December 22, 2022 | The Legal Intelligencer
Clarifying 'Undue Hardship': Discharge Remains Possible, but Not EasyOn Nov. 17, Biden's administration published instructive guidance to the Department of Education and the Department of Justice on how to treat student loan debt relief in bankruptcy court by standardizing the burden of "undue hardship" under Section 523(a)(8) of the Bankruptcy Code.
By Rudolph J. Di Massa and Diane J. Kim
7 minute read
November 10, 2022 | The Legal Intelligencer
Successor Liability Claims Constitute a 'Property Interest' for Purposes of a 363 Sale in BankruptcyIn In re Norrenberns Foods, Case No. 21-30825, (Bankr. S.D. Ill. July 8, 2022), the U.S. Bankruptcy Court for the Southern District of Illinois had occasion to rule on a creditor's objection to the sale of a debtor's assets.
By Rudolph J. Di Massa Jr. and Malcolm Bates
9 minute read
September 29, 2022 | The Legal Intelligencer
NJ Bankruptcy Court: Chapter 13 Debtor Lacks Standing to Bring Avoidance ActionBecause the debtor's objective was solely to recover title to the property in order to preserve her homestead exemption, and because the relief the debtor sought was not limited to the value of her exemption, the Nealy court held that the debtor could not pursue her requested relief.
By Rudolph J. Di Massa Jr. and Elisa Hyder
7 minute read
August 11, 2022 | The Legal Intelligencer
Bankruptcy Court: Willful and Malicious Injuries Will Restrict a Debtor's 'Fresh Start'In re McGinn provides an example of a bankruptcy court's duties to weigh the often competing interests between the general policy of a "fresh start" conferred through a successful bankruptcy case against interests of fairness to parties who have suffered significant injuries willfully caused by the debtor.
By Rudolph J. Di Massa Jr. and Drew S. McGehrin
9 minute read
June 24, 2022 | The Legal Intelligencer
Alternative Methods for the Retention of Estate Professionals Are Appropriate in 'Unusual Cases'Section 327(a) of the Bankruptcy Code allows debtors to employ estate professionals. The section requires these professionals to be "disinterested persons" who "do not hold or represent an interest adverse to the bankruptcy estate."
By Rudolph J. Di Massa Jr. and George W. Fitting
10 minute read
February 09, 2022 | The Legal Intelligencer
Section 502(b)(6): A Ceiling, Not a Method for Calculating Actual DamagesIn In re East Penn Children's Learning Academy, (Bankr. E.D. Pa. Dec. 3, 2020), the U.S. Bankruptcy Court for the Eastern District of Pennsylvania made clear that Section 502(b)(6) of the Bankruptcy Code provides a statutory limitation—rather than a formula for the calculation—of a landlord's actual damages in the event of its tenant's breach.
By Rudolph J. Di Massa Jr. and Diane J. Kim
7 minute read
December 23, 2021 | The Legal Intelligencer
In Bankruptcy, Rejection of Prepetition Contracts Is Not AutomaticThe bankruptcy court found that because the debtor was already subject to a state court-specific performance order compelling it to take the ancillary steps necessary to close the sale, the contract was no longer executory and could not be rejected.
By Rudolph J. Di Massa Jr. and Malcolm Bates
8 minute read
November 11, 2021 | The Legal Intelligencer
Panel Affirms Dismissal of Bankruptcy Filed by Owners of Defunct Marijuana CompanyIn Burton v. Maney (In re Burton), 610 B.R. 633 (B.A.P. 9th Cir. 2020), the Bankruptcy Appellate Panel of the U.S. Court of Appeals for the Ninth Circuit…
By Rudolph J. Di Massa Jr. and Elisa Hyder
8 minute read
October 07, 2021 | The Legal Intelligencer
Avoidance Powers Cannot Be Used to Generate Windfalls for DebtorsThe Bankruptcy Code confers upon debtors or trustees, as the case may be, the power to avoid certain preferential or fraudulent transfers made to creditors within prescribed guidelines and limitations.
By Rudolph J. Di Massa Jr. and Drew S. McGehrin
9 minute read
August 12, 2021 | The Legal Intelligencer
Lender's Abbreviation of Debtor's Middle Name on Financing Statements Was 'Seriously Misleading'Because the financing statements identified the individual debtor with his middle name abbreviated, the court concluded that the financing statements were defective and, therefore, that the lender's security interest had not been perfected.
By Rudolph J. Di Massa Jr. and Keri L. Costello
8 minute read