District Judge Reads the Safe Harbor Broadly to Immunize a Leveraged Buyout
Although a stock purchase and a loan payoff were one month apart, a district judge in Indiana found a sufficient nexus to invoke the safe harbor and dismiss a fraudulent transfer suit.
Seventh Circuit to Rule on Paying ‘13’ Trustees if Dismissal Precedes Confirmation
Within the next year, four circuits will have ruled on a split where some lower courts pay chapter 13 trustees and others don’t when dismissal precedes confirmation.
‘Preponderance’ Replaced ‘Clear and Convincing’ on Adoption of the Bankruptcy Code
The Seventh Circuit explained how preponderance of the evidence became the standard of proof for turnovers and dischargeability when the Bankruptcy Code replaced the Bankruptcy Act.
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Failing to File a Claim Has Dire Consequences for a Secured Creditor
A secured lender who doesn’t file a claim doesn’t get paid by the chapter 13 plan and keeps its lien, but can’t reclaim the collateral during the life of the plan.
Core vs. Non-Core Doesn’t Determine Whether Arbitration Will Be Enforced
Chicago’s Judge Cleary didn’t compel arbitration of an affirmative counterclaim by the debtor against the creditor that would be determined in the course of passing on the allowance of the creditor’s proof of claim.
Here’s How a Disclaimed Inheritance Can Be Recovered Under Section 544(b)
Although a disclaimed inheritance is ordinarily beyond the avoiding powers, a trustee can step into the shoes of the IRS to set aside the disclaimer.
Seventh Circuit Upholds $9.5 Million in Sanctions for Violating a Plan Injunction
When there was a knowing violation of injunctions in the plan and confirmation order, the Seventh Circuit said that the appeal bordered on frivolous.
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Date of a Garnishment Order Doesn’t Matter for Preferences, Seventh Circuit Says
Circuit Judge Frank Easterbrook tersely held that the Supreme Court’s Barnhill opinion overruled prior Seventh Circuit precedent.
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Chapter 13 Debtor Can’t Sue to Avoid an Unperfected Mortgage, District Judge Says
Wisconsin district judge implies that a chapter 13 debtor might obtain ‘derivative standing’ to avoid an unperfected mortgage.
Plans Longer than 5 Years Can’t Be Amended Now Because Section 1329(d) Has Expired
A plan longer than five years must revert to a five-year plan now that Congress has allowed Section 1329(d) to expire, Judge Hanan says.