Unlike Yesterday’s Story, a Two-Nondebtor Lawsuit Didn’t Have ‘Related To’ Jurisdiction
Unlike the case we reported on yesterday, there was no ‘related to’ jurisdiction because the outcome of a suit between two nondebtors wouldn’t have a direct effect on the bankrupt estate.
A Suit Between Two Nondebtors Might Have ‘Related To’ Jurisdiction
There could be ‘related to’ jurisdiction if a lawsuit between nondebtors might reduce claims against the bankrupt estate.
Default Rates Imposed Before Filing Must Be Cured to Assume a Loan Agreement
Monetary defaults, including default rates and fees, must be cured before a debtor may assume a loan agreement, New York’s Judge Bentley rules.
A Contract to Produce a TV Series Wasn’t a Personal Services Contract
Contracts with corporations aren’t likely to be personal services contracts.
Eligibility for Subchapter V Is Liberal, but Not Wide Open
Courts are split on whether the debt providing eligibility for Sub V must have arisen from a business that was active on the filing date.
Trustee Admonished for Filing Suit Reflecting a ‘Disturbing Lack of Judgment’
Providing an adult child with room and board in the family home is not a fraudulent transfer.
Lack of a Common Plan or Scheme Means It Isn’t Single Asset Real Estate
A two-story commercial condominium wasn’t ‘single asset real estate,’ Judge Mastando holds.
New York Court Holds: Claims for Electricity Don’t Get Priority Under Section 503(b)(9)
Courts are divided on whether electricity supplied within 20 days of bankruptcy gives rise to an administrative priority claim.
Section 546(g)'s Safe Harbor Doesn’t Apply in an Assignment for the Benefit of Creditors
A federal district judge in New York holds that the safe harbor in Section 546(g) doesn’t preempt state fraudulent transfer laws.
Lack of Reliance on Representation Isn’t a Defense to a Constructive Fraudulent Transfer
Damages for a constructively fraudulent transfer were the difference between what the buyer paid and what the business was really worth, based on accurate income and expenses.