Bankruptcy Judge Scott Clarkson of Santa Ana, Calif., issued the first reported decision on the new small business reorganization law that became effective on February 19.
Almost $35,000 in actual and punitive damages was imposed on a judgment creditor and its collection law firm for failing to vacate a garnishment following notice of bankruptcy and discharge.
Even though the debtor defaulted, Judge Christopher Klein held a trial and ruled that the lender had not relied on a false loan application.
The claim of a member of a creditors’ committee was subordinated because she evaded disclosure that her claims would consume the entire estate.
A debt that’s been paid in full under state law is discharged even if the debtor never receives a discharge, Judge Klein says.
California judge sides with former Bankruptcy Judge Steven Rhodes by holding that the U.S. Trustee does not have statutory power to appoint an unsecured committee in a chapter 9 case.
To be nondischargeable, a stipulated judgment must lay out facts showing the debt was incurred by false representation or actual fraud.
Judge Montali accuses FERC of a power grab to take the bankruptcy court’s right to rule on the rejection of executory contracts.
Are utility customers entitled to an official committee because they will fund the reorganization plan? Judge Montali says ‘no.’
California judge differs with the Third Circuit regarding the presumption of collateral value flowing from a lender’s proof of secured claim.