GCK On Law
Practice Note: Plan Provisions Control Over IRS Equitable Recoupment
The United States District Court for the District of Delaware recently affirmed a bankruptcy court decision enforcing confirmed chapter 11 plan provisions over the objection of the Internal Revenue Service, and in so doing, reduced the tax payable to the IRS by more...
Sections 365(p)(2) & 524(c) – Need to Reaffirm Personal Property Lease
A dispute exists among the courts as to whether the lease assumption process found in Bankruptcy Code Section 365(p)(2) also contemplates compliance with the reaffirmation procedures of Section 524(c), i.e., “[a]n agreement between a holder of a claim and the debtor,...
Conflict in Discharge of Post-Petition Condominium Assessments
A dispute exists among the courts as to whether a debtor's personal liability for condominium fees assessed after the filing of a petition for relief can be discharged in a Chapter 13 case under Section 1328(a) of the Bankruptcy Code. A similar dispute does not exist...
Application of Bankruptcy Code Sections 548 and 550 to foreign transactions
Recent bankruptcy court opinions in the Southern District of New York diverge on whether certain Bankruptcy Code sections under which bankruptcy trustees may avoid prepetition transfers of property apply to foreign transactions. “Extraterritoriality”, the concept of...
Plain Meaning of Section 541(b)(2) Limits Property of Estate Where Term of Lease Expires Prepetition
A dispute currently exists among the courts as to whether a lease terminated due to a default is terminated “by the expiration of the stated term of the lease.” Sections 541(b)(2) and 362(b)(10) of the Bankruptcy Code provide: (b) Property of the estate does not...