Insolvency Law Committee Profile

The Ninth Circuit Court of Appeals (the Court) recently ruled that a student financial aid advisor, who mailed solicitation packets to current and prospective college students pertaining to their ability to apply for scholarships and grants in aid, was a “covered person” subject to the Consumer Financial Protection Bureau’s (CPFB) civil enforcement authority and that the net impression of the solicitations was deceptive.  Consumer Fin. Prot. Bureau v. Aria, 54 F.4th 1168 (9th Cir. 2022). Read more

In Milestone Financial, LLC v. Moon, (In re Moon), 648 B.R. 73 (B.A.P. 9th Cir. 2023), the Bankruptcy Appellate Panel for the Ninth Circuit (“BAP”) recently affirmed a bankruptcy court decision which had concluded that: (1) a forbearance agreement was usurious and not exempted from usury just because the orginal loan might have been exempt and (2) the creditor was entitled to post-maturity interest on the loan under California law.  Read more

It was not an April Fool’s joke when on April 1, 2021, the Ninth Circuit Bankruptcy Appellate Panel (“BAP”) affirmed the decision of the Oregon bankruptcy court denying the discharge of debtor Peter Szanto (“Szanto”) under Bankruptcy Code sections 727(a)(2)(B), (4)(A), (4)(D), and (6)(A). Read more

The Fourth Circuit Court of Appeals (the Court) recently ruled that a trustee may not avoid federal tax penalties as constructively fraudulent transfers under either § 548 of the Bankruptcy Code or under the North Carolina Uniform Voidable Transactions Act (UVTA) because the penalties are not “obligations” and do not arise from a voluntary exchange. Read more

A mortgagee could use its standing under a Nevada quiet title statute to invalidate a condominium association foreclosure sale that wiped out the mortgagee's junior lien because the sale violated the automatic stay in the borrower's bankruptcy. Read more

The following is a profile of the Honorable Robert N. Kwan, the thirteenth in a series of profiles of Ninth Circuit Bankruptcy and Magistrate Judges. Read more

The following is a profile of the Honorable Margaret M. Mann, Chief Judge of the United States Bankruptcy Court for the Southern District of California. Read more

Summary: In Hugger v. Warfield (In re Hugger), 2019 WL 1594017 (9th Cir. BAP Apr. 5, 2019), the U.S. Bankruptcy Appellate Panel of the Ninth Circuit (the “BAP”) affirmed an order denying a chapter 7 debtor’s request that the bankruptcy court vacate his own discharge and dismiss his case because he had filed the case too soon to discharge $40,000 of taxes. Read more

Summary: A district court in New York has held that a liquidation trustee was not precluded by the doctrine of "in pari delicto" from asserting a breach of fiduciary duty claim against a group of corporate looters. [In re FKF 3, LLC, 2018 Westlaw 5292131 (S.D.N.Y.).] Read more

The following is a profile of Kathleen J. (Kathy) Campbell, Executive Officer/Clerk of Court for the United States Bankruptcy Court for the Central District of California (the “bankruptcy court”). Ms. Campbell met members of the Insolvency Law Committee in her Roybal Courthouse office and discussed her personal and professional background, the bankruptcy court’s operations and pending issues and observations. Ms. Campbell was appointed to her current bankruptcy court position in 2010. The Central District of California is home to the… Read more