February 12, 2025
Judgment Liens Based on Nondischargeable Debts May Be Avoided as ‘Impairments’
A homestead can be protected from collection of a nondischargeable debt, limiting the judgment creditor to attaching nonexempt property.
9th Circuit, ArizonaFebruary 11, 2025
In Lender-on-Lender Violence, an ‘Uptier’ Financing Bites the Dust, this Time in Houston
Fancy drafting by ‘brilliant financiers and lawyers,’ the judge said, didn’t validate an uptier transaction when the ‘effect’ was to release collateral without a two-thirds vote.
5th Circuit, Texas, Texas Southern DistrictFebruary 10, 2025
The Insurer Exception to Discharge Injunction: More Theoretical than Real?
The self-insured retention can prevent a creditor from using the insurer exception to sue the insurance company with the debtor as a nominal defendant.
5th CircuitFebruary 07, 2025
Second Circuit Takes Sides on a Section 365(d)(5) Circuit Split
The ‘billing approach,’ not the ‘accrual approach,’ decides whether there is a priority claim for personal property and real estate leases more than 60 days after filing.
2nd CircuitFebruary 06, 2025
No Second Restructuring of the Same Debt in a Different Venue
Delaware judge wouldn’t allow a chapter 11 debtor to restructure the same secured debt a second time in a different venue.
3rd Circuit, DelawareFebruary 05, 2025
Kritiya Proven Fraud Won’t Always Cut Down the Amount of a Homestead Exemption, BAP Says
To limit the amount of a homestead exemption under Section 522(q)(1)(B)(ii), the fraud must have occurred after the debtor became a fiduciary. Loremip
9th CircuitFebruary 05, 2025
‘Evergreen’ Retainers Are Ok Only in ‘Exceptional’ Sub V Cases, Judge Gunn Says
Washington, D.C.’s Judge Gunn describes the procedures to employ for approval and operation of an ‘evergreen’ retainer in chapter 11.
D.C. CircuitFebruary 04, 2025
Barton Halted Third Parties from Suing in an Allegedly Better Forum
When third parties sued a trust created by a confirmed chapter 11 plan, Judge Garrity declined to invent any new exceptions to the Barton doctrine.
2nd Circuit, New York, New York Southern DistrictFebruary 03, 2025
A Disguised Loan Agreement Didn’t Create a ‘Fair Ground of Doubt’ Under Taggart
The Fifth Circuit undertook a legal analysis of a complex loan agreement to decide there was no ‘fair ground of doubt’ under Taggart that the lender was violating the discharge injunction.
5th CircuitJanuary 31, 2025
A Good Faith Objection to a Sale Cannot Be Raised the First Time on Appeal
The existence of a competing bidder does not put the buyer on notice of an ‘adverse interest’ to avoid dismissal for mootness under Section 363(m), the Sixth Circuit BAP says.
6th Circuit