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ABI Journal

May 17, 2021

Having Nondischargeable Debts Doesn’t Entitle a Chapter 7 Debtor to Object to Claims

Courts are split on whether having nondischargeable debts gives an individual chapter 7 debtor standing to object to claims.

6th Circuit, Tennessee, Tennessee Western District

May 14, 2021

NRA’s Bankruptcy Dismissed as Being Filed for an Improper Purpose

Filing bankruptcy to gain a ‘litigation advantage’ in the N.Y. Attorney General’s dissolution action meant the chapter 11 petition was not filed in good faith and must be dismissed, Judge Harlan Hale rules.

5th Circuit, Texas, Texas Northern District

May 11, 2021

Jevic Rises from the Dead to Bar Claims Brought Originally by the Creditors’ Committee

Not having challenged pre-petition liens on time, a chapter 7 trustee was barred from taking over an adversary proceeding initiated by a now-dissolved chapter 11 creditors’ committee.

3rd Circuit, Delaware

May 10, 2021

Subchapter V by Itself Doesn’t Bar Class Claims, Florida Judge Says

Judge Colton decided that class claims aren’t prohibited in Subchapter V cases but didn’t allow a class claim in the case before her.

11th Circuit, Florida, Florida Middle District

May 06, 2021

On Dismissal of a ‘13,’ Barton May (or May Not) Bar Garnishments

Section 1326(a)(2) by itself does not bar garnishment of funds held by a trustee on dismissal before confirmation.

10th Circuit

May 05, 2021

Persistent Misbehavior Allows the Court to ‘Bend’ Strict Statutory Language, Circuit Says

First Circuit won’t allow a debtor to dismiss and avoid the consequences of abusive conduct.

1st Circuit

May 04, 2021

Once Repudiated, a Contract Is No Longer Executory

Courts disagree on whether a repudiated contract remains executory.

5th Circuit, Texas, Texas Southern District

May 03, 2021

Another Circuit Upholds the 2018 Increase in U.S. Trustee Fees

Dissenters in the Fourth and Fifth Circuits evidently believe that the dual U.S. Trustee/Bankruptcy Administrator system is unconstitutional.

4th Circuit

April 30, 2021

Just Asking for Confirmation from a Data Furnisher Won’t Bar an FCRA Suit, Circuit Says

A jury should decide whether a credit-reporting agency was negligent by not examining court records to determine whether a debt had been discharged.

11th Circuit

April 27, 2021

Corporations Are More Likely Eligible for the SBRA than Owners of Defunct Businesses

Utah’s Judge Thurman says that a corporation liquidating its remaining assets is engaged in business ‘activities’ and is therefore eligible for Subchapter V.

10th Circuit, Utah