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ABI Journal

Pennsylvania Eastern District

Equity Won’t Extend the Deadline for Filing a Dischargeability Complaint

The circuits are split on whether equity can extend the 60-day deadline for filing dischargeability complaints.

Equitable Tolling Can Extend Statutes of Limitations Under Section 546(a)

Dilatory actions by a debtor tolled statutes of limitations for a trustee’s suit against a third party.

A Settlement Term Sheet Signed After Mediation Was an Enforceable Contract

The state law standards for creation of a contract governed enforceability of a term sheet signed after mediation.

A Receiver May File a Chapter 9 Petition over City Officials’ Objections

The requirement in chapter 9 to negotiate in good faith before filing is satisfied if the parties are ‘simply too far apart,’ says Bankruptcy Judge Chan.

Dismissal Isn’t Mandatory if a New Filing Is Within 180 Days of a Voluntary Dismissal

Courts are split on whether Section 109(g)(2) mandates dismissal whenever an individual or family farmer refiles within 180 days, regardless of whether a lift-stay motion prompted dismissal of the first case.

A Pennsylvania Gambling License Isn’t ‘Property’ Recoverable as a Fraudulent Transfer

Sovereign immunity required dismissal of a suit to recover the value of a gambling license because the suit wasn’t an ancillary exercise of the bankruptcy court’s in rem jurisdiction over a res.

A Nonparty’s Bankruptcy Isn’t Providing Ground for Removal to Federal Court

The right of indemnification by a bankrupt isn’t establishing ‘related to’ jurisdiction in federal court.

‘Earmarking’ Only Applies When a Debtor Receives a Loan from a Third Party

Money taken from a debtor’s own retirement account to pay a creditor does not qualify for the earmarking defense, Chief Judge Fehling says.

Another Example: Student Loans Are Virtually Impossible to Discharge

District court second-guesses the sufficiency of evidence that the bankruptcy court found sufficient.