If state law prohibits assertion of the homestead exemption in tax foreclosure and the debtor can’t take federal exemptions, does the debtor lack standing to set aside a fraudulent transfer?
When creditors have been paid in full, a trustee may pursue fraudulent transfers for the benefit of defrauded equity holders, Bankruptcy Judge Craig Goldblatt says.
Because a trustee suing to recover a fraudulent transfer is acting in the interest of creditors, not the debtor, the in pari delicto defense does not apply, says Bankruptcy Judge Scott Clarkson.
In an 8-1 opinion, the Supreme Court holds that the waiver of sovereign immunity under Section 106(a) does not extend to suits brought by a trustee under state law standing in the shoes of an actual creditor.
Judge Peter Henderson declined to adopt an interpretation of Section 548 that would turn innocent retailers into recipients of fraudulent transfers when someone buys goods but turns the goods over to someone else.
Because a right of redemption does not give rise to a claim, Section 1322(b) doesn’t enable a debtor to redeem foreclosed property when the right of redemption has expired.
Long Island’s Judge Grossman warns lawyers that they may be paid nothing if they file chapter 11 cases just to delay a secured creditor, with no legitimate strategy for selling the property, refinancing or confirming a plan.
If there’s a constructive trust on property in the debtor’s name, the debtor was only the trustee of the constructive trust and had no legal interest in the property.
