Before a bankruptcy attorney brings a suit within a bankruptcy case, the bankruptcy attorney must first ascertain whether “the action at issue stems from the bankruptcy itself or would necessarily be resolved in the claims allowance process.” Stern v. Marshall, 131 S. Ct. 2594, 2618 (2011). Section 157(b)(1) authorizes a bankruptcy court to “hear and […]
Cannot Use 727 Claim to Uphold a 532 Claim Against Bankruptcy Estate
Several bankruptcy courts have held that a creditor cannot settle a § 727 claim with a bankruptcy estate in order to obtain a § 523 claim against the bankruptcy estate. As explained by one court: “a discharge in bankruptcy is not an appropriate element of a quid pro quo. Tying withdrawal of objections to discharge […]
Bankruptcy Attorney’s Fee Award
The Ninth Circuit adopted the Second Circuit’s standard for awarding attorney’s fees. Under this standard, an attorney’s services need not actually benefit the estate, but must be “reasonably anticipated to be necessary and beneficial to the estate at the time rendered.” In re Cogliano, 355 B.R. 792, 806 (9th Cir. B.A.P. 2006) (citing In re […]
Improper Post-Petition Actions cannot be Imputed to the Bankruptcy Estate
Any alleged improper post-petition actions and knowledge of the trustee, or debtor-in-possession, cannot be imputed to the bankruptcy estate. The issue of imputed post-petition acts and knowledge against a bankruptcy estate has always been resolved in the bankruptcy estate’s favor. The seminal case resolving this issue is In re J.T.R. Corp., 958 F.2d 602 (4th […]
