August 13, 2021
In ‘Chapter 20,’ Discharged Mortgage Claim Resurrects as Unsecured, EDNY Judge Says
Judge Grossman didn’t abolish ‘chapter 20’ entirely. He required the debtor to treat the subordinate mortgage lender like all other unsecured creditors, even though the debtor’s personal liability to the lender had been discharged in the prior chapter 7 case.
2nd Circuit, New York, New York Eastern DistrictAugust 12, 2021
District Judge Rakoff Explains Why the Debtor Alone May Assert a Cure Claim
A creditor can’t assert a cure claim, even though Section 365(b) doesn’t give the counterparty the sole right to demand a cure on assumption of an executory contract.
2nd Circuit, New York, New York Southern DistrictAugust 11, 2021
NC Appellate Court Rules Plans Must Be Unambiguous to Hold a Creditor in Civil Contempt, Citing Taggart
After Taggart v. Lorenzen, plans, orders and injunctions must be highly specific to hold an offending creditor in contempt.
4th Circuit, North Carolina, North Carolina Eastern DistrictAugust 10, 2021
Eighth Circuit Comes Near to Abolishing Equitable Mootness
Circuit Judge Loken predicts the Supreme Court will abolish equitable mootness if the lower courts don’t cut back and start reviewing the merits of confirmed chapter 11 plans.
8th CircuitAugust 09, 2021
‘Cert’ Petitions Raise Equitable Mootness and Federal Preemption in the Supreme Court
‘Cert’ petitions presenting two bankruptcy issues worthy of review by the Supreme Court will be considered by the justices at the ‘long conference’ on September 27.
Supreme CourtAugust 06, 2021
Statutory Mootness of Sale Orders Even Overrides Alleged Due Process Violations
Fifth Circuit rejects technical arguments aimed at skirting Section 363(m) and statutory mootness of a sale order.
5th CircuitAugust 05, 2021
Second Circuit Makes Taggart Applicable to All Contempt Citations in Bankruptcy Court
Even for egregious, repeated violations of Bankruptcy Rule 3002.1, the bankruptcy court may only award recovery of economic losses, never punitive damages.
2nd CircuitAugust 04, 2021
Chapter 13 Trustees Are Paid Even if Dismissal Comes Before Confirmation, BAP Says
The Ninth Circuit BAP joins the minority on an issue that’s headed for the court of appeals.
9th CircuitAugust 03, 2021
Seventh Circuit Defines What It Means to Practice Law
The Seventh Circuit provided a useful guide for how much supervision a lawyer must provide when a nonlawyer is doing most of the work.
7th CircuitAugust 02, 2021
A Motion to Dismiss as of Right Doesn’t Bar the Court from Dismissing with Prejudice
Ninth Circuit BAP doesn’t require a formal motion to dismiss with prejudice when a debtor files a voluntary motion to dismiss as of right under Section 1307(b).
9th Circuit