Texas

A UCC Lien on ‘Accounts’ Won’t Attach to a Postpetition Sale of Real Property

Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing

Judge Gargotta Splits with the Fourth Circuit on Nondischargeability in Subchapter V

The Fourth Circuit had recently held that both individuals and corporations in subchapter V of chapter 11 are barred from discharging debts that are nondischargeable under Section 523(a).

‘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.

Another Court Holds that a Debtor Has a Property Interest in Contracts, Not Customers

Once the debtor loses the right to do business, taking customers for no consideration isn’t a fraudulent transfer, Judge Isgur holds.

To Be Nondischargeable, Debtor Must Have Violated Securities Laws, Another Judge Says

Texas judge rules in favor of the debtor on an issue similar to the question coming before the Supreme Court in Bartenwerfer.

A Judgment for Punitive Damages Might Not Support Nondischargeability Automatically

Jury instructions and a special verdict form can determine whether issue preclusion automatically results in nondischargeability.

The Right to Credit Bid Does Not Preclude Charging a Buyer’s Premium at Auction

When a secured lender credit bids, a buyer’s premium can be a legitimate surcharge against the lender’s collateral, Judge Rodriguez says.

A Deceased Chapter 13 Debtor Can Still Obtain a Discharge, Judge Parker Says

Death is a reason for waiving the requirement for completing a financial management course.

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.