June 29, 2020
Government Notches 4 Victories, Debtors Win Once, in Fights over PPP ‘Loans’
Government often wins by arguing that the Small Business Act prohibits injunctions forcing the SBA to consider granting ‘PPP’ loans without regard to whether the applicant is a chapter 11 debtor.
5th CircuitJune 26, 2020
No Contempt for the IRS on Discharge Without Exhaustion of Administrative Remedies
Is Taggart just a defense that can be waived, or must a debtor plead and prove ‘no objectively reasonable basis’ in a motion for contempt of discharge?
2nd Circuit, New York, New York Southern DistrictJune 25, 2020
Reversing the BAP, Ninth Circuit Allows Chapter 13 Plans with Estimated Durations
The Ninth Circuit allows chapter 13 debtors on their own to accelerate payments to creditors and secure their discharges more quickly without modifying their plans.
9th CircuitJune 24, 2020
Fifth Circuit Bars Debtors from Receiving ‘PPP’ Loans Under the CARES Act
In a rapid-fire appeal, the Fifth Circuit ruled that the Small Business Act bars bankruptcy courts from enjoining the SBA.
5th CircuitJune 24, 2020
Appeal Heads Toward the Fourth Circuit on Arbitration of Discharge Violations
Eventually, the Supreme Court will decide whether bankruptcy is a unique exception to the general rule that arbitration agreements are rigorously enforced.
4th Circuit, South CarolinaJune 23, 2020
New York Decision Shows that Merit Management Is a Dead Letter
The expansive definition of a ‘financial institution’ allows fraudulent transfers to be structured so that no one will ever be held liable.
2nd Circuit, New York, New York Southern DistrictJune 22, 2020
Beware: Closing a Case Quickly Can Preclude Filing New Avoidance Actions
Judge Thuma describes nonstatutory exceptions to the statutes of limitations in Sections 546(a) and 550(f).
10th Circuit, New MexicoJune 19, 2020
Second Circuit Nixes Nationwide Class Actions for Discharge Violations
Second Circuit says that later Supreme Court authority did not undermine the appeals court’s prior decision that creditors cannot compel arbitration of discharge violations.
2nd CircuitJune 17, 2020
Ninth Circuit Now Permits Nonconsensual, Third-Party Releases in Chapter 11 Plans
Aligning with the Third Circuit, the Ninth Circuit says that lower courts were reading its prior decisions too broadly.
9th CircuitJune 17, 2020
Debtors and the SBA Fight to a Draw Last Week on PPP ‘Loans’
Courts still have no consensus about debtors’ right to receive PPP ‘loans’ under the Cares Act.
11th Circuit, Florida, Florida Northern District