Monthly Archives: January 2014

Avoidance Recoveries: Who Can Be Sued And When?

Securities Investor Protection Corp. v. Bernard L. Madoff Inv. Securities LLC, 501 B.R. 26 (S.D.N.Y. 2013) – The debtor (Madoff Securities) made payments to “feeder funds” that provided its funding, and the feeder funds in turn made payments to their investors, … Continue reading

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Bankruptcy Sale: A Potpourri of Issues

In re Scimeca Found., Inc., 497 B.R. 783 (Bankr. E.D. Pa. 2013) – A chapter 7 trustee sought court approval for a sale of the debtor’s property and resolution of related issues over the objections of the debtor.  In granting the … Continue reading

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Unrecorded Mortgage Assignment: If You Snooze, You Can Lose

In re First Mortgage Fund, Inc., 498 B.R. 180 (E.D. Mich. 2013) – A debtor (First Mortgage), which was the mortgagee of record, foreclosed a mortgage and obtained title to the foreclosed property notwithstanding that it had assigned the note and … Continue reading

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Control Of An LLC: Who Comes Out On Top – A Bankrupt Member Or The Member’s Chapter 7 Trustee?

In re B&M Land and Livestock, LLC, 498 B.R. 262 (Bankr. D. Nev. 2013) – A chapter 7 debtor that was the sole member and manager of a limited liability company filed a chapter 11 bankruptcy on behalf of the LLC.  The United … Continue reading

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Underwater Liens: Can A Federal Tax Lien Be Stripped Off In A Chapter 13?

Ryan v. United States of America (In re Ryan) 725 F.3d 623 (7th Cir. 2013) – A chapter 13 debtor sought to void a federal tax lien under Section 506(d) of the Bankruptcy Code to the extent that it exceeded the value … Continue reading

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Claim Priority: Construction Lien Meets Mortgage – Who Wins?

ROK Builders, LLC v. 2010-1 SFG Venture LLC (In re Moultonborough Hotel Group, LLC), 726 F.3d 1 (1st Cir. 2013) – After the owner of a newly constructed hotel filed bankruptcy, the assignee of the construction mortgage sought a declaration that … Continue reading

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Authority to File Bankruptcy: What Will a Court Consider?

In re Quad-C Funding LLC, 496 B.R. 135 (Bankr. S.D.N.Y. 2013) – After a multi-member limited liability company filed a chapter 11 bankruptcy petition, one member (Crossroads) moved to dismiss the case on the basis that the filing was not properly authorized … Continue reading

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