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Month: November 2020

Bankruptcy Judge Has Broad Discretion to Determine What Constitutes “Cause” To Allow State Law Issues To Be Resolved in State Court Action

In re Rizzo, 603 B.R. 550 (Bankr. D. SC 2019)(Waites, J.) The Guardian for an Incapacitated Person, with whom the Debtor shared a joint bank account with, filed suit in state court against the Debtor in state court seeking recover of $250,000 the Debtor withdrew from that bank account. The Debtor filed a Chapter 13 bankruptcy and the Guardian filed a Motion for Relief from the Automatic Stay to proceed in state court. The Bankruptcy Court held that the Debtor’s plan did not depend on the use of disputed funds for its feasibility and that the estate could be further

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Debtor Has No Interest In Property After Foreclosure Sale and Ratification

Singh v. Shao Lin Lai, 2019 WL 4750420 (D.Md. 2019)(Hazel, J.) Property was foreclosed on and sold in February of 2017 and was ratified on July 25, 2017 by Montgomery County Circuit Court. On September 28, 2018, the Debtor filed this present bankruptcy case. The purchasers of the property filed a Motion to Confirm Termination or Absence of the Automatic Stay with respect to the Property which the Bankruptcy Court granted holding that the bankruptcy estate had no recognizable interest in the property. Under Maryland law, the Debtors’ interest in the property was terminated, as has the right to redeem

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IRS Violates the Automatic Stay If It Refuses to Allow Debtor to Modify Withholding to Prevent Over-Withholding

Moulden v. IRS (In re Moulden)(Alquist, J. 2020) Th Debtor asserts that the IRS sent a “Lock-In Letter” to her employer which directed her employer to disregard her W-4 form and instead withhold taxes using a “Single” filing status and no exemptions. The Debtor asserts that this caused a compulsory over-withholding and that the IRS violated the automatic stay of the 11 U.S.C. § 362(a) by refusing to allow the Debtor to adjust her tax exemptions. The Debtors allege that their wages are property of the estate, and that the IRS has violated the automatic stay by refusing to allow

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Mortgage Foreclosure Players Are Not Required to Seek Licensure Under the Maryland Collection Agency Licensing Act

Blackstone v. Sharma, 191 A.3d 1188 (Md. Ct. App. 2018) The State Collection Agency Licensing Board enforces the Maryland Consumer Debt Collection Act (MCDCA). Md. Code Ann., Com. Law § 14-201 et seq. The MCDCA generally requires that a person must have a license whenever the person does business as a collection agency in the State. Md. Code Ann., Bus. Reg. § 7-301(a). When comparing the legislative history of the Maryland Collection Agency Licensing Act (MCALA), Md. Code Ann., Bus. Reg. § 7-301 et seq. (1992, 2015 Rep. Vol.), including the 2007 departmental bill, against the almost contemporaneous Maryland mortgage foreclosure law reform, the

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