Archives of "Notes On Debtor/Creditor Relations"

April 1996Non-Compete Covenant Survives Bankruptcy
Bank Can Recover Attorney’s Retainer
Bad Debt Deduction Disallowed
June 1996Foreclosure Fails to Launder Assets
Payments to Partners Escape Bank
August 1996Tax Penalties Subordinated?
Retention of Preferential Payments
October 1996Creditors Get Non-Compete Payments
IRS Errors Preclude Collection
Disclosure of Bankruptcy Required
December 1996Dangerous Dunning Letter
Employee Withholding Unpaid
Member Bankruptcy Dissolves Limited Partnership
February 1997Assets Freed from Pension Liability
Guarantor Pays First
Court Stops Abuse
April 1997What is a Loan Commitment Worth?
Creditor Recovers Attorney’s Fees
Discharging Tax Debt
June 1997IRS Trumps Secured Lender
Withdrawal Liability Discharged
Bankrupt Pays Full Rent
August 1997What’s it Worth to You?
No Cap on Post-Bankruptcy Lease
Doctor’s Goodwill Valued
October 1997Payment of Real Property Transfer Tax Excused
No Chapter 11 for Partnership
December 1997Security Interest in Software Unperfected
Employee Termination Improper
Guarantor’s Liability for Rent Capped
February 1998When Stay Means Move
Enforcement of Stay Waivers
April 1998Treble Damages Not Discharged
Late Payment Is Ordinary
Post-Bankruptcy Rent Reduced
June 1998Judgment Creditor Beats Tax Lien
Tax Planning for Bankruptcy Reversed
August 1998Guaranty to Bank Voided
No GOB Sale in Bankruptcy
October 1998Standby Letter of Credit Creates Preference
December 1998Subcontractor Trumps Bank
One Hand Gives, the Other Hand Takes
You Can Always Pay the Bank
February 1999Bank Leaves Surety Empty Handed
Title Insurer Punished
No Discharge for Contractor
April 1999Landlord Gets Attorney’s Fees
Financing Statement Inadequate
Subchapter S Election Reversed
June 1999Bank Thwarts Real Estate Developer
August 1999Earmarking Doctrine Inapplicable
Bankruptcy Cuts Off IRS Lien
Security Interest Defeated
October 1999No Tax Relief for Developer
A Lien without a Loan
Partnership Law Trumps Bankruptcy
December 1999Tax Lien Reaches Trust
Claim Against Guarantor Limited
Insurance Agent Keeps Commission
February 2000Bankruptcy Trustee Owned Successor Liability Claim
How soon is “Prompt”?
Collateral Returned to Borrower
April 2000No WARN Act Liability
Director Liability for Officer’s Acts
Restrictive Covenant Enforced
June 2000Bank Avoids Collateral Preservation Cost
Trust Fund Taxes Paid First
August 2000Indemnification Discharged
After-Acquired Property Clause Enforced
October 2000Abandonment of Hazardous Waste
Kid Sister Escapes IRS
Attorney/Client Privilege Lost
January 2001Stealth Lien Removed
Notice of Lien Insufficient
Embezzlement Not Discharged
April 2001Diversion of Construction Trust Funds
Future Rent Capped
Non-Competition Clause Survives
July 2001Mortgage Prepayment Thwarts Creditors
Setoff Trumps Lien
No Discharge for Partner’s Fraud
October 2001Stealth Lien Removal
Faulty Escrow Exposes Funds
Empty Reclamation Rights
January 2002Rare Landlord Victory
Security Interest in Patent Perfected
April 2002No Stiffing Uncle Sam
Fraud Discharged
Escrow Funds Outside Bankruptcy
July 2002Perfection of Future Security Interest
Filed Claim Traps Creditor
October 2002Corporate Officers Liable
Bankruptcy Beats Good Faith Defense
January 2003Tax Lien Beats Creditor Setoff
Bad Marketing Saves Guarantor
Unmatured Interest Denied
April 2003Fraud Not Discharged
Creditor Sanctioned for Tardy Dismissal
Right of First Refusal Eliminated
July 2003Bankruptcy Sale Extinguishes Lease
Insider Loans Not Subordinated
Withdrawal of Claim Unsuccessful
October 2003No Bank Lien on Rabbi Trust
Improper Tax Payment Not Recovered
January 2004Landlord Returns Rent Payment
Tax Penalty Discharged
Rent Claim Capped
April 2004Late Filed Tax Return Ignored
Bonded Payment Not Preference
Reclamation Rights Preserved
July 2004Tax Assessment Timely
Lease Assignment Denied
Plan Silence Defeats Lawsuit
October 2004Landlord Damages Capped
Piercing a Trust
Failure to Investigate Punished
January 2005Escrow Remains Outside Bankruptcy
Preference Defense Succeeds
Creditor Enforces Automatic Stay
April 2005Pension Benefits Lost
Bank Setoff Avoided
July 2005New Day Dawns October 17, 2005
October 2005Bankruptcy Reform Arrives
January 2006Tax Refund Not Exempt
Credit Counseling for Business
April 2006States May Be Sued
Specific Performance Not Rejected
Spendthrift Trust Trumps Bankruptcy
July 2006Asset Purchaser Protected
Delayed Response Loses Vote
Reach of Automatic Stay
October 2006Suit for Deepening Insolvency
Broad Bankruptcy Release
Letter of Credit outside Bankruptcy
January 2007Bankruptcy Trumps Restrictive Covenant
What’s in a Name
Owner Pays Corporation’s Taxes
April 2007No Bankruptcy Stay for Subsidiary
Cybersquatting Punished
Receiver Displaced
July 2007Mortgage Void as Preference
Creditor Loses Interest
Rent Capped
October 2007Reporting Discharged Debt
Employee Claim Not Capped
January 2008Pension Rules Prevent Setoff
Tenancy by the Entirety Protection Lost
Bank Claim Waives Arbitration
April 2008Get the Name Right
Stock Redemption Payments Retained
Forfeited Charter Stops Lawsuit
July 2008Guaranty Not Discharged
Backdoor Corporate Takeover
Joint Check Defeats Preference
October 2008Underfunded 401(k) Prevents Discharge
No Harm, No Foul
Previously Reported Case Reversed
January 2009Receiver’s Powers Limited
Preferential Lease Termination
Debt Collection as Racketeering
April 2009When is a Lease Really a Sale?
