Monthly Archives: May 2015

Court Limits Scope Of Guarantor Waivers

Note to readers: This brief post covers only one key aspect of this important case. There are other ramifications for contractual relationships that could impact you. Check with us for more details if you have an interest, or any concerns.

In the recent court case of California Bank & Trust v. Del Ponti, the court set an important precedent that applies to disputes on commercial loans between property developers and lenders.  In effect, a commercial lender cannot enforce waivers in guarantee agreements which are unlawful or otherwise contravene public policy.  Guarantor waivers are limited to certain legal and statutory defenses specifically set forth in the agreements, but not equitable defenses.  Continue reading

Failure to Pay Dividend Led to Chapter 13 Case Dismissal

The Failure To Pay The Promised Dividend To Unsecured Creditors Was Ruled Grounds For Dismissal Of A Chapter 13 Case, Even If The Debtor Makes All Monthly Plan Payments. 

 In the recent opinion issued in Schlegel v. Billingslea (In Re Schlegel), 14 C.D.O.S. 3166 (March 31, 2015), the United States Bankruptcy Appellate Panel of the Ninth Circuit addressed for the first time whether a Chapter 13 case with a confirmed plan may be dismissed for the debtors’ failure to pay the approved percentage dividend to unsecured nonpriority creditors during the applicable commitment period, even though the debtors otherwise made all monthly payments due under the confirmed plan.  Continue reading