April 21, 2023

A Buyer Is in Good Faith Despite Using Economic Leverage, Fifth Circuit Says

Supposedly nefarious facts aren’t evidence of bad faith if they were disclosed to the bankruptcy judge who nevertheless made a finding of good faith.

5th Circuit

March 30, 2023

Proceeds from Post-Petition Sales Aren’t to Be Turned Over to the Chapter 13 Trustee

Before confirmation, district judge says that a chapter 13 debtor is only required to turn over disposable income to a trustee, not proceeds from a post-petition sale of property.

2nd Circuit, New York, New York Southern District

March 21, 2023

Another Court Won’t Permit a Structured Sale to Eradicate a Homestead Exemption

Subordinated lenders can’t take a ‘haircut,’ give a ‘tip’ to the trustee, sell a home and eradicate the debtor’s homestead exemption.

4th Circuit, North Carolina, North Carolina Western District

February 13, 2023

Sixth Circuit: Nondebtor Releases Are Ok in Chapter 11 but Not in Receiverships

Bound by Dow Corning, which permitted nondebtor releases, the Sixth Circuit had to explain why the same releases are not permissible in equity receiverships.

6th Circuit

February 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 District

January 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 District

January 10, 2023

Crypto Customers Don’t Own Their Deposits with Celsius Network, Judge Glenn Says

Applying ordinary contract law, New York judge rules that customers are bound by contracts they haven’t read.

2nd Circuit, New York, New York Southern District

January 06, 2023

Ninth Circuit Says: A Sale Order Can’t Alter the Terms of the Contract

A surprising opinion by the Ninth Circuit was nonprecedential.

9th Circuit

January 04, 2023

It Wasn’t a Good Idea for 3M Corp. to Call Its Multidistrict Litigation a ‘Failure’

District judge remonstrates a solvent parent company for seeking the protections of bankruptcy without filing chapter 11 itself.

11th Circuit, Florida, Florida Northern District

December 21, 2022

Failure to Exercise a Purchase Option Is Not a Transfer, Third Circuit Says

The failure to convert a contingent interest into ownership is not a transfer that could be avoided as a fraudulent transfer.

3rd Circuit