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ABI Journal

July 12, 2023

Bartenwerfer Doesn’t Apply if the Debtor Isn’t a Partner or Agent, Bankruptcy Judge Says

Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.

4th Circuit, Virginia, Virginia Eastern District

June 30, 2023

If There’s No Diminution of the Estate, There’s No Preference or Fraudulent Transfer

Just because the debtor orchestrated a fraudulent transfer, the Seventh Circuit tells us there’s nothing for a trustee recover if there was no diminution of the estate.

7th Circuit

June 07, 2023

Bartenwerfer Isn’t at Odds with Husky, According to Bankruptcy Judge Margaret Mann

A transferor’s fraudulent intent isn’t imputed to the transferee to make the transferee’s debt nondischargeable for ‘actual fraud.’

9th Circuit, California, California Southern District

May 05, 2023

‘Preponderance’ Replaced ‘Clear and Convincing’ on Adoption of the Bankruptcy Code

The Seventh Circuit explained how preponderance of the evidence became the standard of proof for turnovers and dischargeability when the Bankruptcy Code replaced the Bankruptcy Act.

7th Circuit

April 28, 2023

Supreme Court Argument: Can Real Estate Tax Foreclosure Violate the Takings Clause?

Eighteenth century ‘history and tradition’ might govern the constitutionality of real estate tax foreclosures where the government retains sale proceeds in excess of unpaid taxes.

Supreme Court

April 25, 2023

Lack of Reliance on Representation Isn’t a Defense to a Constructive Fraudulent Transfer

Damages for a constructively fraudulent transfer were the difference between what the buyer paid and what the business was really worth, based on accurate income and expenses.

2nd Circuit, New York, New York Eastern District

March 24, 2023

‘13’ Debtors Need to Know Whether They Lose Appreciation When They Sell a Home

One of the biggest unanswered questions in chapter 13 sometimes forces debtors to keep homes they need to sell or strips away appreciation if they are forced to sell.

4th Circuit, Virginia, Virginia Eastern District

March 07, 2023

Revlon Says: Creditors Lack Standing to Assert Claims of ‘General Interest to the Estate’

A creditor with ‘derivative’ claims based on preference or fraudulent transfer can’t convert them to ‘direct’ claims by asking for equitable relief.

2nd Circuit, New York, New York Southern District

February 23, 2023

Debts for a Partner’s Fraud Are Still Nondischargeable, the Supreme Court Says

The opinion by Justice Barrett largely bases the outcome on the use of the passive voice in Section 523(a)(2)(A).

Supreme Court

February 10, 2023

Sometimes, a Settlement with No Admission of Liability Can Be Nondischargeable

To avoid automatic nondischargeability, the debtor in the settlement of a fraud suit must deny liability.

5th Circuit, Texas, Texas Eastern District