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3rd Circuit

Accelerating Payments Defeats the ‘Ordinary Course’ Defense

Payments made after threats and demands are not eligible for the ‘ordinary course’ preference defense.

Tax Sales Can Be Avoided as Preferences, New Jersey District Judge Rules

Not a true public sale, a tax foreclosure in New Jersey can be attacked as a preference without implicating concerns about federalism.

Delaware & New York Courts Still Agree on Treatment Among Undersecured Creditors

Post-petition interest accruals aren’t counted in figuring distributions among undersecured creditors with liens on the same collateral.

Federal Common Law of Constructive Trust Works When State Law Won’t

Delaware judge shows sympathy for a creditor being stiffed by the debtor.

Delaware Judge Nixes the Notion of Implied Assumption of Executory Contracts

An asset purchaser cannot escape liability for appropriating the benefits of a contract that was not assumed and assigned.

Consumer Protection Claims by Governments Are Discharged in Chapter 11

Consumer protection claims brought by states are nondischargeable in chapter 11 only when the state has been the target of fraudulent representations.

Another Example: Student Loans Are Virtually Impossible to Discharge

District court second-guesses the sufficiency of evidence that the bankruptcy court found sufficient.

Third Circuit Pushes Back on Widespread Invocation of Rooker-Feldman

A federal court can undermine a state court judgment without offending Rooker-Feldman, Third Circuit says.

Bankruptcy Courts Aren’t ‘Courts’ and Don’t Have Power to Transfer

Don’t stretch bankruptcy jurisdiction when the statute of limitations is about to expire.

Third Circuit Narrowly Interprets Delaware Fraudulent Transfer Law

Venezuela let off the hook for expropriating assets.