LexisNexis Core Overview: Nonprofessional trustee was improperly denied a discharge of a debt in bankruptcy based on fiduciary defalcation under 11 U.S.C.S. § 523(a)(4) [ an annotated version of this statute is available to lexis.com subscribers ] since the trustee repaid loans for the trustee's personal gain from a trust with interest and there was no finding of wrongful intent, or gross recklessness, as...

LexisNexis Core Overview: Sales free of liens under 11 U.S.C.S. § 1129(b)(2)(A) [ an annotated version of this statute is available to lexis.com subscribers ] had to satisfy § 1129(b)(2)(A)(ii)'s requirements, not those of both § 1129(b)(2)(A)(ii) and (iii), thus, the debtors could not sell property free of liens under § 1129(b)(2)(A) without allowing a lienholder bank to credit-bid, as required...

LexisNexis Core Terms: postpetition, administrative expenses, farmer, entity, income taxes, tax liability, farm, entitled to priority, bankruptcy code, capital gains, incur, unsecured claims, collectible, taxed, dischargeable, tax claims, separately, treating, holder, full payment, tax return, bankruptcy estate, bankruptcy proceedings, federal income, federal taxes, fall outside, confirmation, prepetition, bankruptcy...

LexisNexis Overview: Bankruptcy court did not err in denying confirmation of Chapter 11 debtors' plans on the basis that they did not comply with the specific requirements of 11 U.S.C.S. § 1129(b)(2)(A)(ii) because debtors could not sell encumbered assets free and clear of liens without allowing the secured creditors to bid their credit at the asset auctions. Counsel: For In the Matter of: RIVER ROAD...

LexisNexis Core Terms: counterclaim, final judgment, public rights, bankruptcy proceedings, plurality opinion, proof of claim, adjudicate, judicial power, delegation, defamation claim, quotation marks omitted, adjunct, bankruptcy estate, jurisdictional, common law, bankruptcy case, private right, adjudicatory authority, tribunal, tenure, broker, Bankruptcy Act, tortious interference, personal injury tort, defamation,...

LexisNexis Overview: Bankruptcy debtor improperly claimed a vehicle ownership expense in calculating disposable income to pay to creditors under 11 U.S.C.S. § 707(b), since the debtor could only deduct the expense if it was applicable to the debtor's financial circumstances, and the debtor made no loan or lease payment on the vehicle to render the expense applicable. Judges: KAGAN, J., delivered ...

LexisNexis Overview: exemption, exempt, market value, property claimed, valuation, dollar amounts, estimate, column, interested party, full value, timely objection, dollar value, fresh start, kitchen, notice, estimated, assigns, cap, bankruptcy estate, statutory limits, prescribe, exempted, reclaim, auction, listing, amicus, curiae, objectionable, wildcard, Rule Bkrtcy Proc Official Form Judges: THOMAS, J., ...

LexisNexis Overview: "Forward looking" approach could be used in calculating "projected disposable income" (PDI) under 11 U.S.C.S. § 1325(b)(1)(B) as courts had discretion to account for known or virtually certain changes in a debtor's income. Use of Chapter 13 debtor's current income, not an inflated figure due to a prior one-time employer buyout, was affirmed. Counsel: Jan Hamilton...

LexisNexis Overview: The Bankruptcy Act of 1978's assignment of jurisdiction to bankruptcy courts of all civil proceedings arising under or related to cases filed under Title 11 was found to have violated art. III of the United States Constitution. Counsel: John L. Devney argued the cause for appellant in No. 81-150. With him on the briefs was Jeffrey F. Shaw. Solicitor General Lee argued the cause for the...

LexisNexis Overview: Because Chapter 11 debtors were proceeding to sell assets free and clear under 11 U.S.C.S. § 1129(b)(2)(A)(iii), secured lenders had no right to credit bid at the auction sale of the collateral; thus, the district court's reversal of the bankruptcy court's holding that the lenders had to be allowed to credit bid was affirmed. Counsel: David F. Abernethy, Andrew J. Flame, Andrew...

LexisNexis Overview: Because Chapter 11 debtors were proceeding to sell assets free and clear under 11 U.S.C.S. § 1129(b)(2)(A)(iii), secured lenders had no right to credit bid at the auction sale of the collateral; thus, the district court's reversal of the bankruptcy court's holding that the lenders had to be allowed to credit bid was affirmed. Counsel: For BANK OF NEW YORK TRUST COMPANY NA, as...

