Dependence on Parental Financial Assistance Meant Student Loans Were Dischargeable
The opinion by Judge Silverstein contains numerous sound bites for judges and debtors aiming to discharge student loans owed by individuals living in desperate circumstances.
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Opinion Finding Fraud Shows the Dangers in an Agreement to Finance Litigation
Chapter 7 trustee was precluded from terminating a lawsuit because a secured lender had been given the right to settle.
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Delaware Judge Issues Comprehensive Opinion on Makewholes and Unmatured Interest
Split grows on allowance of makewholes and what constitutes disallowed, unmatured interest.
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Delaware Bankruptcy Judge Dismisses a Lawsuit for Forum Non Conveniens
Although a chapter 11 plan can bind parties throughout the world, Judge Sontchi wouldn’t let a foreign debtor sue a foreign bank in the Delaware bankruptcy court over a transaction that occurred in England.
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Bar Date Notice by Email Is Insufficient, Delaware’s Judge Goldblatt Says
Notice by email may satisfy due process but doesn’t comply with notice by ‘mail’ under Bankruptcy Rule 2002.
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Issue and Claim Preclusion Didn’t Bar Challenging a Lien Previously Considered Valid
Newly applicable law permitted a chapter 13 debtor to cram down a lien that the debtor previously had considered to be valid.
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Bankruptcy Courts Aren’t Prohibited from Entering Mareva Injunctions
The Supreme Court’s Grupo Mexicano decision doesn’t bar a bankruptcy court from freezing a defendant’s assets prior to judgment in a fraud action, Judge Sontchi says.
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Critical Vendor Status Is No Defense to a Preference Claim
Critical vendor status is a defense to a preference claim only when the defendant was specifically named in an order, stipulation or agreement requiring full payment of the creditor’s prepetition claim, Judge Dorsey says.
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Contingency Fees Under a Trust Indenture May Not Result in a Claim, Judge Shannon Says
A standard provision in a trust indenture meant no recovery for the indenture trustee’s attorneys.
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Judge Sontchi Cuts Off U.S. Trustee Fees on Confirmation of a Chapter 11 Plan
Closing a chapter 11 case after confirmation to avoid U.S. Trustee fees won’t be necessary if the ruling by Judge Sontchi holds up.
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