Lawyers USA Online » fraudulent conveyance

Bankruptcy judge lacked power to remedy fraud

Pat Murphy — Thu, 06 Dec 2012 16:28:54 +0000

A bankruptcy judge lacked the constitutional authority to enter a final judgment in a fraudulent conveyance action against a nonclaimant to a bankruptcy estate, the 9th Circuit has ruled.

Before filing for Chapter 7 bankruptcy protection, an insurance agency deposited $373,000 in commission income into an account controlled by a
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Title VII plaintiff liable for taxes from bankruptcy

Pat Murphy — Fri, 06 Aug 2010 20:35:00 +0000

A race discrimination plaintiff was liable for taxes due on a $550,000 jury award that had become property of her bankruptcy estate, the U.S. Tax Court has ruled in affirming a $180,000 deficiency assessment.

A jury awarded the taxpayer $550,000 in a Title VII discrimination case against Wal-Mart.

The taxpayer
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Shareholder payments can’t be avoided in bankruptcy

Pat Murphy — Thu, 09 Jul 2009 10:28:29 +0000

Payments made to shareholders to conclude a leveraged buyout couldn’t be avoided as fraudulent conveyances when the company later declared bankruptcy, the 6th Circuit has ruled in affirming judgment.

The defendants in the case were 170 shareholders of a privately held corporation. They were paid $111.5
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Fraud doesn’t jeopardize homestead exemption

Pat Murphy — Thu, 09 Apr 2009 15:26:27 +0000

A Chapter 7 debtor couldn’t be denied a homestead exemption on the basis that he had temporarily conveyed his residential property in an alleged attempt to defraud creditors, the 1st Circuit has ruled.

The debtor and his wife purchased a Massachusetts home as tenants by the
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