Issue and Claim Preclusion Didn’t Bar Challenging a Lien Previously Considered Valid
Newly applicable law permitted a chapter 13 debtor to cram down a lien that the debtor previously had considered to be valid.
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Third Circuit Makes More Rules on the Proper Scope of Asbestos Channeling Injunctions
The Third Circuit made more rules to decide whether an insurance company can be insulated from failure-to-warn claims by the channeling injunction in a chapter 11 ‘asbestos’ plan.
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Good Faith Is No Defense to an Allegedly Willful Stay Violation, Third Circuit Says
Lack of authority on point is no defense to a willful violation of the automatic stay, according to the Third Circuit.
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Chapter 13 Debtor Keeps a Whopping Increase in the Value of a Home
On a question where the courts are split, a New Jersey bankruptcy judge allowed the chapter 13 debtor to retain a $100,000 increase in value when he sold his home.
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Chapter 11 Plans May Discharge Post-Confirmation ‘Admin’ Claims, Third Circuit Says
Although Section 1141(d)(1) sets a default rule only discharging claims that arose before confirmation, Circuit Judge Ambro says that a plan may alter the default rule and allow discharge of administrative claims arising after confirmation.
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Bankruptcy Courts Aren’t Prohibited from Entering Mareva Injunctions
The Supreme Court’s Grupo Mexicano decision doesn’t bar a bankruptcy court from freezing a defendant’s assets prior to judgment in a fraud action, Judge Sontchi says.
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Critical Vendor Status Is No Defense to a Preference Claim
Critical vendor status is a defense to a preference claim only when the defendant was specifically named in an order, stipulation or agreement requiring full payment of the creditor’s prepetition claim, Judge Dorsey says.
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Amended Chapter 13 Plan Allowed to Cure Post-Petition Mortgage Defaults
Courts are split on whether a debtor may amend a chapter 13 plan to cure post-petition defaults on a principal residence.
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Contingency Fees Under a Trust Indenture May Not Result in a Claim, Judge Shannon Says
A standard provision in a trust indenture meant no recovery for the indenture trustee’s attorneys.
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Sovereign Immunity Prevailed Because a Slot Machine License Isn’t ‘Property’
In Pennsylvania, a gaming license isn’t ‘property.’ It’s a revocable license that can’t be owned.
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