March 23, 2021
Third Circuit Rejects Triangular Setoffs and Adopts Rationale by Judge Shannon
A triangular setoff valid under state law does not satisfy the mutuality requirement in Section 553(a).
3rd CircuitMarch 22, 2021
Inability to Cover Accruing Interest Was Pivotal on Discharging Student Loans
Eligibility for an income-based repayment program is relevant only on the third Brunner test regarding good faith.
10th Circuit, KansasMarch 19, 2021
Only Noncitizens with ‘Green Cards’ Qualify for a Florida Homestead Exemption
Intending to reside permanently in the U.S. won’t qualify someone for a Florida homestead exemption unless the debtor is entitled to permanent residency.
11th Circuit, Florida, Florida Middle DistrictMarch 18, 2021
Third Circuit Resurrects an ‘Admin’ Claim When the Stalking Horse Had No Breakup Fee
The Third Circuit found loopholes in the purchase agreement permitting the buyer to assert an administrative claim, even though the breakup fee was disallowed.
3rd CircuitMarch 17, 2021
Unsurprisingly, Second Circuit Reaffirms the Strictures of Brunner
Second Circuit insinuates that “undue hardship” and the Brunner test are synonymous.
2nd CircuitMarch 16, 2021
Solicitor General Says the Second Circuit ‘Erred’ in Tribune Safe Harbor Decision
Despite several errors about the safe harbor, the government recommends that the Supreme Court deny certiorari in Tribune.
Supreme CourtMarch 15, 2021
Individual Chapter 11 Debtors Have Standing to Raise Thirteenth Amendment Claims
The Eleventh Circuit was ‘skeptical’ about a violation of the anti-slavery amendment resulting from the appointment of a chapter 11 trustee to oust an individual chapter 11 debtor in possession.
11th CircuitMarch 12, 2021
Trustees Don’t Need a Pecuniary Interest to Have Standing to Appeal, Fifth Circuit Says
Fee allowances aren’t made with the benefit of hindsight, the Fifth Circuit says.
5th CircuitMarch 11, 2021
Reverse Contingencies Are Permissible in Bankruptcy Cases, Judge Olack Says
Compensation in a bankruptcy case can be based on savings to the estate, not only on cash recoveries by the estate.
5th Circuit, Mississippi, Mississippi Southern DistrictMarch 10, 2021
Bankruptcy Judge Helps a Debtor Who Couldn’t Defend a Dischargeability Suit
Bankruptcy judge had tricks up his sleeve to help a debtor who couldn’t afford a lawyer to defend a dischargeability suit.
7th Circuit, Illinois, Illinois Northern District