December 20, 2021
Third-Party, Non-Consensual Releases Nixed in the Purdue ‘Opioid’ Reorganization
Manhattan district judge vacated confirmation of Purdue Pharma’s chapter 11 plan because the court had no statutory power to impose non-consensual releases of creditors’ direct claims against non-debtors.
2nd CircuitDecember 17, 2021
Fifth Circuit Has Rigid Standards for Chapter 7 Debtors to Have Standing to Appeal
An individual chapter 7 debtor has standing to appeal if the appeal could affect the debtor’s right to a discharge.
5th CircuitDecember 16, 2021
Limits Placed on Rule 2004 Discovery After Chapter 11 Plan Confirmation
Although the bankruptcy court has subject matter jurisdiction after confirmation, the debtor cannot show ‘good cause’ for Rule 2004 discovery if it would confer an ‘unfair strategic advantage.’
11th Circuit, Florida, Florida Middle DistrictDecember 15, 2021
Arbitration Clause Not Enforceable When the Contract Itself Was Rejected
Judge Jernigan in Dallas differs with a judge in Delaware by declining to enforce an arbitration agreement that was part of a rejected contract.
5th Circuit, Texas, Texas Northern DistrictDecember 14, 2021
Ninth Circuit Takes a Hard Line on What’s an Equivalent Tax Return for Dischargeability
Interpreting the hanging paragraph in Section 523(a), the Ninth Circuit sticks to the Beard test in deciding whether something is close enough to a tax return to justify discharging a tax debt.
9th CircuitDecember 13, 2021
On a Split, District Judge Doesn’t Pay ‘13’ Trustee if Dismissal Precedes Confirmation
District judge in Colorado sides with the majority and doesn’t allow a chapter 13 trustee to be paid if dismissal occurs before plan confirmation.
10th Circuit, ColoradoDecember 11, 2021
Complaint Survives Against Chicago for Not Releasing Impounded Cars Immediately
Despite Fulton, a Chicago bankruptcy judge rules that the City of Chicago might have violated Section 362(a)(4), (a)(6) or (a)(7) by refusing to release impounded cars immediately after a debtor files a chapter 13 petition.
7th Circuit, Illinois, Illinois Northern DistrictDecember 10, 2021
Circuit Panel Urges En Banc Reconsideration of the Vanishing Homestead Exemption
A panel of the Ninth Circuit implicitly urged en banc reversal of two decisions holding that a homestead exemption is lost if the proceeds are not reinvested within the time required by state law, even if the exemption was valid on the filing date.
9th CircuitDecember 09, 2021
Interest Not Required on 100% ‘13’ Plans that Don’t Commit All Disposable Income
Treaties disagree on whether interest is required in 100% chapter 13 plans when the debtor is not devoting all disposable income to the plan.
4th Circuit, South CarolinaDecember 09, 2021
Government Urges Supreme Court to Review Constitutionality of the 2018 Increase in U.S. Trustee Fees
The U.S. Solicitor General wants the Supreme Court to resolve a circuit split and decide whether the increase in U.S. Trustee fees violated the Bankruptcy Clause because it was not immediately applicable in two states with bankruptcy administrators.
Supreme Court