‘Earmarking’ Only Applies When a Debtor Receives a Loan from a Third Party
Money taken from a debtor’s own retirement account to pay a creditor does not qualify for the earmarking defense, Chief Judge Fehling says.
Tardy Recordation of a Mortgage Not Salvaged by Relation-Back Arguments
A mortgage recorded more than 30 days after closing resulted in a transfer within the preference window.
Judge Declines to Apply ‘Earmarking’ Defense to a GM Lien Avoidance
‘Old’ GM lenders lose again while attempting to avoid the consequences of a $1.5 billion mistake.
Chicago Case May Resolve the Circuit Split on the New Value Defense
Bankruptcy judge reluctantly follows precedent where the Seventh Circuit is in the minority on the new value defense.