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    Defending preference actions: understanding your rights as a creditor
    2014-07-14

    There is nothing more frustrating to a creditor than finally getting paid for goods or services, only to have a customer file for bankruptcy protection and, as a result, ending up on the receiving end of a bankruptcy preference action.

    Filed under:
    USA, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Shipping & Transport, Liskow & Lewis, Bankruptcy, Debtor
    Authors:
    Lacey E. Rochester
    Location:
    USA
    Firm:
    Liskow & Lewis
    Madoff bankruptcy decision offers protection for foreign investors
    2014-07-14

    In re Madoff Securities Extends Morrison Framework to Prevent Avoidance of Purely Foreign Transfers under SIPA and the Bankruptcy Code

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Latham & Watkins LLP, Security (finance), Securities fraud
    Authors:
    Christopher Harris , Thomas J. Giblin
    Location:
    USA
    Firm:
    Latham & Watkins LLP
    Eleventh Circuit holds that filing a proof of claim in bankruptcy on a time-barred debt violates the FDCPA
    2014-07-15

    In Crawford v. LVNV Funding, LLC, the Eleventh Circuit became the first federal circuit court of appeals to hold that filing a proof of claim on a time-barred debt in a bankruptcy case violates the Fair Debt Collection Practices Act (“FDCPA”).[1] See No. 13-12389,__ F.3d __, 2014 WL 3361226 (11th Cir.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Burr & Forman LLP, Debt, Fair Debt Collection Practices Act 1977 (USA), Eleventh Circuit
    Authors:
    Alan D. Leeth , Rachel R. Friedman
    Location:
    USA
    Firm:
    Burr & Forman LLP
    Lender beware: ensure plan releases are limited to debtor’s obligations
    2014-07-15

    A creditor who settles with a debtor during a bankruptcy case must be sure to continue following the case during the plan stage, or risk the plan affecting the creditor’s rights against third parties.  Iberiabank learned that lesson the hard way, after a plan was confirmed in the chapter 11 case of FFS Data, Inc.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Bilzin Sumberg, Debtor
    Location:
    USA
    Firm:
    Bilzin Sumberg
    Staying on leased property after a bankruptcy § 363 sale
    2014-07-15

    On May 28, 2014, the District Court for the Southern District of New York affirmed an order from the bankruptcy court in Dishi & Sons v. Bay Condos LLC, et al.1, approving a sale of the Debtor’s assets, but found that the Debtor’s commercial tenant was entitled to remain in possession of the premises for the remainder of the lease at the specified rent.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Real Estate, ArentFox Schiff
    Authors:
    Robert M. Hirsh , David J. Kozlowski
    Location:
    USA
    Firm:
    ArentFox Schiff
    Code vs. contract: Fifth Circuit holds that section 506(b) governs recovery of proceeds from a foreclosure sale after the automatic stay has been lifted
    2014-07-15

    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.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Debtor, Foreclosure, Wells Fargo, United States bankruptcy court, Fifth Circuit
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Sale free and clear: permitted “matters of record” may be broader than you expect
    2014-07-15

    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.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Real Estate, Tax, Troutman Pepper, Property tax, Personal property
    Location:
    USA
    Firm:
    Troutman Pepper
    Non-compete agreement void when executed prior to employment; filing stale claim in bankruptcy court violated FDCPA
    2014-07-16

    In this week’s Alabama Law Weekly Update, we share with you two decisions from the 11th Circuit Court of Appeals. The first concerns non-competition agreements and the second deals with FDCPA violations in bankruptcy cases.

    Dawson v. Ameritox, LTD, No. 14-10084 (11th Cir. July 10, 2014) (holding that non-compete agreement was void under Ala. Code § 8-1-1, where employee signed the agreement four days before his employment officially began).

    Filed under:
    USA, Employment & Labor, Insolvency & Restructuring, Litigation, Sirote & Permutt PC, Injunction, Fair Debt Collection Practices Act 1977 (USA), United States bankruptcy court, Eleventh Circuit
    Authors:
    Ashten Kimbrough Seay
    Location:
    USA
    Firm:
    Sirote & Permutt PC
    U.S. Supreme Court rules inherited IRAs not exempt from creditors’ claims in bankruptcy
    2014-07-16

    The recent unanimous decision of the United States Supreme Court (the “Court”) in Clark v. Rameker, 573 U.S. _____ (2014) held that inherited IRAs do not constitute “retirement funds” within the meaning of section 522(b)(3)(C) of the United States Bankruptcy Code. Consequently, inherited IRAs are not exempt from creditor claims in bankruptcy proceedings. The Court’s holding highlights the importance of sound financial and estate planning to protect inherited retirement plan assets from claims of a beneficiary’s creditors.

    Background

    Filed under:
    USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Dykema Gossett PLLC, Bankruptcy, Internal Revenue Code (USA), Supreme Court of the United States
    Authors:
    David P. Dunaway , Michael G. Cumming , William C. Lentine
    Location:
    USA
    Firm:
    Dykema Gossett PLLC
    City releases updated appraisal of full Detroit Institute of Arts collection, tactical questions abound
    2014-07-10

    A report by an expert witness designated by the City of Detroit for the upcoming bankruptcy trial has been released concerning the value of the full collection of the Detroit Institute of Arts.  The report puts the full collection value at $2.7 to $4.6 billion, but estimates t

    Filed under:
    USA, Michigan, Insolvency & Restructuring, Media & Entertainment, Sullivan & Worcester LLP
    Authors:
    Nicholas O'Donnell
    Location:
    USA
    Firm:
    Sullivan & Worcester LLP

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