A ‘Litigation Tactic’ Isn’t Fatal in Chapter 15
A bankruptcy judge in New York was deferential to foreign liquidators using chapter 15 to extinguish a lawsuit in the U.S. that they saw as a nuisance.
Consent to a Sale for Less than the Mortgage Debt Doesn’t Waive a Deficiency Claim
A secured lender need not obtain a deficiency judgment to retain a claim against an insurer for a shortfall in a bankruptcy sale, Bankruptcy Judge Grossman says.
Debtors May Avoid Judicial Liens Under Section 522(f) Securing Nondischargeable Debts
Bankruptcy Judge Alan Koschik declined to follow cases decided before Congress amended Section 522(f) to preclude avoiding judicial liens securing domestic support obligations.
The Standard for Enlarging the Time to File a Subchapter V Plan
Judge Jacobvitz of New Mexico follows Judge Harner of Maryland in developing a standard for deciding whether a Subchapter V debtor may extend the time for filing a plan.
Student Loans Consolidated After Filing Can’t Be Discharged, Even for Undue Hardship
Consolidating student loans after filing creates a post-petition debt that can’t be discharged without filing bankruptcy again.
It’s Ok to Avoid a Fraudulent Transfer Even if It Makes the Debtor Solvent, Circuit Says
The Second Circuit found discretion to avoid a constructively fraudulent transfer of exempt property that would have enabled the debtor to pay her creditors in full.
Bankruptcy Judge Hints: Third Circuit Precedent on Public Records May Be Too Broad
Delaware’s Judge Goldblatt seems to be recommending that the Third Circuit close a loophole in confidentiality agreements.
Foreign Sovereign Immunity Bars the Madoff Trustee from Recovering $20 Million
A district judge in New York reversed the bankruptcy court, which had held that a Kuwaiti public pension fund was not entitled to sovereign immunity for having engaged in commercial activity.
Supreme Court Grants ‘Cert’ to Rule on Refunds for Overpayment of U.S. Trustee Fees
The Supreme Court will hear two bankruptcy cases in the new term: nondebtor releases, and refunds for overpayment of U.S. Trustee fees.
An FTC Suit Under the Sherman and FTC Acts Wasn’t Subject to the Automatic Stay
The ‘police and regulatory’ exception to the automatic stay applies when the FTC is only seeking injunctive and equitable relief, the D.C. Circuit says.