June 18, 2021
Barton Protection Ends When the Bankruptcy Case Closes, Eleventh Circuit Says
Eleventh Circuit splits with four other circuits by holding that the Barton doctrine doesn’t protect trustees once the bankruptcy is over.
11th CircuitJune 17, 2021
Treble Damages for ‘Willfulness’ Won’t Automatically Result in Nondischargeability
The lack of specific findings of fact by the arbitrator meant that a treble damage award for willful breach of contract was dischargeable.
2nd Circuit, New York, New York Eastern DistrictJune 16, 2021
Acevedo Doesn’t Bar Compensation for Services Before Entry of a Retention Order
So long as there was no delay in filing the retention application, Judge Tighe identified statutory and practical reasons for allowing compensation for services rendered before entry of a retention order.
9th Circuit, California, California Central DistrictJune 11, 2021
Sixth Circuit Creates a Split by Requiring Dismissal of an Abusive Chapter 13 Filing
Disagreeing with two other circuits, the Sixth Circuit finds no power in the bankruptcy court to avoid dismissing a chapter 13 case even if the debtor filed repeatedly in bad faith to avoid foreclosure.
6th CircuitJune 07, 2021
In ‘Related To’ Jurisdiction, District Court Applies the Bankruptcy Rules, Circuit Says
If the district court is adjudicating a suit with “related to” jurisdiction under 28 U.S.C. § 1334(b), the district court applies the Bankruptcy Rules, not the Federal Rules, the First Circuit says.
1st CircuitJune 04, 2021
Arbitration Clause Results in Temporary Stay of ‘Core’ Proceedings in Bankruptcy Court
Decision by Bankruptcy Judge Michelle Harner demonstrates the flaw in the Fourth Circuit’s rule requiring parallel proceedings in bankruptcy court and in arbitration when disputes are both core and non-core.
4th Circuit, MarylandJune 01, 2021
Debt from a Defunct Business Can Help to Qualify for Subchapter V
Part-time self-employment, coupled with debt from a defunct business, qualified the debtor for reorganization under Subchapter V of chapter 11.
4th Circuit, North Carolina, North Carolina Middle DistrictMay 27, 2021
Circuits Are Now Split on the Constitutionality of the 2018 Increase in U.S. Trustee Fees
The Second Circuit split with the Fourth and Fifth Circuits by holding that the increase in fees for the U.S. Trustee system was unconstitutional because it was not imposed simultaneously in the two states with bankruptcy administrators.
2nd CircuitMay 20, 2021
U.S. Suit Dismissed After German Defendant Files Insolvency in Germany
Filing a chapter 15 petition wasn’t required for a U.S. district court to dismiss a civil action against a German company undergoing insolvency in Germany.
2nd Circuit, New York, New York Southern DistrictMay 19, 2021
West Virginia Judge Allows Conversion to Subchapter V After Deadlines Passed
When drafting a statute, Congress cannot ‘think of every single esoteric possibility,’ Judge Mignault says.
4th Circuit, West Virginia, West Virginia Southern District