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].”
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.