February 02, 2023
Unlike the Eleventh Circuit, Barton Is Alive and Well in the Fifth Circuit
In a case irreconcilable with two recent opinions from the Eleventh Circuit, the Fifth Circuit invokes Barton to bar a lawsuit against a trustee after the bankruptcy case had been closed.
5th CircuitFebruary 01, 2023
A UCC Lien on ‘Accounts’ Won’t Attach to a Postpetition Sale of Real Property
Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing
5th Circuit, Texas, Texas Southern DistrictJanuary 31, 2023
Third Circuit Reverses and Dismisses J&J’s ‘Baby Powder’ Chapter 11 Case
Circuit Judge Thomas Ambro prohibits big companies from filing chapter 11 cases absent ‘financial distress.’
3rd CircuitJanuary 29, 2023
A Former Marijuana Business Isn’t Grounds for Dismissal, Los Angeles Judge Says
Judge Neil Bason allows a chapter 11 debtor to distribute the proceeds from the sale of a cannabis business.
9th Circuit, California, California Central DistrictJanuary 27, 2023
Malicious Prosecution Can Mean a Nondischargeable Debt in Chapter 13
Bankruptcy Judge Gunn from D.C. sides with the majority to hold that “personal injury” does not require physical injury but may include reputational harm.
D.C. CircuitJanuary 26, 2023
Post-Petition Appreciation in the Value of a Home Goes to Creditors in Chapter 13
Courts are deeply split on a chapter 13 debtor’s ability to keep the appreciation in an exempt home, whether or not the case converts to chapter 7.
8th Circuit, Missouri, Missouri Western DistrictJanuary 25, 2023
Fourth and Third Circuits Give Priority to Obamacare’s Individual Mandate Penalty
The Fourth Circuit sides with the Third on the Affordable Care Act’s ‘individual mandate.’ Majority says it was a tax measured by income, thus giving the IRS a priority tax claim.
4th CircuitJanuary 24, 2023
Bankruptcy Judge Reflects on ‘Leverage-Shifting’ In Denying a Nondebtor Injunction
Bankruptcy Judge William Lafferty declined (for now) to halt suits against nondebtor affiliates for lack of an adequate record to justify a preliminary injunction.
9th Circuit, California, California Northern DistrictJanuary 23, 2023
Date of a Garnishment Order Doesn’t Matter for Preferences, Seventh Circuit Says
Circuit Judge Frank Easterbrook tersely held that the Supreme Court’s Barnhill opinion overruled prior Seventh Circuit precedent.
7th CircuitJanuary 20, 2023
Tenth Circuit Doesn’t Pay ‘13’ Trustee if Dismissal Precedes Confirmation
The first court of appeals to rule on a question where lower courts are split, the Tenth Circuit finds the statute unambiguous and requires a chapter 13 trustee to disgorge his or her fee if the case is dismissed before confirmation.
10th Circuit