New York

Courts Split on Paying Chapter 13 Trustee Fees in Cases Dismissed Before Confirmation

Long Island judge finds no ambiguity in two statutes that other courts have found ambiguous when read together.

On a Split, Long Island Judge Allows Selling a Home Despite the Homeowner’s Objection

A homestead exemption does not bar selling a home when the chapter 7 debtor has no equity in the property, Judge Robert Grossman says.

Fraudulent Transfer Law Doesn’t Victimize Innocent Parties, Judge Wiles Says

Ownership of a bank account isn’t enough by itself to make the account holder the initial transferee of a fraudulent transfer.

New York Judge Nixes $2.45 Billion in DIP Financing as a Sub Rosa Plan

Even though the price and terms were ‘entirely fair,’ Bankruptcy Judge Garrity disapproved DIP financing that would have locked in the right of controlling shareholders to purchase new stock at a 20% discount.

Rejection Didn’t Rescind Sale of Future Credit Card Receivables, New York Judge Says

Bankruptcy Judge Glenn hints that the lenders and the debtor should mediate tough questions about the enforceability of a $150 million ‘sale’ of future credit card receivables.

Student Loan Servicer Sanctioned $378,000 for Civil Contempt by New York Judge

Bankruptcy Judge Martin Glenn imposed civil contempt sanctions for ignoring court orders over five years.

Trustee Ordered to Disgorge Fees for Failing to Pay the U.S. Trustee’s Fees

The power to order disgorgement of fees arose under Section 105(a), not from Sections 330 or 331.

No ‘Core’ Jurisdiction to Protect Nondebtors with Injunctions, N.Y. District Judge Says

New York district judge differs with the Third Circuit on a bankruptcy court’s constitutional power to issue nondebtor, third-party releases.

Using a Casino’s ATM Makes the Casino the Initial Transferee, Not a ‘Mere Conduit’

New York judge gives casinos the responsibility for assuring that a gambler’s use of a corporate ATM card is not a fraudulent transfer.

Majority of Courts Still Permit Small-Dollar Avoidance Suits in the Debtor’s Home Court

New York district judge agrees with the ABI Journal: Congress did not succeed in requiring trustees to file small-dollar avoidance actions in the defendant’s district.

Pages