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ABI Journal

April 26, 2021

Faulty Pleading Resulted in Dismissal of a Suit by an ‘Unknown’ Creditor

Third Circuit dicta suggests that failure to create a trust is constitutionally deficient and won’t discharge claims of ‘unknown’ creditors in a chapter 11 plan.

3rd Circuit

April 22, 2021

New York Judge Declines (for Now) to Enforce an Indonesian Plan in the U.S.

Manhattan’s Bankruptcy Judge Sean Lane requires a record in the foreign proceeding showing that third-party releases are in accord with foreign law.

2nd Circuit, New York, New York Southern District

April 21, 2021

Denver Judge Opens the SBRA Door Wide for People with Debt from Failed Companies

A fast-food worker can (conceivably) qualify as a small business debtor under Subchapter V, according to Bankruptcy Judge Thomas B. McNamara.

10th Circuit, Colorado

April 20, 2021

Discharge May Be Enforced in Another District, Brooklyn Judge Says

Bankruptcy court has power to entertain a nationwide class action asserting a discharge violation.

2nd Circuit, New York, New York Eastern District

April 19, 2021

A District Court Rules that the U.S. Trustee Fee Increase Isn’t Retroactive

California district judge sides with the dissenter in the Fifth Circuit in saying that the parallel systems of U.S. Trustees and Bankruptcy Administrators violates the Bankruptcy Clause of the Constitution.

9th Circuit, California, California Central District

April 16, 2021

No Disqualification When Lawyers at Adversary Firms Were Dating

Delaware bankruptcy judge trusts that dating lawyers at adversary firms didn’t disclose client confidences.

3rd Circuit, Delaware

April 15, 2021

Holding Impounded Cars Still Might Violate the Automatic Stay, Seventh Circuit Says

Seventh Circuit says that Fulton left open the question of whether holding an impounded car violates Sections 362(a)(4) or (a)(6).

7th Circuit

April 12, 2021

Ninth Circuit BAP and a Brooklyn District Judge Agree on Removal to the Bankruptcy Court

Bankruptcy removal statute doesn’t permit moving a suit in district court to the bankruptcy court in another district.

9th Circuit

April 07, 2021

Creditor Filing Time-Barred Claims Is Hit with Debtor’s Attorneys’ Fees

The Supreme Court’s Midland Funding opinion was no defense to invocation of a Nevada statute shifting fees and compelling the creditor to pay the debtor’s costs in expunging stale claims.

9th Circuit, Nevada

April 06, 2021

Undisclosed Assets Revest in the Debtor After Dismissal but Not After Closing, BAP Says

If a case is dismissed, all assets revest in the debtor and nothing remains in the bankruptcy estate, not even undisclosed assets.

9th Circuit