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.
Nonseverability Won’t Make a Confirmation Appeal Equitably Moot in the Fifth Circuit
When it comes to overbroad exculpations and nondebtor releases, a nonseverability clause in a chapter 11 plan won’t invoke equitable mootness to dismiss an appeal from confirmation.
Sometimes, a Settlement with No Admission of Liability Can Be Nondischargeable
To avoid automatic nondischargeability, the debtor in the settlement of a fraud suit must deny liability.
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.