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Texas

‘Holder Rule’ Protects Debtors from Claims by Subsequent Holders of Consumer Paper

Holder in due course of consumer paper remains subject to the debtor’s claims against the originator of the paper.

Contractor’s Inchoate Lien Defense Defeats a Preference, Most Courts Hold

Fairness and economic realities persuade Judge Jernigan to insulate a contractor from a preference claim.

BAPCPA Limits Remedies Against Debtors Who Don’t Reaffirm or Surrender

Congress may have intended to preclude ‘stay and pay,’ but it didn’t succeed.

Another Court Strikes Down Higher U.S. Trustee Fees in Some Cases

A crisis befalls smaller companies that can’t afford the huge increase in U.S. Trustee fees.

An Objection to Third-Party Releases Must Be Raised in Bankruptcy Court

A non-objecting creditor is bound by a third-party release even if the release may have been improper.

Which Venue Transfer Statute Applies to Non-Core Suits in District Court?

Judge in Dallas lays out the procedure for transferring venue from a district court to a bankruptcy court in another district.

Cramdown Interest Rate of 1.22% Upheld on Appeal from Confirmation

Expert testimony might have given the creditor a market rate of interest, not a rate lower than inflation.

Debtor Allowed to Convert from Chapter 12 to Chapter 11

Where the courts are split for lack of specific statutory authority, Judge Robert Jones finds discretion to allow conversion from chapter 12 to chapter 11.

Class Proofs of Claim Allowed When the Bar Notice Drew Few Individual Claims

Constitutionally sufficient notice of a bar date may not preclude the use of a class proof of claim under Bankruptcy Rule 7023, Judge Hale says.

Fifth Amendment Can Be an Almost Complete Bar to a Rule 2004 Production

Required records and authenticated documents already known to exist are not protected from production by the privilege against self-incrimination.

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