Bankruptcy Court Refuses to Approve Provision of Employment Application Providing Indemnity for Fees Incurred in Successful Defense of Fee Request

On January 29, 2016, the United States Bankruptcy Court for the District of Delaware refused to approve a provision in a retention application that would have allowed counsel to be reimbursed by the bankruptcy estate for fees incurred in a successful defense of an objection to their fees in the case.  See In re Boomerang Tube, Inc., Case No.… Continue reading Bankruptcy Court Refuses to Approve Provision of Employment Application Providing Indemnity for Fees Incurred in Successful Defense of Fee Request

Eighth Circuit Upholds Availability of “New Value” Defense in Three-Party Creditor Relationships

In a recent decision, LGI Energy Solutions, Inc. v. Stoebner, 2014 US App LEXIS 5227 (8th Cir Mar 20, 2014), the United States Court of Appeals for the Eighth Circuit held that, in a three-party relationship in which a debtor’s otherwise preferential transfers to a third-party benefit the debtor’s primary creditor, new value coming from… Continue reading Eighth Circuit Upholds Availability of “New Value” Defense in Three-Party Creditor Relationships

Supreme Court Holds Statutory Exemption Language Inviolable

In a recent 9-0 opinion, Law v. Siegel, 571 U.S. ___ (March 4, 2014), the U.S. Supreme Court held that a bankruptcy court has no equitable authority to override statutory protections, reversing a Ninth Circuit decision allowing a bankruptcy trustee to surcharge a debtor’s exempt property to reimburse the trustee for fees incurred as a… Continue reading Supreme Court Holds Statutory Exemption Language Inviolable

In a Section 363 Sale, a Lienholder’s Silence is Not Consent

A chapter 7 bankruptcy trustee recently sought permission to sell a piece of real property, free and clear of liens and interests under 11 USC § 363(f).  The proposed sale price was far less than the amount of the liens against the property, but the lienholder received notice of the proposed sale and did not file… Continue reading In a Section 363 Sale, a Lienholder’s Silence is Not Consent