Bankruptcy Court Still Has Power to Enter Final Judgments by Default after Wellness
Failure to respond to a well-pleaded complaint implies consent for the bankruptcy court to enter final judgment in an avoidance action, Judge Glenn rules.
May a Chapter 13 Plan Pay a Larger Percentage Toward Student Loans?
Since Congress has made student loans virtually nondischargeable, why can’t a chapter 13 plan discriminate in favor of paying more toward student loans?
Technicalities Insulated a Lawyer from Liability for Misusing an IOLA
A creditor lost a dischargeability suit by failing to call the right witnesses to prove that a lawyer’s trust account was used to hide assets.
A Chapter 11 Filing Can Extend an Inflexible Closing Date by 60 Days
Filing a chapter 11 petition to obtain an automatic 60-day extension of a closing date is not a bad faith filing, Judge Bernstein says.
Courts Interpret Brunner Too Harshly, Bankruptcy Judge Cecelia Morris Says
A debtor with a law degree but only $37,500 in gross annual income was permitted to discharge more than $220,000 in student loans.
Holding a Contempt Hearing May Be Ok, but the Remedy Might Violate Automatic Stay
A contempt hearing fell under the ‘criminal’ exception to the automatic stay, but jailing a debtor to coerce payment of a prepetition debt violated the stay, Judge Grossman ruled.
Mortgage Servicer Blew the Statute of Limitations, Judge Grossman Says
New York intermediate appellate courts are split on critical questions about the ‘start date’ for the statute of limitations on mortgage foreclosure.
Immediately Withdrawing the Reference Is ‘Absurd,’ District Judge Says
Defendants in lawsuits by Lehman Brothers are stuck in bankruptcy court until the cases are ready for a jury trial.
Losing Competitive Advantage Doesn’t Justify Redacting a Settlement Agreement
Judge Garrity in New York adopts a narrow view of ‘commercial information’ that may be redacted in a court filing.
Trustee Allowed to Sue for Fraudulent Transfer on an Unenforceable Contract
Long Island’s Judge Grossman follows the Third Circuit by finding limitations on the Rooker-Feldman doctrine.