July 18, 2023
Connecticut Supreme Court: Increased Homestead Exemption Applies to Existing Debts
Even under an unfavorable choice of law, a debtor in Connecticut was allowed to enjoy the state’s new $250,000 homestead exemption, even though her debts had accrued before the increase went into effect.
2nd Circuit, ConnecticutJuly 14, 2023
Ninth Circuit Cited for Barring So-Called Critical Vendor Orders
A bankruptcy judge in Oregon was unable to follow renowned Bankruptcy Judges ‘Burt’ Lifland and ‘Mike’ Lynn, who granted critical vendor motions.
9th Circuit, OregonJuly 10, 2023
Government to Seek Supreme Court Review of Purdue’s Third-Party, Nondebtor Releases
In a motion to stay the issuance of the mandate, the government has announced that it will be filing a petition for certiorari asking the Supreme Court to review the Second Circuit’s Purdue decision allowing bankruptcy courts to issue releases to nondebtors.
Supreme CourtJuly 10, 2023
Judge Kathryn Ferguson Evokes Bob Dylan with Regard to Changing Rules on Setoff
Times are a-changin’ when it comes to setoff against exempt assets.
3rd Circuit, New JerseyMay 31, 2023
Second Circuit Reverses, Reinstates Purdue’s Nondebtor, Third-Party Releases
The concurring opinion, which is really a dissent, urges the Supreme Court to grant certiorari and resolve the split of circuits on nondebtor releases.
2nd CircuitMay 22, 2023
New York Court Holds: Claims for Electricity Don’t Get Priority Under Section 503(b)(9)
Courts are divided on whether electricity supplied within 20 days of bankruptcy gives rise to an administrative priority claim.
2nd Circuit, New York, New York Southern DistrictMay 16, 2023
Section 546(g)'s Safe Harbor Doesn’t Apply in an Assignment for the Benefit of Creditors
A federal district judge in New York holds that the safe harbor in Section 546(g) doesn’t preempt state fraudulent transfer laws.
2nd Circuit, New York, New York Southern DistrictMay 01, 2023
Claim Isn’t Disallowed if the ‘Statute’ Lapses After the Claim Is Filed
Judge Goldblatt of Delaware wrote an opinion where the answer was self-evident but there was no authority on point.
3rd Circuit, DelawareApril 27, 2023
Failing to File a Claim Has Dire Consequences for a Secured Creditor
A secured lender who doesn’t file a claim doesn’t get paid by the chapter 13 plan and keeps its lien, but can’t reclaim the collateral during the life of the plan.
7th Circuit, Indiana, Indiana Northern DistrictApril 18, 2023
Notification of Bankruptcy Requires Lifting Garnishment of Post-Petition Income
Although the automatic stay does not require turning over property garnished before bankruptcy, a creditor may not continue garnishing property after filing, Judge Burgess says.
11th Circuit, Florida, Florida Middle District