HHR Bankruptcy Report

Category Archives: Bankruptcy Claims

Subscribe to Bankruptcy Claims RSS Feed

Time-Barred Bankruptcy Proofs of Claim Violate FDCPA: Supreme Court Grants Certiorari to Eleventh Circuit Case Johnson v. Midland Funding, LLC

Posted in Bankruptcy Claims, Creditors' Rights, Eleventh Circuit, FDCPA, SCOTUS
On October 11, 2016, the United States Supreme Court granted certiorari to a debt collection agency in its appeal from the Eleventh Circuit case Johnson v. Midland Funding, LLC.[1] In Johnson, the Eleventh Circuit affirmed its decision in Crawford v. LVNV Funding, LLC,[2] which held that a debt collector violates the Fair Debt Collection Practices… Continue Reading

Recent Seventh Circuit Ruling Clarifies “Inquiry Notice” Doctrine

Posted in Bankruptcy Claims, Claims Subordination, Seventh Circuit
Bank of New York Mellon lost priority status for its claim of $312 million in the liquidation of Sentinel Management Group when the 7th Circuit held that it should have suspected Sentinel was misusing customer assets and conducted an investigation into the source of the collateral Sentinel had posted.  The 7th Circuit clarified the doctrine… Continue Reading

In Recent Ruling, SCOTUS Preserves Junior-Lien Lenders’ Secured Claims

Posted in Bankruptcy Claims, Chapter 11, Claims Subordination, SCOTUS
On June 1, 2015, the U.S. Supreme Court issued its decision in Bank of America v. Caulkett.[1] The Court’s unanimous opinion, which was written by Justice Thomas, established that junior mortgage lienholders maintain a “secured” claim against a bankrupt debtor even where the junior mortgage lien is completely underwater. Further, an underwater junior mortgage lien… Continue Reading

Original Issue Discount in a Fair Market Value Exchange Is an Allowable Claim in Bankruptcy

Posted in Bankruptcy Claims, Debt Exchanges, Second Circuit
Companies struggling to address liquidity problems are often attracted to debt-for-debt exchanges because such exchanges accomplish many of the same purposes as refinancing without requiring upfront cash payments, except to cover transaction costs and professional fees.  By restructuring debt obligations, a financially distressed company may avoid default and escape bankruptcy.  Partaking in a debt exchange… Continue Reading

The First Circuit Chooses a “Flexible” Approach to Post-Petition Interest

Posted in Bankruptcy Claims, First Circuit, Valuation
In a recent decision, the First Circuit used a “flexible” approach to value the collateral claimed by an oversecured creditor, and granted post-petition interest on the creditor’s claim.  In re SW Boston Hotel Venture, LLC, No. 12-9008, 2014 WL 1399418, — F.3d — (1st Cir. Apr. 11, 2014).  Oversecured creditors (i.e., creditors whose collateral is… Continue Reading

Unknown Creditors In a New Century

Posted in Bankruptcy Claims, Publication Notice
There are known knowns; there are things we know that we know.  There are known unknowns; that is to say, there are things that we know we don’t know.  But there are also unknown unknowns – there are things we don’t know we don’t know. -United States Secretary of Defense, Donald Rumsfeld, February 12, 2002… Continue Reading