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Courts Divided on Venue for Small-Dollar Avoidance Actions

Judges Pappas and Teel permit avoidance actions for small amounts to be prosecuted in the debtors’ bankruptcy courts.
Court: 

Tardy Recordation of a Mortgage Not Salvaged by Relation-Back Arguments

A mortgage recorded more than 30 days after closing resulted in a transfer within the preference window.

Chicago Case May Resolve the Circuit Split on the New Value Defense

Bankruptcy judge reluctantly follows precedent where the Seventh Circuit is in the minority on the new value defense.

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