June 16, 2020
Subchapter V Trustee Barred from Routine Retention of Counsel
Bankruptcy Judge David Warren warns small business trustees that they won’t be compensated if they are “overzealous” or undertake “unnecessary or duplicative services.”
4th Circuit, North Carolina, North Carolina Eastern DistrictJune 16, 2020
Ninth Circuit Criticizes the Supreme Court’s Kelly v. Robinson
Discovery sanctions are dischargeable under Section 523(a)(7), even when incorporated into a bar disciplinary suspension.
9th CircuitJune 15, 2020
D.C. Circuit Has Strict Rules for Constitutional Standing in FDCPA Suits
An FDCPA suit raises the question of whether Spokeo will be applied to bankruptcy cases.
D.C. CircuitJune 12, 2020
Fifth Circuit Bans Molina Provisions in Chapter 13 Plans
Court cannot impose a nonstatutory provision on a chapter 13 ‘full payment’ plan that restricts the debtor’s right to modify a confirmed plan.
5th CircuitJune 11, 2020
Force Majeure Clause Cut an Illinois Debtor’s Rent by 75%
Chicago judge cut rent by 75% after governor prohibited on-premises dining in the debtor’s restaurant.
7th Circuit, Illinois, Illinois Northern DistrictJune 10, 2020
Last Week, the Government Went 2 for 3 in Defeating Debtor’s Demands for PPP Loans
Courts are divided on whether PPP litigation is ‘core’ or not.
1st Circuit, MaineJune 09, 2020
Denial of a Claim Doesn’t Divest the Bankruptcy Court of Final Adjudicatory Power
More important law from Madoff: Filing a claim waives the right to a jury trial in district court even if the claim is denied or withdrawn, district judge rules.
2nd Circuit, New York, New York Southern DistrictJune 08, 2020
Eleventh Circuit Holds that a Chapter 13 Plan Alone Can’t Assume a Lease or Contract
In the first court of appeals decision on the topic, the Eleventh Circuit holds that the chapter 13 trustee alone has power to assume a lease or contract.
11th CircuitJune 05, 2020
Routine Withdrawals from a Bank Account Aren’t ‘Transfers,’ Eleventh Circuit Says
Receiver barred from bringing aiding and abetting claims if the company was dominated by fraudsters.
11th CircuitJune 04, 2020
Ninth Circuit Narrowly Reads Section 506(d) on Voiding Liens After Claim Disallowance
A claim must be disallowed based on the invalidity of the debt before the associated lien can be voided under Section 506(d), the Ninth Circuit ruled in upholding the BAP.
9th Circuit