Holding a Contempt Hearing May Be Ok, but the Remedy Might Violate Automatic Stay
A contempt hearing fell under the ‘criminal’ exception to the automatic stay, but jailing a debtor to coerce payment of a prepetition debt violated the stay, Judge Grossman ruled.
Mortgage Servicer Blew the Statute of Limitations, Judge Grossman Says
New York intermediate appellate courts are split on critical questions about the ‘start date’ for the statute of limitations on mortgage foreclosure.
Immediately Withdrawing the Reference Is ‘Absurd,’ District Judge Says
Defendants in lawsuits by Lehman Brothers are stuck in bankruptcy court until the cases are ready for a jury trial.
Losing Competitive Advantage Doesn’t Justify Redacting a Settlement Agreement
Judge Garrity in New York adopts a narrow view of ‘commercial information’ that may be redacted in a court filing.
Trustee Allowed to Sue for Fraudulent Transfer on an Unenforceable Contract
Long Island’s Judge Grossman follows the Third Circuit by finding limitations on the Rooker-Feldman doctrine.
New York Judge Refuses to Waive Collateralization for Debtors’ Bank Accounts
In a large ‘prepack,’ the debtor was required to spend $80,000 a month for its depository bank to obtain a bond required by Section 345(b).
Rule 2004 Discovery Barred for Use in Litigation Outside Bankruptcy Court
Judge Sean Lane publishes an opinion to nip an improper discovery tactic in the bud.
Religious Contributions Not Considered in Dischargeability of Student Loans
First Amendment doesn’t compel deduction of religious contributions in finding an ‘undue hardship’ justifying the discharge of student loans.
Delay in Appointment of a Foreign Representative Isn’t Fatal to Chapter 15 Recognition
Allegedly repudiating U.S. dollar obligations won’t preclude a finding of property in the U.S., Judge Lane rules.
Freezing a Chapter 7 Debtor’s Bank Account Doesn’t Violate the Automatic Stay
SDNY opinion seems to mean that a bank may freeze a debtor’s entire bank account at filing, without violating the automatic stay.