In re: Revel AC Inc.

(United States Third Circuit) – In an appeal of the bankruptcy court’s sale order approving the debtor’s sale of its casino property free and clear of all liens and interests, the district court’s order denying appellant’s motion for stay of the sale order pending appeal is reversed where appellant has shown: 1) a likelihood of success on the merits; 2) a likelihood of suffering irreparable harm; 3) that the balance of harms favors a stay; and 4) that the public interest is served by granting a stay pending appeal.

In re Marriage of Walker

(California Court of Appeal) – In an marriage dissolution proceeding involving the issue of whether one spouse is entitled to a greater share of the proceeds from the sale of a community property home due to her bankruptcy discharge, the trial court’s award of a larger share to the spouse who received the bankruptcy discharge, on grounds that doing otherwise would enforce a discharged debt against her and thereby violate federal bankruptcy law, is reversed where: 1) this case features a secured debt on an asset jointly owned by the parties, the sale of which resulted in substantial proceeds beyond the amount of secured debt; 2) although a secured lender’s potential right to a deficiency judgment (i.e., in personam liability) can be discharged in bankruptcy, the lender’s lien on real property (i.e., in rem liability) is unaffected by a discharge in bankruptcy; 3) here, the lien was extinguished at closing by payment of the current amount owed on the loan, a necessary condition to selling the property and thereby benefitting both parties; and 4) under state law, the parties were entitled to equal shares of the proceed.