

Chapter 13 Debtor Keeps a Whopping Increase in the Value of a Home

On a question where the courts are split, a New Jersey bankruptcy judge allowed the chapter 13 debtor to retain a $100,000 increase in value when he sold his home.

Amended Chapter 13 Plan Allowed to Cure Post-Petition Mortgage Defaults

Courts are split on whether a debtor may amend a chapter 13 plan to cure post-petition defaults on a principal residence.

‘Lifetime’ Club Memberships May Not Survive Bankruptcy

Before paying up front for a lifetime club membership, read the fine print and consult a lawyer.

Repaying Salary After Arrest Isn’t Compensation for Loss and Isn’t Dischargeable

An obligation can be penal in nature, and thus nondischargeable, even though it’s measured by pecuniary loss.

‘Disinterestedness’ Governs Approval of a Future Claimants’ Representative

Negotiating a prepackaged asbestos plan and having been paid by the debtor does not disqualify a future claimants’ representative under the disinterestedness standard.

Lawyer Sanctioned for Filing at the Last Minute when Title Had Passed Already

Lawyer was sanctioned under Rule 9011 for filing a petition when the lawyer should have known that title had already passed in a foreclosure sale.

New Jersey Tax Foreclosures Can Be Preferences, Third Circuit Rules

Although a foreclosure sale can be immune from fraudulent transfer attack, a tax foreclosure not based on the value of the property can be a preference.

Bankruptcy Notice to a Creditor Represented by Counsel in State Court Is Adequate

Conversely, giving notice to a creditor’s state-court counsel may not be adequate, New Jersey judge says.

New Jersey Judges Side with the Minority on Turnover of Repossessed Autos

Split deepens regarding failure to return a repossessed auto as an automatic stay violation.

Tax Sales Can Be Avoided as Preferences, New Jersey District Judge Rules

Not a true public sale, a tax foreclosure in New Jersey can be attacked as a preference without implicating concerns about federalism.

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