May a Trustee Recover Proceeds from Fraudulently Transferred Property?
Courts disagree on whether a trustee may recover proceeds of a fraudulent transfer from a later transferee, not only the fraudulently transferred property itself.
Taggart’s Effect Evident in Eleventh Circuit Ruling on Discharge Violation
An action that could violate the FDCPA may not be a violation of the discharge injunction.
‘Related To’ Jurisdiction Is Measured When the Suit Is Filed, Not Later, Circuit Says
Even though subject matter jurisdiction persists when there is no longer an effect on the estate, the court may exercise discretion to dismiss, the Fifth Circuit says.
Absolute Priority Doesn’t Require an Individual Debtor to Pay for Exempt Property
BAP holds that an individual in chapter 11 isn’t required to contribute new value to retain exempt property.
Homestead Exemption Upheld on a House Neither Taxed nor Zoned for Residential Use
Occupancy and intent to be a permanent residence are all that’s needed for a homestead exemption, even if the house violates local ordinances.
District Court Overrides Arbitration on Disputes Regarding Defective Proofs of Claim
Someday, the Supreme Court will decide whether bankruptcy has an exemption from arbitration not available in ordinary commercial litigation.
Default Judgments Are (Sometimes) Nondischargeable Under Issue Preclusion
If the parties litigate but the defendant eventually defaults, the default judgment can result in nondischargeability via issue preclusion, Eleventh Circuit holds.