Westlaw Topical Highlights: Bankruptcy, October 10, 2016

October 10, 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: Two-year look-back period for fraudulent transfers is not subject to equitable tolling.  In re: PETTERS COMPANY, INC. 2016 WL 4660810 (Bkrtcy.D.Minn.) The two-year look-back time period set forth in the fraudulent transfer section of the Bankruptcy Code, 11 U.S.C.A. § 548, is not subject to equitable tolling, a Minnesota bankruptcy court ruled. The period is not a statute of limitations and does not serve the purpose of ensuring that a party is diligent in exercising its rights. Instead, the period is a substantive element of the avoidance cause of action. 2016 WL 4660810 (The full-text of the rest of the Topical Highlights is available within Thomson Reuters Westlaw, subscription required).    

Bankruptcy Estate: Turnover of bank account funds should be sought under matured debt provision of turnover statute.  In re Turner Grain Merchandising, Inc. 2016 WL 5539807 (Bkrtcy.E.D.Ark.)

Avoidance: Former employee was not a non-statutory insider subject to one-year “look back” period for avoidance of transfers as preferences.  In re Top Hat 430, Inc. 2016 WL 5390118 (Bkrtcy.D.Minn.)

Debtor Protections: Stay did not apply to prevent debtor’s deposition once she was dismissed from suit.  In re Privett 2016 WL 4697662 (S.D.Ohio)

Attorney Fees: Condominium association was entitled to reasonable postpetition attorney fees and costs to the extent of its equity cushion.  In re Milbourne 2016 WL 4703892 (Bkrtcy.E.D.Pa.)

Bankruptcy Estate: Receiver for debtor-utility was not owner of its assets.  In re Bullitt Utilities, Inc. 2016 WL 4574310 (Bkrtcy.W.D.Ky.)

Plans: Release provision of plan did not release debtor’s principal of liability on personal loan by non-creditor of estate.  In re Shelbourne North Water Street L.P. 2016 WL 4626114 (Bkrtcy.N.D.Ill.)

Claims: Opposition to state court foreclosure action was inconsistent with stated intent to surrender.  In re Failla 2016 WL 5750666 (C.A.11 (Fla.))

Debtor Protections: Creditor’s postponing previously scheduled foreclosure sale after debtor filed Chapter 13 petition did not violate automatic stay.  Perez 2016 WL 5462453 (1st Cir.BAP (Mass.))

Professionals: Counsel’s request for compensation for prepetition services would be denied due to its violation of its disclosure requirements.  In re D & H Machine Service, Inc. 2016 WL 4733099 (Bkrtcy.E.D.Tenn.)

Appeals: Equitable mootness doctrine applies in Chapter 9 cases, as well as in Chapter 11.  In re City of Detroit, Michigan 2016 WL 5682704 (C.A.6 (Mich.))

Plans: Filing of amended plan before deadline for plan objections expired reset objection deadline for all creditors.  In re Gibson 2016 WL 4413270 (Bkrtcy.D.S.C.)

Bankruptcy Estate: Bankruptcy court would set aside order approving sale of Chapter 11 debtor’s assets free and clear of all liens.  In re Gunboat International, Ltd. 2016 WL 4626110 (Bkrtcy.E.D.N.C.)

Plans: Every Chapter 13 plan must have a stated length, even absent objection to confirmation.  In re Escarcega 2016 WL 5389267 (Bkrtcy.N.D.Cal.)

Avoidance: Creditor received transfers in good faith and without knowledge of voidability, within meaning of “good faith” defense to liability on avoided transfer.  In re Callas 2016 WL 5390121 (Bkrtcy.N.D.Ill.)

Avoidance: Mother had reason to know of debtor’s insolvency at time of alleged insider preference.  In re White 2016 WL 4719987 (Bkrtcy.D.Minn.)

Discharge: Attorney fees awarded in proceeding to modify parent-child relationship were nondischargeable support.  In re Doolittle 2016 WL 4708127 (Bkrtcy.W.D.Tex.)

Discharge: Proceeding to recover damages on basis of willfulness by IRS in violation of provision relating to effect of discharge was core proceeding.  Internal Revenue Service v. Murphy 2016 WL 4679713 (D.Me.)

Debtor Protections: Taxing authority’s postdischarge letters violated discharge injunction.  In re Flint 2016 WL 4821259 (Bkrtcy.N.D.W.Va.)

Avoidance: Tax foreclosure sale could not be avoided as constructively fraudulent.  In re Crespo 2016 WL 4491596 (Bkrtcy.E.D.Pa.)

Plans: Shifting vehicle values not evidence of debtor’s bad faith.  In re Wertz 2016 WL 5539805 (Bkrtcy.E.D.Ark.)

Discharge: Debtors should not have been held liable for misapplication of construction trust funds under Texas law.