Rudolph J Di Massa

June 18, 2015 | The Legal Intelligencer

Section 303 of the Bankruptcy Code provides creditors with a mechanism to force a recalcitrant debtor into bankruptcy through the filing of an involuntary petition for relief. Pursuant to this section, an involuntary bankruptcy case may be commenced only under Chapter 7 or 11 of the Bankruptcy Code, and may only be brought against a person otherwise qualified to file a voluntary petition. Where the purported debtor has fewer than 12 creditors, the involuntary petition need only be filed by a single creditor. However, where the purported debtor has 12 or more creditors, the involuntary petition must be filed by at least three creditors.

By Rudolph J. Di Massa Jr. and Jarret P. Hitchings

7 minute read

May 01, 2015 | The Legal Intelligencer

Fraudulent transfer statutes like the Texas Uniform Fraudulent Transfer Act (TUFTA) generally provide an affirmative defense for transferees who can prove that they accepted a transfer in good faith and gave the debtor "reasonably equivalent value" in return.

By Rudolph J. Di Massa Jr. and Chad E. Odhner

8 minute read

April 30, 2015 | The Legal Intelligencer

Fraudulent transfer statutes like the Texas Uniform Fraudulent Transfer Act (TUFTA) generally provide an affirmative defense for transferees who can prove that they accepted a transfer in good faith and gave the debtor "reasonably equivalent value" in return.

By Rudolph J. Di Massa Jr. and Chad E. Odhner

8 minute read

March 20, 2015 | The Legal Intelligencer

In an effort to protect the property of a bankruptcy estate, Section 362(a) of the U.S. Bankruptcy Code imposes an automatic stay on most proceedings against a debtor in bankruptcy. The policy of this section is to grant relief to a debtor from creditors, and to prevent a "disorganized" dissipation of the debtor's assets. (See, e.g., U.S. Securities and Exchange Commission v. Brennan, 230 F.3d 65, 70 (2d Cir. 2000).)

By Rudolph J. Di Massa Jr. and Jarret P. Hitchings

7 minute read

March 20, 2015 | The Legal Intelligencer

In an effort to protect the property of a bankruptcy estate, Section 362(a) of the U.S. Bankruptcy Code imposes an automatic stay on most proceedings against a debtor in bankruptcy. The policy of this section is to grant relief to a debtor from creditors, and to prevent a "disorganized" dissipation of the debtor's assets. (See, e.g., U.S. Securities and Exchange Commission v. Brennan, 230 F.3d 65, 70 (2d Cir. 2000).)

By Rudolph J. Di Massa Jr. and Jarret P. Hitchings

7 minute read

February 06, 2015 | The Legal Intelligencer

In Harrington v. Simmons (In re Simmons), 513 B.R. 161 (Bankr. D. Mass. 2014), the U.S. Bankruptcy Court for the District of Massachusetts considered the U.S. trustee's request that a Chapter 7 debtor be denied a discharge for his failure to maintain adequate financial records or satisfactorily explain the loss of his assets.

By Rudolph J. Di Massa Jr. and James G. Schu Jr.

7 minute read

February 06, 2015 | The Legal Intelligencer

In , 513 B.R. 161 (Bankr. D. Mass. 2014), the U.S. Bankruptcy Court for the District of Massachusetts considered the U.S. trustee's request that a Chapter 7 debtor be denied a discharge for his failure to maintain adequate financial records or satisfactorily explain the loss of his assets.

By Rudolph J. Di Massa Jr. and James G. Schu Jr.

7 minute read

December 19, 2014 | The Legal Intelligencer

The "American rule" is a well-defined legal principle applied by courts throughout the United States that holds each party to a dispute responsible for paying its own attorney fees. This principle is, however, subject to a number of exceptions that effectively allow a prevailing party to recover its own attorney fees from a losing party. For example, federal and state statutes increasingly authorize a prevailing party to recover costs from its adversary in certain types of actions. Likewise, contracting parties often incorporate "fee shifting" terms that provide for recovery of litigation costs by one party in the event of litigation on the contract. In other circumstances, a court exercising its own discretion may award a prevailing party its attorney fees as part of the judgment.

By Rudolph J. Di Massa Jr. and Jarret P. Hitchings

8 minute read

September 19, 2014 | The Legal Intelligencer

On April 14, in In re Free Lance-Star Publishing, 512 B.R. 798 (Bankr. E.D. Va. 2014), the U.S. Bankruptcy Court for the Eastern District of Virginia considered the objection of Chapter 11 debtors to a secured creditor's right to credit bid at a sale of the debtors' assets pursuant to 11 U.S.C. Section 363. The court concluded that the secured creditor—which sought to acquire the debtors rather than collect on the loan—had engaged in inequitable conduct with the intention of depressing the value of the debtors' assets for its own benefit as a buyer, rather than enhance value for the benefit of all creditors. Consequently, the court held that cause existed to limit the secured creditor's right to credit bid at the Section 363 sale.

By Rudolph J. Di Massa Jr. and James G. Schu Jr.

8 minute read

August 01, 2014 | The Legal Intelligencer

When an individual debtor files a petition under the Bankruptcy Code, all property in which the debtor has a legal or equitable interest becomes part of the debtor's bankruptcy estate. Creditor claims against the debtor are generally recoverable from property and funds included in this estate.

By Rudolph J. Di Massa Jr. and Jarret P. Hitchings

8 minute read