October 16, 2019
Supreme Court Hears Argument on Constitutionality of Puerto Rico’s Debt Restructuring
The justices recognized the practical effects of the decision they will make on Puerto Rico and precedent that could undermine the governance of territories and Washington, D.C.
Supreme CourtOctober 15, 2019
Sanctions Imposed on a Law Firm Retained under a Fictitious Name
Although Florida permits practicing law under a fictitious name, the Bankruptcy Rules are more rigorous and require full disclosure, new Delaware judge says.
3rd Circuit, DelawareOctober 11, 2019
‘Holder Rule’ Protects Debtors from Claims by Subsequent Holders of Consumer Paper
Holder in due course of consumer paper remains subject to the debtor’s claims against the originator of the paper.
5th Circuit, Texas, Texas Northern DistrictOctober 10, 2019
Failure to Raise a Stern Objection Violates a Lawyer’s Standard of Care
The lawyer whose waiver led to Wellness International avoided malpractice by the skin of his teeth.
7th Circuit, Illinois, Illinois Northern DistrictOctober 09, 2019
Knowledge of Fraud Before Discharge Doesn’t Always Preclude Revocation
Eleventh Circuit refuses to read words into Section 727(d)(2) that aren’t there.
11th CircuitOctober 08, 2019
U.S. Trustee May Not Appoint an Unsecured Committee in a Municipal Bankruptcy
California judge sides with former Bankruptcy Judge Steven Rhodes by holding that the U.S. Trustee does not have statutory power to appoint an unsecured committee in a chapter 9 case.
9th Circuit, California, California Eastern DistrictOctober 07, 2019
Debtors’ Attorneys Are Paid in Chapter 13 Before Secured Creditors
Indiana bankruptcy and district judges rule that secured lenders are only entitled to ‘adequate protection’ until the debtor’s counsel’s allowed fees have been paid in full.
7th Circuit, Indiana, Indiana Southern DistrictOctober 04, 2019
Separate Classification of a Child’s Student Loan Barred in a Chapter 13 Plan
Factors in permitting separate classification of debts include moral obligation and tangible benefit.
4th Circuit, North Carolina, North Carolina Eastern DistrictOctober 03, 2019
Split Continues on Loss of Chapter 13 Discharge for Missing Direct Mortgage Payments
Georgia judge focuses on ‘good faith’ to decide whether a chapter 13 debtor should lose a discharge after missing direct mortgage payments.
11th Circuit, Georgia, Georgia Southern DistrictOctober 02, 2019
Proceedings for Contempt Discharge Held Not Subject to Arbitration
Florida case raises the question of whether the Supreme Court will eventually give bankruptcy a general exemption from arbitration, or an exemption only for core proceedings.
11th Circuit, Florida, Florida Middle District