Lender Bankruptcies

Chapter 11 Documents

Petition. The filing of the brief petition for chapter 11 relief document formally starts the bankruptcy case. It creates the bankruptcy estate consisting of a broad range of the debtor's interests in property. The petition filing also triggers the automatic bankruptcy stay. 11 U.S.C. § 362. Subject to very limited exceptions, the automatic stay bars the commencement and continuation of legal proceedings against the debtor. Creditors may continue with legal proceedings against the debtor only with permission from the bankruptcy court obtained through a formal motion for relief from the stay. 11 U.S.C. § 362(d). The automatic stay does not apply to non filing co-defendants, including prior and subsequent assignees of a loan obligation.

Chapter 11 Plan
. The chapter 11 debtor has 120 days from the date of the commencement of the case within which it has an exclusive right to submit a plan of reorganization for court approval. 11 U.S.C. § 1121. The Code sets certain required contents for a chapter 11 plan. 11 U.S.C. § 1123. The creditor may seek extensions of this time for submitting a plan, and these requests are often approved. If the exclusivity period passes without the debtor’s having filed a plan, creditors may submit their own plans. By order the court sets deadlines for creditors to accept or reject a debtor’s proposed plan. 11 U.S.C. § 1126, F. R. Bank. P. 3018(a). Creditors may vote to approve the plan or they may file objections. After a hearing the court decides whether to confirm a particular plan. 11 U.S.C. §§1128, 1129. 

Order for Claim Bar Date. In chapter 11 cases the court sets the deadline by which creditors must file a proof of claim. F.R. Bankr. P. 3003( c )(3). The court may extend this time by further order. The concept of a claim is broad and does not require that the creditor have a judgment against the debtor or have commenced litigation over the claim. A creditor files a claim using Official Bankruptcy Form 10. The form is generally available through local bankruptcy court websites. If the creditor is entitled to any priority status, this can be indicated on the form. Borrower creditors may have the status of secured creditors based on setoff rights. The claim will be allowed unless an objection to it is filed and sustained. The claim allows the creditor to share in any distributions from the bankruptcy estate and entitles to creditor to notice of certain proceedings as the case moves on. 

Order Confirming Chapter 11 Plan. The requirements for obtaining a court order confirming a plan are set forth in 11 U.S.C. § 1129. If the plan meets the minimal requirements of the Code, the court may confirm it with the consent of creditors under § 1129(a) or without the consent of creditors under § 1129(b). The plan establishes a broad revision of the debtor’s contractual obligations that is binding on all creditors. The plan may provide for the sale of assets of the debtor. 11 U.S.C. § 1123(b)(4). 

Order for Transfer of Assets. In addition to sales authorized under the chapter 11 plan, the court may approve the sale of assets of the debtor’s estate before a plan is confirmed. 1 U.S.C. § 363(b),(f). A debtor may propose to sell assets free and clear of claims against the debtor under certain circumstances. However, 2005 amendments to the Code preserve many consumer defenses from attempts to sell assets free and clear of these claims. 11 U.S.C. § 363(o).

The list of bankrupt lenders and pertinent documents:

 

Accredited Home Lender

Motion for an order establishing
claim bar date

Order for Claim Bar Date

Petition

Aegis Mortgage Corporation

Claim bar date order

Petition

Plan

Transfer of asset order

American Home Mortgage Holding

Claim bar date order

Petition

Plan

Transfer of asset order

BNC Mortgage LLC

Voluntary Petition

Delta Financial Corporation

Claim bar date order

Petition

Plan

Transfer of assets order

Sale of asset order

Fieldstone Mortgage Corp

Petition

Confirmation Plan Order

Plan

First Magnus Financial

Claim bar date order

Petition

Plan

Second Amended Plan

Confirmation Plan Order

Transfer of asset order

First NLC Financial Services

Claim bar date order

Petition

Fremont General

Claim bar date order

Petition

HomeBanc Funding Corporation

Disclosure Statement

Motion - bar date order

Claim bar date order

Petition

Plan

Motion - transfer asset order

Transfer of assets order

HomeBanc Funding Corporation II
Petition

HomeBanc Mortgage Partners, LLC
Petition

HomeBanc Corp. Petition

HomeBank Mortgage Acceptance Corp.
Petition

MILA Inc.

Motion - claim bar date order

Bar date order

Petition

Mortgage Lender Network USA

Claim bar date order

Petition

Plan

Transfer of assets order

Mortgage Ltd.

Claim bar date order

Petition

New Century Financial Corp.

Claim bar date order

Petition and New Century
TRS Holdings Petition

Plan

Confirmation of plan

Transfer of assets order

New Century Mortgage Corporation

Petition

Oak Street Financial

Petition

Old Canal

Petition

OWNIT Mortgage Corp.

Claim bar date order

Plan

Plan Confirmation Order

Petition

Transfer of assets order

People's Choice Home Loan

Motion - claim bar date

Claim bar date order

Plan

Confirmation of Plan

Petition (People's Choice Funding Corp.)

Petition (People's Choice Financial Corp.)

Transfer of assets order

Quality Home Loans

Claim bar date order

Plan

Petition

Transfer of assets order

ResMae Mortgage Corp.

Claim bar date order

Plan

Confirmation of plan

Petition

Transfer of assets order

Southstar Funding

Petition

Sale of assets order

WAMU

Claim bar date order

Washington Mutual, Inc. Petition

Transfer of assets order

WMI Investment Corp. Petition

 

 

 

See also: Bankruptcy Mortgage Project: Local rules, forms, general orders, and court opinions addressing a variety of mortgage issues in consumer bankruptcy cases.

 IFLA
The Institute for Foreclosure Legal Assistance
NCLC gratefully acknowledges the support of IFLA in the creation and maintenance of this page.