State Law Can't Stop Voiding Of NJ Tax Sale, 3rd Circ. Says
Law360 (September 12, 2019, 7:02 PM EDT) -- The Third Circuit upheld on Thursday a bankruptcy court finding that a tax lien holder's prepetition foreclosure on a New Jersey couple's property was an avoidable transfer in their Chapter 13 case, justifying returning the property to a bankruptcy trustee.
In its precedential opinion, a three-judge panel concluded that federalism concerns "cannot overcome the plain language of the Bankruptcy Code," which requires equal distribution among creditors and prevents creditors from receiving more than they would in liquidation.
The case arose from the North Brunswick, New Jersey, auction of an unpaid municipal lien on the property of Frank J. Hackler and Dawn A....
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!