July 20, 2023
Debt for Selling a Gun Used in a Mass Killing Was Dischargeable
Congress might want to consider closing a dischargeability loophole when it comes to injuries indirectly resulting from commission of a felony.
5th Circuit, Texas, Texas Northern DistrictJuly 19, 2023
A Trustee Receives Statutory Commissions Unless the Amount Is ‘Offensive’
A trustee’s commissions can’t be based on a percentage of disbursements to the trustee’s own counsel, so says a New Jersey district judge.
3rd Circuit, New JerseyJuly 18, 2023
Connecticut Supreme Court: Increased Homestead Exemption Applies to Existing Debts
Even under an unfavorable choice of law, a debtor in Connecticut was allowed to enjoy the state’s new $250,000 homestead exemption, even though her debts had accrued before the increase went into effect.
2nd Circuit, ConnecticutJuly 17, 2023
Lack of Creditor Opposition Isn’t Grounds for Extending an Expiring Automatic Stay
A repeat filer in chapter 13 must show ‘clear and convincing evidence’ of improved financial condition to warrant an extension of the automatic stay under Section 362(c)(3)(B), Chief Judge Taddonio says.
3rd Circuit, Pennsylvania, Pennsylvania Western DistrictJuly 14, 2023
Ninth Circuit Cited for Barring So-Called Critical Vendor Orders
A bankruptcy judge in Oregon was unable to follow renowned Bankruptcy Judges ‘Burt’ Lifland and ‘Mike’ Lynn, who granted critical vendor motions.
9th Circuit, OregonJuly 13, 2023
Equitable Tolling Cannot Extend the Deadline for a Dischargeability Objection
The Third Circuit lauded Bankruptcy Judge Craig Goldblatt for a ‘well-reasoned’ opinion correctly interpreting Supreme Court authority.
3rd CircuitJuly 12, 2023
Bartenwerfer Doesn’t Apply if the Debtor Isn’t a Partner or Agent, Bankruptcy Judge Says
Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.
4th Circuit, Virginia, Virginia Eastern DistrictJuly 11, 2023
Ninth Circuit BAP Holds that Debts of Corporate Sub V Debtors Can’t Be Nondischargeable
Disputing the Fourth Circuit line by line and raising the possibility of a circuit split, the BAP and six bankruptcy courts have held that there’s no such thing as nondischargeability for corporate Sub V debtors.
9th CircuitJuly 10, 2023
Judge Kathryn Ferguson Evokes Bob Dylan with Regard to Changing Rules on Setoff
Times are a-changin’ when it comes to setoff against exempt assets.
3rd Circuit, New JerseyJuly 10, 2023
Government to Seek Supreme Court Review of Purdue’s Third-Party, Nondebtor Releases
In a motion to stay the issuance of the mandate, the government has announced that it will be filing a petition for certiorari asking the Supreme Court to review the Second Circuit’s Purdue decision allowing bankruptcy courts to issue releases to nondebtors.
Supreme Court