February 27, 2025
Chicago Judge Devises a Better Method to Allocate Income Tax Refunds Between Spouses
Whoever was overwithheld is entitled to the IRS refund when one spouse doesn’t file, Judge Michael Slade says.
February 26, 2025
Judge Oldshue Splits with Two Circuits: No Nondischargeability for Sub V Corporations
The bankruptcy judge in Pensacola, Fla., is giving the Eleventh Circuit an opening to split with the Fourth and Fifth Circuits.
11th Circuit, Florida, Florida Northern DistrictFebruary 25, 2025
In Stalking Horse Sales, Courts Have Flexibility to Reopen Bidding After the Deadline
The debtor’s duty to land the best price for an asset can overcome the winning bidder’s expectation that sale procedures will be enforced rigorously.
6th Circuit, Ohio, Ohio Northern DistrictFebruary 24, 2025
Forbearance Agreement Wasn’t an Enforceable Waiver of the Automatic Stay
Bankruptcy Judge Laura Grandy (politely) faulted other federal courts for failing to follow the Illinois mortgage statute and decisions by the Illinois Supreme Court.
7th Circuit, Illinois, Illinois Southern DistrictFebruary 21, 2025
A District Court Decision Implies that Marshaling Is Impermissible in Bankruptcy
The circuits are split on whether a bankruptcy court can compel marshalling by the IRS.
5th Circuit, Texas, Texas Northern DistrictFebruary 20, 2025
A Foreign Branch of an FDIC-Insured U.S. Bank Remains Ineligible for Chapter 15
The district court affirmed the holding by Bankruptcy Judge Martin Glenn that a foreign branch of a U.S. bank isn’t eligible for chapter 15.
2nd Circuit, New York, New York Southern DistrictFebruary 19, 2025
The ‘Probate Exception’ to Federal Subject Matter Jurisdiction Is Narrow
The ‘probate exception’ to federal subject matter jurisdiction does not prevent bankruptcy courts from basing decisions on state trusts and estates law, except in limited circumstances.
6th CircuitFebruary 18, 2025
Nondischargeability in Sub V Only Applies When It’s a Nonconsensual, Cramdown Plan
A creditor must control a class before its debt can become nondischargeable in Subchapter V.
11th Circuit, Georgia, Georgia Middle DistrictFebruary 14, 2025
Although Exempt, Social Security Benefits Must Be Reported in Subchapter V
While neither Social Security benefits nor post-petition income are estate property in Subchapter V, they must be included in an individual’s monthly operating reports, Bankruptcy Judge Jacobvitz says.
10th Circuit, New MexicoFebruary 13, 2025
Judge Christopher Klein Writes ‘Cliffs Notes’ on Transferring Venue of Related Cases
In transferring venue of a related case under Rule 1014(b), the bankruptcy court can move sua sponte and need not await a venue motion by a creditor or party in interest.
9th Circuit, California, California Eastern District