Prepetition Setoff Not an 'Improvement in Position' Under Bankruptcy Code

In a recent decision out of the U.S. Bankruptcy Court for the Western District of Virginia, a court analyzed the effect of a setoff effectuated between two governmental units in the 90 days prior to the filing of a husband and wife’s bankruptcy case. In Hurt v. U.S. Department of Housing and Urban Development (In re Hurt), 579 B.R. 765 (Bankr. W.D. Va. 2017), the court addressed competing motions for summary judgment filed by the debtors, on the one hand, and the U.S.

Filed under:
USA, Insolvency & Restructuring, Litigation, Tax, Duane Morris LLP
Authors:
Rudolph J. Di Massa, Jr. , Catherine B. Heitzenrater
Location:
USA
Firm:
Duane Morris LLP
Post-Petition Interest in a Solvent Case: What Interest Rate Controls?

In today's low interest rate environment, the difference between a contractual interest rate and the federal judgment rate can be quite significant. It is not surprising, therefore, that this issue has become hotly litigated in cases involving solvent Chapter 11 debtors. Recently, the U.S. District Court for the Northern District of Illinois, in Colfin Bulls Funding A v. Paloian (In re Dvorkin Holdings), 547 B.R. 880 (N.D. Ill.

Filed under:
USA, Banking, Insolvency & Restructuring, Litigation, Duane Morris LLP, Bankruptcy, Debtor, Unsecured debt, Interest, Discovery, Default (finance), US Congress, The Legal Intelligencer, United States bankruptcy court, US District Court for Northern District of Illinois
Authors:
Rudolph J. Di Massa, Jr. , Lawrence J. Kotler , Catherine B. Heitzenrater
Location:
USA
Firm:
Duane Morris LLP