July 01, 2022
Four Circuits Now Permit Fraudulent Transfer Attacks on Real Estate Tax Foreclosures
Circuit courts are split 4/3 on their interpretation of Supreme Court precedent holding that regularly conducted mortgage foreclosures are immune from fraudulent transfer attack.
2nd CircuitJune 30, 2022
Chapter 13 Creditors Get Exempt Assets that Produce Income
Exempt assets are included in the calculation of chapter 13 projected disposable income to the extent that the exempt asset produces income.
2nd Circuit, New York, New York Northern DistrictJune 29, 2022
Lender Defaulted on the Merits for ‘Prolonged, Extraordinary’ Discovery Violations
Despite contrary Second Circuit dicta, retiring Judge Robert Drain certified a nationwide class in a suit for violation of the discharge injunction.
2nd Circuit, New York, New York Southern DistrictJune 06, 2022
Rochester Diocese Loses Stay Protection for Nondebtor Catholic Entities
After almost three years in chapter 11 without a consensual plan, Bankruptcy Judge Warren is allowing sexual abuse claimants to sue nondebtor parishes and schools.
2nd Circuit, New York, New York Western DistrictMay 20, 2022
Second Circuit Allows Appellate Attorneys’ Fees for Upholding a Contempt Citation
Finally, a circuit court cites Taggart to help a debtor enforce the discharge injunction.
2nd CircuitMay 12, 2022
An Initial ‘Recipient’ of a Fraudulent Transfer Isn’t Always Liable Under § 550(a)(1)
The Second Circuit says that an initial ‘recipient’ isn’t automatically an initial ‘transferee’ liable for an avoidable transfer under Section 550(a)(1).
2nd CircuitApril 28, 2022
District Judge Barred Redesignation to SBRA in a Case Pending 16 Months
Redesignation under the SBRA might become a hot topic once again when (if) Congress raises the cap back to $7.5 million.
2nd Circuit, New York, New York Eastern DistrictApril 04, 2022
A Contempt Finding that’s Not ‘Final’ Can’t Be Appealed, Second Circuit Says
A prevailing party can’t appeal arguably erroneous findings.
2nd CircuitMarch 18, 2022
Second Circuit Holds that Debtors Are Properly Barred from Receiving PPP Loans
The first court of appeals to reach the issue decides that the SBA properly interpreted the CARES Act to bar chapter 11 debtors from receiving PPP ‘loans.’
2nd CircuitMarch 14, 2022
Another New York District Judge Is Hostile to Nondebtor, Third-Party Releases
At the risk of committing error, a district judge in New York reads a third-party release to cover only derivative claims, not direct claims that a creditor may have against a nondebtor.
2nd Circuit, New York, New York Southern District