July 28, 2020
The 2005 Amendments to Section 546(c) Limited the Remedies of Reclamation Creditors
Reclamation creditors no longer have liens or administrative claims if a secured lender sucks up all the value in reclaimed goods.
8th Circuit, NebraskaJuly 27, 2020
Sixth Circuit Broadly Interprets Section 959(b) to Cover State Pension Plans
A split panel on the Sixth Circuit held that Section 959(b) barred the debtor from halting participation in a state employees’ pension plan.
6th CircuitJuly 24, 2020
Increasingly Popular SBRA Permits Restructuring Personal Guarantees of Corporate Debt
More than 600 cases have already been filed under the SBRA since subchapter V of chapter 11 became effective in February.
5th Circuit, Louisiana, Louisiana Eastern DistrictJuly 23, 2020
Another Workaround Following the Prohibition of Nunc Pro Tunc Orders
The Supreme Court hasn’t prohibited paying counsel fees for services rendered before the entry of a retention order, Judge Preston says.
6th Circuit, Ohio, Ohio Southern DistrictJuly 22, 2020
Second Circuit Broadly Caps Wage Claims Accelerated Before Bankruptcy
Second Circuit prevents ‘artful drafting’ from evading the cap on golden parachutes under Section 502(b)(7).
2nd CircuitJuly 21, 2020
Majority of Courts Still Permit Small-Dollar Avoidance Suits in the Debtor’s Home Court
New York district judge agrees with the ABI Journal: Congress did not succeed in requiring trustees to file small-dollar avoidance actions in the defendant’s district.
2nd Circuit, New York, New York Eastern DistrictJuly 20, 2020
Creditor Socked with $41,000 in Sanctions for Filing Trumped-Up Criminal Charges
Bankruptcy Judge Warren makes sure the sanctions won’t be dischargeable if the offending creditor files his own bankruptcy.
4th Circuit, North Carolina, North Carolina Eastern DistrictJuly 17, 2020
Lower Courts Now Disagree on Modifying the Stay Retroactively After Acevedo
Did the Supreme Court’s Acevedo opinion preclude annulling the stay? The Ninth Circuit BAP says ‘no.’
9th CircuitJuly 16, 2020
Fraudulent Transfer Suit Didn’t Succeed in ‘Discharging’ Student Loans
Can student loans be wiped out as fraudulent transfers that aren’t dischargeable under Section 523(a)(8)?
4th Circuit, North Carolina, North Carolina Eastern DistrictJuly 15, 2020
Fines for Defrauding Consumers Are Dischargeable in a Corporate Chapter 11 Plan
Courts are divided on discharging fines in a corporate chapter 11 case when the government itself was not defrauded.
2nd Circuit, New York, New York Southern District