A district judge in Indiana says that a bankruptcy court cannot have exclusive jurisdiction over disputes in the future except in the circumstances specified in Section 1334.
When there is a recorded option to purchase real estate, Prof. Westbrook would have analyzed the specific performance rights of the holder of the option under state law, not the question of whether the option was executory.
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.
A secured lender who doesn’t file a claim doesn’t get paid by the chapter 13 plan and keeps its lien, but can’t reclaim the collateral during the life of the plan.
Although a stock purchase and a loan payoff were only one month apart, the two transactions lacked a sufficient nexus to invoke the safe harbor, Bankruptcy Judge James Carr said.
Judge Graham in Indianapolis sees the Seventh Circuit as interpreting ‘related to’ jurisdiction narrowly and not inclined to halt lawsuits against nondebtors without a direct effect on the bankrupt estate.
