Westlaw Topical Highlights: Bankruptcy, May 12, 2013

May 12, 2014

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.

Claims: Social Security old age benefits were prepetition government debt, that could not be offset.  In re Otto, 2014 WL 1669066 (S.D.Tex.) Old age benefits to which a debtor became entitled under Social Security law on a monthly basis, only if he survived to the end of that month, were in the nature of a postpetition debt owed by the federal government to the debtor, which could not be offset by the debtor’s prepetition debt for an overpayment of Social Security disability benefits. In the absence of any controlling Fifth Circuit Court of Appeals precedent, a federal district judge in Texas decided to follow the other Courts of Appeal that had addressed the issue.  2014 WL 1669066.  (The full-text of the rest of the Topical Highlights are available within Westlaw Next, subscription required)

Leases and Contracts: Dairy cow lease agreement was enforceable against dairy farm.  Sunshine Heifers, LLC v. Moohaven Dairy, LLC 2014 WL 1509573 (E.D.Mich.)

Avoidance: Trustee stated plausible claim for recovery of fraudulently transferred funds under § 550.  In re Harman 2014 WL 1648541 (Bkrtcy.N.D.Ga.)

Discharge: Fraudulent transfer can rise to level of “willful and malicious injury.”  In re Jahrling 2014 WL 1476758 (Bkrtcy.N.D.Ill.)

Plans: Economic unit test determined size of Chapter 13 debtor’s household.  In re Ford 2014 WL 1573310 (Bkrtcy.D.Idaho)

Plans: Undersecured creditor retained its lien even after receiving plan payments in excess of its secured claim.  In re Strzelecki 2014 WL 1614466 (Bkrtcy.W.D.Ark.)

Leases and Contracts: Court had to consider collective bargaining agreements in assessing vested nature of retirement benefits.  In re AMR Corporation 2014 WL 1584946 (Bkrtcy.S.D.N.Y.)

Jurisdiction: doctrine applied to deprive court of jurisdiction over trustee’s claims against receiver.  In re DMW Marine, LLC 2014 WL 1612297 (Bkrtcy.E.D.Pa.)

Plans: Discharge-ineligible debtors could “strip off” junior mortgage lien through Chapter 13 plan.  In re Monroe 2014 WL 1654562 (Bkrtcy.E.D.Wis.)

Discharge: Parties’ stipulation was not effective to extend deadline for filing discharge denial complaint.  In re Alazzeh 2014 WL 1628131 (9th Cir.BAP (Cal.))

Discharge: Gambling debt was not shown to be for debtor’s “willful and malicious injury.”  In re D’Amico 2014 WL 1653266 (S.D.Tex.)

Discharge: Debtor’s misappropriation of funds from LLC was “embezzlement.”  In re McQuillin 2014 WL 1477336 (Bkrtcy.D.Mass.)

Claims: Iowa agricultural liens extend to proceeds.  In re Schley 2014 WL 1573034 (Bkrtcy.N.D.Iowa)

Claims: Iowa agricultural lien is not perfected for feed purchased outside 31 days preceding date that supplier filed financing statement.  In re Big Sky Farms Inc. ex rel. Ernst & Young, Inc. 2014 WL 1573060 (Bkrtcy.N.D.Iowa)

Plans: Chapter 11 debtor could separately classify his liability on guarantee of debt that was not in default.  In re Hyatt 2014 WL 1652415 (Bkrtcy.D.N.M.)

Plans: Chapter 13 debtors could not modify residential mortgagee’s rights under due-on-sale clause.  In re Espanol 2014 WL 1612393 (Bkrtcy.D.Conn.)

Discharge: Foundation that did business only with debtors’ corporation did not establish existence of debt to except from discharge.  In re Nichols 2014 WL 1652474 (Bkrtcy.N.D.Okla.)

Bankruptcy Estate: Lack of evidence of continued possession was fatal to turnover claim.  In re Irwin 2014 WL 1456270 (Bkrtcy.E.D.Pa.)

Avoidance: Lien of creditor that foreclosed on deed of trust lien and obtained foreclosure judgment was not avoidable judgment lien.  In re McCracken 2014 WL 1379118 (Bkrtcy.D.Or.)

Discharge: Debtor-wife’s diversion of company funds supported nondischargeability judgment, but not against spouse benefited by diversion.  In re Keogh 2014 WL 1725806 (Bkrtcy.E.D.Mo.)