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California

Arresting the Debtor During Mediation Is a Very Big No-No

How to ruin a good case: have your adversary arrested during mediation.

California District Judge Requires Property in the U.S. to File Chapter 15

A security retainer held by a foreign liquidator’s U.S. counsel satisfies the chapter 15 requirement of property in the U.S.

Portions of Rule 4004 Violate the Rules Enabling Act, Bankruptcy Judge Klein Says

Objection is not required to bar a discharge to an individual who received a chapter 7 discharge within eight years.

Judge Refuses to Vacate Opinion Socking a Bank with $40 Million in ‘Punies’

California judge won’t bar the debtor from settling for more than the original $6 million in compensatory damages while forsaking $40 million in punitive damages earmarked for public interest groups.

Judge Describes an ‘Important Tool’ to Deal with Incompetent Debtor’s Counsel

Judges uses Section 329(a) to vacate a contingency lien for more than the value of the lawyer’s services.

State Laws on Tracing Determine Whether Tax Refunds Are Exempt

Differing state laws govern the exemption of tax refunds for individuals.

Even Without the One-Day-Late Rule, Tax Liability Still Wasn’t Discharged

A tax return late by three years wasn’t ‘honest and reasonable.’

Sale of a Nonoperating Hospital Doesn’t Require State Approval

Attorney General’s oversight was avoided by shutting down a nonprofit hospital.

Judge Splits with his BAP and Allows ‘Substantial Contribution’ Claim in Chapter 7

Split grows on whether ‘substantial contribution’ claims are limited to chapters 9 and 11.

Ninth Circuit Prohibition on Third-Party Injunctions Is Inapplicable in Chapter 9

Third-party injunctions in chapter 9 must be a financial necessity, judge says.
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