Texas Northern District

Fees Benefiting Only the Debtor — and Not the Estate — Are Compensable in Chapter 13

Section 330(a)(4)(B) is an exception to the American Rule and the notion that administrative expenses must benefit the estate, not just the debtor.

NRA’s Bankruptcy Dismissed as Being Filed for an Improper Purpose

Filing bankruptcy to gain a ‘litigation advantage’ in the N.Y. Attorney General’s dissolution action meant the chapter 11 petition was not filed in good faith and must be dismissed, Judge Harlan Hale rules.

Split Grows on Whether a Subchapter V Debtor Must Be ‘Currently’ Engaged in Business

The owner of defunct businesses was held ineligible to be a small business debtor because he was no longer the owner of an operating business. Being a non-owner executive of an operating business didn’t qualify him.

To Invoke Equitable or Statutory Mootness, the Record Must Be Clear that a Sale Closed

Unsubstantiated statements that a sale closed didn’t persuade a district judge in Dallas to invoke equitable or statutory mootness.

‘Triggering’ Creditor’s Claim Need Not Be Static Under Section 544(b)(1)

Judge Isgur applies heightened pleading standard to a complaint for fraudulent transfer with actual intent.

U.S. Receivership Court Had No Jurisdiction over Foreign Liquidators

District judge decides that he lacked jurisdiction to enforce a cross-border protocol against foreign liquidators.

‘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.

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.

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