New Bankruptcy Cases - May 13, 2002

In re Bogdanivich (DBN Subscription Required)	2d Cir.	The bankruptcy court erred in lifting the automatic stay to permit entry of an eve-of-bankruptcy State court judgment, since entry of the judgment would not have enabled judgment to be used for collateral estoppel purposes in connection with litigation in the bankruptcy court regarding the dischargeability of the debt.
In re Zurn (DBN Subscription Required)	7th Cir.	"Only a belief that bankruptcy is forever could produce a case such as this." The bankruptcy court did not err in refusing to reopen a closed case to undo payment of a claim that was paid under a plan but the judgment establishing the debt was reversed in a post-closing appeal. Section 350(b) allows a district judge to reopen a bankruptcy proceeding, but use of that power is reserved for matters such as the correction of errors, amendments necessitated by unanticipated events that frustrate a plan's implementation, and the need to enforce the plan and discharge. Reversal of a civil judgment that created a claim against the estate does not warrant reopening; reversal affects the amount of a given claim, not the plan's provisions for satisfying claims