July 07, 2023
No Sales Free and Clear of a Lien on a Nondebtor Co-owner’s Interest
Although a court may sell a nondebtor’s interest in jointly owned property, the Ninth Circuit BAP won’t permit selling free and clear of lien on the nondebtor’s interest in the property being sold.
9th CircuitJune 06, 2023
BAP Gives Post-Petition Appreciation to Chapter 7 Estate on Conversion from Chapter 13
In a rising real estate market, chapter 13 debtors risk losing their homes if they sell or convert to chapter 7.
8th CircuitJune 02, 2023
District Judge Reads the Safe Harbor Broadly to Immunize a Leveraged Buyout
Although a stock purchase and a loan payoff were one month apart, a district judge in Indiana found a sufficient nexus to invoke the safe harbor and dismiss a fraudulent transfer suit.
7th Circuit, Indiana, Indiana Southern DistrictApril 21, 2023
A Buyer Is in Good Faith Despite Using Economic Leverage, Fifth Circuit Says
Supposedly nefarious facts aren’t evidence of bad faith if they were disclosed to the bankruptcy judge who nevertheless made a finding of good faith.
5th CircuitMarch 30, 2023
Proceeds from Post-Petition Sales Aren’t to Be Turned Over to the Chapter 13 Trustee
Before confirmation, district judge says that a chapter 13 debtor is only required to turn over disposable income to a trustee, not proceeds from a post-petition sale of property.
2nd Circuit, New York, New York Southern DistrictMarch 21, 2023
Another Court Won’t Permit a Structured Sale to Eradicate a Homestead Exemption
Subordinated lenders can’t take a ‘haircut,’ give a ‘tip’ to the trustee, sell a home and eradicate the debtor’s homestead exemption.
4th Circuit, North Carolina, North Carolina Western DistrictFebruary 13, 2023
Sixth Circuit: Nondebtor Releases Are Ok in Chapter 11 but Not in Receiverships
Bound by Dow Corning, which permitted nondebtor releases, the Sixth Circuit had to explain why the same releases are not permissible in equity receiverships.
6th CircuitFebruary 01, 2023
A UCC Lien on ‘Accounts’ Won’t Attach to a Postpetition Sale of Real Property
Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing
5th Circuit, Texas, Texas Southern DistrictJanuary 26, 2023
Post-Petition Appreciation in the Value of a Home Goes to Creditors in Chapter 13
Courts are deeply split on a chapter 13 debtor’s ability to keep the appreciation in an exempt home, whether or not the case converts to chapter 7.
8th Circuit, Missouri, Missouri Western DistrictJanuary 10, 2023
Crypto Customers Don’t Own Their Deposits with Celsius Network, Judge Glenn Says
Applying ordinary contract law, New York judge rules that customers are bound by contracts they haven’t read.
2nd Circuit, New York, New York Southern District