The scope of Bankruptcy Court powers is again before the Supreme Court this term, although no former Playmates or wealthy octogenarians are involved this time around.
Various government programs are available to assist individuals in purchasing real estate. Naturally, wherever there is government, there are rules—many rules.
When a legal right depends on the capacity in which a party purports to act, it won’t be long before the lawyers are talking about “hats.”
The general rule is a bankruptcy does not discharge any fine or penalty payable to a governmental unit. Specifically in Chapter 7 section 523(a)(7) it forbids the discharge of civil penalties or criminal fines.
No Proof, No Claim: Delaware District Court Holds That Motion for Relief from Stay is Not an “Informal” Proof of Claim
Those in the bankruptcy world know that proofs of claim are important. Most also know that the standards for proofs of claim are pretty low.
Well, returning briefly to my series on municipal bankruptcies – you really can’t write regularly about pensions in this day and age without addressing, even if unwillingly, that topic – the NY Times has a very interesting article on Stockton, California’s effort to leave bankruptcy, by basically shorting bondholders while leaving the ever rising pension costs that was one of the key drivers of its insolvency untouched.
Another wrinkle has emerged in the ever-evolving business of buying creditors’ claims against bankrupt entities. In a recent decision the Court of Appeals for the Third Circuit held that a debtor can use Bankruptcy Code section 502(d) to disallow a claim from a creditor that had received preferential payments within 90 days of the bankruptcy, even if that claim were subsequently sold to an innocent third party. In re KB Toys Inc., No. 13–1197, — F.3d — (3d Cir. November 15, 2013).
A Michigan bankruptcy judge ruled yesterday that Detroit is eligible for protection under Chapter 9 of the U.S. Bankruptcy Code, overruling numerous objections filed by labor unions, pension funds and other interested parties. Almost immediately following the ruling, a notice of appeal was filed by Counsel 25 of the American Federation of State, County & Municipal Employees (“AFSCME”).
Chapter 15 of the Bankruptcy Code provides a relatively straightforward procedure to obtain recognition of a “foreign proceeding” in the United States.