May 16, 2025

Third Circuit Upholds Boy Scouts’ Nonconsensual Releases, Purdue Notwithstanding

The Third Circuit majority upheld nondebtor, nonconsensual releases because they were part of a sale, making the appeal statutorily moot under Section 363(m).

3rd Circuit

May 09, 2025

In ‘13,’ a Creditor Wanted Debtors’ Counsels’ Fees to Come Last, Not First

Chicago’s Bankruptcy Judge Donald Cassling nixed an idea that would have made chapter 13 unpalatable for debtors’ counsel.

7th Circuit, Illinois, Illinois Northern District

May 06, 2025

On Remand from the Supreme Court in Truck Ins., Fourth Circuit Upholds Confirmation

Fourth Circuit says there’s nothing in the Bankruptcy Code requiring ‘anti-fraud’ provisions in a mass tort chapter 11 plan. The appeals court also holds that an ‘asbestos’ plan isn’t filed in bad faith when the plan gives an insurer no more rights than the insurer has under its policy.

4th Circuit

April 25, 2025

Fifth Circuit: Repayment of Unsecured Term Loan Sometimes Must Be Accelerated in ‘13’

A 2/1 decision required chapter 13 debtors to accelerate repayment of nondischargeable student loans.

5th Circuit

April 23, 2025

A Homeowners’ Association Is Not a ‘SARE’ and Is Eligible for Sub V of Chapter 11

A homeowners’ association is not a single asset real estate debtor because the HOA’s income doesn’t come from the common areas but from assessments paid by unit owners.

4th Circuit, North Carolina, North Carolina Eastern District

April 16, 2025

In Sub V, No Compensation for a Rehearing Motion Contrary to Circuit Authority

After the court had denied contract assumption, there was no compensation for keeping assumption alive pending appeal.

9th Circuit, California, California Eastern District

April 15, 2025

Plan Confirmation Denied for Too Little Post-Confirmation Supervision by the Court

Bankruptcy Judge Littlefield insisted on supervision of post-confirmation legal fees when there was to be a ‘litany of litigation’ after confirmation.

2nd Circuit, New York, New York Northern District

April 09, 2025

Texas Courts Are Split on Ignoring Nonvoting Classes in Confirming a Sub V Plan

A bankruptcy judge in San Antonio disagreed with two bankruptcy judges in Houston by holding that a nonvoting class is equivalent to rejecting a plan in Subchapter V of chapter 11.

5th Circuit, Texas, Texas Southern District

April 07, 2025

Married Immediately Before Bankruptcy, the ‘Household’ Is Two, Not One

Wife who contributed nothing toward household expenses is still counted as part of the ‘household,’ Chicago’s Judge Slade says.

7th Circuit, Illinois, Illinois Northern District

April 04, 2025

Fifth Circuit Says Lessors Are ‘Known’ Creditors Entitled to Actual Notice

Circuit court upholds Bankruptcy Judge Jernigan: Notice by publication doesn’t discharge claims from a lease that rode through chapter 11 or was assumed.

5th Circuit