Bad Faith Filings in Chapter 15 Can Be Entitled to ‘Foreign Main Recognition,’ BAP Says
The bankruptcy court has no discretion to deny recognition in chapter 15 if the requirements of Section 1517(a) have been met.
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The Two-Year Complaint Deadline Can’t Be Extended Without Notice to Defendants
Equitable tolling can extend the two-year deadline for filing complaints, but the deadline can’t be extended without notice to the defendants, even if they are unknown or unknowable.
District Court Says Chapter 13 Trustee Is Paid Even if Dismissal Precedes Confirmation
District judge in Idaho finds no ambiguity in a statute that doesn’t explicitly say whether a chapter 13 trustee is paid if the case is dismissed before confirmation.
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Chapter 13 Plan that Cures Arrears Pays Interest on Unpaid Principal, Judge Faris Says
Interest, if any, due on arrears cured under a plan derives from the loan documents and state law.
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Debtor Can’t Avoid and Preserve a Lien for Tax Penalties for the Debtor’s Benefit
A trustee can avoid and preserve a tax lien for the benefit of unsecured creditors, but a debtor can’t if the debtor hasn’t paid the taxes, the Ninth Circuit says.
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Expanding on Midland Funding, a BAP Disallows Fee-Shifting for Time-Barred Claims
A state statute imposing sanctions for groundless claims is procedural and preempted by federal law with regard to fee-shifting.
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Earned Income Tax Credit Held Exempt by the Ninth Circuit BAP
The EITC and the ACTC are both exempt in states with broadly defined “public assistance,” the Ninth Circuit BAP says.
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Ninth Circuit Takes a Hard Line on What’s an Equivalent Tax Return for Dischargeability
Interpreting the hanging paragraph in Section 523(a), the Ninth Circuit sticks to the Beard test in deciding whether something is close enough to a tax return to justify discharging a tax debt.
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Circuit Panel Urges En Banc Reconsideration of the Vanishing Homestead Exemption
A panel of the Ninth Circuit implicitly urged en banc reversal of two decisions holding that a homestead exemption is lost if the proceeds are not reinvested within the time required by state law, even if the exemption was valid on the filing date.
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Ninth Circuit Affirms the BAP on the Outer Limits of the Discharge Injunction
Deducting a discharged loan to a child from her inheritance didn’t violate the discharge injunction.
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