March 26, 2025
Bankruptcy Judge Upheld: No Arbitration on Claims for Violating the Automatic Stay
Bankruptcy Judge Paul Black was affirmed in district court for holding that arbitration of claims for violating the automatic stay would conflict with the centrality of administration in bankruptcy cases.
4th Circuit, Virginia, Virginia Western DistrictMarch 25, 2025
Equity Survives in the Ninth Circuit to Prevent Recoupment of Disability Overpayments
Reversing the BAP, the Ninth Circuit held that equitable considerations may stop the government from recovering disability overpayments, when the doctrine of recoupment otherwise would have allowed recovery despite the debtor’s chapter 7 discharge.
9th CircuitMarch 19, 2025
Arbitration in Bankruptcy Isn’t All or Nothing, Judge David Cleary Says
Chicago’s Judge David Cleary called for post-confirmation arbitration of claims between the debtor and a creditor, but no arbitration for the creditor’s defenses, raising questions of bankruptcy law.
7th Circuit, Illinois, Illinois Northern DistrictMarch 18, 2025
Class Actions: The Answer for Stay Violations with Small Damages for Each Debtor
A class action in Chicago will decide whether bankruptcy judges have the tools to rectify a single creditor’s violation of the rights of similarly situated debtors.
7th Circuit, Illinois, Illinois Northern DistrictMarch 05, 2025
New York Judge Devises a Flexible Remedy to Deal with Repeated Bad Faith Filings
New York’s Judge Philip Bentley and Prof. Robert Lawless urge Congress to adopt the ABI Commission’s recommendations for dealing with bad faith filings.
2nd Circuit, New York, New York Southern DistrictFebruary 24, 2025
Forbearance Agreement Wasn’t an Enforceable Waiver of the Automatic Stay
Bankruptcy Judge Laura Grandy (politely) faulted other federal courts for failing to follow the Illinois mortgage statute and decisions by the Illinois Supreme Court.
7th Circuit, Illinois, Illinois Southern DistrictFebruary 10, 2025
The Insurer Exception to Discharge Injunction: More Theoretical than Real?
The self-insured retention can prevent a creditor from using the insurer exception to sue the insurance company with the debtor as a nominal defendant.
5th CircuitFebruary 03, 2025
A Disguised Loan Agreement Didn’t Create a ‘Fair Ground of Doubt’ Under Taggart
The Fifth Circuit undertook a legal analysis of a complex loan agreement to decide there was no ‘fair ground of doubt’ under Taggart that the lender was violating the discharge injunction.
5th CircuitJanuary 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 DistrictJanuary 29, 2025
Debtors Have a Narrow Window in ‘13’ to Redeem Foreclosed Property, BAP Says
Because a right of redemption does not give rise to a claim, Section 1322(b) doesn’t enable a debtor to redeem foreclosed property when the right of redemption has expired.
9th Circuit