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First Opinion on the SBRA Permits Conversion of an Existing Chapter 11 Case

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.

Section 362(k)(1) Sanctions Apply to Automatic Stay Violation Continuing After Discharge

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.

Debt of $46,000 Discharged Despite a Flagrantly False Loan Application

Even though the debtor defaulted, Judge Christopher Klein held a trial and ruled that the lender had not relied on a false loan application.

Committee Members Must Disclose the True Extent of Their Claims, Judge Says

The claim of a member of a creditors’ committee was subordinated because she evaded disclosure that her claims would consume the entire estate.

If It’s Consensual, a Plan Can Discharge a Nondischargeable Debt

A debt that’s been paid in full under state law is discharged even if the debtor never receives a discharge, Judge Klein says.

U.S. Trustee May Not Appoint an Unsecured Committee in a Municipal Bankruptcy

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.

How to Draft a Judgment to Be Nondischargeable in Bankruptcy

To be nondischargeable, a stipulated judgment must lay out facts showing the debt was incurred by false representation or actual fraud.

San Francisco Judge Slaps Down FERC on Rejection of Power Purchase Agreements

Judge Montali accuses FERC of a power grab to take the bankruptcy court’s right to rule on the rejection of executory contracts.

Electric Utility’s Customers Denied Official Committee Status in Chapter 11

Are utility customers entitled to an official committee because they will fund the reorganization plan? Judge Montali says ‘no.’

The Rule 3001(f) Presumption of Claim Validity Doesn’t Include the Value of Collateral

California judge differs with the Third Circuit regarding the presumption of collateral value flowing from a lender’s proof of secured claim.

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