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ABI Journal

November 10, 2020

Ninth Circuit Extinguishes Another Mortgage Where the Lender Had Fallen Asleep

The appeals court allows a tiny lien to wipe out a big mortgage if the bank wasn’t vigilant at the time of foreclosure.

9th Circuit

November 09, 2020

Split Widens on Trustee’s Ability to Use the IRS’s Longer Statute of Limitations

North Carolina Judge disagrees with the Fifth Circuit on extending the statute of limitations to 10 years under Section 544(b)(1).

4th Circuit, North Carolina, North Carolina Western District

November 06, 2020

Fifth Circuit Upholds Constitutionality of Increase in U.S. Trustee Fees

Dissenter in the Fifth Circuit believes that having both U.S. Trustees and bankruptcy administrators violates the Uniformity Clause.

5th Circuit

November 05, 2020

Creditors Lack Standing to Enforce the Automatic Stay in the Ninth Circuit

A subordinate lender lacked appellate standing to appeal the annulment of the automatic stay in favor of a senior lender.

9th Circuit

November 04, 2020

Deceased Chapter 13 Debtor Excused from Taking Financial Management Course

Courts are split on whether the estate of a deceased chapter 13 debtor can receive a discharge if the debtor had not completed a financial management course.

10th Circuit, Utah

October 30, 2020

Judge Isgur Sides with the Third Circuit and Allows Makewhole Premiums

Creditors are entitled to ‘default interest’ when the debtor is solvent.

5th Circuit, Texas, Texas Southern District

October 29, 2020

Houston Judge Rejects Tenth Circuit Opinion Immunizing Subsequent Transferees

Proceeds from fraudulently transferred property can be recovered from subsequent transferees, Judge Rodriguez says, differing with the Tenth Circuit’s Generation Resources opinion.

5th Circuit, Texas, Texas Southern District

October 28, 2020

Fifth Circuit Allowed an Extension of the Discharge Deadline After the Deadline Had Passed

The equitable power under Section 105(a) permits extending the discharge objection deadline when the court makes a mistake.

5th Circuit

October 26, 2020

Eleventh Circuit Finds Discretion to Disregard the Barton Doctrine

Is the Barton doctrine based on a lack of subject matter jurisdiction, or is it a prudential rule?

11th Circuit

October 22, 2020

On a Circuit Split, Sovereign Immunity Wasn’t Waived for Indian Tribes, Judge Says

Section 106 wasn’t sufficiently explicit to waive sovereign immunity for Indian tribes, Judge Frank Bailey said in siding with the Sixth Circuit and differing with the Ninth Circuit.

1st Circuit, Massachusetts