July 16, 2021
Publication Notice Won’t Suffice for Creditors with Recorded Property Interests
Actual notice is required even for contingent liabilities not shown on financial statements, the Sixth Circuit holds.
6th CircuitJuly 15, 2021
Fees Benefiting Only the Debtor — and Not the Estate — Are Compensable in Chapter 13
Section 330(a)(4)(B) is an exception to the American Rule and the notion that administrative expenses must benefit the estate, not just the debtor.
5th Circuit, Texas, Texas Northern DistrictJuly 14, 2021
Being an ‘Officer’ Disqualifies Someone from a KERP, New York District Judge Says
Officers are presumptively disqualified from KERPs, “absent a strong showing that they do not perform any significant role in management,” a district judge in New York says.
2nd Circuit, New York, New York Southern DistrictJuly 13, 2021
IRA Withdrawals Aren’t Protected from Madoff Fraudulent Transfer Judgments
Madoff defendant socked with $280,000 in prejudgment interest for relitigating issues decided long ago.
2nd Circuit, New York, New York Southern DistrictJuly 12, 2021
Liquidating a Defunct Corporation Qualifies for the SBRA, Judge Lopez Says
Increasingly, courts are allowing defunct corporations to proceed under the SBRA while individual owners of defunct businesses aren’t being treated as small business debtors in chapter 11.
5th Circuit, Texas, Texas Southern DistrictJuly 09, 2021
Amended Chapter 13 Plan Allowed to Cure Post-Petition Mortgage Defaults
Courts are split on whether a debtor may amend a chapter 13 plan to cure post-petition defaults on a principal residence.
3rd Circuit, New JerseyJuly 08, 2021
Filing Chapter 15 as a ‘Litigation Tactic’ Didn’t Bar ‘Foreign Main Recognition’
Bankruptcy Judge Garrity didn’t impose a good faith filing requirement onto foreign main recognition of a chapter 15 case.
2nd Circuit, New York, New York Southern DistrictJuly 07, 2021
Contingency Fees Under a Trust Indenture May Not Result in a Claim, Judge Shannon Says
A standard provision in a trust indenture meant no recovery for the indenture trustee’s attorneys.
3rd Circuit, DelawareJuly 06, 2021
Maryland Decision Shows the Hardship Imposed on Debtors by Student Loans
Judge Harner does the best she can to ease the burden imposed on a debtor by student loans.
4th Circuit, MarylandJuly 02, 2021
Sovereign Immunity Prevailed Because a Slot Machine License Isn’t ‘Property’
In Pennsylvania, a gaming license isn’t ‘property.’ It’s a revocable license that can’t be owned.
3rd Circuit