Westlaw Topical Highlights: Bankruptcy, July 25, 2016

July 25, 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.

Jurisdiction: Bankruptcy court lacked jurisdiction to enjoin Secretary of Health and Human Services from terminating debtor’s Medicare provider agreements.  In re Bayou Shores SNF, LLC, 2016 WL 3675462 (C.A.11 (Fla.)) The Medicare Act’s prohibition of actions against the Secretary of Health and Human Services on any claim arising under the Act precluded a bankruptcy court from exercising jurisdiction over a Chapter 11 debtor’s request for an injunction enjoining the Secretary from terminating its Medicare and Medicaid provider agreements, even though a statute granting district courts original and exclusive jurisdiction over all cases filed under Chapter 11 was not specifically mentioned in the Act. A previous version of the Act precluded bankruptcy court review of Medicare claims, and a subsequent amendment to the Act was a codification and did not substantively change the law. Additionally, the jurisdictional statute did not give bankruptcy courts special jurisdiction over Medicare claims. 2016 WL 3675462 (The full-text of the rest of the Topical Highlights is available within Thomson Reuters Westlaw, subscription required).     

Injunction: Preliminary injunction was appropriate to enjoin shareholder of corporate debtor from continuing to prosecute state court lawsuit.  In re Chiron Equities, LLC 2016 WL 3621008 (Bkrtcy.S.D.Tex.)

Discharge: Debt obtained by debtor’s false personal financial statement was nondischargeable.  In re Kilaru 2016 WL 3126442 (Bkrtcy.N.D.Ill.)

Discharge: Denial of debtor’s Chapter 7 discharge was warranted under “false oath” discharge exception.  In re Crawford 2016 WL 3356397 (Bkrtcy.W.D.N.C.)

Discharge: Creditor failed to prove that debtor’s defalcation as real estate agent caused a debt, as required to except debt from discharge.  In re Bastanipour 2016 WL 3277269 (Bkrtcy.N.D.Ill.)

Damages: Award of punitive damages under Mississippi law for Chapter 13 debtor in the amount of $1,500 was appropriate.  In re Nickelson 2016 WL 3448442 (Bkrtcy.S.D.Miss.)

Discharge: Loans obtained by debtor to attend foreign veterinary school were excepted from discharge.

 Case Administration: Chapter 7 case of corporate debtor with no business to reorganize would be dismissed for cause.  In re Asset Resolution Corp. 2016 WL 2930475 (Bkrtcy.D.Kan.)

Case Administration: Dismissal of debtors’ Chapter 7 case was not appropriate.  In re Heath 2016 WL 3134829 (Bkrtcy.D.Colo.)

Discharge: Property settlement agreement did evidence a mutual intent to create an obligation in the nature of alimony, maintenance, or support.  In re Hardesty 2016 WL 3419113 (Bkrtcy.E.D.Va.)

Debtor Protections: Stay does not bar judgment creditor from enforcing prepetition default judgment against debtor’s employer for noncompliance with garnishment law.  In re Cole 2016 WL 3855259 (Bkrtcy.N.D.Ga.)

Case Administration: Documents filed by creditor did not meet requirements for nondischargeability complaint.  In re Hunter 2016 WL 3356175 (Bkrtcy.D.Kan.)

Discharge: Judgment debt arising from forged signature on promissory note was excepted from discharge.  In re Higashi 2016 WL 3278938 (Bkrtcy.D.Hawai’i)

Bankruptcy Estate: Sale by Chapter 13 debtors of the estate’s interest in five acres of real property free and clear of secured creditor’s lien would not be approved.  In re Love 2016 WL 3679350 (Bkrtcy.D.S.C.)

Discharge: Chapter 7 debtor was not entitled to discharge of her student loan obligation under Bankruptcy Code’s undue hardship provision.  In re Hurst 2016 WL 3902659 (8th Cir.BAP (Ark.))

Judgment: Chapter 7 debtor was not entitled to relief from final default judgment in adversary proceeding brought by trustee.  In re Bloomer 2016 WL 3280380 (Bkrtcy.S.D.Fla.)

Injunction: Preliminary injunction was appropriate to stay creditor from bringing collection action on guaranty of manager of Chapter 11 debtor.  In re Chicora Life Center, LLC 2016 WL 3625568 (Bkrtcy.D.S.C.)