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ABI Journal

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

May 02, 2022

Liens on Impounded Cars Are Judicial Liens that May Be Avoided, Seventh Circuit Says

The City of Chicago argued unsuccessfully that liens on cars are statutory because they arise automatically when the car is impounded.

7th Circuit

April 29, 2022

Fourth Circuit Rejects Frontal Assault on In Pari Delicto as a Bar to Suits by a Trustee

Circuit refuses to make an exception for trustees regarding the judge-made doctrine of in pari delicto.

4th Circuit

April 26, 2022

Eighth Circuit to Decide Whether Avoidance Actions Are Estate Property that Can Be Sold

Authorities are split on whether avoidance actions are estate property that can be sold or can only be prosecuted by the trustee.

8th Circuit, Iowa, Iowa Northern District

April 21, 2022

Fifth Circuit Majority Bars Reforming Mortgages in Bankruptcy

In a nonprecedential opinion, the Fifth Circuit suggests that a mortgage that could be reformed in state court cannot be reformed in bankruptcy.

5th Circuit

April 08, 2022

‘Reasonable Possibility’ of a Surplus Gives a Debtor Standing in Chapter 7

Due process considerations mean it’s not harmless error if a debtor was denied standing improperly.

6th Circuit, Tennessee, Tennessee Middle District

April 07, 2022

‘Once a Creditor, Always a Creditor,’ Even if the Claim Is Paid, Judge Phillips Says

Being branded as a creditor is like a tattoo; it won’t ever come off.

4th Circuit, Virginia, Virginia Eastern District

March 29, 2022

Sixth Circuit BAP Gives Priority Status to Obamacare’s Individual Mandate Penalty

A question may be headed to the Sixth Circuit, where debtors hope to create a circuit split.

6th Circuit

March 28, 2022

Converting a Claim Based on Securities to Judgment Won’t Bar Subordination, BAP Says

A lien securing a claim based on the purchase or sale of securities is subordinated, just like the claim, the Ninth Circuit BAP says.

9th Circuit

March 25, 2022

UCC’s ‘Predominant Purpose’ Text Isn’t Used to Decide Priority Status Under § 503(b)(9)

A hybrid contract covering both goods and services is accorded priority status under Section 503(b)(9) only for the value of the goods, even if the contract primarily involved the sale of goods.

10th Circuit, Colorado