2nd Circuit

Second Circuit barred offensive use of claim preclusion based on ‘fairness’ but hinted that offensive claim preclusion might never be permitted.

If state law prohibits assertion of the homestead exemption in tax foreclosure and the debtor can’t take federal exemptions, does the debtor lack standing to set aside a fraudulent transfer?

Although lower courts have disagreed, the Second Circuit joined three other circuits in holding that a standing trustee may not retain the percentage fee when chapter 13 cases are dismissed before confirmation. Consequently, ‘13’ debtors with confirmed plans pay standing trustees’ fees.

Some courts don’t transfer venue under 28 U.S.C. § 1412 if the claims are only ‘related to’ the bankruptcy and don’t arise in the bankruptcy case or arise under the Bankruptcy Code.

New York’s Judge Philip Bentley and Prof. Robert Lawless urge Congress to adopt the ABI Commission’s recommendations for dealing with bad faith filings.

A deficiency judgment resulting from mortgage foreclosure is not ‘a judgment arising out of a mortgage foreclosure’ and can be avoided as a judgment lien.

District judge decides that an individual debtor has standing to appeal conversion from Subchapter V of chapter 11 to chapter 7.

In practical effect, the Second Circuit’s opinion means that a chapter 7 debtor may never appeal denial of a motion to dismiss a petition.

New York’s Judge David Jones explored the intricacies of Section 322(b)(22)’s bar to using bankruptcy to halt eviction.

Congress decided to deviate from standard priorities by providing in Section 724 that unsecured domestic support obligations come ahead of tax liens.