Consumer Bankruptcy

It’s Ok to Avoid a Fraudulent Transfer Even if It Makes the Debtor Solvent, Circuit Says

The Second Circuit found discretion to avoid a constructively fraudulent transfer of exempt property that would have enabled the debtor to pay her creditors in full.

A Settlement Term Sheet Signed After Mediation Was an Enforceable Contract

The state law standards for creation of a contract governed enforceability of a term sheet signed after mediation.

Nonpurchase Money Debt Service on a Car Isn’t a Deductible ‘Ownership’ Cost in ‘13’

Courts aren’t fully in agreement, but most hold that non-purchase money debt service on a car isn’t an ‘ownership cost’ deducted from current monthly income to arrive at disposable income in chapter 13.

Personal Injury Settlement Was Not ‘Income’ Payable to Creditors in Chapter 13

Memphis Bankruptcy Judge Denise Barnett reads the BAPCPA amendments as excluding personal injury settlements from the calculation of ‘projected disposable income.’