bankruptcy beach blog

Monthly Archives: February 2012

Can’t We All Just Even Give Up?

Bankruptcy Judge Wallace of the Central District of California (Riverside Division), recently entered a Memorandum Decision which declined to approve the settlement of a dischargeability action filed by a finance company against a pro se debtor.  The Memorandum Decision in First Mutual Sales Finance v. Cacciatori, 2012 WL 539783, (C.D. Cal. 2/15/2012) should give pause to creditors who bring flimsy dischargeability actions against penniless pro per debtors, counting on the fact that the cases “can always be settled for something.”  The case should also be disconcerting to lawyers on both sides of the fence whose clients need to settle legitimate dischargeability disputes. First Mutual’s dischargeability action was based on an allegedly … Continue reading

Posted in Dischargeability, Fraud, Settlement |

The Salazar Saga Continues

Bankruptcy and foreclosure lawyers everywhere have been vitally interested in the fate of In re Salazar, 448 B.R. 814 (Bankr. S.D. Cal. 2011), which denied the lender’s motion for relief from the automatic stay to complete an eviction after a pre-bankruptcy foreclosure sale. The trust deed in Salazar named MERS as the beneficiary, but the foreclosure notices and trustee’s deed referred instead to US Bank. The opinion in Salazar concluded that California Civil Code section 2932.5, which states that the power of sale under a mortgage “may be exercised by the assignee if the assignment is duly acknowledged and recorded.” was not satisfied by off-record assignments under the MERS system.  Since the assignment to US Bank was … Continue reading

Posted in Foreclosure, Jurisdiction, MERS |

Would You Buy A Used Car From This Man?

A recent unpublished decision by Bankuptcy Judge Mann of the Southern District of California is a good quick resource for briefing dischargeability actions in her courtroom.  In Whited v. Galindo, 2012 WL 345942 (Feb. 1, 2012), S.D. Cal. Adv. No. 10-90473), the end result was a nondischargeable judgment for $1,648.29 in damages against the president of a used car dealer.  It is one of those cases that make you happy that a lawyer was found willing to handle the matter, and also proud of a judicial system that can devote this much time and care to a dispute like this one. The plaintiff Jared Whited was a 20 year old sailor who purchased … Continue reading

Posted in Dischargeability, Jurisdiction |