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    Ninth Circuit BAP Holds That a Wholly Unsecured Junior Lien, Discharged in Chapter 7, is not Included in Calculating Chapter 13 Eligibility Under Sec. 109(e)
    2016-01-12

    Section 109(e) of the Bankruptcy Code limits eligibility for chapter 13 relief to those individual debtors whose noncontingent, liquidated unsecured debts do not exceed statutory limits. In calculating eligibility to file chapter 13, should a court consider debts which have been discharged in a prior chapter 7 case and which are “out of the money” because, while secured by a trust deed against the debtor’s residence, the value of the debtor’s residence is insufficient to cover the debt relating to the first trust deed?

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Holland & Hart LLP, Debtor, Unsecured debt, Ninth Circuit, United States bankruptcy court, Bankruptcy Appellate Panel
    Location:
    USA
    Firm:
    Holland & Hart LLP
    11th Circuit Rules that Assignee for the Benefit of Creditors Lacks Power to File Bankruptcy Case for Assignor
    2016-01-12

    On December 17, 2015, the Eleventh Circuit Court of Appeals issued a decision of first impression, finding that an assignee for the benefit of creditors under Florida’s Assignment for the Benefit of Creditors statute (Fla. Stat. chap.  727, et.

    Filed under:
    USA, Florida, Insolvency & Restructuring, Litigation, Bilzin Sumberg, Subject-matter jurisdiction, Eleventh Circuit
    Location:
    USA
    Firm:
    Bilzin Sumberg
    Claim for Amount Owed in Bid Rigging Scheme Disallowed by Connecticut Bankruptcy Court
    2016-01-12

    Rare is the decision finding that bid rigging occurred.  Recently, though, the United States Bankruptcy Court for the District of Connecticut uncovered a bid rigging scheme in connection with the sale of property in a Canadian arrangement proceeding.  In re Sagecrest II LLC, et al., Case No. 08-50754 (Bankr. D. Conn. Dec.

    Filed under:
    USA, Connecticut, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bid rigging, United States bankruptcy court
    Authors:
    Brenda L. Funk
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    For Bankruptcy Purposes, the Ninth Circuit Bankruptcy Appellate Panel Asks: When is a Tax Return Not a Tax Return? — Then Provides An Answer Different From Other Circuits’
    2016-01-06

    Court of Appeals Rejects Literal Construction of Bankruptcy Code section 523(a)(1), Ruling Court Must Determine Whether Debtors Subjectively Made an Honest and Reasonable Attempt to Satisfy the Tax Law

    In a December 17, 2015 decision in United States v. Martin (In re Martin), 2015 WL 9252590 (9th Cir. BAP 2015) the Bankruptcy Appellate Panel of the Ninth Circuit Court of Appeals (the “Panel”), defined what qualifies as a tax return for dischargeability purposes, specifically disagreeing with three other Courts of Appeals.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Tax, Paul Hastings LLP, Ninth Circuit, Bankruptcy Appellate Panel
    Authors:
    Nancy L. Iredale , Stephen J. Turanchik
    Location:
    USA
    Firm:
    Paul Hastings LLP
    Filing Bankruptcy Does Not Revoke Consent under the TCPA
    2015-12-30

    While the FCC recently opined that consumers can revoke their consent to receive calls via an ATDS in any manner that clearly expresses a desire not to receive further messages, a district court in Illinois has set some perimeters on revocation.  In Cholly v. Uptain Group, Inc., 2015 U.S. Dist. LEXIS 171415, C.A. No. 15 C 5030 (N.D. Ill. Dec.

    Filed under:
    USA, Illinois, Insolvency & Restructuring, Litigation, Telecoms, Smith Debnam Narron Drake Saintsing & Myers LLP, Federal Communications Commission (USA)
    Authors:
    Caren Enloe
    Location:
    USA
    Firm:
    Smith Debnam Narron Drake Saintsing & Myers LLP
    Swift Energy Files Prepack Chapter 11
    2015-12-31

    On New Year's Eve 2015, Swift Energy Company and 8 affiliates filed a voluntary petition commencing a prepackaged chapter 11 case in the United States Bankruptcy Court for the District of Delaware.  The case is docketed as case no. 15-12670, and has been assigned to The Honorable Mary F. Walrath.  The petition lists assets of $1.024 billion and liabilities of $1.349 billion.

    Filed under:
    USA, Delaware, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Morris James LLP, United States bankruptcy court
    Authors:
    Carl "Chuck" N. Kunz III
    Location:
    USA
    Firm:
    Morris James LLP
    United States Court of Appeals for the Second Circuit Holds That Claims Arising from Securities of a Debtor’s Affiliate Must Be Subordinated to Senior or Equal Claims of the Same Type as the Underlying Securities
    2016-01-04

    On December 14, 2015, the United States Court of Appeals for the Second Circuit held that claims arising from securities of a debtor’s affiliate must be subordinated to all claims or interests senior or equal to claims of the same type as the underlying securities in the bankruptcy proceeding.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, A&O Shearman, Security (finance), Securities fraud, Lehman Brothers, Second Circuit
    Authors:
    Fredric Sosnick , Douglas P. Bartner , Joel Moss , Solomon J. Noh , Ned S. Schodek
    Location:
    USA
    Firm:
    A&O Shearman
    Unwinding Fraudulent Transfers and The Diligent Creditor Rule
    2016-01-04

    Quite often a creditor discovers that one of its debtors has avoided satisfying a liability by fraudulently transferring assets to another individual or entity.  This is a frustrating discovery, but the creditor is not without remedies.  Under Florida Statutes fraudulent transfers can be attacked and unwound through two methods.  The popular method is filing a lawsuit to include a statutory cause of action to invalidate the fraudulent transfer under 

    Filed under:
    USA, Florida, Insolvency & Restructuring, Litigation, White Collar Crime, Jimerson & Cobb P.A., Debtor
    Authors:
    Hans C. Wahl
    Location:
    USA
    Firm:
    Jimerson & Cobb P.A.
    District Court Explains When Suit Is Direct Or Derivative In The Alternative Entity Context
    2016-01-04

    Gimaex Holding Inc. v. Spartan Motors USA Inc., No. 15-CV-00515-RGA (December 22, 2015)

    Filed under:
    USA, Delaware, Company & Commercial, Insolvency & Restructuring, Litigation, Morris James LLP
    Authors:
    Edward M. McNally
    Location:
    USA
    Firm:
    Morris James LLP
    McCarran-Fer-get About It: Insurance Rehabilitation Proceeding Does Not Reverse-Preempt Bankruptcy Court Jurisdiction, Says S.D.N.Y. Bankruptcy Court
    2016-01-04

    Is insurance just a business or does it serve a greater public good?  If it weren’t for insurance, a fire or earthquake could leave you homeless; a visit to the emergency room could wipe out your bank account; a workplace accident could leave you salary-less.  But, on the other hand, picture that wily Geico lizard, and insurance seems more like any other business trying to make a buck. 

    Filed under:
    USA, New York, Insolvency & Restructuring, Insurance, Litigation, Weil Gotshal & Manges LLP, United States bankruptcy court, US District Court for the Southern District of New York
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP

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