March 18, 2025

Class Actions: The Answer for Stay Violations with Small Damages for Each Debtor

A class action in Chicago will decide whether bankruptcy judges have the tools to rectify a single creditor’s violation of the rights of similarly situated debtors.

7th Circuit, Illinois, Illinois Northern District

March 12, 2025

District Court Doesn’t Say Whether ‘Person Aggrieved’ Survived Truck Insurance

District court upholds an ‘opt-out’ chapter 11 plan with releases for nondebtors.

8th Circuit

February 27, 2025

Chicago Judge Devises a Better Method to Allocate Income Tax Refunds Between Spouses

Whoever was overwithheld is entitled to the IRS refund when one spouse doesn’t file, Judge Michael Slade says.

7th Circuit, Illinois, Illinois Northern District

February 12, 2025

Judgment Liens Based on Nondischargeable Debts May Be Avoided as ‘Impairments’

A homestead can be protected from collection of a nondischargeable debt, limiting the judgment creditor to attaching nonexempt property.

9th Circuit, Arizona

February 04, 2025

Barton Halted Third Parties from Suing in an Allegedly Better Forum

When third parties sued a trust created by a confirmed chapter 11 plan, Judge Garrity declined to invent any new exceptions to the Barton doctrine.

2nd Circuit, New York, New York Southern District

January 31, 2025

A Good Faith Objection to a Sale Cannot Be Raised the First Time on Appeal

The existence of a competing bidder does not put the buyer on notice of an ‘adverse interest’ to avoid dismissal for mootness under Section 363(m), the Sixth Circuit BAP says.

6th Circuit

January 28, 2025

Debtor Not Compelled to Arbitrate Automatic Stay or Discharge Violations

A district court in Minnesota left the door open for sometimes compelling debtors to arbitrate claims arising in a bankruptcy case.

8th Circuit, Minnesota

January 27, 2025

Without Levy, a Recorded Judgment Lien Is Unperfected in Some States

In New Jersey, a trustee’s hypothetical judicial lien has priority over a judgment lien if the judgment lienholder has not made a levy on the property.

3rd Circuit, New Jersey

January 16, 2025

Fifth Circuit Arguably Expands the Barton Doctrine’s Ultra Vires Exception

A receiver was tagged $45,000 for failing to turn over estate property by demanding payment of administrative fees.

5th Circuit

January 15, 2025

A Transfer from the Debtor to a Constructive Trust Isn’t a Transfer of Debtor’s Property

If there’s a constructive trust on property in the debtor’s name, the debtor was only the trustee of the constructive trust and had no legal interest in the property.

3rd Circuit