March 09, 2021
Equitable Mootness Doesn’t Violate Due Process, First Circuit Says
Constitutional arguments don’t entitle the creditor to stay relief.
1st CircuitMarch 08, 2021
Split Grows on Whether a Subchapter V Debtor Must Be ‘Currently’ Engaged in Business
The owner of defunct businesses was held ineligible to be a small business debtor because he was no longer the owner of an operating business. Being a non-owner executive of an operating business didn’t qualify him.
5th Circuit, Texas, Texas Northern DistrictMarch 05, 2021
Ninth Circuit Joins the Fifth by Endorsing the ‘Snapshot Rule’ for Exemptions
By adopting a BAP opinion, the Ninth Circuit backed away from disallowing exemptions when a debtor disposes of exempt property after the filing date.
9th CircuitMarch 04, 2021
Courts Are Split on Whether Counsel Fees Are Considered in the Chapter 13 Best Interests Test
Deferred payments to unsecured creditors in a chapter 13 plan must equal the present value of the distributions required by the best interests test, Judge Halfenger says.
7th Circuit, Wisconsin, Wisconsin Eastern DistrictMarch 03, 2021
Second Circuit Ducks a Critical Vendor Appeal
An appeal from a critical vendor order was dismissed as equitably moot.
2nd CircuitMarch 02, 2021
Landlord Socked $606,000 for Opposing Lease Assumption
Fee-shifting clause in the lease entitled the debtor to recover $606,000 in attorneys’ fees from the landlord for opposing lease assumption.
9th Circuit, California, California Central DistrictMarch 01, 2021
Circuits Split on Applying Derivative Jurisdiction to a Lack of Personal Jurisdiction
In a removed action, nationwide service under Bankruptcy Rule 7004 can give a district court personal jurisdiction, even though the state court would lack personal jurisdiction.
11th CircuitFebruary 26, 2021
The Outer Limits of Discharge Explored by the Ninth Circuit BAP
Deducting a loan to a child from her inheritance wasn’t a violation of the discharge injunction.
9th CircuitFebruary 25, 2021
To Invoke Equitable or Statutory Mootness, the Record Must Be Clear that a Sale Closed
Unsubstantiated statements that a sale closed didn’t persuade a district judge in Dallas to invoke equitable or statutory mootness.
5th Circuit, Texas, Texas Northern DistrictFebruary 24, 2021
Bankruptcy Settlement Didn’t Discharge All Environmental Claims, New York Judge Says
Due process considerations persuaded District Judge Oetken to conclude that a creditor’s claims, unknown at the time, were not barred by a settlement.
2nd Circuit, New York, New York Southern District