Source: https://stus.com/Debtors-and-Creditors
Timestamp: 2019-04-23 20:10:41+00:00

Document:
Court-ordered turnover is equitable remedy that may be invoked to assist judgment creditor to collect on his judgment. Attachment; execution; judgement debtor; levy; show cause order.
Post-petition income that is dependent upon continued services of debtor subsequent to petition does not constitute property of estate.
Under the Bankruptcy Code, a Chapter 7 petition may be dismissed for substantial abuse. Chapter 13. Cramdown. Avoid foreclosure through bankruptcy. House underwater on mortgage. Avoid foreclosure.
While child support payments held in trust for benefit of minor are exempt from attachment, wages earned by debtor are not exempt once paid by employer to debtor. Exempt property; garnishment of wages.
When debtor fails to satisfactorily explain any loss of assets or deficiency of assets to meet debtor liabilities, discharge may be denied. Discharge in bankrupcy.
Student loans may be discharged only if (1) debtor cannot maintain minimal standard of living, (2) additional circumstances indicate state is likely to persist for significant portion of repayment term (3) debtor has made good faith efforts to repay.
Debtor may receive a partial discharge of student loan debt when, although she cannot make showing of undue hardship as to entirety of debt, circumstances exist that warrant some bankruptcy relief. Equitable.
Permitting debtor to voluntarily sign new note to cover pre-petition debt is not per se act to collect. annuity; coercion; promissory note; secured; security.
Bankruptcy court exercise of its in rem jurisdiction to discharge debt does not infringe upon state sovereignty under Eleventh Amendment. ein personam jurisdiction; sovereign immunity.
Rate of interest paid on secured claims in Chapter 13 plan will be set at national prime interest rate, adjusted to cover greater risk of nonpayment by bankrupt debtors. Prime rate.
Chapter 13 plans must be filed in good faith without unreasonably favoring secured creditors over unsecured creditors.
All contingent, liquidated unsecured debts must be considered in determining Chapter 13 eligibility. Contingency; nolo contendere; RICO.
Chapter 11 petitions must be filed in good faith and with valid reorganizational purpose. Chapter eleven.
By his strong-arm powers under § 544(a)(3), bankruptcy trustee may avoid mortgage improperly executed under state law. Avoidance.
Guarantor of debt is creditor as defined by Bankruptcy Code.
Transfer within ninety-day preference period not preferential if for contemporaneous exchange for value, or to pay debt incurred in ordinary course of debtor business, and transfer was in ordinary course of debtor business or ordinary business terms.
Transfer is not preference if parties intend transfer to be contemporaneous and transfer is in fact substantially contemporaneous. Perfect; purchase money security interest.
Equitable subordinationof claim applies if (1) claimant engaged in some type of inequitable conduct, (2) misconduct resulted in injury to other creditors and conferred unfair advantage on claimant, and (3) not inconsistent with Bankruptcy Code.
Court should not confirm Chapter 11 reorganization plan if there is no reasonable likelihood that plan will succeed. Feasability standard.
Conditional plans are not feasible and therefore ineligible for confirmation. Bankruptcy plan; feasibility standard.
SK-Palladin Partners, L.P., Plaintiff v. Platinum Entertainment, Inc.
Value of debtor assets must be properly supported by admissible evidence. Appraisal; foundation; hearsay.
In re Bernhard Steiner Pianos USA, Inc.
When good business reasons exist, court may allow separate classification of substantially similar creditors. Consignment; gerrymandering.
In re PPI Enterprises (U.S.), Inc.
Under Bankruptcy Code, claim is impaired unless plan leaves unaltered the legal, equitable, and contractual rights to which holder of such claim is entitled. Impairment.
In re MJ Metal Products, Inc.
Under § 1129(a), bankruptcy plan may be confirmed if each class of claims accepts plan or treatment of that class is unimpaired.
In re Channel Master Holdings, Inc.
Fees for professional services in Chapter 11 case will be reviewed to assure that services rendered were necessary and appropriate and that fees requested are reasonable.
In re Loral Space & Communications, Ltd.
Section 1104(c)(2) mandates the appointment of examiner at the request of party in interest if debtor qualifying debt exceeds five million dollars.
