Also known as: insolvency proceedings · bankruptcy proceeding · insolvency case
Written by attorneys · grounded in primary & secondary sources — see below
A legal proceeding intended to liquidate or rehabilitate the estate of an insolvent person or entity.
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Indigo Textiles holds a conservation servitude over land owned by Inertia Dynamics. When Inertia Dynamics enters an insolvency proceeding, the buyer at the resulting sale attempts to clear the servitude from title. The servitude remains in force because the proceeding does not extinguish it under the governing rule.
Interlink Communications sues Insight Consulting in state court for breach of a prepetition contract. After Insight Consulting files an insolvency proceeding, the bankruptcy court asserts final judgment power over the claim. The assertion exceeds the court's constitutional limits because the claim is a private-rights dispute between non-debtor parties.
Ismael Ibrahim, a creditor in an insolvency proceeding, demands a jury trial on a fraudulent conveyance claim against Granfinanciera. The bankruptcy court denies the demand. The denial violates the Seventh Amendment because the claim is legal in nature and the proceeding does not convert it into a public-rights matter.
Israel Irving seeks to commence an insolvency proceeding but cannot pay the required filing fee. He argues the fee violates due process. The court upholds the fee because it is a reasonable condition that does not deny access to those genuinely unable to pay after inquiry.
Imran Iyer's estate in an insolvency proceeding includes a state-law tort claim against a third party. The bankruptcy court enters final judgment on the claim. The judgment exceeds the court's authority because the claim does not stem from the bankruptcy code and involves private rights.
Isabelle Inman files an insolvency proceeding that includes claims to assets subject to a pending state probate action. The bankruptcy court asserts jurisdiction over the probate-related claims. The assertion fails because the probate exception reserves such matters for state courts.
No. A servitude is not extinguishable in an insolvency proceeding unless a statute requires otherwise or the servitude falls within narrow exceptions such as certain payment covenants.
Supporting sources
…Central District of California. See 275 B. R. 5, 8 (CD Cal. 2002). In June 1996, Pierce filed a proof of claim in the federal bankruptcy proceeding, id. , at 9; see 11 U. S. C. § 501, alleging that Vickie had defamed him when, shortly after J. Howard’s death, lawyers representing Vickie told members of the press that Pierce had…