August 28, 2024
Houston Judge Confirms an ‘Opt-Out’ Plan with Nondebtor Releases
In the first opinion on the issue after Purdue, Bankruptcy Judge Christopher Lopez holds that Purdue did not change Fifth Circuit law where ‘hundreds’ of ‘opt-out’ plans have been confirmed with nondebtor releases.
5th Circuit, Texas, Texas Southern DistrictAugust 27, 2024
Sovereign Immunity Is Difficult (Impossible?) to Waive in the Ninth Circuit
Reversing the BAP, the Ninth Circuit held that counsel’s oral waiver of sovereign immunity did not bind the state.
9th CircuitAugust 26, 2024
A Wholly Unsecured Lien May Be Stripped Off Even if It Predated Ownership
Bankruptcy Judge Michelle Harner held that a wholly unsecured, subordinate lien may be stripped off in chapter 13 even if the lien arose before the debtor owned the property.
4th Circuit, MarylandAugust 23, 2024
Chapter 13 Debtors Keep Property that Was Unintentionally Undisclosed
Revesting allowed chapter 13 debtors to retain property that was innocently undisclosed.
1st Circuit, MassachusettsAugust 22, 2024
Imputed Knowledge Kills the Good Faith Defense of a Subsequent Transferee, Circuit Says
Criminal activities of an agent don’t take the agent’s actions outside of the scope of authority.
5th CircuitAugust 21, 2024
New York Court Holds that ‘Future’ Asbestos Claims Can Be Discharged Without a Trust
Professors disagree on whether latent asbestos claims can be discharged without a trust for future claimants.
2nd Circuit, New York, New York Southern DistrictAugust 20, 2024
Judge Barnes Explained Why Bankruptcy Stays Don’t Require Personal Jurisdiction
Chicago’s Bankruptcy Judge Timothy Barnes explained eight years ago why bankruptcy stays do not require personal jurisdiction, unlike injunctions in receiverships.
7th Circuit, Illinois, Illinois Northern DistrictAugust 19, 2024
Revesting on Discharge in Chapter 13 Can’t Be Mandated, Fourth Circuit Says
Local rules and local standard plans cannot force a chapter 13 debtor to disregard one of the options in Section 1327 and require revesting of estate assets on discharge.
4th CircuitAugust 16, 2024
Fifth Circuit Receivership Opinion Raises Questions About the Automatic Stay
Fifth Circuit says that the court must have obtained personal jurisdiction over a third party in a receivership to enforce an injunction. Is the same true for the automatic stay and the discharge injunction in bankruptcy? Is there no injunction before there’s personal jurisdiction?
5th CircuitAugust 15, 2024
Another Bankruptcy Judge Decided that Sub V Classes with No Votes Aren’t Accepting
Bankruptcy Judge Paul Bonapfel differed with two judges in Houston by holding that a nonaccepting class in Subchapter V means that a plan must be confirmed in cramdown.
11th Circuit, Georgia, Georgia Northern District