Judge Jed S. Rakoff of the Southern District of New York last week ruled that the U.S. Bankruptcy Code does not permit a bankruptcy trustee to recover foreign transfers. Specifically, Judge Rakoff refused to allow Irving Picard, the trustee of Bernard L. Madoff Investment Securities LLC (“BLMIS”), to recoup monies initially transferred from BLMIS to non-U.S.
International businesses involved in transactions associated in some way with U.S. citizens received a measure of relief over the 4th of July holiday weekend.
The U.S. Supreme Court’s recent decision in Clark v. Rameker has given individuals with IRAs a new reason to consider the use of trusts as their designated beneficiaries. On June 12, 2014, the Court’s unanimous decision made clear that inherited IRAs do not receive bankruptcy protection under federal law.
FEDERAL EXEMPTION
The inclusion of third-party releases in plan of reorganization can be a particularly contentious aspect of the plan confirmation process. Debtors seeking such releases typically face opposition from affected creditors and scrutiny from bankruptcy courts that consider such releases prone to abuse.
On June 27, 2014, in National Heritage Foundation, Inc. v. Highbourne Foundation, 1 the United States Court of Appeals for the Fourth Circuit, agreeing with decisions by the Bankruptcy Court for the Eastern District of Virginia and the District Court for the Eastern District of Virginia, which were issued upon remand from a prior appeal, held that the third-party non-debtor release provision in the chapter 11 plan of reorganization of National Heritage Foundation, Inc. was invalid.
Creditors in bankruptcy cases may be interested in the July 10, 2014 Opinion issued by the Eleventh Circuit in Crawford v. LVNV Funding, LLC.
It’s a beautiful day for the beach. Even though some of us may be at the beach today (and if you are at the beach, why didn’t you invite us?), bankruptcy, like time, waits for no one. Wherever we happen to be, ‘tis the season for a little something light – or at least lighthearted. In the spirit of summer Fridays, we wanted to take the opportunity to bring you some of the colorful quotes that we’ve come across in bankruptcy decisions over the past few months. And for those of you who crave more: worry not – we’ll keep combing our records in efforts to bring you furth
When an oversecured creditor forecloses on a debtor’s property after the automatic stay has been lifted, does the Bankruptcy Code (as opposed to state law) govern recovery of attorney’s fees and other amounts from the sale proceeds? Does the bankruptcy court have jurisdiction over the distribution of such proceeds? In Goldsby v.
In re Joan Fabrics Corp., 508 B.R. 881 (Bankr. D. Del. 2014) –
The buyer of assets in a bankruptcy sale sought to enforce its asset purchase agreement against a county that was seeking to collect personal property taxes arising prior to the sale by exercising a statutory lien on the property acquired by the buyer.