March 26, 2024
Nonconsensual, Nondebtor Releases Prohibited by a District Court in a Subchapter V Case
A district judge in New York reversed a bankruptcy judge who had permitted a nonconsensual, nondebtor release in a Subchapter V case.
2nd Circuit, New York, New York Southern DistrictMarch 25, 2024
Supreme Court Rules on Mootness, but Not Equitable Mootness
The unanimous decision on March 19 by Justice Gorsuch contains language that could be used on both sides of the argument about the validity of equitable mootness.
Supreme CourtMarch 22, 2024
Actual Notice Is Required for a Plan Injunction to Bind a Creditor
A creditor’s actual knowledge that a bankruptcy case exists isn’t enough for the creditor to be bound by a plan injunction, Delaware’s Judge Silverstein says.
3rd Circuit, DelawareMarch 21, 2024
Supreme Court Hears Argument on Who Has Standing in Bankruptcy Cases
The Supreme Court may decide that standing in bankruptcy cases is more flexible and that Article III standards don’t apply in chapter 11 cases.
Supreme CourtMarch 20, 2024
Seventh Circuit: Transfers of Nonpublic Securities Are Protected by the 546(e) Safe Harbor
The Seventh Circuit adopted a broad reading of the Section 546(e) safe harbor to dismiss a fraudulent transfer suit attacking a sale of nonpublic securities.
7th CircuitMarch 19, 2024
Rooker-Feldman Held Not to Prevent Relitigation of a Denied Exemption
The Supreme Court’s narrowing of Rooker-Feldman is showing up in circuit court opinions.
11th CircuitMarch 18, 2024
A ‘13’ Debtor Can’t Dismiss After Conversion to ‘7,’ Tenth Circuit BAP Says
A 14-day stay under Rule 7062 might have saved the chapter 13 debtor’s right to dismiss under Section 1307(b).
10th CircuitMarch 15, 2024
Being a ‘Net Winner’ in a Ponzi Scheme Doesn’t Automatically Mean Nondischargeability
Alleging that a debtor realized an ‘impossibly high’ rate of return in a Ponzi scheme isn’t enough to state a claim of nondischargeability for ‘actual fraud.’
4th Circuit, North Carolina, North Carolina Eastern DistrictMarch 14, 2024
Creditor Hit with $826,000 in Sanctions for Filing a Meritless Proof of Claim
Refusing to withdraw a meritless claim with prejudice contributed to the decision by Judge Jernigan to impose high-six-figure sanctions.
5th Circuit, Texas, Texas Northern DistrictMarch 13, 2024
Mainland Chinese Company Wins Foreign Main Chapter 15 Recognition in New York
With no opposition, a mainland Chinese company with an approved arrangement in Hong Kong might win foreign main recognition in the U.S.
2nd Circuit, New York, New York Southern District