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    Massachusetts Bankruptcy Court Rules That Parents Receive Reasonably Equivalent Value in Exchange for Paying Their Child's Tuition
    2016-09-14

    College students across the country have begun returning to campus for the start of the fall semester. This arrival heralds new opportunities, new friends and new classes. It also means new tuition payments. Given the soaring price of college tuition, many students will rely on their parents to assist them with the cost of attendance. This parental support may take many forms, from co-signing or guarantying undergraduate loans to directly funding tuition costs.

    Filed under:
    USA, Massachusetts, Banking, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Public, Duane Morris LLP, United States bankruptcy court
    Authors:
    Paul D. Moore , Michael R. Lastowski , Jarret P. Hitchings
    Location:
    USA
    Firm:
    Duane Morris LLP
    SDNY rules that distribution of liquidated swap agreement collateral is protected by the safe harbor in Bankruptcy Code Section 560
    2016-09-05

    In the recent decision of Lehman Bros. Special Fin. Inc. v. Bank of Am. Nat’l Assoc. (In re Lehman Bros. Holdings Inc.), 2016 WL 3621180 (Bankr. S.D.N.Y. June 28, 2016), the U.S.

    Filed under:
    USA, Derivatives, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Collateral (finance), Safe harbor (law), Liquidation, Collateralized debt obligation, Lehman Brothers, Trustee, United States bankruptcy court, US District Court for the Southern District of New York
    Authors:
    Carl D. Neff
    Location:
    USA
    Firm:
    Fox Rothschild LLP
    Easement held to be an in rem property interest subject to section 363 sale
    2016-08-30

    In the decision of In re Metroplex on the Atlantic, LLC, 545 B.R. 786 (Bankr. E.D.N.Y. 2016), the United States Bankruptcy Court for the Eastern District of New York held that an easement is an in rem property interest, subject to sale free and clear under Bankruptcy Code section 363(f).

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Real Estate, Fox Rothschild LLP, Bankruptcy, Limited liability company, Secured creditor, Easement, United States bankruptcy court
    Authors:
    Carl D. Neff
    Location:
    USA
    Firm:
    Fox Rothschild LLP
    Fourth Circuit Falls in Line with Second and Eighth Circuits Holding that Filing a Proof of Claim on a Time-Barred Debt Does Not Violate the FDCPA
    2016-08-30

    In Dubois v. Atlas Acquisitions LLC, Case No. 15-1945 (4th Cir. Aug. 25, 2016), the Fourth Circuit Court of Appeals held in a 2-1 decision that filing proofs of claim on time-barred debts does not violate the Fair Debt Collection Practices Act (“FDCPA”), at least where state law preserves the right to collect on the payment. In so holding, the court sided with the Second and Eighth Circuit Courts of Appeals in a circuit split regarding the viability of FDCPA claims premised on proofs of claim filed in a debtor’s bankruptcy case.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Burr & Forman LLP, Bankruptcy, Debtor, Statute of limitations, Interest, Federal Reporter, Limited liability company, Debt, Debt collection, Collection agency, Fair Debt Collection Practices Act 1977 (USA), United States bankruptcy court, Eleventh Circuit, Fourth Circuit
    Authors:
    Alan D. Leeth , Rachel R. Friedman
    Location:
    USA
    Firm:
    Burr & Forman LLP
    Upcoming Supreme Court Docket Includes Cases to Watch for Commercial Lawyers
    2016-08-31

    The first Monday of each October marks the beginning of a fresh term for the Supreme Court of the United States. As the 2016 term approaches, the court’s docket has already begun to fill with cases that will impact commercial practitioners. While the court will continue to accept additional cases throughout the upcoming term, it has already agreed to hear at least five cases that may have significant implications for commercial lawyers throughout the country.

