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Pennsylvania Eastern District

A Pennsylvania Gambling License Isn’t ‘Property’ Recoverable as a Fraudulent Transfer

Sovereign immunity required dismissal of a suit to recover the value of a gambling license because the suit wasn’t an ancillary exercise of the bankruptcy court’s in rem jurisdiction over a res.

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.

Another Example: Student Loans Are Virtually Impossible to Discharge

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

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.

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.

Insurance Companies Have Fewer Protections than Landlords and Aircraft Lessors

Absent special-interest legislation for bankruptcies, insurance companies remain in limbo.

Punitive Damage Claim from Involuntary Dismissal Brings Jury Trial Rights

Section 303(i)(2) claim, similar to malicious prosecution, invokes Seventh Amendment jury trial rights.

Plan Permitted to Stretch Out Redemption Payments Following a Tax Sale

Courts split on whether failure to redeem on time is fatal in a reorganization.

Plan’s Treatment of Secured Claim Trumps Failure to Redeem on Time

Courts split on whether failure to redeem on time is fatal in reorganization.

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