Lack of Financial Distress Doesn’t Divest a Court of Subject Matter Jurisdiction
Two North Carolina Courts have held within two months that the Bankruptcy Clause doesn’t demand ‘financial distress’ to establish subject matter jurisdiction.
With Reservations, a Chapter 11 Debtor with No Financial Distress Avoids Dismissal
Bankruptcy Judge Whitley says that a no-opt-out plan for a solvent debtor might violate creditors’ due process and jury trial rights.
Another Court Won’t Permit a Structured Sale to Eradicate a Homestead Exemption
Subordinated lenders can’t take a ‘haircut,’ give a ‘tip’ to the trustee, sell a home and eradicate the debtor’s homestead exemption.
The PBGC Isn’t a ‘Triggering Creditor’ for a Section 544(b) Suit by a Trustee
If the government isn’t suing on a claim originally owing to the U.S., a trustee can’t use the six-year statute of limitations in the FDCPA.
Johnson & Johnson Venue Transferred from North Carolina to New Jersey
Deciding to transfer venue, a North Carolina bankruptcy judge said that the debtor underwent a corporate restructuring ‘purely for the purpose of filing bankruptcy.’
Unlike IRAs, Debtors Keep Inherited 401(k)s Because They Aren’t Estate Property
Exemptions never come into play with inherited 401(k)s because they aren’t estate property in the first place, Judge Hodges explains.
Split Widens on Trustee’s Ability to Use the IRS’s Longer Statute of Limitations
North Carolina Judge disagrees with the Fifth Circuit on extending the statute of limitations to 10 years under Section 544(b)(1).
Unrepentant Lender Slammed with $260,000 in Damages for an ‘Egregious’ Stay Violation
Lender soon recognized that home foreclosure violated the stay but continued denying liability through seven years of litigation.
Courts Split on Allowing Credit Counseling on the Same Day but After Filing
Judge follows statutory language that didn’t achieve the result Congress intended.
Litigation Funding Could Be Champertous in Some States
Financing litigation is champertous if the lender exercises control.