No Duty to File Bankruptcy Petition
Creditor Acts for Trustee
July 2009Trustee Action Limited
Waiver of NOL Carryback Reversed
No Pension Fund Set Off
October 2009Bank Laxity Mitigates Borrower Fraud
Bankruptcy Extends Option Period
Creditor Must Return Collateral
January 2010Stay Trumps Free Speech
Priority for 20-Day Claims
Attorney Opinion Letter Stops Suit
April 2010Food Fight
Assisting a Fraudulent Transfer
Discharging Tax Debts
July 2010Payment to Subcontractor Recovered
Contract Breach Not Discharged
Bankruptcy to Prevent Successor Liability
October 201020-Day Priority
Trust Protects Assets
Termination Bonus Not Insider Preference
January 2011Stock Appreciation Rights Lost
Bank Loses Right to Credit Bid
Breach of Contract Not Discharged
April 2011Silence Is Not So Golden
Trust but Verify
Scammed Trustee Discharged
July 2011Loan Not in Good Faith
Lapsed Corporate Charter Bars Discharge
Lease Assumption Deadline Enlarged
October 2011“Business Trust” May File Petition
Limiting IRS Tax Lien
Attorney Inaction Punished
January 2012President Can’t Stiff his Company
Employees Get Severance Pay
No Protection Against Preferences
April 2012Hidden Benefit of Ponzi Scheme
Borrowing from Peter to Pay Paul
No Triangular Setoff
July 2012Bankruptcy Sale Cleans Assets
Tax Filing Status is Estate Property
Costly Mistake
October 2012Assumption of Breached Contract
Late-Filed Tax Return Insufficient
Preference Defense
January 2013Modification Releases Guarantor
Sanctions against Petitioning Creditors
Changing Life Insurance Beneficiary
April 2013Stock Sale Protected
Less Protection for LLC’s
July 2013What Is Defalcation?
Sale of Collateral Defective
Food Fight
October 2013After-Recorded Mortgage Beats IRS Lien
Noncompete Agreement Lacks Value
Tax Filing Status is not Estate Property
January 2014Chapter 11 Lien Stripping
Proceeds of Collateral
Tracing Trust Funds
April 2014Family Trust Sidesteps Discharge
"New Value" Does Double Duty
Ponzi Profits Disgorged
July 2014Inherited IRA Not Exempt
Administrative Rent
Discharge of Imputed Fraud
October 2014Taxes from Late-Filed Return Discharged
Third-Party Payment Defeats Preference
Inaction Violates Automatic Stay
January 2015Release of Non-Bankrupt Parties
Proof of Claim Violates FDCPA
Exemption Follows Funds
April 2015No Discharge for Late-Filed Tax Return
Protection for Foreign Banks
Unreasonably Small Capital
July 2015Filing Error Terminates Perfection
Withdrawn LLC Member Subordinated
Shareholders Meeting Not Stayed
October 2015Fraudulent Silence
Late-Filed Tax Return Dischargeable
Individual Chapter 11 Debtor Loses Assets
January 2016Garnishing Joint Bank Accounts
Tax Lien Extinguished
Severance Payment Retained
April 2016PACA Loss of Trust
Trademark Not Intellectual Property
Lien’s Labour’s Lost
July 2016Fraud Without Misrepresentation
Entireties Property Not Exempt
Blocking Member Fails
October 2016Dispute Disqualifies Creditor
Indirect Stay Violation
Friendly Foreclosure Backfires
January 2017Time-Barred Claim not FDCPA Violation
Tenancy by Entireties Survives Death
Non-Compete Survives Bankruptcy
April 2017New Corporation Liable as Successor
No Cap on Exempt Assets
Preference Recovery Voids Release
July 2017Structured Settlement Rejected
Filing Time-Barred Claims Permitted
Subordination of Stock Buyout Debt
October 2017Failure to Inform as Fraud
Affirmative Act Required to Violate Stay
Bankruptcy Sale Cleans Toxic Assets
January 2018U.S. Collects Disclaimed Inheritance
Guarantee Not Discharged
No Priority for Sale to Cooperative
April 2018Bankruptcy Sale Strips Lease
Discharge Denied for Undervaluing Asset
Dumping Property Costs on Lender
July 2018Get It in Writing
Forfeited LLC as Involuntary Petitioner
What Is Non-Consumer Debt?
October 2018Not Paid Until the Check Clears
Mere Threat Violates Stay
Bankruptcy Filing Freezes Creditor Rights