GCK On Law
Enforcement of Arbitration Clauses in Bankruptcy Proceedings
The Federal Arbitration Act (“FAA”) provides that arbitration agreements “shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” 9 U.S.C. §2. The FAA further provides that the court,...
Courts Disagree on Proper Venue for Preference Actions
Venue in bankruptcy cases is governed generally by 28 U.S.C. §1409(a) which provides that venue in an adversary proceeding is proper in the district court in which a bankruptcy case is pending. However, Section 1409(b) provides an exception to this rule, stating:...
Court Disagree Whether Payment of Student Loans Qualify as “Special Circumstances” Under Section 707(b)(2)(B)
Section 707(b)(2) of the Bankruptcy Code states that “the court shall presume abuse exists if the debtor's current monthly income reduced by the amounts determined under [sub]clauses (ii), (iii), and (iv), and multiplied by 60 is not less than the lesser of” (1)...
Additional Requirements to Bring Conversion Action for Return of Money
Conversion is an unauthorized act, which deprives a person of his property permanently, or for an indefinite time. See, In re Thebus, 108 Ill.2d 255, 259 (1985). Accordingly, to prove conversion, the plaintiff must prove the following elements by preponderance of...
Courts Disagree Whether Section 510(a) Allows Subordination Agreement to Assign Voting Rights in Chapter 11
Section 510(a) of the Bankruptcy Code provides that “[a] subordination agreement is enforceable in a case under this title to the same extent that such agreement is enforceable under applicable nonbankruptcy law.” However, while Section 510(a) provides for the...