December 10, 2024
A Magistrate Judge Refuses to Enforce an Order Staying Actions Against Nondebtors
A magistrate judge decided that a bankruptcy court’s order from another district halting suits against nondebtors was unenforceable because it was not an ‘injunction’ made under Section 105(a).
6th Circuit, Michigan, Michigan Eastern DistrictDecember 09, 2024
Having Committed Fraud Doesn’t Prevent a Debtor from Vacating a Judicial Lien
If a creditor’s judicial lien is avoided, how can the creditor collect the underlying debt if it’s excepted from discharge?
10th Circuit, New MexicoDecember 06, 2024
Giving the Debtor a Grace Period to Cure Isn’t Extending a Plan Beyond Five Years
In the Third Circuit, it’s possible to cure a payment default under a chapter 13 play beyond five years, district judge says in affirming the bankruptcy court.
3rd Circuit, New JerseyDecember 05, 2024
Supreme Court Hears Argument on Allowing a Trustee to Sue the IRS for Fraudulent Transfers
Most justices seemed inclined to believe that the waiver of sovereign immunity in Section 106(a) does not abrogate the “actual creditor” requirement in Section 544(b)(1).
Supreme CourtDecember 04, 2024
For Nondischargeability, a Bankruptcy Court Can Find a Securities Law Violation
A decision from a state or federal court before bankruptcy finding a securities law violation isn’t required for nondischargeability under Section 523(a)(19).
9th CircuitDecember 03, 2024
Purdue Preliminary Injunction Protecting Nondebtors Upheld on Appeal
The same district judge who correctly predicted that Purdue’s nonconsensual releases were prohibited has nonetheless upheld a preliminary injunction barring suits against nondebtors.
2nd Circuit, New York, New York Southern DistrictDecember 02, 2024
A Business that Never Generated Income Is Eligible for Subchapter V, Judge Norman Says
The definition of ‘small business’ uses the word ‘activities,’ not ‘operations,’ making nonoperating small business eligible for Subchapter V.
5th Circuit, Texas, Texas Southern DistrictNovember 27, 2024
Creating a Circuit Split, Ninth Circuit Allows Retirement Contributions in Chapter 13
The Ninth Circuit split with the Sixth Circuit in the interpretation of the ‘hanging paragraph’ in Section 541(b)(7). Courts are divided four ways on whether or how much a ‘13’ debtor may contribute to voluntary retirement plans after filing.
9th CircuitNovember 26, 2024
Class Action Commonality Justifies an ‘Opt Out’ Plan for Nondebtor Releases
With an exception, cases after Purdue are pointing toward approval of nondebtor releases where creditors are only allowed to opt out.
2nd Circuit, New York, New York Northern DistrictNovember 25, 2024
Purdue Creditors Given Derivative Standing to Sue the Sacklers
Bankruptcy Judge Sean Lane says that Delaware corporate law can’t prevent committees from having derivative standing.
2nd Circuit, New York, New York Southern District