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ABI Journal

June 04, 2020

Ninth Circuit Narrowly Reads Section 506(d) on Voiding Liens After Claim Disallowance

A claim must be disallowed based on the invalidity of the debt before the associated lien can be voided under Section 506(d), the Ninth Circuit ruled in upholding the BAP.

9th Circuit

May 29, 2020

Postpetition Default on a Mortgage Is a Prepetition Debt for Setoff Purposes

The obligation on a mortgage is incurred when the mortgage is granted, even though the payment default may occur after filing, Judge Thuma says.

10th Circuit, New Mexico

May 21, 2020

Judge Shefferly Confines Viegelahn to Its Facts

If a chapter 13 plan isn’t confirmed, the debtor’s counsel is paid.

6th Circuit, Michigan, Michigan Eastern District

May 18, 2020

Setoff Rights of the IRS Prevail over a Debtor’s Attempt to Exempt a Tax Refund

Fourth Circuit answered a question of first impression where the lower courts disagreed.

4th Circuit

May 12, 2020

Confirmation Barred Claims Against a Coal Producer for Causing Global Warming

Global warming claims were discharged even though the chapter 11 plan did not discharge claims under environmental laws.

8th Circuit

April 27, 2020

New York Bankruptcy Judge Declines to Follow Enron Decision by SDNY District Judge

Claims traders are put on notice: Purchasing a claim doesn’t insulate the buyer from disallowance under Section 502(d).

2nd Circuit, New York, New York Southern District

April 21, 2020

Justices Postpone Argument in Fulton until the Supreme Court’s Next Term

Supreme Court won’t decide until late this year or early 2021 whether the automatic stay requires creditors to turn over repossessed property without a turnover action.

Supreme Court

April 21, 2020

As an In Personam Claim, a Preference Can Be Barred by Discharge, Denver Judge Says

An IRA is not a legal entity separate from its owner, according to Bankruptcy Judge Elizabeth E. Brown of Denver

10th Circuit, Colorado

April 17, 2020

Cashier’s Checks and Ordinary Checks Are Treated the Same Under Barnhill

The UCC and Barnhill are in accord when it comes to ownership of funds underlying an unpaid check.

10th Circuit, Oklahoma, Oklahoma Western District

April 13, 2020

First Circuit Issues a Landmark Opinion on Valuation of Disputed Claims

The value of a disputed claim is proven by showing the likely validity of the claim and the likelihood of recovery, not just by establishing the possible damages.

1st Circuit