November 09, 2023
Setoff Can’t Be Raised as a Defense to Receipt of a Fraudulent Transfer
The Madoff case makes more law: A claim against a bankrupt estate can’t be set off against liability for receipt of a fraudulent transfer because one arose before bankruptcy and the other arose after.
2nd Circuit, New York, New York Southern DistrictNovember 08, 2023
A Dischargeability Complaint Filed Without Investigation Resulted in Sanctions
We focus on ethics two days in a row, given the recent disturbing events in Houston.
9th Circuit, California, California Eastern DistrictNovember 07, 2023
Lawyer Must Disclose a Client’s Misconduct, Even When It’s ‘Uncomfortable’
Lawyers aren’t guarantors for a client’s misconduct, but they may be sanctioned for a coverup.
3rd Circuit, Pennsylvania, Pennsylvania Western DistrictNovember 06, 2023
Properly Written, a Divorce Decree Doesn’t Create a Debtor/Creditor Relationship
A properly written divorce decree can create a separate property interest that won’t be part of the bankruptcy estate of a bankrupt spouse.
10th Circuit, New MexicoNovember 03, 2023
Judge Explains Why Tax Liens Are Subordinated to Domestic Support Obligations
Congress decided to deviate from standard priorities by providing in Section 724 that unsecured domestic support obligations come ahead of tax liens.
2nd Circuit, New York, New York Eastern DistrictNovember 02, 2023
Judge Goldblatt on the Imputation of Fraudulent Intent to a Delaware Corporation
The fraudulent intent of an individual who controls a corporation can be imputed to the corporation itself, even if the board is unaware of fraud.
3rd Circuit, DelawareNovember 01, 2023
A Debtor Can’t Assign Only Part of an Executory Contract, Fifth Circuit Says
Indemnification rights in an executory contract can’t be assigned without assuming and assigning the entire contract.
5th CircuitOctober 31, 2023
It’s Ok for Lenders to ‘Manufacture’ a Favorable Venue, Delaware Judge Says
A Delaware opinion states that debtors can’t reincorporate to manufacture venue, but it’s permissible for lenders to do so.
3rd Circuit, DelawareOctober 30, 2023
Judge Faris Explains Why a Hypothetical Chapter 7 Sale Isn’t Necessarily ‘FMV’
A chapter 7 trustee’s obligation to sell can mean that chapter 7 prices don’t fit the ordinary definition of fair market value.
9th Circuit, HawaiiOctober 27, 2023
Filing Bankruptcy After Renewing a Title Loan Again Found Not to Be Bad Faith
Title lenders continue losing battles to take cars away from debtors, but the lenders have yet to plead and prove their best cases.
11th Circuit, Alabama, Alabama Middle District