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ABI Journal

December 21, 2021

Owner of a Long-Defunct Business Didn’t Qualify for Subchapter V

Being an ordinary employee didn’t mean that the debtor was engaged in business to qualify for Subchapter V.

3rd Circuit, Pennsylvania, Pennsylvania Western District

December 17, 2021

Fifth Circuit Has Rigid Standards for Chapter 7 Debtors to Have Standing to Appeal

An individual chapter 7 debtor has standing to appeal if the appeal could affect the debtor’s right to a discharge.

5th Circuit

December 16, 2021

Limits Placed on Rule 2004 Discovery After Chapter 11 Plan Confirmation

Although the bankruptcy court has subject matter jurisdiction after confirmation, the debtor cannot show ‘good cause’ for Rule 2004 discovery if it would confer an ‘unfair strategic advantage.’

11th Circuit, Florida, Florida Middle District

December 15, 2021

Arbitration Clause Not Enforceable When the Contract Itself Was Rejected

Judge Jernigan in Dallas differs with a judge in Delaware by declining to enforce an arbitration agreement that was part of a rejected contract.

5th Circuit, Texas, Texas Northern District

December 11, 2021

Complaint Survives Against Chicago for Not Releasing Impounded Cars Immediately

Despite Fulton, a Chicago bankruptcy judge rules that the City of Chicago might have violated Section 362(a)(4), (a)(6) or (a)(7) by refusing to release impounded cars immediately after a debtor files a chapter 13 petition.

7th Circuit, Illinois, Illinois Northern District

December 09, 2021

Government Urges Supreme Court to Review Constitutionality of the 2018 Increase in U.S. Trustee Fees

The U.S. Solicitor General wants the Supreme Court to resolve a circuit split and decide whether the increase in U.S. Trustee fees violated the Bankruptcy Clause because it was not immediately applicable in two states with bankruptcy administrators.

Supreme Court

December 08, 2021

Delaware Bankruptcy Judge Dismisses a Lawsuit for Forum Non Conveniens

Although a chapter 11 plan can bind parties throughout the world, Judge Sontchi wouldn’t let a foreign debtor sue a foreign bank in the Delaware bankruptcy court over a transaction that occurred in England.

3rd Circuit, Delaware

December 06, 2021

Taggart Means No Strict Liability for Violating a Corporate Debtor’s Automatic Stay

Persuasive authority is required before a creditor can be held in contempt for violating the automatic stay protecting a corporate debtor.

6th Circuit, Ohio, Ohio Southern District

December 02, 2021

No Duty to Release an Attachment After Fulton, Ninth Circuit BAP Says

The BAP decision may have a hint that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.

9th Circuit

December 01, 2021

BAP Rules that Tolling in Section 108(c) Does Not Apply to Notices Under Section 546(b)

In dicta, the Ninth Circuit BAP says that equitable estoppel cannot be applied against a debtor in view of the debtor’s fiduciary responsibilities.

9th Circuit