Indianapolis Bankruptcy Judge Jeffrey Graham says that the bankruptcy court cannot become “another court of general jurisdiction.”
Although a stock purchase and a loan payoff were one month apart, a district judge in Indiana found a sufficient nexus to invoke the safe harbor and dismiss a fraudulent transfer suit.
A secured lender who doesn’t file a claim doesn’t get paid by the chapter 13 plan and keeps its lien, but can’t reclaim the collateral during the life of the plan.
Although a stock purchase and a loan payoff were only one month apart, the two transactions lacked a sufficient nexus to invoke the safe harbor, Bankruptcy Judge James Carr said.
Judge Graham in Indianapolis sees the Seventh Circuit as interpreting ‘related to’ jurisdiction narrowly and not inclined to halt lawsuits against nondebtors without a direct effect on the bankrupt estate.
Hounding a debtor for payment and shortening credit terms defeated an ‘ordinary course’ defense to a preference.
District judge in Indiana holds that the automatic stay only ends as to the debtor’s property after a repeat filing, not also as to estate property.
A voluntary chapter 11 case is neither a ‘suit’ nor a ‘claim’ against a debtor giving rise to an insurer’s duty to defend.
Indiana bankruptcy and district judges rule that secured lenders are only entitled to ‘adequate protection’ until the debtor’s counsel’s allowed fees have been paid in full.
Supreme Court’s Epic decision may end up forcing debtors to arbitrate dischargeability of loans.