July 07, 2021

Contingency Fees Under a Trust Indenture May Not Result in a Claim, Judge Shannon Says

A standard provision in a trust indenture meant no recovery for the indenture trustee’s attorneys.

3rd Circuit, Delaware

June 09, 2021

Increasing Debtor’s Profit or Revenue Isn’t Required to Establish an ‘Admin’ Claim

An administrative creditor isn’t a ‘guarantor’ of the success of the project, Delaware’s Bankruptcy Judge Goldblatt says.

3rd Circuit, Delaware

May 18, 2021

Courts Split on Whether Suits in Bankruptcy Court Can Violate the Automatic Stay

A minority of courts hold that a suit in bankruptcy court can violate the automatic stay if based on a claim that could have been brought before bankruptcy and did not arise under the Bankruptcy Code.

10th Circuit, New Mexico

May 17, 2021

Having Nondischargeable Debts Doesn’t Entitle a Chapter 7 Debtor to Object to Claims

Courts are split on whether having nondischargeable debts gives an individual chapter 7 debtor standing to object to claims.

6th Circuit, Tennessee, Tennessee Western District

May 12, 2021

Brooklyn Decision Shows Why Litigation Finance Is Risky if the Plaintiff Files Bankruptcy

At least in New York, a litigation finance agreement can’t be written to remove all of the lender’s exposure to the borrower’s bankruptcy.

2nd Circuit, New York, New York Eastern District

May 11, 2021

Jevic Rises from the Dead to Bar Claims Brought Originally by the Creditors’ Committee

Not having challenged pre-petition liens on time, a chapter 7 trustee was barred from taking over an adversary proceeding initiated by a now-dissolved chapter 11 creditors’ committee.

3rd Circuit, Delaware

May 10, 2021

Subchapter V by Itself Doesn’t Bar Class Claims, Florida Judge Says

Judge Colton decided that class claims aren’t prohibited in Subchapter V cases but didn’t allow a class claim in the case before her.

11th Circuit, Florida, Florida Middle District

May 06, 2021

On Dismissal of a ‘13,’ Barton May (or May Not) Bar Garnishments

Section 1326(a)(2) by itself does not bar garnishment of funds held by a trustee on dismissal before confirmation.

10th Circuit

May 04, 2021

Once Repudiated, a Contract Is No Longer Executory

Courts disagree on whether a repudiated contract remains executory.

5th Circuit, Texas, Texas Southern District

April 26, 2021

Faulty Pleading Resulted in Dismissal of a Suit by an ‘Unknown’ Creditor

Third Circuit dicta suggests that failure to create a trust is constitutionally deficient and won’t discharge claims of ‘unknown’ creditors in a chapter 11 plan.

3rd Circuit