January 13, 2021
Another Court Lets the Debtor Keep Appreciation in a Home on Conversion from 13 to 7
Where the courts are split, Idaho judge sides with the Tenth Circuit BAP and allows a chapter 13 debtor to retain post-petition appreciation in the value of a homestead following conversion to chapter 7.
9th Circuit, IdahoJanuary 11, 2021
Guarantee of a Lease Survives Rejection if the Tenant Remains in Possession
District judge explains why veil-piercing is easier to prove in Michigan than elsewhere.
6th CircuitJanuary 11, 2021
Bankruptcy Judge Won’t Rule on the Constitutionality of Pandemic Regulations
Finding a proper exercise of regulatory power isn’t required to invoke the exception to the automatic stay.
3rd Circuit, Pennsylvania, Pennsylvania Western DistrictJanuary 08, 2021
Court Narrowly Construes Taggart to Find Contempt of the Discharge Injunction
Atlanta judge gave the benefit of the doubt to the debtor on a discharge violation, but limited damages to the recovery of attorneys’ fees.
11th Circuit, Georgia, Georgia Northern DistrictJanuary 07, 2021
Dissolved Corporation May Not File to Reorganize in Chapter 11, Only to Liquidate
Dissolved by forfeit, a corporation cannot reinstate a charter and may resort to bankruptcy only to liquidate, Judge Eduardo Rodriguez says.
5th Circuit, Texas, Texas Southern DistrictJanuary 06, 2021
Ponzi-Schemer’s Assistant Liable Under UFTA Even Without Knowledge of Fraud
Providing a necessary service for a Ponzi-schemer was enough to make an employee liable to return compensation as a fraudulent transfer.
10th Circuit, UtahJanuary 05, 2021
Chapter 12 Farmer Plan May Pay Impaired Secured Creditors Directly
The lender’s consent to direct payments by the family farmer persuaded Judge Furay to overrule the chapter 12 trustee’s objection to the plan.
7th Circuit, Wisconsin, Wisconsin Western DistrictJanuary 04, 2021
Safe Harbor Bars Foreign Liquidators from Recovering Money Stolen in the U.S.
Another opinion shows that Congress wrote Section 546(e) in a manner that goes far beyond protecting the securities markets in the U.S.
2nd Circuit, New York, New York Southern DistrictDecember 30, 2020
Follow the Rules or Lose an Exemption in a New Home While in Chapter 13
Chapter 13 debtors lost an exemption in a new home after converting to chapter 7 because they didn’t follow the rules.
11th Circuit, Florida, Florida Southern DistrictDecember 29, 2020
Eleventh Circuit Bans Chapter 11 Debtors from Receiving ‘PPP’ Loans
The Eleventh Circuit decided that the SBA acted within its rulemaking power by precluding chapter 11 debtors from receiving PPP loans under the CARES Act.
11th Circuit