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ABI Journal

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, Connecticut

July 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, Oregon

July 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 Court

July 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 Jersey

May 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 Circuit

May 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 District

May 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 District

May 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, Delaware

April 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 District

April 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