LexisNexis Overview: Creditors' claim against a corporate debtor was disallowed where the claim was based upon an allegation that employees and agents of the debtor committed fraud against the creditors and converted their assets, as release of the employees and agents by operation of state law operated as a full release of the creditors' claim against the debtor. Counsel: For Atlas Computers, Inc., Owasso...

LexisNexis Overview: Under 11 U.S.C.S. § 707(b)(2)(A)(ii)(I), appellant debtor, an above-median income debtor seeking bankruptcy relief under chapter 13, did not get to deduct from his projected disposable income (amounts that would otherwise have been available to unsecured creditors) a vehicle "ownership cost" for a vehicle he owned free and clear. Counsel: Christopher P. Burke, Chris P. Burke...

Lexis.com Core Terms: student loan, undue hardship, void, confirmation, adversary proceeding, notice, confirming, summons, jurisdictional, self-executing, confirm, Bankruptcy Rules, Rule Bkrtcy Proc, failure to serve, actual notice, confirmed, initiate, void judgments, process rights, legal error, final judgment, proposing, finality, failed to object, applicable provisions, dischargeable, discharging, deprivation...

Lexis.com Core Terms: debt relief, advertisement, advice, incur, disclosure requirements, consumer, disclosure, misleading, abusive, bankruptcy petition, preparer, deception, contemplation of bankruptcy, advising, commercial speech, contemplation, advertising, agencies, law firm, legislative history, debt-relief-agency, impelling, narrowly, professional conduct, advertiser, prior to filing, partnership, inherently...

Genuine issue of material fact existed as to whether a husband received fair consideration for $ 45,000 his wife transferred to the husband's stepmother under a property settlement agreement which precluded the court from granting summary judgment on a Chapter 7 trustee's claims that the transfer was avoidable under 11 U.S.C.S. §§ 547 and 548. Lexis.com subscribers can view the enhanced version of...

Property which a Chapter 11 debtor held in segregated accounts for a former customer that was involved in exchanging property under 26 U.S.C.S. § 1031 was not held in trust at the time the debtor declared bankruptcy, and it was not excluded from the debtor's bankruptcy estate under 11 U.S.C.S. § 541(d). Lexis.com subscribers can view the enhanced version of In re Landamerica Financial Group, Inc.

Chapter 7 trustee was allowed to avoid interests in two parcels of real property a debtor transferred to a trust for the benefit of his wife as part of a divorce settlement, as preferential transfers to an insider under 11 U.S.C.S. § 547, and to recover both parcels from the debtor's ex-wife under 11 U.S.C.S. § 550 for debtor's bankruptcy estate. Lexis.com subscribers can view the enhanced version...

Bankruptcy court erred in granting summary judgment for debtors because, assuming creditor was recipient of general assignment of default judgment against debtors, it could stand in shoes of assignor and pursue nondischargeability action under 11 U.S.C.S. § 523(a)(2)(B), based on materially false written statements intended to deceive assignor. Lexis.com subscribers can view the enhanced version of In re Boyajian...

Bankruptcy injunction barring actions against insurers of the bankruptcy debtor's asbestos liability applied to preclude claims that the insurers concealed the dangers of asbestos, since the claims clearly related to the insurers' coverage of the asbestos liability and the injunction was not limited to actions based on the debtor's liability. Lexis.com subscribers can view the enhanced version of The Travelers...

A debtor could not rely on 11 U.S.C.S. § 1146(a) to avoid a state revenue department's stamp taxes because the debtor had transferred its assets before its Chapter 11 plan was confirmed by the bankruptcy court; 11 U.S.C.S. § 1146(a) did not apply to pre-confirmation transfers. Lexis.com subscribers can view the enhanced version of Florida Dept. of Revenue v. Piccadilly Cafeterias. Non-subscribers...

City was potentially entitled to utilize 11 U.S.C.S. § 365 to reject executory collective bargaining agreements with public employee unions because it was authorized under Cal. Gov’t. Code § 53760 to file a chapter 9 petition. State labor laws applicable outside of bankruptcy context were preempted. Lexis.com subscribers can view the enhanced version of In re City of Vallejo.

Lessee that performed work for the federal government at a Department of Defense facility could bring an action under 42 U.S.C.S. § 9607(a) of CERCLA to recover costs of cleaning up contamination at the site; any private party, including a potentially responsible party, could bring a cost recovery action under § 9607(a)(4)(B). Lexis.com subscribers can view the enhanced version of United States v. Atl. Research...