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Pennsylvania

Sovereign Immunity Doesn’t Insulate States from Lien Stripping, District Court Says

States have no sovereign immunity defense to lien stripping, even if the state has not filed a proof of claim.

A Nonparty’s Bankruptcy Isn’t Providing Ground for Removal to Federal Court

The right of indemnification by a bankrupt isn’t establishing ‘related to’ jurisdiction in federal court.

‘Earmarking’ Only Applies When a Debtor Receives a Loan from a Third Party

Money taken from a debtor’s own retirement account to pay a creditor does not qualify for the earmarking defense, Chief Judge Fehling says.

Sovereign Immunity Doesn’t Insulate States from Lien Stripping

For three independent reasons, Judge Taddonio rules that states are not immune from stripping down or stripping off tax liens.

Another Example: Student Loans Are Virtually Impossible to Discharge

District court second-guesses the sufficiency of evidence that the bankruptcy court found sufficient.

Third-Party Releases Approved Without Awaiting the Outcome of Merit Management

Third-party releases would have been approved even if there were no ‘safe harbor’ defense.

Emotional Distress Damages Awarded for Civil Contempt on Automatic Stay Violation

Philadelphia judge socks the city’s parking authority for impounding a debtor’s car twice.

Receivership May Not Preclude a Board’s Ability to File Bankruptcy

A receiver who is not ‘disinterested’ can justify putting a company in bankruptcy.

Criminal Restitutions Are Not Recoverable as Preferences, Judge Agresti Says

Restitution payment does not qualify for the new value preference defense.

Look Forward 5 Years, Not 25, on Debtor’s Inability to Repay Student Loans, Judge Says

Term of the loan is the ‘relevant period’ for judging student loan dischargeability.

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