October 01, 2020
Repaying Salary After Arrest Isn’t Compensation for Loss and Isn’t Dischargeable
An obligation can be penal in nature, and thus nondischargeable, even though it’s measured by pecuniary loss.
3rd Circuit, New JerseySeptember 30, 2020
On a Split, Long Island Judge Allows Selling a Home Despite the Homeowner’s Objection
A homestead exemption does not bar selling a home when the chapter 7 debtor has no equity in the property, Judge Robert Grossman says.
2nd Circuit, New York, New York Eastern DistrictSeptember 29, 2020
Surety Bonds Aren’t Executory Contracts and Can’t Be Assumed Even if They Are
Insurance companies must nail down the treatment of performance bonds before plan confirmation.
5th Circuit, LouisianaSeptember 28, 2020
Homage to RBG: The Advocate for Consumers and Debtors
Compassion and intellect mark the bankruptcy opinions and dissents by the late Justice Ruth Bader Ginsburg.
Supreme CourtSeptember 28, 2020
Second Circuit Upholds the Madoff Trustee’s Calculation of Fraudulent Transfer Claims
Fictitious profits in account statements don’t represent ‘value’ and give rise to a defense for receipt of a fraudulent transfer with ‘actual intent,’ the Second Circuit rules.
2nd CircuitSeptember 25, 2020
Substituting a Trustee as the Party in Interest Isn’t Amending the Complaint
Even after the statute of limitations has run, a trustee may be substituted for the debtor as the real party in interest, Michigan district judge says.
6th Circuit, Michigan, Michigan Eastern DistrictSeptember 24, 2020
Fraudulent Transfer Law Doesn’t Victimize Innocent Parties, Judge Wiles Says
Ownership of a bank account isn’t enough by itself to make the account holder the initial transferee of a fraudulent transfer.
2nd Circuit, New York, New York Southern DistrictSeptember 23, 2020
A Liquidating Plan Doesn’t Automatically Pass the Best Interests Test, BAP Says
Findings of fact to show satisfaction of the best interests test ordinarily should be numerical comparisons, Ninth Circuit BAP Says
9th CircuitSeptember 22, 2020
‘No Harm, No Foul’ Doesn’t Entitle a Debtor to a Discharge, BAP Says
Advice-of-counsel defense doesn’t work when intent is clearly fraudulent.
10th CircuitSeptember 21, 2020
Michigan Judge Prefers Dismissal if Conversion Won’t Benefit Unsecured Creditors
The parties judged the chapter 11 case a success, even though unsecured creditors got zilch.
6th Circuit, Michigan, Michigan Western District