Ethics

Over-the-Top Allegations of Stay Violation Bring $10,000 Sanction for Violating Rule 11

Counsel sanctioned $10,000 for making allegations about an intentional or malicious stay violation without having performed an investigation to justify the claims.

A Claim Objection Can Head Off Election of a Permanent Chapter 7 Trustee

A creditor can’t elect a trustee to pick its adversary in a lawsuit, Bankruptcy Judge Gunn says.
Court: 

Objections to Priority Claims May Follow Confirmation of a Chapter 13 Plan

Confirming a chapter 13 plan on the assumption that a claim was entitled to priority didn’t bar the debtors from later objecting to the priority of the claim.

Time Limits for Effecting Service of Process Can Be Flexible, Eleventh Circuit Says

Under unusual circumstances, a two-year delay in completing service of process was not fatal in the Eleventh Circuit.
Court: 

Estate Claims Can’t Be Sold for Trivial Recovery by Unsecured Creditors

Had the purchaser of estate claims offered to waive its own unsecured claim, the sale might have been approved.

Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1

Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.

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