Category Archives: Bankruptcy & Creditor’s Rights

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Amendment to the New Jersey Uniform Commercial Code

Posted in Bankruptcy & Creditor's Rights, Business & Corporate, Collections, Stark News

The New Jersey Uniform Commercial Code (the “UCC”) was amended, effective May 11, 2015, imposing new requirements on the filing of a financing statement to perfect a security interest in collateral within the scope of Article 9 of the UCC. The amendment provides that in order to be sufficient, a financing statement must state that… Continue Reading

SCOTUS: Second Mortgages NOT Voidable In Chapter 7 Proceedings (Caulkett Decision)

Posted in Bankruptcy & Creditor's Rights

On Monday, June 1, 2015, the Supreme Court of the United States published its opinion in the matter of Bank of America v. Caulkett. The issue determined was whether or not, in a bankruptcy liquidation (Chapter 7 proceeding), the debtor can void a second mortgage when the property (typically the home) is worth less than… Continue Reading

Shopping Center Retailers File for Chapter 11 Bankruptcy – When Will Landlords and Trade Creditors Be Paid?

Posted in Bankruptcy & Creditor's Rights

Recently, several shopping center retail stores have filed for Chapter 11 bankruptcy protection in the District of Delaware. Wet Seal, Inc. (“Wet Seal”) filed on Friday, January 16, 2015 (docket # 15-10081), Cache, Inc. (“Cache”) filed on February, 4, 2015 (docket #15-10172), and most recently, RadioShack Corporation (“RadioShack”) filed on February 5, 2015 (docket #15-1097)…. Continue Reading

U.S. Supreme Court to Address Strip Off of Home Mortgage in Chapter 7

Posted in Bankruptcy & Creditor's Rights

The U.S. Supreme Court has agreed to hear two appeals by Bank of America concerning an important and frequently recurring question of bankruptcy law: whether a chapter 7 debtor can “strip off”-that is, void-a junior mortgage lien on a debtor’s house when the debt owed to a senior lienholder exceeds the current value of the… Continue Reading

The Enforceability of Commercial Finance Leases Executed Only by the Debtor

Posted in Bankruptcy & Creditor's Rights, Commercial, Retail & Industrial Real Estate

A common problem among finance companies seeking to enforce a commercial finance lease against a defaulted debtor/lessee is that documents are not fully executed or are otherwise disorganized. Unfortunately, for large finance companies that have hundreds, or even thousands, of accounts, not all the “i’s” are always dotted, nor are all the “t’s” always crossed.

Equitable Mootness Doctrine Should Be Rarely Applied to Preserve Appellant’s Rights

Posted in Bankruptcy & Creditor's Rights

Equitable mootness is a doctrine that allows a court to avoid hearing the merits of a bankruptcy appeal because implementing the relief requested by the appellant would produce a perverse outcome to the bankruptcy plan and/or cause significant injury to third parties. The Third Circuit Court of Appeals recently revisited the application of the doctrine… Continue Reading