In this issue:
Patricia J. Scott
When an individual files a Chapter 7 bankruptcy case, the debtor’s non-exempt assets become property of the estate that is used to pay creditors. “Property of the estate” is a defined term under the Bankruptcy Code, so a disputed question in many cases is: What assets are, in fact, available to creditors?
In a recent case in the U.S. Bankruptcy Court for the Eastern District of Michigan, the court considered whether money received by a Chapter 7 debtor pursuant to an IRA beneficiary designation signed by her deceased mother, constitutes property of the estate. As discussed below, the court ruled in favor of the debtor, finding that the transferred IRA funds were not property of the estate...
Andrew C. Vredenburg and Ashley A. Poindexter
Occasionally, plaintiffs in legal cases have acted unethically or in bad faith with respect to the issue in front of the court. In these circumstances, it may be possible for the defendant to assert a defense supported by the doctrine of unclean hands.
The unclean hands doctrine applies to cases where the plaintiff has acted unethically in connection to the circumstances that have led to the suit. Its intent is to keep a person from abusing the justice system in order to benefit from a situation they created by acting in bad faith. By doing so the unclean hands doctrine protects both the court and the involved parties...
Scott H. Hogan and Patricia J. Scott
A new amendment was recently enacted in Michigan which expands the scope of receivership proceedings, which are a liquidation alternative to bankruptcy. Previously, the receivership statute in Michigan applied only to receiverships over commercial real estate. Now it is applicable to all operating businesses in Michigan, and commercial and industrial loans irrespective of whether real estate collateral is involved.
In 2018, Public Act 16 of 2018 was signed into law, which created a Uniform Commercial Real Estate Receivership Act (“UCRERA”) in Michigan. Effective October 15, 2020, an amendment became effective that renames the UCRERA to “Receivership Act”, which better reflects the statute’s now broader applicability...
February 25, 2021 from 9:00-10:30 am
Join Foster Swift's employment and labor law attorneys for a virtual discussion on a practical overview of key issues with existing and pending laws and regulations, considerations to minimize risk as well as trigger points for involving your legal team.
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Michigan Business Network
Chris Holman welcomed attorney Patricia Scott to the Michigan Business Beat to cover the latest on the receivership act amendment. In the following podcast interview, she explains what is receivership, who governs it, the most recent changes, and the significance of those changes...
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