Westlaw Topical Highlights: Bankruptcy, December 12, 2016

December 12, 2016

BankruptcyWestlaw Topical Highlights for Bankruptcy provides summaries of significant federal and state judicial decisions and legislative and administrative activities affecting Bankruptcy law.  A Westlaw subscription is required to access the documents linked from this page.

Avoidance: Transfers from bank account owned by debtor and nondebtor spouse were not avoidable as fraudulent transfers.  In re Anderson 2016 WL 5846215 (Bkrtcy.M.D.Fla.) Under Florida law, transfers from a bank account owned by the Chapter 7 debtor and his nondebtor wife were not subject to avoidance as fraudulent transfers. The account application specified that the account was owned by the debtor and his wife as joint tenants, and there was no express disclaimer of ownership as tenants by the entireties. Consequently, the presumption that the account was owned as a tenancy by the entireties applied, and that presumption was not rebutted. Because the debtor and his wife had no joint creditors, the account was not subject to the claims of the debtor’s creditors. 2016 WL 5846215  (The full-text of the rest of the Topical Highlights is available within Thomson Reuters Westlaw, subscription required).     

Bankruptcy Estate: Unauthorized assignment not ratified prepetition cannot remove property from estate.  In re White 2016 WL 6783262 (Bkrtcy.E.D.Ky.)

Discharge: De minimis nondisclosures in case with $4 million in disclosed assets did not warrant denial of discharge.  In re Granrath 2016 WL 7104903 (Bkrtcy.N.D.Ill.)

Bankruptcy Estate: Conversion of case restarts time for objecting to debtor’s claimed exemptions.  In re Sharkey 2016 WL 6573997 (Bkrtcy.E.D.Mich.)

Bankruptcy Estate: Allegations of agreement to file consolidated returns did not plausibly allege that tax refund was estate property.  In re First Regional Bancorp 2016 WL 7017209 (C.D.Cal.)

Avoidance: Any consideration received for valueless corporate stock was “reasonably equivalent value.”  In re Gomez 2016 WL 6783310 (Bkrtcy.S.D.Fla.)

Avoidance: Extinguishment of mortgage debt was part of consideration that debtor received for challenged sale.  In re Expert South Tulsa, LLC 2016 WL 7093894 (C.A.10)

Case Administration: Chapter 12 debtor had absolute right to dismiss previously unconverted case.  In re Parker 2016 WL 6783268 (Bkrtcy.E.D.Tenn.)

Claims: Lien could not be stripped off based on disallowance of mortgagee’s secured claim on procedural grounds.  In re Kohout 2016 WL 6783298 (Bkrtcy.N.D.N.Y.)

Avoidance: Equitable distribution award was not transfer of interest of debtor-husband in property.  In re Christensen 2016 WL 6879256 (Bkrtcy.D.Utah)

Appeals: Bankruptcy court order directing agency to produce document index was not a final, appealable order.  In re Rosen 2016 WL 6661150 (E.D.Pa.)

Case Administration: Chapter 13 debtor’s bad faith warrants dismissal, not conversion for sole benefit of ex-wife.  In re Bouchard 2016 WL 7047979 (Bkrtcy.D.R.I.)

Avoidance: doctrine applies as against trustee asserting avoidance claims on creditors’ behalf.  In re Equipment Acquisition Resources, Inc. 2016 WL 6882834 (Bkrtcy.N.D.Ill.)

Judgment: Dismissal of nondischargeability complaint as sanction for failure to comply with local bankruptcy rule was not a manifest error of law.  In re Tukhi 2016 WL 6783198 (Bkrtcy.C.D.Cal.)

Bankruptcy Estate: Time-barred cause of action, while based on prepetition conduct, was not estate asset.  In re Cibella 2016 WL 7030318 (Bkrtcy.N.D.Ohio)

Attorney Fees: Chapter 13 debtors’ counsel’s request for compensation in the amount of $11,855 would be granted in the reduced amount of $6,000.  In re Kyung Tae Ko 2016 WL 7011481 (Bkrtcy.E.D.Pa.)

Debtor Protections: Stay protected property occupied by, but not titled in name of, debtor.  In re Castle Service, LLC 2016 WL 6783258 (Bkrtcy.D.Utah)

Case Administration: Tax sales provided cause to dismiss Chapter 11 case filed by special purpose vehicle created to hold tax property.  Paradigm Elizabeth, LLC v. Empire TFI Jersey Holdings, LLC 2016 WL 6562042 (D.N.J.)