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ABI Journal

Rochellel's Daily Wire

January 30, 2018

Fifth Circuit Holds that Chapter 7 Trustees Presumptively Get Statutory Commissions

In the Fifth Circuit, chapter 7 trustees lock in higher compensation.

5th Circuit

January 30, 2018

Simply Initiating Events that Later Violate the Stay Is Not a Stay Violation

Second Circuit approves a stay-violation defense in a nonprecedential opinion.

2nd Circuit

January 29, 2018

On the Means Test, a Single Debtor Can Take Deductions for Two Cars

New York judge rules that the IRS Handbook is not controlling on auto expenses for the means test.

January 29, 2018

Subsequent Transferees Can Be Sued Before Judgment Against the Initial Transferee

Circuits are split on requiring a judgment before suing a subsequent transferee.

January 26, 2018

Portions of Rule 4004 Violate the Rules Enabling Act, Bankruptcy Judge Klein Says

Objection is not required to bar a discharge to an individual who received a chapter 7 discharge within eight years.

9th Circuit, California, California Eastern District

January 25, 2018

The Validity of a ‘Golden Share’ to Bar a Filing Goes to the Fifth Circuit

The Fifth Circuit is being asked to decide whether loan structuring can prevent a borrower from filing bankruptcy.

5th Circuit, Mississippi, Mississippi Southern District

January 24, 2018

The GM Creditors’ Trust Opens a Can of Worms by Nixing a Settlement

Bankruptcy judge finds bad faith for walking out on a fully documented but unsigned settlement.

2nd Circuit, New York, New York Southern District

January 23, 2018

Judge Refuses to Vacate Opinion Socking a Bank with $40 Million in ‘Punies’

California judge won’t bar the debtor from settling for more than the original $6 million in compensatory damages while forsaking $40 million in punitive damages earmarked for public interest groups.

9th Circuit, California, California Eastern District

January 22, 2018

A Turnover Action Will Suffice if a Transfer Was a ‘Sham,’ Seventh Circuit Says

Fraudulent transfer suit isn’t always required to recover fraudulently transferred property.

7th Circuit

January 22, 2018

BAP Upholds $119,000 in Contempt Sanctions; Tells Lender to Modify Its Forms

Lender cannot hide behind a disclaimer to avoid sanctions for violating the discharge injunction, Ninth Circuit BAP holds.

9th Circuit