Sixth Circuit: Nondebtor Releases Are Ok in Chapter 11 but Not in Receiverships
Bound by Dow Corning, which permitted nondebtor releases, the Sixth Circuit had to explain why the same releases are not permissible in equity receiverships.
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Sixth Circuit Holds that Tax Foreclosure Violates the Takings Clause of the Constitution
If tax foreclosures violate the Takings Clause, it stands to reason that they are also fraudulent transfers.
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It’s Virtually Impossible to Waive Discharge as an Affirmative Defense, Judge Tucker Says
Waiting four years to raise discharge as a defense does not invoke equitable estoppel or laches.
Debtor Can’t Compel Arbitration on an Involuntary Petition
A creditor can’t be compelled to arbitrate the validity of a claim before the bankruptcy court decides whether the involuntary petitioner’s claim is subject to a bona fide dispute.
Homestead Proceeds May Be Exempt Under State Law but Not Under Section 522(d)(1)
Affirming the bankruptcy court, the Sixth Circuit BAP won’t exempt proceeds from the prepetition sale of a home, even though the proceeds were identifiable and in escrow.
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‘Results Obtained’ Can Justify Cutting Fees by 50%, Sixth Circuit Says
In fee allowances, considering ‘results obtained’ survived the 1994 amendments to Section 330(a).
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Sixth Circuit Defines Res Judicata Liberally
Res judicata can bar a claim in a later lawsuit if it wasn’t raised in bankruptcy court, given a bankruptcy court’s broad jurisdiction.
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Sometimes, a Federal Tax Lien Will Never Be Enforceable in Bankruptcy
Congress left a gap in the statute for perfecting a tax lien on personal property against someone who has no ascertainable residence.
Harmful Logic or Legal Conclusions Standing Alone Don’t Confer Standing to Appeal
To establish constitutional standing to appeal, an appellant must seek to overturn the order below, the Sixth Circuit BAP says.
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‘Reasonable Possibility’ of a Surplus Gives a Debtor Standing in Chapter 7
Due process considerations mean it’s not harmless error if a debtor was denied standing improperly.