September 10, 2021
Civil Penalties for Defrauding Consumers Weren’t Discharged Under Section 1141(d)(6)(A)
Reversing the bankruptcy court, a district judge in New York held that a civil penalty wasn’t discharged even though the fraud wasn’t committed against the government.
2nd Circuit, New York, New York Southern DistrictSeptember 09, 2021
Eleventh Circuit Predicted to Split with the Second Circuit on Foreign Recognition
Judge Vaughan explains why a foreign debtor isn’t required to have a presence in the U.S. before the debtor’s foreign representatives can win recognition under chapter 15.
11th Circuit, Florida, Florida Middle DistrictSeptember 08, 2021
Discharge Cuts Off Future Liability on a Guaranty, Some Courts Hold on a Split
The ‘conduct’ test in the Seventh Circuit, not the ‘accrual test,’ determines when a claim arose and whether it was discharged.
7th Circuit, Wisconsin, Wisconsin Eastern DistrictSeptember 07, 2021
Chapter 11 Plans May Discharge Post-Confirmation ‘Admin’ Claims, Third Circuit Says
Although Section 1141(d)(1) sets a default rule only discharging claims that arose before confirmation, Circuit Judge Ambro says that a plan may alter the default rule and allow discharge of administrative claims arising after confirmation.
3rd CircuitSeptember 03, 2021
Another Circuit Holds that Dismissal Is Mandatory Under Section 1307(b)
The Ninth Circuit leaves the door open for a bankruptcy court to sanction a misbehaving chapter 13 debtor before granting the debtor’s motion for voluntary dismissal.
9th CircuitSeptember 02, 2021
Bankruptcy Courts Aren’t Prohibited from Entering Mareva Injunctions
The Supreme Court’s Grupo Mexicano decision doesn’t bar a bankruptcy court from freezing a defendant’s assets prior to judgment in a fraud action, Judge Sontchi says.
3rd Circuit, DelawareSeptember 01, 2021
Second Circuit Revives $3.75 Billion in Lawsuits by the Madoff Trustee Against Financial Institutions
Reversing in favor of the Madoff trustee, the Second Circuit rules that inquiry notice, not willful blindness, governs the good faith defense by recipients of fraudulent transfers.
2nd CircuitAugust 31, 2021
Gerrymandering to Create an Accepting Class Didn’t Pass Muster in Orlando, Fla.
Paying more to the sole creditor in the only accepting class unfairly discriminated against other unsecured creditors, Judge Jennemann said.
11th Circuit, Florida, Florida Middle DistrictAugust 30, 2021
Courts Have Made the FDCPA a ‘Dead Letter,’ Chicago District Judge Says
The opinion tells plaintiffs what actions to take before filing suit to ensure constitutional standing to pursue a claim under the FDCPA.
7th Circuit, Illinois, Illinois Northern DistrictAugust 27, 2021
Claims Not Scheduled Before the Bar Date Aren’t Always Excepted from Discharge
Courts are split on whether a claim is discharged if it was scheduled after the bar date but in time to receive a distribution.
11th Circuit, Florida, Florida Middle District