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Fraudulent Transfers

Puerto Rico Bondholders Lose Another Appeal in the First Circuit

The First Circuit shows no inclination to allow creditors to bust out of the PROMESA restructuring of Puerto Rico’s debt.
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Ninth Circuit Creates a Legal Fiction to Uphold Recovery of an Unauthorized Transfer

Ninth Circuit assumed that transferred property must remain property of the estate after conversion from ‘13’ to ‘7’ before the chapter 7 trustee can avoid an unauthorized transfer under Section 549.
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Lawyer for Madoff Customer Slapped with $57,347 Discovery Sanction

Calling the Madoff trustee a liar and basing a discovery motion on facts known to be false resulted in sanctions under Rule 37(a)(5)(B).

To Impair an Exemption, Judicial Lien Must Attach to Property the Debtor Already Owns

A judicial lien may be avoided under Section 522(f) only if the lien attached after the debtor acquired the property.
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District of Columbia Rejects the Jewel Doctrine, Joining California and New York

Lawyers leaving a bankrupt firm are not required to pay over profits on hourly matters they take to their new firms.
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Fraudulent Transfer Damages Limited to Creditors’ Total Claims

Delaware’s Judge Owens won’t allow perpetrators of a fraudulent transfer to benefit from avoiding the transfer.
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Four-Year Statute of Limitations Can Stretch to at Least Seven Years, Judge Owens Says

The one-year discovery clause in UFTA allows a debtor or trustee to file an avoidance suit even if the ordinary four-year statute has elapsed.
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Circuit Judge Questions Applicability of Veil Piercing and Alter Ego to Trusts

Sixth Circuit upholds dismissal of claims for reverse veil piercing and reverse alter ego.
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