March 19, 2020
Mortgage Servicer Hit with $300,000 in Actual and Punitive Damages for Stay Violation
The creditor was guilty of an automatic stay violation, but Taggart insulated the creditor from liability for a discharge violation for continuation of the same conduct.
9th Circuit, NevadaMarch 18, 2020
Ninth Circuit Equivocates on ‘Collection Injunctions’ in Individual Chapter 11s
Dissenter in the Ninth Circuit says that utilizing provisions in the Bankruptcy Code is not bad faith barring confirmation.
9th CircuitMarch 12, 2020
HAVEN Act May Be Employed to Reduce Payments Under a Confirmed Chapter 13 Plan
Judge Shefferly writes a complicated opinion on the retroactivity of the HAVEN Act to cases filed prior to enactment.
6th Circuit, Michigan, Michigan Eastern DistrictMarch 09, 2020
To Avoid U.S. Trustee Fees, Court Liberally Allows Closing a Case After Confirmation
Pending adversary proceedings don’t preclude a finding that the chapter 11 case has been ‘fully administered,’ thus allowing entry of a final decree and cutting off further fees owing to the U.S. Trustee Program.
2nd Circuit, ConnecticutMarch 06, 2020
Must a Debtor Be Destitute Before Discharging Student Loans?
Unemployed for 16 months, surviving on food stamps, and living rent-free enabled a debtor to discharge student loans.
7th Circuit, Illinois, Illinois Northern DistrictMarch 05, 2020
Fifth Circuit Opinion Shows How Not to Represent a Creditor at Confirmation
Sovereign immunity won’t prevent the bankruptcy court from extinguishing a state’s easement over a debtor’s property.
5th CircuitMarch 04, 2020
Judge Kahn Finds No Constitutional Infirmities in Applying the SBRA Retroactively
Because the SBRA’s foundation is chapter 11, the new statute may be applied constitutionally to rights or property interests arising before enactment.
4th Circuit, North Carolina, North Carolina Middle DistrictFebruary 25, 2020
First Opinion on the SBRA Permits Conversion of an Existing Chapter 11 Case
Bankruptcy Judge Scott Clarkson of Santa Ana, Calif., issued the first reported decision on the new small business reorganization law that became effective on February 19.
9th Circuit, California, California Central DistrictFebruary 21, 2020
Second Circuit Plugs Another Hole in the Johns-Manville Asbestos Trust
Reinstating a ruling by Bankruptcy Judge Cecelia Morris, the appeals court held that the Manville asbestos trust covers both in rem and in personam claims by ‘future’ claimants against insurers and brokers.
2nd CircuitFebruary 20, 2020
Third Circuit Endorses an Alternative to Section 524(g) Trusts for Asbestos Cases
Appeals court says that using a trust for future asbestos claims rather than a bar order would be cheaper and avoid unnecessary litigation.
3rd Circuit