Asset Sales

In enacting the Bankruptcy Code in 1978, Congress recognized, as public policy, a need to ensure that professional services provided to a trustee or debtor in possession were provided by skilled, competent professionals. This policy is codified in the Bankruptcy Code’s sections relating to the employment and compensation of estate professionals (§§ 327, 328 and 330), which overruled the judicially fashioned doctrine of “economy of the estate” applicable under the Bankruptcy Act. These sections were crafted to ensure adequate, predictable compensation for estate professionals.

Indiana Bankruptcy Judge Narrowly Reads the Section 546(e) Safe Harbor

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.

Bankruptcy Judge Finds Liability for a Municipality’s Denial of Due Process Rights

A local government removed a lawsuit to bankruptcy court, but the bankruptcy judge turned around and slam-dunked the government for violating the plaintiff’s Fourteenth Amendment rights.