March 27, 2018
SIPA Bars General Unsecured Claims for Failure to Transfer Accounts Before Filing
The trustee for a bankrupt broker can ignore an individual customer’s request to transfer securities to a solvent broker and may instead transfer customer accounts in bulk.
2nd Circuit, New York, New York Southern DistrictMarch 27, 2018
Rule 3001(c)(2)(D) Sanction Was 16 Times the Amount in Controversy
Innocent mistake turns into a $6,000 sanction for ‘willful failure to cooperate.’
10th Circuit, KansasMarch 26, 2018
Seventh Circuit Allows Anticipated Tax Refunds to Be Offset by Expenses in Chapter 13
On direct appeal, Seventh Circuit upholds Bankruptcy Judge Thorne by allowing chapter 13 debtors to retain anticipated refunds from earned income tax credits.
7th CircuitMarch 23, 2018
‘Snarky’ or Factually Incorrect Emails Are Not Grounds for Rule 9011 Sanctions
Neither oral statements nor emails are sanctionable under Rule 9011, Judge Pappas says.
March 22, 2018
Court May Depart from the Code When the Debtor Consents and No One Objects
Unique facts were again the basis for a result seemingly at odds with the statute.
2nd Circuit, New York, New York Northern DistrictMarch 21, 2018
Federal Common Law of Constructive Trust Works When State Law Won’t
Delaware judge shows sympathy for a creditor being stiffed by the debtor.
3rd Circuit, DelawareMarch 20, 2018
Flip Clauses in Swaps Held Enforceable by District Judge in New York
For swaps, the Section 560 safe harbor overrides the anti-ipso facto provisions in the Bankruptcy Code.
2nd Circuit, New York, New York Southern DistrictMarch 19, 2018
Tennessee Judge Rules Back Child Support Is Not Estate Property
Courts are split on whether child support arrears are estate property.
6th Circuit, Tennessee, Tennessee Eastern DistrictMarch 16, 2018
Judge Harner Pens a Primer on the Elements of an Executory Contract
Unperformed obligations must be ‘material’ for a contract to be executory.
4th Circuit, MarylandMarch 15, 2018
Filed and Unfiled Claims Not Aggregated for Chapter 12 Eligibility, BAP Holds
Courts are split on aggregating filed and non-filed claims in calculating chapter 12 eligibility.
6th Circuit