Being a ‘Net Winner’ in a Ponzi Scheme Doesn’t Automatically Mean Nondischargeability
Alleging that a debtor realized an ‘impossibly high’ rate of return in a Ponzi scheme isn’t enough to state a claim of nondischargeability for ‘actual fraud.’
A Section 542(b) Turnover Action Can’t Be Used to Compel Payment of a Judgment
Writs of execution and supplemental proceedings, not turnover actions, are the methods for enforcing a money judgment, Bankruptcy Judge Warren says.
Judge McAffee Agrees with Former Judge Sontchi on Authorized Corporate Actions
The automatic stay does not bar increasing authorized shares when the debtor is a minority shareholder.
NC Appellate Court Rules Plans Must Be Unambiguous to Hold a Creditor in Civil Contempt, Citing Taggart
After Taggart v. Lorenzen, plans, orders and injunctions must be highly specific to hold an offending creditor in contempt.
Creditor Socked with $41,000 in Sanctions for Filing Trumped-Up Criminal Charges
Bankruptcy Judge Warren makes sure the sanctions won’t be dischargeable if the offending creditor files his own bankruptcy.
Fraudulent Transfer Suit Didn’t Succeed in ‘Discharging’ Student Loans
Can student loans be wiped out as fraudulent transfers that aren’t dischargeable under Section 523(a)(8)?
Subchapter V Trustee Barred from Routine Retention of Counsel
Bankruptcy Judge David Warren warns small business trustees that they won’t be compensated if they are “overzealous” or undertake “unnecessary or duplicative services.”
Separate Classification of a Child’s Student Loan Barred in a Chapter 13 Plan
Factors in permitting separate classification of debts include moral obligation and tangible benefit.
Survivor in a Merger Can’t Sue for a Preference Made by a Dissolved Entity
Plain language of Section 547 defeated what could have been an easily avoided preference.
Requiring Conduit Mortgage Payments Is Ok Despite Costing the Debtor $5,300
Bankruptcy judge says a chapter 13 debtor receives ‘several benefits’ from paying 8% in commissions on mortgage payments through the trustee.