Debtors Have a Narrow Window in ‘13’ to Redeem Foreclosed Property, BAP Says
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.
Debtor Not Compelled to Arbitrate Automatic Stay or Discharge Violations
A district court in Minnesota left the door open for sometimes compelling debtors to arbitrate claims arising in a bankruptcy case.
Without Levy, a Recorded Judgment Lien Is Unperfected in Some States
In New Jersey, a trustee’s hypothetical judicial lien has priority over a judgment lien if the judgment lienholder has not made a levy on the property.
Companies Can Be ‘Bankruptcy Remote,’ if Properly Done
Bankruptcy Judge David Cleary wrote a manual on how a company can be ‘bankruptcy remote’ without violating public policy.
Fourth Circuit Upholds a $31 Million Default Judgment for Discovery Abuses
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.
Denial of $21 Million in Fees for Boy Scouts Ad Hoc Committee Upheld on Appeal
Delaware district court rules that debtors and trustees alone have standing to propose spending estate money outside of the ‘ordinary course.’
Applying Pressure on the Debtor Obviates the ‘Ordinary Course’ Defense to a Preference
The ‘ordinary course’ defense only applies to credit terms with healthy customers, not to debtors in financial distress, even if pressure is ordinary in the industry.
The Client’s Business Judgment Held to Justify a ‘Discretionary’ Fee Award
A district court in New Jersey says that a discretionary fee award is neither a bonus nor an enhancement.
Fifth Circuit Arguably Expands the Barton Doctrine’s Ultra Vires Exception
A receiver was tagged $45,000 for failing to turn over estate property by demanding payment of administrative fees.
A Transfer from the Debtor to a Constructive Trust Isn’t a Transfer of Debtor’s Property
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.