October 05, 2021

Surety Bonds Aren’t Executory Contract and Can’t Be Assumed, District Judge Says

An irrevocable surety bond isn’t executory because it gives the bonding company no further obligations to the debtor.

5th Circuit, Louisiana

October 04, 2021

On an ‘Involuntary,’ Denial of Summary Judgment Doesn’t Mean the Claim Is Disputed

The Iqbal and Twombly standards don’t apply to involuntary petitioners who are required to use Official Form 105.

5th Circuit, Texas, Texas Southern District

October 01, 2021

Third Circuit Makes Strict Rules Before Subrogation Rights Kick In

There can be no question about whether the beneficiary of a surety bond has been ‘paid in full’ before the surety has subrogation rights.

3rd Circuit

September 30, 2021

A Claim Objection Can Head Off Election of a Permanent Chapter 7 Trustee

A creditor can’t elect a trustee to pick its adversary in a lawsuit, Bankruptcy Judge Gunn says.

D.C. Circuit

September 29, 2021

Objections to Priority Claims May Follow Confirmation of a Chapter 13 Plan

Confirming a chapter 13 plan on the assumption that a claim was entitled to priority didn’t bar the debtors from later objecting to the priority of the claim.

7th Circuit, Wisconsin, Wisconsin Eastern District

September 27, 2021

Issue and Claim Preclusion Didn’t Bar Challenging a Lien Previously Considered Valid

Newly applicable law permitted a chapter 13 debtor to cram down a lien that the debtor previously had considered to be valid.

3rd Circuit, Delaware

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

September 22, 2021

Third Circuit Makes More Rules on the Proper Scope of Asbestos Channeling Injunctions

The Third Circuit made more rules to decide whether an insurance company can be insulated from failure-to-warn claims by the channeling injunction in a chapter 11 ‘asbestos’ plan.

3rd Circuit

September 15, 2021

Appeal from a ‘PPP’ Loan Dismissed as Equitably Moot

Would Section 364(c) validate a “PPP” loan even if an order compelling the SBA to make the loan was reversed on appeal?

9th Circuit, Arizona

September 13, 2021

Pawn Loans May Be Modified in Chapter 13 if There Wasn’t a Default Before Filing

Eleventh Circuit limits its own precedent to say that pawn lenders aren’t entirely immune from bankruptcy.

11th Circuit