Cash collateral responsibility in a=20
Posted: Wed Nov 03, 2010 8:55 am
charsetndows-1252
I have a case in OC in which the debtor collected post petition rents on non-exempt property; Trustee has now been authorized to surcharge the debtor's homestead exemption (on another property) for the net rents. This is another pitfall. (The senior mortgages and taxes have been paid).
Jason
On Nov 3, 2010, at 7:49 AM, David A. Tilem wrote:
>
> I suppose the wildcard would permit debtor to exempt rents from the estate, but that does not overcome lien rights of secured creditors. Basically it sounds like your client wants to be a rent skimmer which, by the way, has criminal penalties associated with it.
>
>
> David A. Tilem
> Certified Bankruptcy Specialist*
> Law Offices of David A. Tilem (a debt relief agency)
> 206 N. Jackson Street, #201, Glendale, CA 91206
> Tel: 818-507-6000 Fax: 818-507-6800
>
> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal Specialization.
> Business bankruptcy specialist cert. by Amer. Bd. of Certification
>
>
> -----Original Message-----
Alik Segal
> Sent: Tuesday, November 02, 2010 11:09 PM
> To: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Cash collateral responsibility in a c7
>
>
> The duplex will be property of the estate, but could the debtor exempt
> rents as he exempts other property of the estate?
>
> On 11/2/10, David A. Tilem wrote:
> > Once the case is filed, the rents are property of the estate. What happens
> > to people who fail to turn over property of the estate to the Trustee?
> >
> >
> > David A. Tilem
> > Certified Bankruptcy Specialist*
> > Law Offices of David A. Tilem (a debt relief agency)
> > 206 N. Jackson Street, #201, Glendale, CA 91206
> > Tel: 818-507-6000 Fax: 818-507-6800
> >
> > * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
> > Specialization.
> > Business bankruptcy specialist cert. by Amer. Bd. of Certification
> >
> >
> > -----Original Message-----
Of
> > Alik Segal
> > Sent: Tuesday, November 02, 2010 9:15 PM
> > To: cdcbaa@yahoogroups.com
> > Subject: Re: [cdcbaa] Cash collateral responsibility in a c7
> >
> >
> >
> >
> > My concern is how do I advise my client (who had been pocketing the
> > rents pre-petition without paying the mortgage) about handling the
> > rents post-petition while the case is pending. He wants to keep
> > pocketing the rents without paying the mortgage. Do cash collateral
> > rules impose obligations on the debtor during the bankruptcy case?
> >
> > On 11/2/10, David A. Tilem > > wrote:
> >> I thought you were talking about keeping rents AFTER case was filed.......
> >> The answer to this question is: yes.
> >>
> >>
> >> David A. Tilem
> >> Certified Bankruptcy Specialist*
> >> Law Offices of David A. Tilem (a debt relief agency)
> >> 206 N. Jackson Street, #201, Glendale, CA 91206
> >> Tel: 818-507-6000 Fax: 818-507-6800
> >>
> >> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
> >> Specialization.
> >> Business bankruptcy specialist cert. by Amer. Bd. of Certification
> >>
> >>
> >> -----Original Message-----
> > [mailto:cdcbaa@yahoogroups.com ] On Behalf
> > Of
> >> Alik Segal
> >> Sent: Tuesday, November 02, 2010 8:48 PM
> >> To: cdcbaa@yahoogroups.com
> >> Subject: Re: [cdcbaa] Cash collateral responsibility in a c7
> >>
> >>
> >>
> >>
> >> Can money received as rents be exempted once debtor deposits it in his
> >> bank account?
> >>
> >> On 11/2/10, David A. Tilem >
> >> > wrote:
> >>> Rents are property of estate. What happens if you withhold property of
> > the
> >>> estate from the Trustee?
> >>>
> >>>
> >>> David A. Tilem
> >>> Certified Bankruptcy Specialist*
> >>> Law Offices of David A. Tilem (a debt relief agency)
> >>> 206 N. Jackson Street, #201, Glendale, CA 91206
> >>> Tel: 818-507-6000 Fax: 818-507-6800
> >>>
> >>> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
> >>> Specialization.
> >>> Business bankruptcy specialist cert. by Amer. Bd. of Certification
> >>>
> >>>
> >>> -----Original Message-----
> >
> >> [mailto:cdcbaa@yahoogroups.com
> > ] On Behalf
> >> Of
> >>> Alik Segal
> >>> Sent: Tuesday, November 02, 2010 4:46 PM
> >>> To: bk; CDCBAA Listserv; CAMFFG; bootcamp-attorneys
> >>> Subject: [cdcbaa] Cash collateral responsibility in a c7
> >>>
> >>>
> >>>
> >>>
> >>> Client who wants to file c7 owns a duplex and has a tenant who pays
> >>> rent. Currently the client is not paying his mortgage. I understand
> >>> that this rent is cash collateral in a bankruptcy case.
> >>>
> >>> 1. What happens once we file c7? Can this client continue to use the
> >>> rent for living expenses?
> >>> 2. Is he required to segregate the rent and pay it over to the
> >>> mortgage holder from the moment bk case is filed?
> >>> 3. Is the mortgage holder required to do anything before client's
> >>> duties are triggered?
> >>> 4. Assuming the client needs to segregate and pay over, what happens
> >>> if the client ignores my instruction and continues to use the rents
> >>> for living expenses?
> >>>
> >>> --
> >>> Alik Segal
> >>> Alik.Segal@gmail.com
> >
> >>
> >>> 310-362-6157
> >>> Cal. CD, Los Angeles
> >>>
> >>>
> >>>
> >>>
> >>
> >> --
> >> Alik Segal
> >> Alik.Segal@gmail.com
> >
> >> 310-362-6157
> >> Cal. CD, Los Angeles
> >>
> >>
> >>
> >>
> >
> > --
> > Alik Segal
> > Alik.Segal@gmail.com
> > 310-362-6157
> > Cal. CD, Los Angeles
> >
> >
> >
> >
>
> --
> Alik Segal
> Alik.Segal@gmail.com
> 310-362-6157
> Cal. CD, Los Angeles
>
>
>
charsetndows-1252
I have a case in OC in which the debtor collected post petition rents on non-exempt property; Trustee has now been authorized to surcharge the debtor's homestead exemption (on another property) for the net rents. This is another pitfall. (The senior mortgages and taxes have been paid).JasonOn Nov 3, 2010, at 7:49 AM, David A. Tilem wrote:
I suppose the wildcard
would permit debtor to exempt rents from the estate, but that does not overcome
lien rights of secured creditors. Basically it sounds like your client
wants to be a rent skimmer which, by the way, has criminal penalties
associated with it.
David A.
Tilem
The post was migrated from Yahoo.