August 25, 2020
Sanctions of $150,000 Upheld Against Nationwide Consumer Firm
When $50,000 in sanctions were not enough to coerce compliance with the Code and Rules, the Eleventh Circuit upheld $150,000 in sanctions for a second violation.
11th CircuitAugust 24, 2020
Parental Support Isn’t Counted on Discharge of Student Loans, Judge Kendig Says
Private charity is not considered to be part of a debtor’s income under the first part of the Brunner test.
6th Circuit, Ohio, Ohio Northern DistrictAugust 21, 2020
Detroit District Judge Includes Social Security Benefits in the Chapter 13 ‘Abuse’ Test
Although Social Security benefits are not subject to the “operation of any bankruptcy or insolvency law,” judge says they can be considered in deciding whether someone should be allowed to confirm a chapter 13 plan or have a chapter 7 case dismissed for ‘abuse.’
6th Circuit, Michigan, Michigan Eastern DistrictAugust 20, 2020
Bankruptcy Court Alone May Decide Whether a Claim Is Estate Property, BAP Says
Bankruptcy Court Alone May Decide Whether a Claim Is Estate Property, BAP Says
10th CircuitAugust 18, 2020
No ‘Core’ Jurisdiction to Protect Nondebtors with Injunctions, N.Y. District Judge Says
New York district judge differs with the Third Circuit on a bankruptcy court’s constitutional power to issue nondebtor, third-party releases.
2nd Circuit, New York, New York Southern DistrictAugust 18, 2020
Complete Disgorgement Is the Default Sanction for Failure to Disclose a Fee Agreement
Anything less than full disgorgement must be supported by ‘sound reasons’ and ‘solid evidence,’ the Tenth Circuit says.
10th CircuitAugust 17, 2020
Two Bankruptcy Judges Address Splits on Two Major Preference Issues
Does Rule 9006(a) expand the 30-day window for perfection, and can perfection be “substantially contemporaneous” even if perfection occurs after 30 days?
5th Circuit, Texas, Texas Western DistrictAugust 14, 2020
Second Circuit Holds that Flip Clauses in Swaps Are Enforceable
Even if flip clauses are ipso facto clauses, the Second Circuit holds that enforcement is permitted by the safe harbor in Section 560.
2nd CircuitAugust 13, 2020
Florida Judge Bars Redesignation Under the SBRA When Deadlines Have Already Lapsed
With deadlines already elapsed, Judge Grossman disagrees with three judges who allowed redesignation under subchapter V of chapter 11.
11th Circuit, Florida, Florida Southern DistrictAugust 12, 2020
The Automatic Stay Is a Get-Out-of-Jail Free Card in Chicago
The Seventh and Ninth Circuits may not be on the same page when it comes contempt citations falling under the Section 362(b)(4) exception to the automatic stay.
7th Circuit, Illinois, Illinois Northern District