California

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.

Adversary Proceeding to Enjoin FERC Remains in Bankruptcy Court

District judge won’t withdraw the reference when PG&E rejects power purchase agreements.

Bankruptcy Judge OKs Four Years of Jailing for Civil Contempt

An appellate court will decide whether four years of jailing means that civil incarceration has become futile.