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2007 NORTON BANKRUPTCY LAW SEMINAR MATERIALS

RECENT BANKRUPTCY DEVELOPMENTS

APPELLATE DECISIONS RELATED TO BANKRUPTCY
By William L. Norton III

dismissed the adversary proceeding.)

107(b)(2) Public Access to Information

In re Neal, 461 F.3d 1048 (8th Cir. Aug. 29, 2006) (Bankruptcy Court erred in placing under seal a list of creditors that included the names of attorneys who made loans to debtor, including a former municipal judge with a gambling addiction. The list of creditors is required by law, and only through speculation as to the motives of the creditor and debtor, which are matters outside the context of the bankruptcy filing, does scandal arise. Accordingly, the list is not "scandalous" under § 107(b)(2). Additionally, the list of creditors is not a government record that must be kept confidential under Rule 9018. Although state disciplinary investigations against attorneys are kept confidential, the list of creditors is not necessarily co-extensive with the list of attorneys under investigation.)

108(a) Statute of Limitations

DiMaio Family Pizza & Luncheonette, Inc. v. The Charter Oak Fire Ins. Co., 448 F.3d 460 (1st Cir. May 30, 2006) (Insurance claims of debtors were not "enjoined" or "abated" pursuant to Massachusetts extension of limitation statute as a result of debtors' bankruptcy filing or the appointment of bankruptcy trustees. First, an automatic stay does not stay claims by the debtor or the trustee. Second, although the trustees' control over the debtors' estates prevented them from pursuing claims belonging to the estate, the claims themselves could have been asserted by the trustee.)

110 Bankruptcy Petition Preparers

Frankfort Digital Svcs., Ltd. v. Kistler (In re Reynoso), 477 F.3d 1117 (9th Cir. Feb. 27, 2007) (Company that sold web-based software that prepares bankruptcy petitions was a "bankruptcy petition preparer" subject to penalties for violating § 110. The software solicited information from customers, translated the information into responses to questions on the bankruptcy forms and prepared completed bankruptcy forms for filing using those responses. The company charged fees for this service. Accordingly, the company was a "bankruptcy petition preparer" under § 110(a)(1). The company violated § 110(b) by not including the company's name and address on the petition, § 110(c) by not including the social security number of the preparer and § 110(f) by using the words "law" and "legal" in its advertisements. Bankruptcy court properly acted under the authority granted by § 110(i) and (j) in enjoining the company from acting as a bankruptcy petition preparer and certifying to the district court the question of damages.)

303 Involuntary Petition -- Burden of Proof

DeBold v. Case, 452 F.3d 756 (8th Cir. June 26, 2006) (In dispute as to the ownership of property in an involuntary Chapter 7 case, trustee had initial burden

 

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