FCC v. Nextwave Personal Communications, Inc.
Governmental entities may not revoke debtor license solely because the debtor has failed to pay debts dischargeable in bankruptcy.
Two suits raise same claim for res judicata purposes if two claims are based on same nucleus of operative facts.
Bankruptcy plan of reorganization cannot be confirmed if plan purports to release guarantors of debtor debts and creditor objects to release. Preliminary injunction; stay.
Venue of bankruptcy action will be changed only if party requesting such change can show, by preponderance of the evidence, that transfer of venue is in interest of justice, or for convenience of parties.
In re Board of Directors of Multicanal, S.A.
Comity. Bankruptcy court will recognize foreign proceedings only if they do not discriminate against U.S. creditors.
In re Kimbro; Under the bankruptcy means test, a debtor may deduct an ownership expense for a vehicle, regardless of whether the debtor has a debt or lease payment on that vehicle.
In re Sharpe; A discharge under § 727 does not discharge an individual debtor from any debt to the extent that such debt was obtained by false pretenses, false representations, or actual fraud, other than a statement of debtor's financial condition.
In re Hill; for creditor to establish a debt as nondischargeable, demonstrate that debtor made a knowing material written representation, with the intent to deceive, creditor relied, reliance reasonable, damage suffered proximately. Avoid foreclosure.
In re Kagenveama; The term "applicable commitment period" as used in the Bankruptcy Code is relevant only with regard to the phrase "projected disposable income"; if none, the five-year minimum commitment period does not apply.
In re Farrar-Johnson; A bankruptcy trustee's objection to a claimed expense is limited to an argument that the expense does not comply with 11 U.S.C. § 1325(b), not that it is made in bad faith.
In re Pysz; A lien is an avoidable preference if for an antecedent debt, for the benefit of a creditor, filed within the ninety-day preference period, the debtor was insolvent, and the creditor would receive more from lien than a Chapter 7 liquidation.
Chase Manhattan Mortgage Corp. v. Shapiro; A creditor who refinances a debt owed to that creditor may not use the earmarking defense in an action to avoid a lien created by that debt as a preferential transfer; bona fide purchaser; earmark.
In re Qmect; Transfers to a secured creditor during the preference period are not avoidable if the value of the debt in relation to the value of the collateral increases due to interest or late fees; secured creditor; unsecured creditor.
In re TWA Post Confirmation Estate; Statutory liens must be recorded in order to be perfected; perfect; bankruptcy.
In re SI Restructuring; Claims will be subordinated through equitable subordination only to the extent that the debtor or other creditors were harmed by the inequitable conduct.
In re Northwest Airlines Corp; The claims and interests of individual members of a group or committee of equity security holders must be disclosed, because the group represents the interests of its individual members.
In re Dana Corp; provision in compensation plan that calls for payment of bonus regardless of performance is retention bonus, and not completion bonus; business judgment rule; noncompetition agreement.
In re Dana Corp; compensation plan that gives incentives to produce and increase value of estate does not violate Bankruptcy Code limitations on compensation.
Signature Combs, Inc. v. United States; A CERCLA claim may be discharged in bankruptcy if it is based on pre-petition conduct that could fairly be contemplated at the time of the bankruptcy.
In re Metromedia Fiber Network, Inc; Plan provisions that release nondebtors from claims by creditors should be approved only in rare cases in which the release plays an important part in the reorganization plan.
In re SONICblue, Inc; In order to serve as counsel for a debtor, an attorney must be free of all conflicting interests that might impair impartiality and neutral judgment; debenture.
In re Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd; There is a presumption that a debtor's center of main interests (COMI) has limited weight; may be rebutted by a showing debtor has stronger connections with United States.
In re Board of Directors of Telecom Argentina, S.A.; Comity is the main factor in deciding whether to grant recognition of a foreign proceeding, but it will not automatically override other concerns.
McGrath v. Riddell; The authority of an English court to cooperate with a foreign court in an insolvency action comes from the grant of authority in the Insolvency Act, not from the inherent authority of the court.

References: § 544
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 § 1129
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 § 727
 § 1325
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