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 CircuitMay 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 MexicoMay 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 DistrictMay 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 CircuitMay 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 CircuitApril 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 DistrictApril 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 CourtApril 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, ColoradoApril 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 DistrictApril 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