Category Archives: Bankruptcy
Supreme Court Clarifies “Stern Claims” in Key Decision on Bankruptcy Court Power
Bellingham Insurance Agency (“Bellingham”) ceased operations in 2006 and subsequently transferred assets and operations to a successor, Executive Benefit Insurance Agency, Inc. (“Executive”). Bellingham filed under Chapter 7 in the Western District of Washington later in 2006 . In 2008, the Bellingham trustee, Peter Arkison (the “Trustee”), filed an adversary proceeding against Executive and other insiders of Bellingham seeking the avoidance of fraudulent transfers, a declaratory judgment that Executive is a successor in interest to Bellingham and substantive consolidation of certain defendant entities. The Bankruptcy Court subsequently granted the Trustee’s motion for summary judgment. The District Court for the District of […]
Law v. Siegel – SCOTUS Limits the Application of 11 U.S.C. § 105
An important issue that is often addressed in Chapter 7 bankruptcy cases is whether the debtor asserts a “homestead” exemption to attempt to protect their home equity from becoming property of the bankruptcy estate. Recently, an intriguing decision was handed down by the United States Supreme Court. The important message gleaned from the court was that 11 U.S.C. § 105 cannot be invoked while disregarding other express provisions of the Bankruptcy Code.
IRVING PICARD, MADOFF TRUSTEE, IS AT IT AGAIN
Did you miss him? Irving Picard, the Trustee liquidating Bernard L. Madoff Investment Securities LLC, was back in the news recently. U.S. Bankruptcy Judge Burton Lifland of the Southern District of New York concluded that “time-based” damages to victims of the massive Ponzi scheme should not be awarded. The ruling means that Madoff victims who still stand to recover from the liquidation will not have their distributions adjusted for interest or inflation. In anticipation of the decision, Picard held approximately $1.36 billion in reserve that can now be distributed more quickly, albeit at his desired “discount.” Although Picard has already […]
Delaware Bankruptcy Court Amends Standing Order of Reference
In an apparent response to the Supreme Court’s decision in Stern v. Marshal, 131 S. Ct. 2594, 180 L. Ed. 2d 475 (2011), on February 29, 2012 the United States District Court for the District of Delaware issued an Amended Standing Order of Reference stating that if a bankruptcy judge or district judge determines that entry of a final order or judgment by a bankruptcy judge would not be consistent with Article II of the United States Constitution, and determined to be a core matter, the bankruptcy judge shall hear the proceeding and submit findings of fact and conclusions of […]
