Recent Decisions Bar Cramdown on Mixed-Use Principal Residences
Newark and Buffalo judges read 1322(b)(2) narrowly and in favor of mortgage lenders.
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Clark v. Rameker’s Gaping Loophole Allows Debtors to Retain Inherited IRAs
State law overrides ‘significant policy concerns’ in Supreme Court decision.
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Plan’s Treatment of Secured Claim Trumps Failure to Redeem on Time
Courts split on whether failure to redeem on time is fatal in reorganization.
Third Circuit Insulates the IRS from Preference Claims for Trust Fund Taxes
Aggregation was not permitted to surmount the $6,225 minimum for preferences.
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Third Circuit Tries to Synthesize Illinois Law on Veil Piercing and Unjust Enrichment
Third Circuit relies on a Seventh Circuit opinion to understand Illinois law.
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Tender Offers in Bankruptcy Pass Muster in the Third Circuit
Third Circuit holds again that equal treatment is not required in settlements.
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Subjective Test Without Hindsight Employed to Determine Adequate Capitalization
Later bankruptcy is no proof of prior inadequate capitalization.
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Valuation Date Chosen to Avoid ‘Gamesmanship’
Early valuation aids a debtor in stripping off during an up market.
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Judges Sontchi and Drain Agree on Treatment Among Undersecured Creditors
No need for venue-shopping between Delaware and New York for undersecured creditors.
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Chapter 13 Equated with Chapter 11 on Derivative Standing for Creditors
Creditor can sue when a chapter 13 trustee won’t or can’t.