A senior mortgagee battled the debtor and a junior mortgagee over its entitlement to post-petition interest: If and when did it become oversecured and thus entitled to interest? Was it entitled to interest at the default rate? Should the interest be compounded?
In re Residential Capital, LLC, 508 B.R. 851 (Bankr. S.D.N.Y. 2014) –
An oversecured creditor claimed post-petition interest at the contract default rate. The debtors and the post-confirmation liquidating trust objected, arguing that the lender should be limited to the non-default rate.
Crews v. TD Bank, N.A. (In re Crews), 477 B.R. 835 (Bankr. M.D.Fla. 2012) –
A mortgaged building was destroyed by fire prior to the mortgagor’s bankruptcy filing. In an earlier opinion the bankruptcy court held in that the mortgagee had an equitable lien on the fire insurance proceeds of $350,000. This opinion addresses the debtors’ attempt to avoid the equitable lien using their “strong arm” powers.
Pinellas County Property Appraiser v. Read (In re Read), 692 F3d 1185 (11th Cir. 2012) –
Under Section 505(a)(1) of the Bankruptcy Code, generally a bankruptcy court may determine the amount or legality of any tax. However, under Section 505(a)(2)(C) of the Bankruptcy Code ad valorem real or personal property taxes cannot be contested if the applicable time period under non-bankruptcy law has expired.
In Re Loucheschi LLC, 471 B.R. 777 (Bankr. D. Mass 2012) –
When a lender makes a loan that does not comply with usury laws it runs a risk that not only will interest and charges be disallowed, but also the entire loan may be declared void. In cases where declaring a usurious loan void is discretionary, one might expect a bankruptcy court to be inclined to do so since it could benefit the bankruptcy estate.