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ABI Journal

Rochellel's Daily Wire

June 20, 2025

WARN Act Damages of $15,100 Per Worker Are Section 507(a)(4) Priority Claims

A chapter 11 debtor may be saddled with smaller WARN Act claims by imposing mass layoffs after filing.

5th Circuit, Mississippi

June 17, 2025

Sale of a Debtor’s Claim Was Champertous and Void, Fifth Circuit Says

Selling a debtor’s claims must be structured to avoid champerty under state law.

5th Circuit

June 16, 2025

Plan Didn’t Extinguish Debts, Only Discharged Them, Fifth Circuit Says

A plan saying that it satisfies and settles claims does nothing more than discharge the claims. It doesn’t extinguish the claims, the Fifth Circuit says.

5th Circuit

June 06, 2025

Fifth Circuit Explains When There Is No Double Recovery from Avoiding a Lien

Circuit Judge Edith Jones explains that the word ‘or’ in Section 550(a) doesn’t mean ‘and.’

5th Circuit

May 22, 2025

Two Courts Hold: Injunctions Are Ok to Protect Nondebtors for the Life of a Plan

Judge Meredith Grabill of New Orleans agreed with New York’s Judge Mastando that a Subchapter V plan can enjoin lawsuits against nondebtors for the life of a three-year plan.

5th Circuit, Louisiana, Louisiana Eastern District

April 25, 2025

Fifth Circuit: Repayment of Unsecured Term Loan Sometimes Must Be Accelerated in ‘13’

A 2/1 decision required chapter 13 debtors to accelerate repayment of nondischargeable student loans.

5th Circuit

April 14, 2025

The Fate of Jackson Walker Is Now in the Hands of a District Judge from Another District

The district judge who excoriated Jackson Walker in a decision last year will now decide whether the firm must disgorge what it was paid in dozens of large chapter 11 cases.

5th Circuit, Texas, Texas Southern District

April 09, 2025

Texas Courts Are Split on Ignoring Nonvoting Classes in Confirming a Sub V Plan

A bankruptcy judge in San Antonio disagreed with two bankruptcy judges in Houston by holding that a nonvoting class is equivalent to rejecting a plan in Subchapter V of chapter 11.

5th Circuit, Texas, Texas Southern District

April 04, 2025

Fifth Circuit Says Lessors Are ‘Known’ Creditors Entitled to Actual Notice

Circuit court upholds Bankruptcy Judge Jernigan: Notice by publication doesn’t discharge claims from a lease that rode through chapter 11 or was assumed.

5th Circuit

April 03, 2025

Third J&J Filing Dismissed on Grounds Different from the First Two Dismissals

Houston’s Bankruptcy Judge Christopher Lopez decided that the newest plan by a Johnson & Johnson subsidiary didn’t qualify for nondebtor releases permissible in asbestos cases.

5th Circuit, Texas, Texas Southern District