New York Judge Refuses to Waive Collateralization for Debtors’ Bank Accounts
In a large ‘prepack,’ the debtor was required to spend $80,000 a month for its depository bank to obtain a bond required by Section 345(b).
Second Circuit Opinion Raises Questions Left Open by Taggart v. Lorenzen
If a lower court buys an argument that’s clearly wrong, is the argument nonetheless ‘objectively reasonable?’ And does Taggart apply to an automatic stay violation?
Court:
Rule 2004 Discovery Barred for Use in Litigation Outside Bankruptcy Court
Judge Sean Lane publishes an opinion to nip an improper discovery tactic in the bud.
Religious Contributions Not Considered in Dischargeability of Student Loans
First Amendment doesn’t compel deduction of religious contributions in finding an ‘undue hardship’ justifying the discharge of student loans.
Delay in Appointment of a Foreign Representative Isn’t Fatal to Chapter 15 Recognition
Allegedly repudiating U.S. dollar obligations won’t preclude a finding of property in the U.S., Judge Lane rules.
Disclosing an Asset in the Wrong Place Won’t Invoke Judicial Estoppel, Circuit Says
Second Circuit won’t give a defendant a windfall if the debtor scheduled the lawsuit in the wrong place but told the trustee and the court.
Court:
Freezing a Chapter 7 Debtor’s Bank Account Doesn’t Violate the Automatic Stay
SDNY opinion seems to mean that a bank may freeze a debtor’s entire bank account at filing, without violating the automatic stay.
New York Judge Gives Reasons for Nixing Nonconsensual, Third-Party Releases
Bankruptcy Judge Wiles explains the jurisdictional, statutory and constitutional reasons why nonconsensual releases are improper in the Second Circuit except in exceptional circumstances.
After 12 Losses, Will Madoff Customers Stop Pursuing Claims Belonging to the Estate?
New York district judge is the most recent court to uphold an injunction implementing a $7.2 billion Madoff settlement.
An Adroitly Drafted Makewhole Is Allowable in Bankruptcy, New York Judge Says
Judge Bernstein distinguishes a Second Circuit opinion to rule that a makewhole premium is allowable in bankruptcy.