The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.
Property that the debtor has properly claimed as exempt (here, a homestead interest under Arizona law) is not property of the estate. Therefore, the bankruptcy lacks authority under 11 USC 724(a) to avoid secured claims with liens on the exempt property since that section allows avoidance of liens only on property of the estate. Read More
A party moving under 11 USC 1112(b)(1) for relief such as conversion of a Chapter 11 case to a Chapter 7 case bears the burden of persuasion that cause exists for granting that relief. Cause includes a material default in making payments due under the Chapter 11 plan. Material isn't defined by the Bankruptcy Code, but gains meaning from the… Read More
