What to do with Timeshares! Is the Debt Discharged? Yes! But What About Postpetition or Post Discharge Use of the Property?

Below is from the California Bankruptcy Specialists List serve.  Debtor’s obligations under a timeshare agreement are discharged.  But what about postpetition and/or post discharge obligations?  If the obligation arises under the contract, I say it’s gone.  But what about when the debtor uses the timeshare postpetition?  He or she certainly cannot use it for free?  The value of the postpetition use would be, I assume, presumed to be the contract price, and that would be a postpetition debt.  But what does it mean that the debtor “used” the timeshare – postpetition?

From the listserve:

Renay Rodriguez posted:

During recent research I found:

LA County Bar Program March 28, 2018 at Noon – Detecting Psychopaths in the Legal and Other Industries

Detecting Psychopaths in the Legal and Other Industries

Psychopaths make up 1% to 4% of the population. While serial killers tend to get the
most press, the high concentration of psychopaths in leadership positions and
businesses is a pervasive problem.

Learn about the specific traits of psychopaths and the professions with the highest percentages of
psychopaths to best be able to interview and detect psychopaths. This program will discuss: Read more…

cdcbaa Program on Student Loan Dischargeability on Saturday, March 17 at Southwestern Law School

This should be good.   The program is at Southwestern Law School, Westmoreland Building – 3rd Floor, 3050 Wilshire Boulevard, Los Angeles, CA 90010.  

Speakers are

SPEAKERS:

  • Leigh E. Ferrin, Esq. – Public Law Center
  • Christine E. Kingston, Esq.
  • Austin C. Smith, Esq.

Information on this exceptional panel follows: Read more…

Dean Prober RIP

Attorney Dean ProberEmail from my friend Lee Raphael,

It is with indescribable sadness that we inform our friends, clients, and business associates of the passing of Dean Prober, the firm’s senior partner and president. Dean passed away peacefully March 1, 2018, surrounded by his family after a heroic battle with cancer.

Dean was a graduate of UCLA and Southwestern School of Law. Dean’s passion for his practice and the law was second only to his unending love and devotion to his family, friends and co-workers. As one of the firm’s original partners, Dean worked tirelessly to build a law practice dedicated to the belief that you should never over promise to the client but instead do your darned best to surpass their expectations. The firm will carry on in Dean’s memory under the continued direction of managing partner Lee Raphael. Read more…

Favorite Quote By Late Justice Scalia’s Dewsnup Dissent

In a quick parenthetical Justice Scalia says “bankruptcy law has little to do with natural justice.”  I then reconcile this with Prof. MJH’s golden rule # 1 “bankruptcy really doesn’t do anything.”

Philosophical Friday thoughts.

Is There a Duty of Adult Children to Support Their Parents?

Yes says California Family Code Section 4400:

Except as otherwise provided by law, an adult child shall, to the extent of his or her ability, support a parent who is in need and unable to maintain himself or herself by work.

Thanks and a tip of the hat to Shai Oved for pointing this out at the cdcbaa program on Elder Abuse last Saturday at Southwestern Law School.  I immediately forwarded the code section to my kids lest they forget, and keep in mind that if you ever run into any custody issues you can seek for help in https://www.denbighlaw.com/child-support-custody/child-support-custody-attorneys/.

Marijuana Dispensary Tenant in Chapter 13 Debtor’s Commercial Property – Sua Sponte Dismissal Valid?

I’m surprised this was not a published BAP decision —  chapter 13 debtor filed to stop a foreclosure of a commercial property with a dispensary as a one of the tenants :::cue the audience gasps:::

Debtor’s chapter 13 plan proposed to sell that commercial property with the dispensary and pay all creditors.  The bankruptcy court immediately dismissed the case on the grounds that the postpetition rents and sale were ill gotten gold basically (criminal in nature).  The BAP vacated the dismissal and remanded it to the court to make proper findings as to why it should dismiss.  From my reading of the case, it appears to me that the courts are becoming more mainstream and comfortable with dispensaries and not immediately concluding that any mention or involvement with a dispensary is criminal and grounds for sua sponte dismissal.

See case here 

LABF Program – March 12, 2018

How You Do D&O and Bankruptcy
Join our esteemed panelists as they explore issues regarding D&O litigation and bankruptcy.  Our panelists will discuss the differences in D&O litigation between California law and Delaware law; how you choose the forum: State Court vs. District Court vs. Bankruptcy Court; as well as the payment and advancement of defense fees and costs, covered vs. uncovered claims, and who owns the D&O insurance proceeds.

Panelists:
Hon. Martin R. Barash — United States Bankruptcy Court
Cynthia M. Cohen — Glaser Weil
Richard L. Wynne — Jones Day
William N. Lobel — Pachulski Stang Ziehl & Jones Read more…

Can a Trucker Use “Homestead” To Exempt His 18-Wheeler with a Sleeping Compartment?

Yes — in Wisconsin anyhow.  In a Wisconsin case, debtor had a semi truck with a cab and he wanted to exempt it under that state’s homestead exemption.   He sleeps in the cabin, has a bunk bend, refrigerator, radio, heater and a/c but no bathroom or kitchen.   Read more…

Debtor’s Inherited IRA Not protected

Your client tells you “yes, I also have an IRA retirement account.”   Don’t stop there — ask them “is this your IRA that you created or you inherited from another person (i.e. spouse or parent)?”   If the latter — then be careful!  Inherited IRA’s can be taken by the trustee.  Why?  Because Justice Sotomayor, on behalf of the entire bench, said so in Clark v. Rameker (2014). Read more…