December 28, 2020
Absent a Stay, Making Plan Payments for Two Years Renders an Appeal Equitably Moot
In the First Circuit, transferring the business or assets isn’t required before confirmation is equitably moot.
1st CircuitDecember 23, 2020
Automatic Stay Applies Automatically to the Archbishop of a Bankrupt Archdiocese
Although a lawsuit against the archbishop violated the automatic stay, Judge Thuma of Albuquerque declined to impose sanctions because precedent was ‘spotty or nonexistent.’
10th Circuit, New MexicoDecember 22, 2020
Statement of Profitability Must Be in Writing to Underpin a Nondischargeability Claim
A statement about the profitability of a corporation the debtor owns is a statement about the debtor’s own financial condition, the Fifth Circuit says.
5th CircuitDecember 21, 2020
Circuit Whacks a Bankruptcy Lawyer with Sanctions for a Brief ‘Littered’ with ‘Rants’
Eleventh Circuit hits an attorney for a brief citing Bugs Bunny rather than caselaw authority.
11th CircuitDecember 18, 2020
Madoff Trustee Wins Prejudgment Interest from ‘Net Winner’ Who Didn’t Settle
By continuing to litigate for 10 years on a lost cause, prejudgment interest will ‘up’ a fraudulent transfer defendant’s liability by 40%.
2nd Circuit, New York, New York Southern DistrictDecember 17, 2020
Bankruptcy Judges Disagree About Abatement of Rent During the Pandemic
Neither the Bankruptcy Code nor state law permits reducing rent when government regulations restrict a debtor’s ability to generate income, Judge Isgur says.
5th Circuit, Texas, Texas Southern DistrictDecember 16, 2020
A Nonprimary Residence May Nonetheless Qualify for a Federal Exemption
A debtor may have a valid ‘homestead’ exemption without residing in the property, so long as a dependent does reside there, the Second Circuit rules.
2nd CircuitDecember 15, 2020
The Mailbox Presumption Won’t Deem a Claim to Have Been Timely Filed
Courts are split on the extent to which an affidavit of timely mailing will suffice to prove that a claim was filed.
4th Circuit, North Carolina, North Carolina Middle DistrictDecember 14, 2020
A Payment to a Death Beneficiary Under an IRA Is Not Estate Property
Even though received within 180 days of filing, a distribution from an IRA to a death beneficiary does not become estate property.
6th Circuit, Michigan, Michigan Eastern DistrictDecember 11, 2020
Courts Are Now Split on Whether a Subchapter V Debtor Must Be ‘Currently’ Engaged in Business
Debts acquired from running a business do not qualify someone for subchapter V of chapter 11 if the business has terminated and the assets are gone, according to Judge Cynthia Norton.
8th Circuit, Missouri, Missouri Western District