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ABI Journal

May 01, 2025

Middle Ground on the Circuit Split over Dismissal vs. Conversion in Chapter 13

Bankruptcy Judge Michael Fagone permits dismissal of a chapter 13 case, but with a bar to refiling within two years.

1st Circuit, Maine

April 24, 2025

On a Split, Ninth Circuit BAP Holds: Misconduct in ‘11’ Doesn’t Prevent Conversion to ‘7’

Given that chapter 7 has remedies like denial of discharge for a debtor’s misconduct, bad faith in chapter 11 doesn’t allow dismissal on conversion to chapter 7.

9th Circuit

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 14, 2025

The Fate of Jackson Walker Is Now in the Hands of a District Judge from Another District

The district judge who excoriated Jackson Walker in a decision last year will now decide whether the firm must disgorge what it was paid in dozens of large chapter 11 cases.

5th Circuit, Texas, Texas Southern District

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 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

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 27, 2025

Supreme Court Holds: § 106(a) Doesn’t Waive Sovereign Immunity for § 544(b) Suits

In an 8-1 opinion, the Supreme Court holds that the waiver of sovereign immunity under Section 106(a) does not extend to suits brought by a trustee under state law standing in the shoes of an actual creditor.

Supreme Court

March 25, 2025

Equity Survives in the Ninth Circuit to Prevent Recoupment of Disability Overpayments

Reversing the BAP, the Ninth Circuit held that equitable considerations may stop the government from recovering disability overpayments, when the doctrine of recoupment otherwise would have allowed recovery despite the debtor’s chapter 7 discharge.

9th Circuit

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