May 22, 2019

‘Earmarking’ Only Applies When a Debtor Receives a Loan from a Third Party

Money taken from a debtor’s own retirement account to pay a creditor does not qualify for the earmarking defense, Chief Judge Fehling says.

3rd Circuit, Pennsylvania, Pennsylvania Eastern District

May 21, 2019

Supreme Court Agrees to Rule on What Is or Is Not a ‘Final, Appealable’ Order

For now, the high court ducks an important automatic stay question for chapter 13 debtors.

Supreme Court

May 13, 2019

Malicious Theft of Trade Secrets Doesn’t Result in Nondischargeability, Circuit Says

Egregious behavior doesn’t always result in nondischargeability for willful and malicious injury.

4th Circuit

May 10, 2019

Disclosing an Asset in the Wrong Place Won’t Invoke Judicial Estoppel, Circuit Says

Second Circuit won’t give a defendant a windfall if the debtor scheduled the lawsuit in the wrong place but told the trustee and the court.

2nd Circuit

May 03, 2019

A Cash Collateral Carveout Doesn’t Automatically Make a Bank Liable for Fees

Bankruptcy Judge Lloyd limits a recent Sixth Circuit opinion to its facts in holding that a bank was not liable to pay professional fees from a cash collateral carveout.

6th Circuit, Kentucky, Kentucky Western District

April 29, 2019

Disciplinary Sanctions Held Nondischargeable Even Though Not Paid to the State

The Ninth Circuit BAP follows Kelley, even though the panel implies that the Supreme Court tortured the language in Section 523(a)(7).

9th Circuit

April 26, 2019

Mothers Owed Child Support Weren’t Entitled to Notice in Father’s Bankruptcy, Circuit Says

Fifth Circuit in substance says that state law overcomes the Bankruptcy Code’s broad definition of who’s a creditor entitled to notice.

5th Circuit

April 18, 2019

Delaware’s Judge Walrath Writes a Primer on Consignments

Perfecting a consignment is easy, but failing to do so is disastrous.

3rd Circuit, Delaware

April 15, 2019

Is the ‘Accrual Test’ for the Existence of a Claim Alive and Well after Grossman’s?

Are there two tests for the existence of a claim, one test for claims against the debtor and another test for claims by the debtor?

6th Circuit

March 26, 2019

‘Deemed Allowed’ Claims Can Be Binding in Subsequent Litigation, Circuit Says

A failure to distinguish between res judicata and collateral estoppel turned out to be costly.

6th Circuit