Split Widens on Dischargeability for Third Party’s Violation of Securities Laws
Circuits are split 2/1 on whether a debtor must have committed a securities law violation before a judgment is made nondischargeable under Section 523(a)(19).
Another District Judge Rules that Tax Foreclosures Can Be Fraudulent Transfers
The circuits are split on whether the Supreme Court’s BFP opinion can be extended to bar fraudulent transfer attacks on in rem real estate tax foreclosures.
Bar Date Notice by Email Is Insufficient, Delaware’s Judge Goldblatt Says
Notice by email may satisfy due process but doesn’t comply with notice by ‘mail’ under Bankruptcy Rule 2002.
Barton Didn’t Stop Creditors from Garnishing a Chapter 13 Trustee After Dismissal
The debtor’s bad faith chapter 13 filings convinced Judge Hall to allow garnishment of funds held by the trustee after dismissal.
Disclosing a Lawsuit Only in the SOFA Won’t Result in Abandonment, Circuit Says
Disclosing a lawsuit in the SOFA and discussing the suit with the trustee was no substitute for listing the suit among a debtor’s assets, the Ninth Circuit held.
Refusing to Release an Attachment After Filing Is No Stay Violation Following Fulton
Pennsylvania’s Judge Conway hints that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.
On an ‘Involuntary,’ Denial of Summary Judgment Doesn’t Mean the Claim Is Disputed
The Iqbal and Twombly standards don’t apply to involuntary petitioners who are required to use Official Form 105.
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.
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.