April 05, 2021
Filing a Timely Extension Motion Won’t Extend a Deadline Without an Order
Creditors’ lawyers shot themselves in the foot by having the bankruptcy judge moot a motion for an extension of the dischargeability deadline.
5th Circuit, Texas, Texas Western DistrictMarch 30, 2021
General Discharge Barred Suing the Debtor to Collect a Nondischargeable Debt
The Eleventh Circuit narrowed its Jet Florida rule that allowed suing a discharged debtor as nominal defendant.
11th CircuitMarch 25, 2021
Certified Mail Can Be an Inferior Method for Serving a Summons and Complaint
Serving a summons and complaint by certified mail is ineffective without a return receipt.
4th Circuit, West Virginia, West Virginia Southern DistrictMarch 18, 2021
Third Circuit Resurrects an ‘Admin’ Claim When the Stalking Horse Had No Breakup Fee
The Third Circuit found loopholes in the purchase agreement permitting the buyer to assert an administrative claim, even though the breakup fee was disallowed.
3rd CircuitMarch 15, 2021
Individual Chapter 11 Debtors Have Standing to Raise Thirteenth Amendment Claims
The Eleventh Circuit was ‘skeptical’ about a violation of the anti-slavery amendment resulting from the appointment of a chapter 11 trustee to oust an individual chapter 11 debtor in possession.
11th CircuitMarch 12, 2021
Trustees Don’t Need a Pecuniary Interest to Have Standing to Appeal, Fifth Circuit Says
Fee allowances aren’t made with the benefit of hindsight, the Fifth Circuit says.
5th CircuitMarch 09, 2021
Equitable Mootness Doesn’t Violate Due Process, First Circuit Says
Constitutional arguments don’t entitle the creditor to stay relief.
1st CircuitMarch 08, 2021
Split Grows on Whether a Subchapter V Debtor Must Be ‘Currently’ Engaged in Business
The owner of defunct businesses was held ineligible to be a small business debtor because he was no longer the owner of an operating business. Being a non-owner executive of an operating business didn’t qualify him.
5th Circuit, Texas, Texas Northern DistrictMarch 03, 2021
Second Circuit Ducks a Critical Vendor Appeal
An appeal from a critical vendor order was dismissed as equitably moot.
2nd CircuitMarch 01, 2021
Circuits Split on Applying Derivative Jurisdiction to a Lack of Personal Jurisdiction
In a removed action, nationwide service under Bankruptcy Rule 7004 can give a district court personal jurisdiction, even though the state court would lack personal jurisdiction.
11th Circuit