Where the court-approved amended joint Chapter 11 plan included a provision releasing claims against the debtor and nondebtor defendants, but allowed opt-outs, there was no “inherent authority” allowing parties previously certified as lead plaintiffs in a securities class action to ...

Tagged with: Bankruptcy Judge Kevin R. Huennekens U.S. Bankruptcy Court

Where a confessed judgment was the result of the debtor originally breaching a payment obligation in his separation agreement, the ex-wife’s complaint plausibly alleged it was nondischargeable as debt “in connection with” a divorce or separation. Background Kent David Burstein ...

Tagged with: Bankruptcy Judge Frank J. Santoro U.S. Bankruptcy Court

Where the debtor was found guilty of fraud in a Montana state court, and the elements for fraud under Montana law mirror the elements for fraud in this dischargeability proceeding, the Montana judgment debt is excepted from discharge. Background Laron ...

Tagged with: Bankruptcy Judge Rebecca B. Connelly U.S. Bankruptcy Court

A $7,500 first-time homebuyer credit that is recaptured by the IRS over the next 15 years is a tax that is not dischargeable in bankruptcy. Background The debtor purchased a home with his mother and his sister in 2008. In ...

Tagged with: Bankruptcy Judge Brian F. Kenney U.S. Bankruptcy Court

Where a lender sought to recover $650 for filing a proof of claim, but provided no details about which employee performed the work, the tasks performed or the hours expended, the fee was reduced to $300. Background In 2017, the ...

Tagged with: Bankruptcy Judge Paul M. Black U.S. Bankruptcy Court

Where a debtor completed a credit counseling course a half-hour after he filed his voluntary bankruptcy petition, the petition was dismissed. The requirement that debtors complete the course “during the 180-day period ending on the date of filing of the ...

Tagged with: Bankruptcy Judge Brian F. Kenney U.S. Bankruptcy Court

Where the Chapter 7 trustee entered into a settlement with the debtor that included dismissal of a § 727 adversary proceeding without allowing the U.S. trustee an opportunity to intervene, the pact was rejected as the notice provisions in the ...

Tagged with: Bankruptcy Judge Brian F. Kenney U.S. Bankruptcy Court

The filing of allegedly inadequate proofs of claim could give rise to liability under the Fair Debt Collection Practices Act. Although the filers argued the Bankruptcy Code and Federal Rules of Bankruptcy Procedure provided the exclusive means to address the ...

Tagged with: Bankruptcy Judge Rebecca B. Connelly U.S. Bankruptcy Court

The holder of a $846 million commercial mortgage-backed securities loan that was made to 24 landlords of Lord & Taylor failed to compel the debtors to pay all rents and sums directly to the trust. The trust was not a ...

Tagged with: Bankruptcy Judge Keith L. Phillips U.S. Bankruptcy Court

If the debtor was allowed to convert his case, he would immediately violate a deadline imposed by the Bankruptcy Code. While the court could modify that deadline, it refused to do so here because the debtor had “played fast and ...

Tagged with: Bankruptcy Judge Paul M. Black U.S. Bankruptcy Court