GCK On Law
Courts Divided as to Interest Rates in Solvent Estates under Sections 726(a)(5) and 1129(a)(7)
The general rule in bankruptcy is that unsecured creditors are not entitled to post-petition interest on their allowed claims.[1] An exception to this rule is found in Section 726(a)(5) of the Bankruptcy Code which provides for the payment of “interest at the legal...
Courts divided whether Section 362 stays statutory redemption periods beyond that provided in Section 108(b), 362(a) & 1322(b)(2)
Courts are divided as to whether statutory redemption periods are stayed by Section 362(a) of the Bankruptcy Code. There are also competing views as to impact of the post-petition expiration of a redemption period on property of the estate, including, for example,...
Enforcement of Arbitration Clauses in Bankruptcy Proceedings
The Federal Arbitration Act (“FAA”) provides that arbitration agreements “shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” 9 U.S.C. §2. The FAA further provides that the court,...
Courts Disagree on Proper Venue for Preference Actions
Venue in bankruptcy cases is governed generally by 28 U.S.C. §1409(a) which provides that venue in an adversary proceeding is proper in the district court in which a bankruptcy case is pending. However, Section 1409(b) provides an exception to this rule, stating:...
Court Disagree Whether Payment of Student Loans Qualify as “Special Circumstances” Under Section 707(b)(2)(B)
Section 707(b)(2) of the Bankruptcy Code states that “the court shall presume abuse exists if the debtor's current monthly income reduced by the amounts determined under [sub]clauses (ii), (iii), and (iv), and multiplied by 60 is not less than the lesser of” (1)...