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ABI Journal

June 17, 2025

Sale of a Debtor’s Claim Was Champertous and Void, Fifth Circuit Says

Selling a debtor’s claims must be structured to avoid champerty under state law.

5th Circuit

June 10, 2025

Supreme Court Grants ‘Cert’ in a Bankruptcy Case on Rule 60(b)(4)

Coney Island is a bankruptcy case, but the question is whether there is a time limit for a Rule 60(b)(4) motion to set aside a judgment for lack of personal jurisdiction over the defendant.

Supreme Court

June 09, 2025

In Setting Aside a Tax-Lien Foreclosure, a Hypothetical Gave Standing to the Debtor

If state law prohibits assertion of the homestead exemption in tax foreclosure and the debtor can’t take federal exemptions, does the debtor lack standing to set aside a fraudulent transfer?

2nd Circuit, New York, New York Eastern District

June 05, 2025

There’s an Exception to the Rule that Fraudulent Transfer Recoveries Can’t Benefit Shareholders

When creditors have been paid in full, a trustee may pursue fraudulent transfers for the benefit of defrauded equity holders, Bankruptcy Judge Craig Goldblatt says.

3rd Circuit, Delaware

June 03, 2025

Like 18th Century England, There’s No Jury Trial Right for Stay Violations

Granfinanciera tells us to study English law from the 18th century in deciding when there’s a right to a jury trial in bankruptcy cases.

9th Circuit, Washington, Washington Western District

May 08, 2025

Equity Won’t Extend the Deadline for Filing a Dischargeability Complaint

The circuits are split on whether equity can extend the 60-day deadline for filing dischargeability complaints.

3rd Circuit, Pennsylvania, Pennsylvania Eastern District

April 21, 2025

Section 107 Governs Sealing of Court Documents, Not Common Law, Third Circuit Says

Section 107 more broadly protects trade secrets and confidential information than does common law.

3rd Circuit

April 11, 2025

In Pari Delicto Defense Doesn’t Apply to a Trustee Exercising Avoidance Powers

Because a trustee suing to recover a fraudulent transfer is acting in the interest of creditors, not the debtor, the in pari delicto defense does not apply, says Bankruptcy Judge Scott Clarkson.

9th Circuit, California, California Central District

April 02, 2025

A Contempt Sanction Is Not a ‘Money Judgment’ and Doesn’t Require Writ of Execution

A contempt sanction upholds the integrity of the court and doesn’t invoke Rule 69(a).

2nd Circuit, New York, New York Southern District

March 19, 2025

Arbitration in Bankruptcy Isn’t All or Nothing, Judge David Cleary Says

Chicago’s Judge David Cleary called for post-confirmation arbitration of claims between the debtor and a creditor, but no arbitration for the creditor’s defenses, raising questions of bankruptcy law.

7th Circuit, Illinois, Illinois Northern District