May 17, 2017

Chapter 13 Debtor Held to Lack Standing to Prosecute a Claim on an Exempt Asset

Judge fails to distinguish between cases in chapter 7 and chapter 13.

7th Circuit, Illinois, Illinois Northern District

May 15, 2017

Why a Secured Creditor’s Deficiency Wasn’t Treated as an Unsecured Claim

Post-discharge default didn’t entitle a lender to treatment as an unsecured creditor.

5th Circuit, Mississippi, Mississippi Northern District

Supreme Court Allows Debt Collectors to File Time-Barred Proofs of Claim

High court allows a business model that is based on the inadvertence of trustees and creditors.

Supreme Court

May 12, 2017

Latent Defects in Medical Devices Don’t Give Rise to Estate Property

Segal v. Rochelle prevented a personal injury claim from becoming estate property.

2nd Circuit, New York, New York Eastern District

May 11, 2017

Second Circuit Describes When Claims Based on Securities Are Subordinated

Lehman workers barred from making claims based on worthless stock awards.

2nd Circuit

May 09, 2017

Third Circuit Joins the Majority in the Split Over Late-Filed Tax Returns

Circuit split widens on an issue the Supreme Court has been ducking.

3rd Circuit

May 05, 2017

A ‘Loan’ Is Not an ‘Educational Benefit,’ Ninth Circuit BAP Holds

BAPCPA amendments on student loans modified the definition of ‘educational benefit.’

9th Circuit

May 02, 2017

Treatment of Equally Ranked Undersecured Creditors Is Ready for Appeal in Delaware

Judge Sontchi sticks by his 2016 decision in the Energy Future reorganization.

3rd Circuit, Delaware

April 24, 2017

Deemed Recourse Rights under Section 1111(b) Don’t Survive Foreclosure, Circuit Says

Ninth Circuit says deemed recourse terminates when the estate no longer owns the collateral.

9th Circuit

April 21, 2017

Bank Zapped $1.3 Million for an Erroneous Estoppel Letter that Blocked a Sale

Lender assessed the costs of chapter 11 for causing an unnecessary bankruptcy.

11th Circuit, Florida, Florida Middle District