July 07, 2023
No Sales Free and Clear of a Lien on a Nondebtor Co-owner’s Interest
Although a court may sell a nondebtor’s interest in jointly owned property, the Ninth Circuit BAP won’t permit selling free and clear of lien on the nondebtor’s interest in the property being sold.
9th CircuitJuly 06, 2023
Two Opinions on Disallowance of Compensation After Appointment of a Trustee
‘Conflict preemption’ bars retaliation by a professional whose fees are disputed.
9th Circuit, California, California Eastern DistrictJuly 05, 2023
A Bankruptcy Petition Automatically Stays the Filing of an Appeal or a Cross Appeal
When the debtor files bankruptcy before the time has elapsed for a creditor to file a cross appeal, the cross appeal is deemed timely when filed within 30 days after the stay terminated, the Tenth Circuit held.
10th CircuitJuly 03, 2023
IRS Has No Sovereign Immunity to Bar a Fraudulent Transfer Suit Under Section 544(b)
The circuits are now split 3/1, with the majority finding a waiver of sovereign immunity under Section 544(b)(1) for lawsuits by a trustee based on claims that an actual creditor could not have brought outside of bankruptcy.
10th CircuitJune 30, 2023
If There’s No Diminution of the Estate, There’s No Preference or Fraudulent Transfer
Just because the debtor orchestrated a fraudulent transfer, the Seventh Circuit tells us there’s nothing for a trustee recover if there was no diminution of the estate.
7th CircuitJune 29, 2023
Eligibility for Subchapter V Is Liberal, but Not Wide Open
Courts are split on whether the debt providing eligibility for Sub V must have arisen from a business that was active on the filing date.
2nd Circuit, New York, New York Northern DistrictJune 28, 2023
Three Circuits Now Require Refunds for Overpayment of U.S. Trustee Fees
The government has filed a petition for certiorari raising the question of whether refunds are the proper remedy following the Supreme Court’s Siegel decision finding that the 2018 increase in U.S. Trustee fees was unconstitutional.
11th CircuitJune 27, 2023
A Supreme Court Arbitration Opinion Could Disrupt Bankruptcies
Split 5/4, the Supreme Court rules that denial of a motion to compel arbitration automatically imposes a stay pending appeal.
Supreme CourtJune 26, 2023
Sixth Circuit Staunches the Spread of Equitable Mootness to Chapter 7
Two judges on the Sixth Circuit cast doubt on the validity of the doctrine of equitable mootness, even in chapter 11 reorganizations.
6th CircuitJune 23, 2023
A Fourth Circuit Dissenter Opposes Mass-Tort Injunctions Protecting Non-Debtors
The Fourth Circuit majority upheld a preliminary injunction barring tort suits against a debtor’s nonbankrupt affiliates following a Texas divisional merger.
4th Circuit