August 21, 2025

A Disappointed Bidder Didn’t Have Prudential Standing in a Chapter 7 Case

In a chapter 7 case, a disappointed bidder wasn’t required to show Article III standing but was still required to demonstrate prudential standing as falling within the class of persons protected by Section 363.

New Mexico

August 05, 2025

No Substitutes for a Stay Pending Appeal to Avoid Mootness of a Sale Order

The appeal involved the sale of defensive appellate rights but wasn’t grounds for the decision by the Eighth Circuit.

8th Circuit

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

March 14, 2025

Chapter 13 Debtors Can’t Sell Co-Owned Property Under Section 363(h)

On a question where the courts are split, Bankruptcy Judge Pamela McAfee sides with the majority and holds that a chapter 13 debtor can’t sell co-owned property.

4th Circuit, North Carolina, North Carolina Eastern District

March 10, 2025

Bankruptcy Judge Rejects a District Court’s Narrow View of Sales Free and Clear

New York’s Judge Philip Bentley interpreted Section 363(f)(5) to permit a sale free and clear whenever a creditor could conduct a foreclosure or a UCC sale.

2nd Circuit, New York, New York Southern District

February 25, 2025

In Stalking Horse Sales, Courts Have Flexibility to Reopen Bidding After the Deadline

The debtor’s duty to land the best price for an asset can overcome the winning bidder’s expectation that sale procedures will be enforced rigorously.

6th Circuit, Ohio, Ohio Northern District

January 31, 2025

A Good Faith Objection to a Sale Cannot Be Raised the First Time on Appeal

The existence of a competing bidder does not put the buyer on notice of an ‘adverse interest’ to avoid dismissal for mootness under Section 363(m), the Sixth Circuit BAP says.

6th Circuit

January 30, 2025

In ‘363’ Sales, Three Courts Say Purdue Doesn’t Bar Injunctions Protecting Buyers

For a sale ‘free and clear,’ nondebtors can be enjoined from suing.

4th Circuit, Virginia, Virginia Eastern District

October 25, 2024

Receipt of a Chapter 7 Discharge Doesn’t Preclude Conversion to Chapter 13

Small state exemptions mean that some low-income debtors can lose their homes in chapters 7 and 13 if there is equity.

8th Circuit, Missouri, Missouri Eastern District

October 16, 2024

Two Courts Rule on Chapter 7 Debtors’ Standing for Objections to Sales and Claims

Virginia’s Judge Keith Phillips sides with courts that bar lenders from cutting deals with trustees to eliminate debtors’ homestead exemptions.

4th Circuit, Virginia, Virginia Eastern District