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ABI Journal

December 17, 2020

Bankruptcy Judges Disagree About Abatement of Rent During the Pandemic

Neither the Bankruptcy Code nor state law permits reducing rent when government regulations restrict a debtor’s ability to generate income, Judge Isgur says.

5th Circuit, Texas, Texas Southern District

December 15, 2020

The Mailbox Presumption Won’t Deem a Claim to Have Been Timely Filed

Courts are split on the extent to which an affidavit of timely mailing will suffice to prove that a claim was filed.

4th Circuit, North Carolina, North Carolina Middle District

December 11, 2020

Courts Are Now Split on Whether a Subchapter V Debtor Must Be ‘Currently’ Engaged in Business

Debts acquired from running a business do not qualify someone for subchapter V of chapter 11 if the business has terminated and the assets are gone, according to Judge Cynthia Norton.

8th Circuit, Missouri, Missouri Western District

December 08, 2020

Arizona District Judge: No Final Orders in Preference Suits Without a Claim or Consent

Expanding on dicta in Bellingham, the district court in Arizona finds no power to enter a final order in a preference suit against a defendant who did not consent to a final order in bankruptcy court.

9th Circuit, Arizona

December 04, 2020

Court of Claims Upholds Fee Increase for U.S. Trustee System

The Fifth Circuit and now the Court of Claims found no constitutional flaw in the 2017 increase in fees paid by chapter 11 debtors to the U.S. Trustee system.

5th Circuit

December 03, 2020

Ninth Circuit Upholds an FDCPA Suit for Collecting a Debt Paid in Full in Chapter 13

Even though the discharge order had been violated, neither Midland Funding nor Ninth Circuit precedent precluded an FDCPA suit for attempting to collect a debt paid in full.

9th Circuit

December 03, 2020

Ninth Circuit Upholds an FDCPA Suit for Collecting a Debt Paid in Full in Chapter 13

Even though the discharge order had been violated, neither Midland Funding nor Ninth Circuit precedent precluded an FDCPA suit for attempting to collect a debt paid in full.

9th Circuit

December 02, 2020

New York’s High Court Splits on Federal Preemption of Tortious Interference Claims

New York Court of Appeals decision opens the door to state court suits against third parties who cause debtors to breach contracts with lenders.

2nd Circuit, New York

November 24, 2020

The Circuits Are Split: Are Referral Fees Paid by a Ponzi Scheme Avoidable?

Utah district judge decides that referral fees paid by a Ponzi scheme aren’t avoidable unless the recipient had reason to suspect there was fraud.

10th Circuit, Utah

November 20, 2020

Exercise Caution in Electing Remedies Against Someone Who May File Bankruptcy

Sometimes, being too aggressive backfires when the defendant files bankruptcy.

3rd Circuit, Pennsylvania, Pennsylvania Western District