New York Eastern District

In ‘Chapter 20,’ Discharged Mortgage Claim Resurrects as Unsecured, EDNY Judge Says

Judge Grossman didn’t abolish ‘chapter 20’ entirely. He required the debtor to treat the subordinate mortgage lender like all other unsecured creditors, even though the debtor’s personal liability to the lender had been discharged in the prior chapter 7 case.

The Pleading and Proof Required for Claims Against a Subsequent Transferee

Read Judge Grossman’s opinion as though it were a final exam question to see how many issues you spot and whether you come up with the correct answers.

Treble Damages for ‘Willfulness’ Won’t Automatically Result in Nondischargeability

The lack of specific findings of fact by the arbitrator meant that a treble damage award for willful breach of contract was dischargeable.

Brooklyn Decision Shows Why Litigation Finance Is Risky if the Plaintiff Files Bankruptcy

At least in New York, a litigation finance agreement can’t be written to remove all of the lender’s exposure to the borrower’s bankruptcy.

Unusual Facts Permit Selling Property Free and Clear of Judicial Liens

Long Island’s Judge Grossman explores the intricacies of selling property free and clear for less than the amount of liens.

Discharge May Be Enforced in Another District, Brooklyn Judge Says

Bankruptcy court has power to entertain a nationwide class action asserting a discharge violation.

‘Plain Language’ Puts Small-Dollar Avoidance Suits in the Debtor’s Home Court

Congress may have made a mistake in drafting, but the plain language of 28 U.S.C. § 1409(b) must control, Judge Grossman says.

No Retroactive Adequate Protection in Chapter 13, Judge Trust Says

Long Island judge follows ‘Burt’ Lifland and rules that a secured creditor is not entitled to adequate protections for periods of time before filing a motion giving rise to adequate protection.

The Standards for a Pre-Filing Injunction Against a Vexatious Litigant

The record as a whole and the likelihood of further abuse justify a pre-filing injunction.

Courts Split on Paying Chapter 13 Trustee Fees in Cases Dismissed Before Confirmation

Long Island judge finds no ambiguity in two statutes that other courts have found ambiguous when read together.

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