No Removal Directly to the Bankruptcy Court in Another District
Although it makes sense and would require fewer judicial resources, the governing statute does not permit withdrawing a lawsuit directly to the bankruptcy court in another district or another state, as explained by Bankruptcy Judge Elisabetta G.M. Gasparini of Columbia, S.C.
The corporate debtor filed a voluntary chapter 7 petition in South Carolina. Two days later, someone (whom we shall refer to as the plaintiff) filed a lawsuit in federal district court in Georgia against several of the debtor’s insiders and a nondebtor corporate affiliate of the debtor. The debtor was not named as a defendant in the Georgia action.
The debtor and the nondebtor defendants in Georgia filed a notice of removal. As Judge Gasparini said in her December 16 opinion, they “purportedly remov[ed] the matter from the Georgia District Court to this Court [i.e., the bankruptcy court in the District of South Carolina].”
The corporate debtor filed a voluntary chapter 7 petition in South Carolina. Two days later, someone (whom we shall refer to as the plaintiff) filed a lawsuit in federal district court in Georgia against several of the debtor’s insiders and a nondebtor corporate affiliate of the debtor. The debtor was not named as a defendant in the Georgia action.
The debtor and the nondebtor defendants in Georgia filed a notice of removal. As Judge Gasparini said in her December 16 opinion, they “purportedly remov[ed] the matter from the Georgia District Court to this Court [i.e., the bankruptcy court in the District of South Carolina].”
Bifurcated Fee Arrangements Now Seem Impossible in South Carolina
Affirming the bankruptcy court, the district court found that bifurcated fees are excessive and that inadequate disclosures violated Sections 526 and 528.
Placing Title Jointly with a Spouse May Be Avoidable if the Spouse Gave No Consideration
In South Carolina, taking title to property jointly with a spouse can be an avoidable gift under the Statute of Elizabeth.
The Concept of Bifurcated Fee Agreements Approved on Appeal in South Carolina
Reversing the bankruptcy court, the district court decided that a local rule did not bar bifurcated fee arrangements altogether.
Interest Not Required on 100% ‘13’ Plans that Don’t Commit All Disposable Income
Treaties disagree on whether interest is required in 100% chapter 13 plans when the debtor is not devoting all disposable income to the plan.
Bad Faith Permits Dismissal of a Chapter 13 Case with Conditions, Judge Waites Says
Debtor accepted a bar to refiling to avoid dismissal with prejudice of her chapter 13 case.
Chapter 13 Debtor May (Sometimes) Contribute to Retirement Plans
A chapter 13 debtor was permitted to make a fraction of the pension contributions permitted by the IRS Code.
Appeal Heads Toward the Fourth Circuit on Arbitration of Discharge Violations
Eventually, the Supreme Court will decide whether bankruptcy is a unique exception to the general rule that arbitration agreements are rigorously enforced.
Incorporating AAA Rules by Reference Won’t Work with Consumers
Courts are split on the question of whether the incorporation of AAA rules by reference allows arbitrators to decide threshold questions of arbitrability and validity of an agreement to arbitrate.
Paying More on Student Loans Isn’t Unfair Discrimination Automatically
Chapter 13 plan shouldn’t end up increasing student loan debt, judge implies.