Rochelle's Daily Wire

A creditor’s actual knowledge that a bankruptcy case exists isn’t enough for the creditor to be bound by a plan injunction, Delaware’s Judge Silverstein says.

The insured’s bankruptcy can allow other claimants to recover a preference from one claimant who drew down the policy limit.

A secured lender need not obtain a deficiency judgment to retain a claim against an insurer for a shortfall in a bankruptcy sale, Bankruptcy Judge Grossman says.

Looking beyond the label assigned by the Affordable Care Act, three circuits have now held that failure to pay the ‘individual mandate’ for purchasing health insurance gave rise to a tax entitled to priority in bankruptcy.

The district court characterized the agreement not as creating a trust but as a device designed to win priority over a prior, perfected security interest.

The Fourth Circuit sides with the Third on the Affordable Care Act’s ‘individual mandate.’ Majority says it was a tax measured by income, thus giving the IRS a priority tax claim.

Absent an ‘actual conflict,’ disqualification is not automatic, the Third Circuit says.

The Affordable Care Act’s ‘individual mandate’ was a tax measured by income, thus giving the IRS a priority tax claim.

A question may be headed to the Sixth Circuit, where debtors hope to create a circuit split.

Stay modification is required even if the creditor wants to intervene in state court to help the bankrupt estate.