April 15, 2021
Holding Impounded Cars Still Might Violate the Automatic Stay, Seventh Circuit Says
Seventh Circuit says that Fulton left open the question of whether holding an impounded car violates Sections 362(a)(4) or (a)(6).
7th CircuitApril 14, 2021
Fourth Circuit Seems to Give the Government a Pass for Violating the Stay
Fourth Circuit expands federal government’s setoff rights under the Treasury Offset Program.
4th CircuitApril 13, 2021
Alabama Judges Narrow Northington to Aid Owners of Pawned Automobiles
Whether there had been a default before the chapter 13 filing was pivotal to the debtor’s right to retain a pawned car.
11th Circuit, Alabama, Alabama Middle DistrictApril 08, 2021
Deeply Subordinated Creditor Barred from Voting or Objecting to Plan Confirmation
Subordination agreement did not transfer voting rights, but prudential standing nevertheless barred the subordinated creditor from participating in confirmation, Judge Somers says.
10th Circuit, KansasApril 07, 2021
Creditor Filing Time-Barred Claims Is Hit with Debtor’s Attorneys’ Fees
The Supreme Court’s Midland Funding opinion was no defense to invocation of a Nevada statute shifting fees and compelling the creditor to pay the debtor’s costs in expunging stale claims.
9th Circuit, NevadaApril 06, 2021
Undisclosed Assets Revest in the Debtor After Dismissal but Not After Closing, BAP Says
If a case is dismissed, all assets revest in the debtor and nothing remains in the bankruptcy estate, not even undisclosed assets.
9th CircuitMarch 23, 2021
Third Circuit Rejects Triangular Setoffs and Adopts Rationale by Judge Shannon
A triangular setoff valid under state law does not satisfy the mutuality requirement in Section 553(a).
3rd CircuitMarch 04, 2021
Courts Are Split on Whether Counsel Fees Are Considered in the Chapter 13 Best Interests Test
Deferred payments to unsecured creditors in a chapter 13 plan must equal the present value of the distributions required by the best interests test, Judge Halfenger says.
7th Circuit, Wisconsin, Wisconsin Eastern DistrictMarch 03, 2021
Second Circuit Ducks a Critical Vendor Appeal
An appeal from a critical vendor order was dismissed as equitably moot.
2nd CircuitFebruary 24, 2021
Bankruptcy Settlement Didn’t Discharge All Environmental Claims, New York Judge Says
Due process considerations persuaded District Judge Oetken to conclude that a creditor’s claims, unknown at the time, were not barred by a settlement.
2nd Circuit, New York, New York Southern District