Archive for July, 2012

Lien Stripping

Tuesday, July 24th, 2012

We just filed our first “lien stripping” case where we are attempting to strip off a wholly unsecured second lien from a house the debtor owns in Washington DC. The property generates positive cash flow after paying the first lien (which will help the debtor fund her plan), but not enough cash flow to pay [...]

Bandi – Dischargeability under 523(a)(2)(A)

Tuesday, July 24th, 2012

On June 12, the Fifth Circuit issued an opinion addressing the meaning of “a statement respecting the debtor’s or an insider’s financial condition” [and the distinction between non-dischargeability of debts under 523(a)(2)(A) and (B)]. In re Bandi, 2012 WL 2106348 (5th Cir.2012).
523(a)excepts from discharge any debt –
(2) for money, property, services, or an extension, renewal, [...]

by Michael Baumer