Publications

Bankruptcy Court Cannot Surcharge Credit Bidding Asset Buyer with Expenses of Sale

June 2009
The Bankruptcy Strategist

The U.S. Court of Appeals for the Fifth Circuit held on March 25, 2009, that a bankruptcy court had improperly surcharged property in the hands of a credit bidding asset buyer with the expenses of the judicial sale. Explaining that the "bankruptcy court had no jurisdiction to take such action," the Fifth Circuit also vacated the district’s court’s improper ruling that the bankruptcy judge could enter a personal judgment against the asset buyer.