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ABI Journal

Rochellel's Daily Wire

September 24, 2021

Estate Claims Can’t Be Sold for Trivial Recovery by Unsecured Creditors

Had the purchaser of estate claims offered to waive its own unsecured claim, the sale might have been approved.

2nd Circuit, New York, New York Eastern District

September 21, 2021

Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1

Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.

2nd Circuit, New York, New York Southern District

September 17, 2021

Affirmance Shows that Merit Management Has Been Gutted in the Second Circuit

Properly structuring a leveraged refinancing in the Second Circuit can avoid attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’

2nd Circuit, New York, New York Southern District

September 10, 2021

Civil Penalties for Defrauding Consumers Weren’t Discharged Under Section 1141(d)(6)(A)

Reversing the bankruptcy court, a district judge in New York held that a civil penalty wasn’t discharged even though the fraud wasn’t committed against the government.

2nd Circuit, New York, New York Southern District

September 01, 2021

Second Circuit Revives $3.75 Billion in Lawsuits by the Madoff Trustee Against Financial Institutions

Reversing in favor of the Madoff trustee, the Second Circuit rules that inquiry notice, not willful blindness, governs the good faith defense by recipients of fraudulent transfers.

2nd Circuit

August 13, 2021

In ‘Chapter 20,’ Discharged Mortgage Claim Resurrects as Unsecured, EDNY Judge Says

Judge Grossman didn’t abolish ‘chapter 20’ entirely. He required the debtor to treat the subordinate mortgage lender like all other unsecured creditors, even though the debtor’s personal liability to the lender had been discharged in the prior chapter 7 case.

2nd Circuit, New York, New York Eastern District

August 12, 2021

District Judge Rakoff Explains Why the Debtor Alone May Assert a Cure Claim

A creditor can’t assert a cure claim, even though Section 365(b) doesn’t give the counterparty the sole right to demand a cure on assumption of an executory contract.

2nd Circuit, New York, New York Southern District

August 05, 2021

Second Circuit Makes Taggart Applicable to All Contempt Citations in Bankruptcy Court

Even for egregious, repeated violations of Bankruptcy Rule 3002.1, the bankruptcy court may only award recovery of economic losses, never punitive damages.

2nd Circuit

July 20, 2021

All Private Student Loans Are Not Excepted from Discharge, Second Circuit Holds

No circuit split: The Second Circuit agrees with the Fifth and Tenth Circuits that only a subset of private student loans is automatically nondischargeable.

2nd Circuit

July 14, 2021

Being an ‘Officer’ Disqualifies Someone from a KERP, New York District Judge Says

Officers are presumptively disqualified from KERPs, “absent a strong showing that they do not perform any significant role in management,” a district judge in New York says.

2nd Circuit, New York, New York Southern District