June 03, 2020
Supreme Court Allows the Madoff Trustee to Sue Foreign Subsequent Transferees
The denial of ‘cert’ aids the Madoff trustee’s quest to recover 100% of defrauded customers’ cash losses.
Supreme CourtJune 03, 2020
Sixth Circuit Allows Chapter 13 Debtors to Continue Retirement Plan Contributions
Sixth Circuit is the first court of appeals to take sides on a lower court split and opine that continuing to make voluntary contributions to retirement plans is excluded from ‘disposable income.’
6th CircuitJune 02, 2020
Liquidating in Chapter 11 Won’t Stop an EEOC Suit for Employment Discrimination
Magistrate judge decided that the regulatory power exception to the automatic stay allows the EEOC to proceed, but he stayed the suit by the former employee seeking damages.
11th Circuit, Georgia, Georgia Northern DistrictJune 01, 2020
District Judge Rejects the Majority’s ‘Gotcha’ Approach to Automatic Abandonment
Sufficiently listing an asset anywhere in the schedules and SOFA will result in abandonment if the asset was not administered by the trustee, Utah district judge holds.
10th Circuit, UtahJune 01, 2020
Supreme Court Finds No Appointment Clause Violation in Puerto Rico’s Oversight Board
The Supreme Court reversed the First Circuit, which had held that the Oversight Board violated the Appointments Clause because the members were not appointed by the President and confirmed by the Senate.
Supreme CourtMay 29, 2020
Postpetition Default on a Mortgage Is a Prepetition Debt for Setoff Purposes
The obligation on a mortgage is incurred when the mortgage is granted, even though the payment default may occur after filing, Judge Thuma says.
10th Circuit, New MexicoMay 28, 2020
BAP Didn’t See Barnhill as Prescribing the Date of Transfer from a Retirement Account
The First Circuit BAP evidently believes that a transfer occurred, even though an ordinary check wasn’t cashed.
1st CircuitMay 27, 2020
Supreme Court Ducks Equitable Mootness and Third-Party Releases
The case from the Third Circuit was not a good vehicle for granting certiorari on either issue, even though there is a circuit split on nonconsensual, third-party releases.
Supreme CourtMay 27, 2020
Farmers in Chapter 12 Don’t Qualify for PPP ‘Loans,’ Milwaukee Judge Rules
A PPP ‘loan’ under the Cares Act isn’t a ‘grant,’ thus the government isn’t barred from discriminating against a bankrupt under Section 525(a).
7th Circuit, Wisconsin, Wisconsin Eastern DistrictMay 26, 2020
Houston Judge Rejects the Jay Alix Protocol, Allows Retention Under Section 327(a)
Bankruptcy Judge David Jones finds the Jay Alix Protocol to be ‘completely unnecessary.’
5th Circuit, Texas, Texas Southern District