California Eastern District

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.

Two Opinions on Disallowance of Compensation After Appointment of a Trustee

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

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.

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.

DocuSign Not Permitted Absent Existence of the Document with a ‘Wet’ Signature

As a general rule, counsel must show the existence of a document with a ‘wet’ signature to use an electronically signed version in court.

Deferred Settlement Agreements Aren’t Executory Contracts and Can’t Be Assumed

A deferred settlement agreement, like a workout agreement, can’t be assumed under Section 365.

Like Willful Violations, Technical Stay Violations Are Void, Not Just Voidable

California bankruptcy judge doubts the Ninth Circuit will adopt the BAP’s dicta by holding that technical stay violations are only voidable, not void.

DIP Counsel’s Right to Compensation Ends Immediately on a Trustee’s Appointment

Appealing an order appointing a chapter 11 trustee does not entitle the DIP’s counsel to compensation pending appeal, Judge Klein says.

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