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Tag Archives: Bankruptcy

Federal assistance may prolong bankruptcy filings (access required)

Store Closing and Going out of Business signs displayed at a soon to be closed store I

With businesses closed, employees furloughed and sales plummeting, there will almost certainly be an increase in bankruptcy filings as a result of the pandemic. But with the recent outpouring of federal financial support, attorneys say the uptick in “COVID-caused” bankruptcy ...

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Substitute trustee’s foreclosure sale violated automatic stay (access required)

Where the substitute trustee’s sale of real property failed to comply with provisions required by the deeds of trust, the foreclosure sale was invalid, so that, when the substitute trustee recorded the deed, she violated the automatic stay. The amount ...

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IRS’s offset right trumps debtor’s right to receive tax overpayment (access required)

The case of first impression held that despite a bankruptcy code section providing that exempt property cannot be used to satisfy a debtor’s prepetition debts, the tax code makes clear the government’s right to set-off a tax overpayment against a ...

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Prejudgment interest reduced because of debtor’s delay (access required)

Where a construction company was entitled to recover prejudgment interest on invoices unpaid by its customer but delayed in submitting its first invoice and delayed again in pursuing collection, the interest ran from the date of the last invoice, not ...

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Suit ‘related to’ bankruptcy is transferred (access required)

A claim that two of the debtor’s officers fraudulently induced a contract was “related to” the bankruptcy litigation because the officers might be able to claim indemnification from the debtor, thereby altering its liabilities. Because a majority of the relevant ...

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Collateral estoppel applies to dispute over contract formation (access required)

Where all the elements for collateral estoppel were established, the bankruptcy court did not err in finding a contract was formed between the trustee and a defendant. But because the court did not articulate its reasoning on damages, the issue ...

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