California

May a Trustee Attach a Preference Defendant’s Property Before Judgment?

If the requisites for a preliminary injunction are met, a trustee might be able to freeze some of a preference defendant’s assets when a prejudgment attachment is not available.

Cursing the Debtor by Itself Isn’t a Violation of the Automatic Stay

A vulgarity directed at the debtor wasn’t a stay violation absent an act designed to collect a debt.

A Dischargeability Complaint Filed Without Investigation Resulted in Sanctions

We focus on ethics two days in a row, given the recent disturbing events in Houston.

Bankruptcy Courts Have Statutory Power to Remove Voided Liens

Bankruptcy Rule 7070, incorporating Federal Rule 70 along with 28 U.S.C. § 1655, gives bankruptcy courts power to remove liens of record when the lenders don’t do so voluntarily.

Section 105(a) Doesn’t Give Rise to a Private Right of Action for Abuse of Process

With claims for abuse of process not available in a bankruptcy case, the offended party must pursue contempt or other sanctions created by the Bankruptcy Code, a California district judge says.

Two Opinions on Disallowance of Compensation After Appointment of a Trustee

‘Conflict preemption’ bars retaliation by a professional whose fees are disputed.

Bartenwerfer Isn’t at Odds with Husky, According to Bankruptcy Judge Margaret Mann

A transferor’s fraudulent intent isn’t imputed to the transferee to make the transferee’s debt nondischargeable for ‘actual fraud.’

Find and Fix the Flaws in Appraisals Before They Are Subjected to Cross Examination

An appraisal was rejected entirely as being ‘inherently unreliable’ when it gave the client the value that the client wanted.

Rule 2004 Discovery Is Available to Creditors in Chapter 15 Cases, California Judge Says

Judge Bason of Los Angeles would permit a creditor in ‘limited circumstances’ to undertake Rule 2004 discovery in a chapter 15 case to further the court’s ‘assistance of the foreign main proceeding.’

Judge Klein Charts the Path for Discharging Student Loans and Not Being Reversed

Bankruptcy Judge Christopher Klein provides authority for student loan debtors who win in bankruptcy court but face an appeal aimed at the trial court’s fact-findings.

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