March 18, 2020
Ninth Circuit Equivocates on ‘Collection Injunctions’ in Individual Chapter 11s
Dissenter in the Ninth Circuit says that utilizing provisions in the Bankruptcy Code is not bad faith barring confirmation.
9th CircuitMarch 11, 2020
Eighth Circuit Applies Cap on Lease Claims to a Fraudulent Transfer Judgment
Appeals court had sympathy for the debtor by disallowing part but not all of a judgment for receipt of a fraudulent transfer with ‘actual intent.’
8th CircuitMarch 10, 2020
Fifth Circuit Rules that the Penalty under the ACA Isn’t a Priority Tax Claim
The exaction for failure to purchase health insurance isn’t an excise tax ‘on a transaction’ under Section 507(a)(8)(E)(i).
5th CircuitMarch 03, 2020
Bankruptcy Discharge Cuts Off Future Liability on a Guaranty
Courts are split on whether a personal guaranty survives bankruptcy.
6th CircuitFebruary 25, 2020
Supreme Court Uses a Bankruptcy Case to Limit the Use of Federal Common Law
High court rules that federal courts may make federal common law only to protect ‘uniquely’ federal interests.
Supreme CourtFebruary 24, 2020
Fifth Circuit’s Seminal Reed Decision Not Followed in Chapter 13
Bankruptcy judge finds no statutory power for a chapter 13 trustee to prosecute a lawsuit that the debtor was judicially estopped for pursuing.
5th Circuit, Louisiana, Louisiana Eastern DistrictFebruary 21, 2020
Second Circuit Plugs Another Hole in the Johns-Manville Asbestos Trust
Reinstating a ruling by Bankruptcy Judge Cecelia Morris, the appeals court held that the Manville asbestos trust covers both in rem and in personam claims by ‘future’ claimants against insurers and brokers.
2nd CircuitFebruary 20, 2020
Large Medical Bills Held Not to Be ‘Consumer’ Debts
Courts are split on whether large medical bills are consumer debts that invoke the means test and can bar relief in chapter 7.
6th Circuit, Ohio, Ohio Southern DistrictFebruary 20, 2020
Third Circuit Endorses an Alternative to Section 524(g) Trusts for Asbestos Cases
Appeals court says that using a trust for future asbestos claims rather than a bar order would be cheaper and avoid unnecessary litigation.
3rd CircuitFebruary 13, 2020
Seventh Circuit: Reclamation Claims Are Subordinate to DIP Financing
The 2005 amendments to Section 546(c) departed from state law under UCC § 2-702 by creating a federal rule making reclamation claims subordinate to existing secured claims and DIP financing.
7th Circuit