Westlaw Topical Highlights: Bankruptcy, November 25, 2013

November 25, 2013

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: Debtor was entitled to “strip off” wholly unsecured second priority mortgage lien.  In re McNeal 2012 WL 8964264 (C.A.11 (Ga.)) A Chapter 7 debtor was entitled to “strip off” a second priority mortgage lien on her home. The first priority mortgage lien exceeded the home’s fair market value, leaving the second lien wholly unsecured. The Court of Appeals declined to extend the Supreme Court’s decision in Dewsnup v. Timm, which concluded that a Chapter 7 debtor could not “strip down” a partially secured lien, to situations in which the junior lien was wholly unsecured. 2012 WL 8964264 (The full-text of the rest of the Topical Highlights is available within Westlaw Next, subscription required).     

Debtor Protections: “Cause” existed to lift stay to allow former spouse to collect past-due support provided for in plan.  In re Miller 2013 WL 6037330 (Bkrtcy.E.D.Pa

Discharge: Debtor’s pattern of false oaths warranted denial of his discharge.  In re Demir 2013 WL 6000452 (Bkrtcy.N.D.Ill.)

Avoidance: Lenders’ notice of corporation’s financial status was not sufficient to show actual or constructive knowledge of fraudulent transfer.  In re M. Fabrikant & Sons, Inc. 2013 WL 5614238 (C.A.2 (N.Y.))

Discharge: Debtor would be held liable for fraudulent misrepresentations made by her company’s general manager.  In re Heinz 2013 WL 5979833 (Bkrtcy.N.D.Ala.)

Jurisdiction: Property dispute lacked “close nexus” to plan required for exercise of post-confirmation jurisdiction.  In re Adams County Asphalt Co. 2013 WL 5423510 (Bkrtcy.M.D.Pa.)

Limitations: Any cause of action based on debtor’s prepetition asset purchase agreement was time-barred.  In re Adams County Asphalt Co. 2013 WL 5423070 (Bkrtcy.M.D.Pa.)

Attorney Fees: Contingent fee agreement would be enforced as written.  In re Rothstein Rosenfeldt Adler, PA 2013 WL 5976880 (Bkrtcy.S.D.Fla.)

Debtor Protections: State’s investigation of reorganized debtors’ business practices did not violate plan or confirmation order injunctions.  In re Velo Holdings Inc. 2013 WL 5966964 (Bkrtcy.S.D.N.Y.)

Discharge: Debtor’s postjudgment conveyance of interest in realty was not “willful and malicious injury.”  In re Alama 2013 WL 5817736 (Bkrtcy.E.D.Tenn.)

Claims: Triangular right of setoff could not be exercised in bankruptcy by nondebtor party to swap agreement.  In re American Home Mortgage, Holdings, Inc. 2013 WL 5967967 (Bkrtcy.D.Del.)

Plans: Cure amount on accelerated mortgage debt included late fees.  In re Ruiz 2013 WL 5998858 (Bkrtcy.E.D.Pa.)

Discharge: Former employer failed to show that debtor’s actions in removing materials in breach of employment contract were “willful.”  In re Mosley 2013 WL 6009950 (Bkrtcy.D.N.M.)

Avoidance: Corporate debtor’s transfer to its president’s mortgage lender were constructively fraudulent.  In re David Cutler Industries, Ltd. 2013 WL 6085124 (Bkrtcy.E.D.Pa.)

Crimes and Contempt: Order approving stipulation was too ambiguous to give rise to contempt finding.  In re Fischer 2013 WL 6050771 (8th Cir.BAP (Neb.))