Aggressive Bankruptcy Planning Results in Loss of Discharge
An election for having a tax refund applied to the following year’s taxes can result in the loss of discharge.
‘Person Aggrieved’ for Appellate Standing Test May Have Died, but May Be Resurrected
Sixth Circuit judges wrote 17 pages of dicta to muse on whether the ‘person aggrieved’ test for appellate standing died with the adoption of the Bankruptcy Code but remains good law under the ‘zone-of-interests’ test.
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Sixth Circuit: Nondebtor Releases Are Ok in Chapter 11 but Not in Receiverships
Bound by Dow Corning, which permitted nondebtor releases, the Sixth Circuit had to explain why the same releases are not permissible in equity receiverships.
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Sixth Circuit Holds that Tax Foreclosure Violates the Takings Clause of the Constitution
If tax foreclosures violate the Takings Clause, it stands to reason that they are also fraudulent transfers.
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It’s Virtually Impossible to Waive Discharge as an Affirmative Defense, Judge Tucker Says
Waiting four years to raise discharge as a defense does not invoke equitable estoppel or laches.
Debtor Can’t Compel Arbitration on an Involuntary Petition
A creditor can’t be compelled to arbitrate the validity of a claim before the bankruptcy court decides whether the involuntary petitioner’s claim is subject to a bona fide dispute.
Homestead Proceeds May Be Exempt Under State Law but Not Under Section 522(d)(1)
Affirming the bankruptcy court, the Sixth Circuit BAP won’t exempt proceeds from the prepetition sale of a home, even though the proceeds were identifiable and in escrow.
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‘Results Obtained’ Can Justify Cutting Fees by 50%, Sixth Circuit Says
In fee allowances, considering ‘results obtained’ survived the 1994 amendments to Section 330(a).
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Sixth Circuit Defines Res Judicata Liberally
Res judicata can bar a claim in a later lawsuit if it wasn’t raised in bankruptcy court, given a bankruptcy court’s broad jurisdiction.
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Sometimes, a Federal Tax Lien Will Never Be Enforceable in Bankruptcy
Congress left a gap in the statute for perfecting a tax lien on personal property against someone who has no ascertainable residence.