<b><i>Crawford v. LVNV Funding, LLC</i></b>
Filing a proof of claim against a bankruptcy estate for a debt the creditor knows is legally unenforceable pursuant to the statute of limitations is unfair, unconscionable, deceptive, or misleading to a consumer under the Federal Debt Collection Practices Act, the Eleventh Circuit recently held in <I>Crawford v. LVNV Funding, LLC.</I>
Enjoining Actions Against Non-Debtors
A recent decision by the Seventh Circuit, appears to change the playing field in debtors' favor. <I>In re Caesars Entm't Operating Co</I> established a two-part test that appears far more favorable to debtors than the previous standards applied to such injunctions.
Landlord's Claim in Bankruptcy Case Puts Its Letter of Credit Proceeds At Risk
If a landlord has drawn down the letter of credit proceeds and withdrawn the security deposit in full after the tenant's default, filing a proof of claim in the tenant's subsequent bankruptcy proceeding may invite a bankruptcy court's consideration of whether those funds are or should be assets of the bankruptcy estate.
Metals Exploration Bankruptcies
The past several years have not been kind to commodities exploration companies. And the difficult pricing environment has taken a toll on exploration companies.
Non-Madoff Defendants
A bankruptcy trustee, given the responsibility to liquidate estate assets and distribute the resulting funds to creditors, frequently must pursue causes of action against non-debtors who have liability to the estate. It is not surprising that such competing claims arise frequently in bankruptcy cases involving Ponzi schemes.
CT Bankruptcy Court Invalidates Lawsuit Funding Agreement
Lawsuit funding companies have routinely filed claims as creditors in tort plaintiffs' bankruptcy actions when the debtor has failed to repay litigation funding advances. Whether bankruptcy courts will enforce lawsuit funding agreements depends on the applicable state law.
Seventh Circuit Voids Lien-Securing Rescue Loan
A "bank [making a secured rescue loan] had information that should have created the requisite suspicion ' to conduct a diligent search for possible dirt" ' <I>i.e.</I>, whether the debtor had the right to pledge $312 million of customer securities, held the U.S. Court of Appeals for the Seventh Circuit on Jan. 8, 2016.
