New York Eastern District

Bankruptcy Judge Regulates the Unregulated Debt-Reduction Service Industry

Section 502(b)(4) shields debtors from overreaching lawyers in a new context.

Structured Finance Protects Tuition Payments from Fraudulent Transfer Suits

Children were the initial transferees of tuition payments, thus giving schools the ‘good faith’ defense to fraudulent transfers.

Previously Listing Property as a Principal Residence Didn’t Preclude a Later Cramdown

Limited knowledge of English and ‘nuances’ in legal terms saved debtor from a fatal admission.

EDNY Changes Policies about Defaults on Direct-Pay Mortgages in Chapter 13

Mortgage payments are considered ‘under the plan’ even if made by the chapter 13 debtors directly.

Latent Defects in Medical Devices Don’t Give Rise to Estate Property

Segal v. Rochelle prevented a personal injury claim from becoming estate property.

New York Judge Takes Different Approach to Repeat-Filer Automatic Stay Termination

Using a different approach, Judge Grossman agrees with the minority on Section 362(c)(3)(A).

Circuit Split Brewing on Modifying Mortgages on Mixed-Use Properties

Lower courts are tending to disagree with two circuits on Section 1322(b)(2).

Constructive Trust Theory Fails Without Showing Unjust Enrichment

Parents who benefitted from son’s secret ownership couldn’t claim title.

Serving a Complaint on a Bank by Ordinary Mail Is a Nullity

Without service by certified mail, a bank is not compelled to respond to a complaint.