- Case Type:
- Case Status:
- 16-1233, --- Fed.Appx. ----, 2016 WL 7323983 (2nd Circuit, Dec 16,2016) Not Published
Affirmed District Court judgment affirming Bankruptcy Court expunging claim and District Court declining to consider constructive trust argument. Court determined that: a.) creditor lacked collateral and no claim against the debtor, which did not undertake the third-party’s obligation to creditor. b.) Court would not estimate claim against debtor as it was speculative that i.) the principal obligor would default; and ii.) collateral pledged by others would not remove need for recourse against the debtor
- Procedural context:
Appeal from District Dstrict Court affirming Bankruptcy Court expunging proofs of claim
Debtor and others provided collateral for loan to a third-party. Debtor filed for chapter 11. Creditor’s misleading financing statement failed to perfect interest security interest in collateral. Debtor which did not undertake the third-party’s obligation to creditor nor benefit by providing collateral.
- DENNIS JACOBS, JOSÉ A. CABRANES, BARRINGTON D. PARKER,
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