Consumer Bankruptcy, Chapter 7, Trustees

Fifth Circuit: Preference Claims Are Property of the Bankruptcy Estate that Can Be Sold

Jones Day on 5/31/2024

A debtor's non-exempt assets (and even the debtor's entire business) are commonly sold during the course of a bankruptcy case by the trustee or a chapter 11 debtor-in-possession ("DIP") as a means of augmenting the bankruptcy...more

The Dead (and Their Bankruptcy Estate) Cannot Hold Property Under Recent Ninth Circuit Bankruptcy Appellate Panel Decision

Greenberg Glusker LLP on 12/3/2021

I recently had the pleasure of working with my colleagues Benny Roshan and Jillian Berk on an appeal before the Ninth Circuit Bankruptcy Appellate Panel (B.A.P), which tested the ever-evolving intersection between bankruptcy...more

Bankruptcy Court Permits Chapter 7 Trustee to Utilize IRS’ Look-Back Period in Seeking to Avoid Fraudulent Transfers

Kramer Levin Naftalis & Frankel LLP on 2/9/2021

In its recent decision in Mitchell v. Zagaroli, Adv. Pro. No. 20-05000, 2020 WL 6495156 (Bankr. W.D.N.C. Nov. 3, 2020), the Bankruptcy Court for the Western District of North Carolina held that the Chapter 7 trustee could...more

Married Couple’s Acquisition of Title as Joint Tenants Does Not Rebut the Presumption of Community Property

Snell & Wilmer on 12/2/2020

In re Brace, 470 P.3d 15 (Cal. 2020), a California married couple acquired real property with community funds, and took title as “husband and wife as joint tenants.” When the husband filed a chapter 7 petition in bankruptcy,...more

Bankruptcy Court Within Fourth Circuit Permits Fraudulent Conveyance Claims to Move Forward Under IRS 10-Year Reach Back Period

Miles & Stockbridge P.C. on 11/20/2020

A recent opinion by the United States Bankruptcy Court for the Western District of North Carolina kept alive a bankruptcy trustee’s fraudulent conveyance claims based on, in part, the Internal Revenue Code (“IRC”) 10-year...more

First Circuit Clarifies When College Tuition Can Be Considered A Fraudulent Transfer

Husch Blackwell LLP on 12/13/2019

Last month the First Circuit Court of Appeals became the first federal appellate court to take up the matter of whether college tuition paid for an adult child by a bankrupt parent constitutes a fraudulent transfer. Chief...more

SDNY Joins the Rush Party, Rules for Trustee in Another Child Tuition Clawback Case

BCLP on 12/5/2018

We at the BCLP Global Insolvency and Restructuring Developments (the GRID) continue to watch and cover the growing jurisprudence of trustees seeking to recover pre-petition tuition payments made by a debtor parent to support...more

Trustee Of Duane Martin And Tisha Martin Campbell’s Chapter 7 Case Brings Suit To Recover Property Subject To Loan From Will &...

Fox Rothschild LLP on 9/20/2018

In entertainment and bankruptcy news, the chapter 7 trustee for the bankruptcy filed by former celebrity couple Duane Daniel Martin and Tisha Martin Campbell (the “Debtors”), brought suit against Roxe, LLC (“Roxe”) and others...more

Using Trusts to Protect Assets in Bankruptcy

Nelson Mullins Riley & Scarborough LLP on 5/31/2018

In In re Blasingame, 2018 WL 2084789 (B.A.P. 6th Cir. May 3, 2018), the Sixth Circuit Bankruptcy Appellate Panel demonstrates that trusts can be used to protect assets from the reach of creditors in the context of a...more

Ninth Circuit Bankruptcy Appellate Panel Holds That Check Written Before Bankruptcy Filing, But Honored After Bankruptcy Is...

Rosenberg Martin Greenberg LLP on 4/18/2018

“Transfers,” and when they occur, are important under the Bankruptcy Code for a number of reasons. Trustees may recover as a “preference” any “transfer…to of for the benefit of a creditor…for or on account of an antecedent...more

Mass. Bankruptcy Court: Mortgage with Incorrect Legal Description Is Avoidable by Chapter 7 Trustee

Goodwin on 2/13/2017

On January 4, 2017, the United States Bankruptcy Court for the District of Massachusetts found that a Chapter 7 Trustee could avoid the debtor’s mortgage and preserve it for the benefit of the bankruptcy estate. The opinion,...more

Strong Arm Powers: Does Sovereign Immunity Trump a Claim Based on State Law?

Troutman Pepper on 9/9/2015

Kohut v. Wayne County Treasurer (In re Lewiston), 528 B.R. 387 (Bankr. E.D. Mich. 2015) – The debtor made property tax payments on behalf of several real estate projects. The chapter 7 trustee sought to recover those...more

Settlement Proceeds: When Does Cash Become Quasi Real Estate?

Troutman Pepper on 9/2/2015

Farmer v. Citizens Nat’l Bank of Athens (In re Davis), 528 B.R. 757 (Bankr. E.D. Tenn. 2015) – A chapter 7 trustee sought a court determination that the trustee had a superior claim to settlement proceeds arising from...more

Reversing the Trend: Will Congress Act to Except College Tuition Payments from Clawback in Bankruptcy? - Congress Weighs...

Holland & Knight LLP on 7/21/2015

A trend emerging in consumer bankruptcy cases around the U.S. is causing concern for many parents, students and undergraduate schools. As was reported by The Wall Street Journal in an article published on May 5, 2015, an...more

Delayed Recording: Sometimes Late Is No Better Than Never

Troutman Pepper on 9/24/2014

Collins v. JP Morgan Chase Bank, N.A. (In re Flannery), 513 B.R. 1 (Bankr. D. Mass. 2014) – A chapter 7 trustee sought to avoid as a preference a mortgage that was recorded within 90 days before a bankruptcy filing....more

Affiliate Transfer: Fraudulent Conveyance or Unwinding Resulting Trust?

Troutman Pepper on 8/13/2014

A chapter 7 trustee sought to set aside as a debtor’s transfer of her interest in property held jointly with her husband to her husband’s corporation as a constructive fraudulent conveyance. The bankruptcy court agreed that...more

Consumer Bankruptcy › Chapter 7 › Trustees

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