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ABI Journal

Rochellel's Daily Wire

March 18, 2022

Second Circuit Holds that Debtors Are Properly Barred from Receiving PPP Loans

The first court of appeals to reach the issue decides that the SBA properly interpreted the CARES Act to bar chapter 11 debtors from receiving PPP ‘loans.’

2nd Circuit

March 17, 2022

No ‘Excusable Neglect’ for Late Claim if Class Claim Was Denied, Fifth Circuit Says

Fifth Circuit opinion shows that disallowance of a class proof of claim may preclude individual class members from filing late claims.

5th Circuit

March 16, 2022

Discharging Student Loans Puts Bankruptcy Judges in Untenable Positions

Bankruptcy judges are required to predict the unknown and the unknowable when deciding how much debtors can repay in student loans.

10th Circuit, Kansas

March 15, 2022

To Be a Section 544(b)(1) Predicate Claim for a 10-Year Lookback, the Claim Must Be Filed

A claim of the IRS can provide a 10-year lookback for avoidance actions, but the claim must have been filed.

3rd Circuit, Delaware

March 14, 2022

Another New York District Judge Is Hostile to Nondebtor, Third-Party Releases

At the risk of committing error, a district judge in New York reads a third-party release to cover only derivative claims, not direct claims that a creditor may have against a nondebtor.

2nd Circuit, New York, New York Southern District

March 11, 2022

California Judge Splits with his BAP; Subpoenas Require Court Approval Under Barton

Someone seeking to issue a subpoena to a trustee is the proper party to seek leave under the Barton doctrine, Judge Clarkson says.

9th Circuit, California, California Central District

March 10, 2022

Denial of Stay Modification Without Prejudice Can Be Final, Ninth Circuit Says

The Ninth Circuit answered a question left open by the Supreme Court in Ritzen.

9th Circuit

March 09, 2022

Bankruptcy Is a Big Risk for Unmarried Couples Who Split Up

Family lawyers should be acutely aware that bankruptcy protections for former spouses don’t cover unmarried couples.

7th Circuit

March 08, 2022

Debtors Get Mortgage Interest Deduction They Didn’t Pay in a Short Sale

For those entitled to the mortgage interest deduction, debtors may have unexpected tax benefits from short sales.

9th Circuit

March 07, 2022

Fraudulent Transfers to Revocable Trusts May or May Not Zap Homestead Exemptions

In Ohio, the debtor won’t lose the homestead exemption by transferring a home to a revocable trust.

6th Circuit, Ohio, Ohio Northern District