September 24, 2021
Estate Claims Can’t Be Sold for Trivial Recovery by Unsecured Creditors
Had the purchaser of estate claims offered to waive its own unsecured claim, the sale might have been approved.
2nd Circuit, New York, New York Eastern DistrictSeptember 23, 2021
Bankruptcy Court Doesn’t Have Exclusive Jurisdiction over Fraudulent Transfer Suits
The Nevada Supreme Court correctly unpacked the confusing notions of bankruptcy jurisdiction and the division of authority between district and bankruptcy courts.
9th Circuit, NevadaSeptember 22, 2021
Third Circuit Makes More Rules on the Proper Scope of Asbestos Channeling Injunctions
The Third Circuit made more rules to decide whether an insurance company can be insulated from failure-to-warn claims by the channeling injunction in a chapter 11 ‘asbestos’ plan.
3rd CircuitSeptember 21, 2021
Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1
Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.
2nd Circuit, New York, New York Southern DistrictSeptember 20, 2021
Split Heading to the Tenth Circuit on Sovereign Immunity for Section 544(b) Claims
The Tenth Circuit will likely take sides on a split between the Ninth and Seventh Circuits on Section 544(b) state-law claims brought by a trustee in the shoes of an actual creditor.
10th Circuit, UtahSeptember 17, 2021
Affirmance Shows that Merit Management Has Been Gutted in the Second Circuit
Properly structuring a leveraged refinancing in the Second Circuit can avoid attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’
2nd Circuit, New York, New York Southern DistrictSeptember 16, 2021
Good Faith Is No Defense to an Allegedly Willful Stay Violation, Third Circuit Says
Lack of authority on point is no defense to a willful violation of the automatic stay, according to the Third Circuit.
3rd CircuitSeptember 15, 2021
Appeal from a ‘PPP’ Loan Dismissed as Equitably Moot
Would Section 364(c) validate a “PPP” loan even if an order compelling the SBA to make the loan was reversed on appeal?
9th Circuit, ArizonaSeptember 14, 2021
Chapter 13 Debtor Keeps a Whopping Increase in the Value of a Home
On a question where the courts are split, a New Jersey bankruptcy judge allowed the chapter 13 debtor to retain a $100,000 increase in value when he sold his home.
3rd Circuit, New JerseySeptember 13, 2021
Pawn Loans May Be Modified in Chapter 13 if There Wasn’t a Default Before Filing
Eleventh Circuit limits its own precedent to say that pawn lenders aren’t entirely immune from bankruptcy.
11th Circuit