(Bankr. E.D. Ky. Sep. 8, 2017)
The bankruptcy court grants the creditor’s motion to dismiss the Chapter 7 case because the debtor failed to rebut the “presumption of abuse.” The debtor argued she should be permitted to file under Chapter 7 because of special circumstances, pursuant to § 707(b)(2)(B). The debtor argued that she was a “stockbroker” and thus not eligible for Chapter 11 or 13. However, the court determines that she is not a stockbroker because she is merely an employee, rather than a stockbroker as defined by § 101. Opinion below.
Judge: Wise
(Bankr. S.D. Ind. Sep. 7, 2017)
The bankruptcy court enters judgment in favor of the debtor, granting a discharge in her bankruptcy case. The U.S. Trustee brought the action under § 727(a)(2)(B) and (a)(4)(A), alleging the debtor intentionally failed to disclose $5,000 she held in a lockbox on the petition date. The Court finds the debtor did not have the requisite intent and was unsure of what she was supposed to do at the 341 meeting based on a misunderstanding or miscommunication with her lawyer. Opinion below.
Judge: Carr
Reprinted with permission from the September 14, 2017 issue of The Legal Intelligencer. © 2017 ALM Media Properties, LLC. Further duplication without permission is prohibited. All rights reserved.
The U.S. Court of Appeals for the Ninth Circuit recently held that, where husband and wife debtors fraudulently transferred assets, the creditor was entitled to the full sum the creditor would have recovered and was not limited to the amount of the collateralized debt.
In so ruling, the Ninth Circuit reversed a bankruptcy court and trial court judgment in the creditor’s favor that the debt was non-dischargeable due to the debtor’s fraud, but improperly limiting the non-dischargeable debt to only the collateralized amount.
Summary:
The bankruptcy bar is abuzz following the Supreme Court’s recent decision in Czyzewski v. Jevic Holding Corp., 15-649, 2017 BL 89680, 85 U.S.L.W. 4115 (Sup. Ct. March 22, 2017), holding that bankruptcy courts may not approve structured dismissals that do not adhere to the Bankruptcy Code’s priority scheme.
The long-running litigation spawned by the leveraged buyout of Tribune Company, which closed in December 2007, and the subsequent bankruptcy case commenced on December 8, 2008[1] has challenged the maxim that “there’s nothing new under the sun” even for this writer with four decades of bankruptcy practice behind him.
Two sections of the Bankruptcy Code addressing leases sometimes work in tandem with each other, but some courts are creating a conflict.
Section 363 gives bankruptcy courts the power to approve the sale of the assets of a bankruptcy debtor, free and clear of any liens, claims or interests in the property, under certain conditions.
Section 365 gives bankruptcy courts the power to approve the termination of unexpired leases of real estate or to approve their assumption and assignment, also under certain conditions.
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