    Filed under:
    USA, Banking, Company & Commercial, Competition & Antitrust, Insolvency & Restructuring, Litigation, Public, Real Estate, Barnes & Thornburg LLP, Commercial law, Foreign Sovereign Immunities Act 1976 (USA), Sherman Antitrust Act 1890 (USA), Supreme Court of the United States, United States bankruptcy court
    Authors:
    Mark J. Crandley
    Location:
    USA
    Firm:
    Barnes & Thornburg LLP
    Non-Final Finality: Does One Interlocutory Issue Resolved in a Bankruptcy Court Order Render All Issues Addressed in the Order Non-Appealable?
    2016-08-22

    As the Supreme Court recently reminded us in Bullard v. Blue Hills Bank, not all orders in bankruptcy cases are immediately appealable as a matter of right. Only those orders deemed sufficiently “final” may be appealed without leave under 28 U.S.C. § 158(a).

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Bryan Cave Leighton Paisner (Bryan Cave), Bankruptcy, Debtor, US Code, Trustee, Supreme Court of the United States, United States bankruptcy court, Bankruptcy Appellate Panel, Tenth Circuit
    Authors:
    Bryce A. Suzuki
    Location:
    USA
    Firm:
    Bryan Cave Leighton Paisner (Bryan Cave)
    Fraudulently Obtained Unemployment Benefits are not Dischargeable in Bankruptcy
    2016-08-26

    State unemployment benefits are paid pursuant to a system that relies on trust. Benefits are paid based on representations made by claimants that they are out of work and that they continue to seek out full-time work. If a claimant finds part-time work, then benefits are reduced accordingly.

    A recent opinion from the United States Bankruptcy Court for the Western District of Michigan (the “Court”) addresses a Chapter 7 debtor’s attempt to discharge a debt owed to the State of Michigan for overpaid unemployment benefits, and penalties and interest stemming from the overpayment.

    Filed under:
    USA, Michigan, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Foster Swift Collins & Smith PC, Wage, Bankruptcy, Debtor, Fraud, Government agency, Debt, Unemployment benefits, Collateral estoppel, Bankruptcy discharge, Title 11 of the US Code, Supreme Court of the United States, United States bankruptcy court
    Authors:
    Patricia J. Scott
    Location:
    USA
    Firm:
    Foster Swift Collins & Smith PC
    Sunshine Heifers, LLC v. Purdy
    2016-08-16

    (W.D. Ky. Aug. 15, 2016)

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Stoll Keenon Ogden PLLC, Bankruptcy, United States bankruptcy court, Sixth Circuit
    Authors:
    Matt Lindblom
    Location:
    USA
    Firm:
    Stoll Keenon Ogden PLLC
    Enforceability of Subordination Provisions in Synthetic CDOs - Lehman Revisited
    2016-08-16

    On June 28, 2016, Judge Chapman of the U.S. Bankruptcy Court for the Southern District of New York ruled in Lehman Brothers Special Financing Inc. v. Bank of America National Association, et al.(Adv. Proc. No. 10-03547 (Bankr. S.D.N.Y.

    Filed under:
    USA, Derivatives, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Bankruptcy, Surety, Collateral (finance), Swap (finance), Liquidation, Default (finance), Collateralized debt obligation, Bank of America, International Swaps and Derivatives Association, Lehman Brothers, Title 11 of the US Code, United States bankruptcy court, US District Court for the Southern District of New York
    Authors:
    Fabien Carruzzo , Philip Powers
    Location:
    USA
    Firm:
    Kramer Levin Naftalis & Frankel LLP
    Use of Tender Offers in Bankruptcy to Effect a Pre-confirmation Settlement
    2016-08-16

    The Third Circuit recently affirmed that a debtor in Chapter 11 can use a tender offer to settle claims without running afoul of the Bankruptcy Code. Although In re Energy Future Holdings Corp.is limited to its particular facts and circumstances, the decision could lead to increased use of tender offers prior to confirmation of a bankruptcy plan.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Bankruptcy, Debtor, Interest, Debt, Maturity (finance), Leveraged buyout, Tender offer, Accrued interest, Secured loan, Title 11 of the US Code, United States bankruptcy court, Third Circuit
    Authors:
    John Bessonette , Nathan Hyman
    Location:
    USA
    Firm:
    Kramer Levin Naftalis & Frankel LLP

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