The decision by the Supreme Court next term in Bartenwerfer will tell us whether debts can be automatically nondischargeable, even when the debtor is without fault.
The Second Circuit says that an initial ‘recipient’ isn’t automatically an initial ‘transferee’ liable for an avoidable transfer under Section 550(a)(1).
The circuits are now split 2/1 on the waiver of sovereign immunity under Section 544(b) for lawsuits by a trustee based on claims that could have been made by an actual creditor.
A claim of the IRS can provide a 10-year lookback for avoidance actions, but the claim must have been filed.
In Ohio, the debtor won’t lose the homestead exemption by transferring a home to a revocable trust.
Sometimes, demanding a jury trial in answering a complaint comes too late to withdraw the reference.
Two district judges are becoming incensed by ‘net winners’ in the Madoff Ponzi scheme who continue litigating and losing on the same issues.