522

Judge Isicoff explains why Schwab refines but does not overrule Taylor and why Schwab does not apply to unlimited exemptions.

Benchnotes By Christina Sanfelippo, Aaron M. Kaufman and Bradley D. Pack 1 Third Circuit Discusses Equitable Authority to Appoint Receivers for Corporations, Ownership of Successor-Liability Claims In a consolidated appeal, the Third Circuit considered the issues of

The Ninth Circuit holds that claim preclusion doesn’t prevent a debtor from claiming federal exemptions after the bankruptcy court has denied state exemption.

Section 522(f)(2) of the Bankruptcy Code allows debtors to avoid certain liens, including judicial liens, that impair debtors’ exemptions. [i] But § 522(f)(2)(C) says that “this paragraph shall not apply with respect to a judgment arising out of a mortgage foreclosure,” leaving courts to decide whether debtors can avoid mortgage deficiency judgments under § 522(f). Recently, the U.S. Bankruptcy Court for the District of Connecticut’s In re Gramigna [ii] opinion has joined an overwhelming majority of cases that have said that debtors can avoid mortgage deficiency judgments. These majority courts have relied on three predominant rationales.

A tax foreclosure that isn’t an unconstitutional taking can still be a constructively fraudulent transfer depending on when and how the debtor receives the equity above the delinquent taxes.