New Jersey Court Rules That Collection Letter With “Please Call” Violated FDCPA: Collection letter contained the statement “If we can answer any questions, or if you feel you do not owe this amount, please call us toll free . . . or write us at the above address.” The court found that the letter could lead a least sophisticated debtor to reasonably believe that he would effectively dispute the validity of the debt by making a telephone call, when in fact, such disputes must be in writing. Caprio v Healthcare Revenue Recovery Group, LLC
Chapter 11 Plan Violated Absolute Priority Rule: A proposed Chapter 11 Plan, provided for a transfer of 100% of the company’s equity to prior equity holder in exchange for waiver of $1.35 million of unpaid commission. The court reasoned that because the plan was filed during the debtor’s exclusivity period and no one else was given the opportunity to contribute value for an ownership interest, the plan violated the absolute priority rule. In re Ralph Roberts, Realty, LLC.
Massachusetts Bankruptcy Court Rules That An Uninhabitable Home Cannot Qualify For Homestead Exemption. The property in question was unfinished real estate in Puerto Rico. What if the property was a family home damaged by a storm?
Current Possession Not Required For Turnover Order: A chapter 7 trustee commenced a turnover proceeding against a debtor seeking a tax refund. The debtor responded that the refund had been spent. Resolving a split of authority within the 9th Circuit, BAP held that trustee was entitled to turnover order, notwithstanding the fact that the money was no longer in the debtor’s possession resulting in a award of a money judgment. In re Newman.
Motor Vehicle Lien Avoided as “Tool of Trade”: The 9th Circuit Court of Appeals has ruled that a non-purchase money lien on aluxury motor vehicle used by the debtor for his business as a real estate agent can be avoided because it impaired his exempt tool of his trade. In re Garcia.