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ABI Journal

September 30, 2022

Although It Paid Creditors in Full, Eleventh Circuit Subordinates an Unauthorized Loan

Eleventh Circuit gives the bankruptcy judge wide discretion in subordinating debts and denying retroactive approval of loans.

11th Circuit

September 29, 2022

Debtor Retains Appreciation in Nonexempt Property Sold During Chapter 13

Judge Rosania answered a question left open by the Tenth Circuit in Barrera.

10th Circuit, Colorado

September 09, 2022

Indiana Bankruptcy Judge Narrowly Reads the Section 546(e) Safe Harbor

Although a stock purchase and a loan payoff were only one month apart, the two transactions lacked a sufficient nexus to invoke the safe harbor, Bankruptcy Judge James Carr said.

7th Circuit, Indiana, Indiana Southern District

August 25, 2022

Bankruptcy Judge Finds Liability for a Municipality’s Denial of Due Process Rights

A local government removed a lawsuit to bankruptcy court, but the bankruptcy judge turned around and slam-dunked the government for violating the plaintiff’s Fourteenth Amendment rights.

2nd Circuit, New York, New York Eastern District

August 17, 2022

A ‘Notwithstanding’ Clause May Not Control a Specific Provision, District Judge Says

An appeal to the Third Circuit may tell us whether a ‘notwithstanding any other provision’ clause really means what it says.

3rd Circuit, Delaware

July 22, 2022

The Right to Credit Bid Does Not Preclude Charging a Buyer’s Premium at Auction

When a secured lender credit bids, a buyer’s premium can be a legitimate surcharge against the lender’s collateral, Judge Rodriguez says.

5th Circuit, Texas, Texas Southern District

July 20, 2022

Assets Sold Free and Clear of a Multi-Employer Pension Plan’s Withdrawal Liability

The Seventh Circuit has yet to rule precisely on whether the bankruptcy court can sell assets free and clear of successor liability.

7th Circuit, Illinois, Illinois Southern District

July 13, 2022

District Court Affirms: ‘13’ Debtors Lose Appreciation in a Home After Conversion to ‘7’

On an issue where the courts are split, a district judge in Washington State holds that the debtors lose the post-petition appreciation in the value of estate property when a chapter 13 case converts to chapter 7.

9th Circuit, Washington, Washington Western District

June 30, 2022

Chapter 13 Creditors Get Exempt Assets that Produce Income

Exempt assets are included in the calculation of chapter 13 projected disposable income to the extent that the exempt asset produces income.

2nd Circuit, New York, New York Northern District

June 06, 2022

Rochester Diocese Loses Stay Protection for Nondebtor Catholic Entities

After almost three years in chapter 11 without a consensual plan, Bankruptcy Judge Warren is allowing sexual abuse claimants to sue nondebtor parishes and schools.

2nd Circuit, New York, New York Western District