July 02, 2024
Judicial Estoppel Barred the Debtor from Filing an Undisclosed ‘PI’ Claim, Circuit Says
Eighth Circuit holds that a chapter 13 debtor, not the trustee, has standing to bring personal injury claims.
8th CircuitJuly 01, 2024
Supreme Court to Rule on Waiver of Sovereign Immunity for Suits Under Section 544(b)(1)
To resolve a circuit split, the Supreme Court has agreed to decide whether a trustee can sue the government to recover a fraudulent transfer under state law when sovereign immunity would bar an ‘actual creditor’ from suing.
Supreme CourtJune 28, 2024
Supreme Court Reverses Purdue: No Nondebtor, Third-Party, Nonconsensual Releases
Justice Gorsuch for the majority bans third-party releases broader than a discharge for those who don’t surrender all their assets to the court.
Supreme CourtJune 27, 2024
Misleading Ads to Poach a Debtor’s Customers Is No Stay Violation, Circuit Says
The Second Circuit gives competitors license to mount false advertising unless it’s ‘virtually certain’ to affect a debtor’s customer contracts or goodwill.
2nd CircuitJune 26, 2024
Payments Made with Insurance Nevertheless Were Preferences, District Judge Says
Payments from insurance must be properly structured to avoid preference liability.
5th Circuit, Texas, Texas Southern DistrictJune 25, 2024
On a Circuit Split, First Circuit BAP Enforces Deadlines for Joining Involuntary Petitions
The circuits are split on whether a creditor has an ‘unfettered’ right to join as an involuntary petitioner.
1st CircuitJune 24, 2024
As Subsequent Transferees, Churches Must Cough Up Fraudulent Transfers
Judge Huennekens explained that a church’s immunity for receipt of a constructively fraudulent transfer only applies if the transferor was an individual and the transferor was the debtor.
4th Circuit, Virginia, Virginia Eastern DistrictJune 21, 2024
Discharge Injunction Violations Can’t Be Heard in Federal District Court
Circuits are split on whether claims for contempt of the discharge injunction must be brought in the bankruptcy court that issued the discharge.
7th Circuit, Illinois, Illinois Northern DistrictJune 20, 2024
Corporate Debts in Sub V Can Be Nondischargeable, Judge Says, Differing with His BAP
Bankruptcy Judge Hercher agreed with the results in the Fourth and Fifth Circuits but disagreed with some of the appeals courts’ logic.
9th Circuit, OregonJune 18, 2024
An ‘Admin’ Claim Isn’t Mandated for Nonpayment of Rent Before Automatic Rejection
To align with congressional intent underpinning Section 365(d)(3), Judge Gravelle gave the landlord an administrative claim for base rent due after filing and before automatic rejection.
3rd Circuit, New Jersey