An ‘Affiliate’ of a Public Company Is Barred from Reorganizing Under Subchapter V
To measure eligibility for subchapter V, the debtor must not be an affiliate of a public company that has 20% or more of the ‘voting securities.’
Liquidating in Chapter 11 Won’t Stop an EEOC Suit for Employment Discrimination
Magistrate judge decided that the regulatory power exception to the automatic stay allows the EEOC to proceed, but he stayed the suit by the former employee seeking damages.
Two-Year Statute for Avoidance Actions Doesn’t Apply to Claim Objections
Even if the two-year statute of limitations for avoidance actions has run, the trustee can still strip away the lender’s secured status in a claim objection.
Split Continues on Loss of Chapter 13 Discharge for Missing Direct Mortgage Payments
Georgia judge focuses on ‘good faith’ to decide whether a chapter 13 debtor should lose a discharge after missing direct mortgage payments.
Standards for a Future Claimants’ Representative Are Those for a Guardian Ad Litem
Prior service as a future claimants’ representative was reason for a new appointment, not a disqualification, Judge Bonapfel says.
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.
Courts Disagree on the Status of a Supersedeas Bond on the Filing of Bankruptcy
A supersedeas bond and a cash deposit are interchangeable in terms of the rights of a judgment creditor, Judge Sacca says.
Retention of Voluntary Post-Petition Payment Doesn’t Violate the Automatic Stay
A creditor was allowed to keep a voluntary, post-petition payment on a pre-petition debt that the debtor made with non-estate property.
Stabbing Victim Gets No Sympathy for His Lawyer’s Mistake
Sympathy for a client won’t make up for counsel’s mistake.
Courts Disagree on When a ‘Med-Mal’ Claim Becomes Estate Property
District and bankruptcy courts reach diametrically different results on identical facts regarding the same defective medical device.