When people talk about education as an investment, they mean that students devote their time and money to pursuing university degrees so that, when they graduate, they will be qualified for well-paying jobs. Statistics consistently show that people with university degrees earn more in the course of a lifetime than those without university degrees. Once…

Growing Split Among Circuit Courts About Exculpation Countless Chapter 11 reorganization plans include provisions acknowledging the release of claims connected to stakeholders in bankruptcy cases. Excluded from this, however, are claims that allege various types of misconduct like bad faith, gross negligence, or fraud. These exculpatory statements are a valuable tool in motivating parties to…

Appellate Court Consider Statute of Limitations Following Bankruptcy Discharge In January 2022, a Washington appellate court reaffirmed a regulation connected to real estate foreclosures and the statute of limitations following a discharge of bankruptcy. The regulation is that a bankruptcy court does not automatically raise the six-year statute of limitations associated with trust foreclosure. The…

In the recent circuit court case of Homaidan v. Sallie Mae, Inc., a federal circuit court held that a ruling by a New York bankruptcy court that private loans to pay for college education are not exempt from being discharged under the Bankruptcy Code’s Section 523. This section of the Bankruptcy Code excludes from discharge…

The Second Circuit in the recent case of In Homaidan v. Sallie Mae recently held that some kinds of private student loans do not require the repayment of debts that can be categorized as an educational benefit. This decision resulted in the Second Circuit joining the Fifth Circuit and Tenth Circuit on the matter. Neither…

In what could likely end up an influential ruling, a Delaware court recently held that securing a “critical vendor” status in Chapter 11 commercial bankruptcy case ultimately offers no defense in situations where the vendor later faces legal action for the recovery of preferential payments that the debtor recoups shortly before bankruptcy. The Role of…

The Issuers of Stock Held Liable for Double-Pledge A Louisiana bankruptcy court, in the Karcredit LLC case, recently considered a case involving two lenders and one stock certificate. At the heart of the Karcredit case was a party who relied on a stock certificate to satisfy loan duties owed to another party. After a replacement…

Contracts Non-Executory A New Jersey Bankruptcy Court recently rejected a motion to deny a written agreement  in accordance with Bankruptcy Code section 365. The court held that a court’s request of specific performance made under a contract was non-executory and non-rejectable. The following examines the potential repercussions of this case, the role of section 365,…