New Cases For the Week of March 18, 2002 - March 2, 2002

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March 22, 2002

Case

Court

Holding

Union Bank v. Connors
(DBN Subscription Required)
7th Cir. At risk of denial of discharge, a debtor is required to keep and maintain enough information to ascertain the debtor's financial condition and track his financial dealings with substantial completeness and accuracy for a reasonable period past to present.

Mere production of bank statements and cancelled checks sometimes does not satisfy this requirement. Neither the court nor a creditor is required to reconstruct a debtor's financial situation by sifting through a morass of checks and bank statements. It is the debtor's duty to maintain and provide the court with organized records of its financial dealings. Particularly where debtors are sophisticated in business, and carry on a business involving significant assets, creditors have an expectation of greater and better record keeping.

In re Nelson
(DBN Subscription Required)
8th Cir. The bankruptcy court erred in holding that a debtor's interest in an ERISA-qualified pension plan was property of the estate when the debtor had acquired the interest as an alternate payee under a QDRO rather than as the original employee/beneficiary.

March 19, 2002

Case

Court

Holding

In re Troutman Enterprises
(DBN Subscription Required)
6th Cir. Shareholders of a debtor lacked appellate standing to contest the bankruptcy court's ruling regarding a life insurance policy owned by the corporate debtor. 
Canney v. Merchants Bank
(DBN Subscription Required)
2d Cir. 11 USC § 108(b), not § 362(a), governs the tolling of a period of equitable redemption. Because the redemption period lapsed without redemption, neither the debtor nor the bankruptcy trustee has a legally cognizable right or interest in the property that justifies encumbrance by the federal bankruptcy laws.
 
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