‘13’ Trustees Are Paid Even if Dismissal Comes Before Confirmation, District Judge Says
A chapter 13 trustee is not a federal employee for the purposes of the Federal Tort Claims Act.
Estate Claims Can’t Be Sold for Trivial Recovery by Unsecured Creditors
Had the purchaser of estate claims offered to waive its own unsecured claim, the sale might have been approved.
In ‘Chapter 20,’ Discharged Mortgage Claim Resurrects as Unsecured, EDNY Judge Says
Judge Grossman didn’t abolish ‘chapter 20’ entirely. He required the debtor to treat the subordinate mortgage lender like all other unsecured creditors, even though the debtor’s personal liability to the lender had been discharged in the prior chapter 7 case.
Treble Damages for ‘Willfulness’ Won’t Automatically Result in Nondischargeability
The lack of specific findings of fact by the arbitrator meant that a treble damage award for willful breach of contract was dischargeable.
Brooklyn Decision Shows Why Litigation Finance Is Risky if the Plaintiff Files Bankruptcy
At least in New York, a litigation finance agreement can’t be written to remove all of the lender’s exposure to the borrower’s bankruptcy.
Discharge May Be Enforced in Another District, Brooklyn Judge Says
Bankruptcy court has power to entertain a nationwide class action asserting a discharge violation.
No Retroactive Adequate Protection in Chapter 13, Judge Trust Says
Long Island judge follows ‘Burt’ Lifland and rules that a secured creditor is not entitled to adequate protections for periods of time before filing a motion giving rise to adequate protection.
The Standards for a Pre-Filing Injunction Against a Vexatious Litigant
The record as a whole and the likelihood of further abuse justify a pre-filing injunction.
Courts Split on Paying Chapter 13 Trustee Fees in Cases Dismissed Before Confirmation
Long Island judge finds no ambiguity in two statutes that other courts have found ambiguous when read together.
On a Split, Long Island Judge Allows Selling a Home Despite the Homeowner’s Objection
A homestead exemption does not bar selling a home when the chapter 7 debtor has no equity in the property, Judge Robert Grossman says.