Sixth Circuit Staunches the Spread of Equitable Mootness to Chapter 7
Two judges on the Sixth Circuit cast doubt on the validity of the doctrine of equitable mootness, even in chapter 11 reorganizations.
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The Refund of an Early Withdrawal Penalty from an IRA Was Held Exempt
Although not held in an IRA, a refund by the IRS of a withdrawal penalty was exempt because state law permits tracing proceeds of exemptions, Judge Opperman says.
As if by Magic, Section 1412 Transforms an Improper Venue into a Proper Venue
A judge sitting in a proper venue may transfer venue to a district that was improper originally.
Aggressive Bankruptcy Planning Results in Loss of Discharge
An election for having a tax refund applied to the following year’s taxes can result in the loss of discharge.
‘Person Aggrieved’ for Appellate Standing Test May Have Died, but May Be Resurrected
Sixth Circuit judges wrote 17 pages of dicta to muse on whether the ‘person aggrieved’ test for appellate standing died with the adoption of the Bankruptcy Code but remains good law under the ‘zone-of-interests’ test.
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Sixth Circuit: Nondebtor Releases Are Ok in Chapter 11 but Not in Receiverships
Bound by Dow Corning, which permitted nondebtor releases, the Sixth Circuit had to explain why the same releases are not permissible in equity receiverships.
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Sixth Circuit Holds that Tax Foreclosure Violates the Takings Clause of the Constitution
If tax foreclosures violate the Takings Clause, it stands to reason that they are also fraudulent transfers.
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It’s Virtually Impossible to Waive Discharge as an Affirmative Defense, Judge Tucker Says
Waiting four years to raise discharge as a defense does not invoke equitable estoppel or laches.
Debtor Can’t Compel Arbitration on an Involuntary Petition
A creditor can’t be compelled to arbitrate the validity of a claim before the bankruptcy court decides whether the involuntary petitioner’s claim is subject to a bona fide dispute.
Homestead Proceeds May Be Exempt Under State Law but Not Under Section 522(d)(1)
Affirming the bankruptcy court, the Sixth Circuit BAP won’t exempt proceeds from the prepetition sale of a home, even though the proceeds were identifiable and in escrow.
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