Consumer Bankruptcy Journal Winter 2016 - Page 47

__________________________________________________________________ Cases in Review December, 2016 “Cases in Review” highlights recent cases that may be of particular interest to consumer bankruptcy practitioners. It is brought to you by Consumer Bankruptcy Abstracts & Research (www.cbar.pro) and the National Consumer Bankruptcy Rights Center (www.ncbrc.org). Chapter 7—Denial of discharge: As there was no "case or controversy," the bankruptcy court lacked jurisdiction over a proceeding in which a creditor holding only a claim for a nondischargeable debt sought to deny the Chapter 7 debtor's discharge under Code § 727. Reed v. Blount, 2016 WL 6211691 (E.D. Mich. Oct. 25, 2016) (case no. 2:16-cv-11777). Chapter 7—Surrender of collateral for secured debt: Code § 521(a)(2) requires a Chapter 7 debtor who files a statement of intention to surrender the property serving as collateral for a secured claim to surrender the property both to the Chapter 7 trustee and to the creditor. Even if the trustee abandons the property, the debtor's duty to surrender the property to the creditor remains. Moreover, “surrender” requires a debtor to discontinue his opposition to a foreclosure action, and the bankruptcy court has the authority to order a debtor to cease his opposition. In re Failla, 838 F.3d 1170 (11th Cir. Oct. 4, 2016) (case no. 15-15626). Chapter 7—Surrender of collateral for secured debt: Explicitly disagreeing with In re Failla, 838 F.3d 1170 (11th Cir. Oct. 4, 2016), above, the bankruptcy court held that surrender under Code § 521(a)(2) does not require a Chapter 7 debtor to give up all rights to defend against a post-discharge foreclosure. Instead, the debtor's stated intent to surrender merely means that the debtor does not intend to reaffirm, redeem, or exempt the ɽ丁%ɔI典H؁]0Ȁ ȸ!ܸ)=и䰀ؤ͔䵉Ф ͔9شĀѠ ȸ)@9ظаؤ+ 9ѥ յȁ эÍ ѕ)ܹɌɜ((