Two recent cases highlight reluctance by bankruptcy courts to designate claims of creditors who are on friendly terms with Chapter 11 debtors. Bankruptcy Court in Southern District of Ohio Declines to Designate Claims of Friendly Creditor In a case in…
Creditors Risk Equitable Adjustment of Claims if Overly Involved in Debtor’s Business Affairs
The court in In re Aida’s Paradise, LLC, 485 B.R. 806 (2013) has warned lenders not to become overly involved in a debtor’s business affairs, even if all of its actions are legally permissible. The court cited the Eastern District…
Court Allows Section 523(A)(2)(C) Claim Without Identification of Luxury Goods Purchased
The District Court for the District of South Carolina held that a credit card company did not have to specifically identify luxury goods purchased by a debtor within 90 days of the petition date in order to properly allege that…