Creditor Hit with $826,000 in Sanctions for Filing a Meritless Proof of Claim
Refusing to withdraw a meritless claim with prejudice contributed to the decision by Judge Jernigan to impose high-six-figure sanctions.
Debt for Selling a Gun Used in a Mass Killing Was Dischargeable
Congress might want to consider closing a dischargeability loophole when it comes to injuries indirectly resulting from commission of a felony.
A Trust Didn’t Defeat a Prior, Perfected Security Interest in Accounts Receivable
The district court characterized the agreement not as creating a trust but as a device designed to win priority over a prior, perfected security interest.
It’s Not Easy for a Lender to Block an LLC from Filing Bankruptcy
A small business debtor must consent for a case to be converted to Subchapter V, Judge Robert Jones says.
‘Gatekeeping’ in the Fifth Circuit May Be Broader than Exculpations
Bankruptcy Judge Jernigan interprets the Fifth Circuit’s Highland Capital opinion to mean that gatekeeping protections are not limited to parties entitled to exculpation in the Fifth Circuit.
‘Economic Unit Approach’ Best Fixes the Size of a ‘Household,’ Judge Larson Says
The IRS and Census methods for determining the size of a ‘household’ undercount or overcount economic realities, judge says.
Published Notice Doesn’t Result in Discharge of Some Types of Lease Claims
Status as a ‘known’ or ‘unknown’ creditor misses the point when a lease was either assumed or rode through the chapter 11 case, Judge Jernigan says.
Are Inheritances Estate Property in Chapter 13? You Decide
Plan amendments in chapter 13 must come before the debtors make their final payments to the trustee.
Lender Socked in Dallas with $17 Million in Damages for Breach of Contract and Fraud
A lender’s breach of a factoring agreement forced a company into bankruptcy that would have survived otherwise, Judge Jernigan says.
Arbitration Clause Not Enforceable When the Contract Itself Was Rejected
Judge Jernigan in Dallas differs with a judge in Delaware by declining to enforce an arbitration agreement that was part of a rejected contract.