‘13’ Trustees Are Paid Even if Dismissal Comes Before Confirmation, District Judge Says
A chapter 13 trustee is not a federal employee for the purposes of the Federal Tort Claims Act.
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Chapter 15 Permits Discovery to Lay Groundwork for a Lawsuit, New York Judge Says
Judge Garrity wasn’t required to rule on whether Bankruptcy Rule 2004 applies in chapter 15 cases.
Another District Judge Rules that Tax Foreclosures Can Be Fraudulent Transfers
The circuits are split on whether the Supreme Court’s BFP opinion can be extended to bar fraudulent transfer attacks on in rem real estate tax foreclosures.
A Purdue Suit Against Insurance Carriers Stays in Bankruptcy Court, for Now
Insurance coverage disputes are ‘routinely resolved in summary judgment,’ counseling against immediate withdrawal of the reference of a non-core lawsuit, district judge says.
On Student Loan Discharge, District Judge Requires Responses to Unasserted Defenses
New York district judge requires a student loan debtor to prove the reasonableness of living expenses when the lender never objected.
Estate Claims Can’t Be Sold for Trivial Recovery by Unsecured Creditors
Had the purchaser of estate claims offered to waive its own unsecured claim, the sale might have been approved.
Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1
Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.
Affirmance Shows that Merit Management Has Been Gutted in the Second Circuit
Properly structuring a leveraged refinancing in the Second Circuit can avoid attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’
Civil Penalties for Defrauding Consumers Weren’t Discharged Under Section 1141(d)(6)(A)
Reversing the bankruptcy court, a district judge in New York held that a civil penalty wasn’t discharged even though the fraud wasn’t committed against the government.
In ‘Chapter 20,’ Discharged Mortgage Claim Resurrects as Unsecured, EDNY Judge Says
Judge Grossman didn’t abolish ‘chapter 20’ entirely. He required the debtor to treat the subordinate mortgage lender like all other unsecured creditors, even though the debtor’s personal liability to the lender had been discharged in the prior chapter 7 case.