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ABI Journal

June 01, 2022

Bidding Not Always Required When a Settlement Includes a Sale of Assets, BAP Says

If there are mutual claims, the Ninth Circuit BAP gives the court discretion not to evaluate a settlement as a sale.

9th Circuit

May 06, 2022

It’s Not Easy to Set Aside Releases for Fraud, Judge Whitman Holt Says

To settle with a trustee, a creditor is not required to volunteer damaging information.

9th Circuit, Montana

April 12, 2022

Constructive Notice Won’t Save a Sale Under 363(m) Absent Actual Notice, Seventh Circuit Says

To be a good faith purchaser under Section 363(m), a purchaser must be given actual notice to those with an interest in the property. Constructive notice won’t suffice.

7th Circuit

March 08, 2022

Debtors Get Mortgage Interest Deduction They Didn’t Pay in a Short Sale

For those entitled to the mortgage interest deduction, debtors may have unexpected tax benefits from short sales.

9th Circuit

March 02, 2022

Water Rights Are a Property Interest that Can’t Be Sold Free and Clear of Disputes

Disputes over water rights aren’t the sort of property interest that can attach to proceeds in a sale ‘free and clear’ under Section 363(f).

10th Circuit, Utah

January 25, 2022

Tenth Circuit: Debtors Retain Appreciation in a Home Sold Before Conversion to ‘7’

The Tenth Circuit left an unanswered question: Do debtors retain post-filing appreciation in a home that is not sold before the case converts from chapter 13 to chapter 7?

10th Circuit

November 03, 2021

Eleventh Circuit Says Section 363(m) Even Moots Appeals Not Properly Authorized

In a concurrence, Circuit Judge Jordan questions whether rollups are permitted under Eleventh Circuit authority.

11th Circuit

October 21, 2021

Disclosing a Lawsuit Only in the SOFA Won’t Result in Abandonment, Circuit Says

Disclosing a lawsuit in the SOFA and discussing the suit with the trustee was no substitute for listing the suit among a debtor’s assets, the Ninth Circuit held.

9th Circuit

October 18, 2021

Lender Was Lucky to Recover Anything on an Unauthorized $5.2 Million Loan

The bankruptcy court was accorded wide discretion in deciding how to treat a $5.2 million loan that was neither disclosed to nor approved by the bankruptcy court.

11th Circuit, Georgia, Georgia Northern District

September 24, 2021

Estate Claims Can’t Be Sold for Trivial Recovery by Unsecured Creditors

Had the purchaser of estate claims offered to waive its own unsecured claim, the sale might have been approved.

2nd Circuit, New York, New York Eastern District