September 25, 2020

Substituting a Trustee as the Party in Interest Isn’t Amending the Complaint

Even after the statute of limitations has run, a trustee may be substituted for the debtor as the real party in interest, Michigan district judge says.

6th Circuit, Michigan, Michigan Eastern District

September 24, 2020

Fraudulent Transfer Law Doesn’t Victimize Innocent Parties, Judge Wiles Says

Ownership of a bank account isn’t enough by itself to make the account holder the initial transferee of a fraudulent transfer.

2nd Circuit, New York, New York Southern District

September 22, 2020

‘No Harm, No Foul’ Doesn’t Entitle a Debtor to a Discharge, BAP Says

Advice-of-counsel defense doesn’t work when intent is clearly fraudulent.

10th Circuit

September 21, 2020

Michigan Judge Prefers Dismissal if Conversion Won’t Benefit Unsecured Creditors

The parties judged the chapter 11 case a success, even though unsecured creditors got zilch.

6th Circuit, Michigan, Michigan Western District

September 18, 2020

Ninth Circuit Reiterates Its Idiosyncratic Recoupment Standard

Ninth Circuit abjures bright lines in favor of a flexible approach to defining recoupment.

9th Circuit

September 14, 2020

University Medical Unscathed After Denby-Peterson, Delaware District Judge Says

The government lost a winnable appeal by failing to present evidence in bankruptcy court.

3rd Circuit, Delaware

September 08, 2020

Ninth Circuit: Government Doesn’t Pay Counsel Fees on Reversal of Sua Sponte Actions

Will there be occasions where the government must pay a debtor’s counsel’s fees when a U.S. Trustee unsuccessfully opposes a debtor’s initiative?

9th Circuit

September 03, 2020

Caution: Trusts Under a Plan Might Dissolve Automatically If Not Extended

Language in the documents prevented trusts from dissolving automatically when the trustee missed a deadline for extending the duration of the trusts, Judge Isgur said.

5th Circuit, Texas, Texas Southern District

September 02, 2020

Trustee Ordered to Disgorge Fees for Failing to Pay the U.S. Trustee’s Fees

The power to order disgorgement of fees arose under Section 105(a), not from Sections 330 or 331.

2nd Circuit, New York, New York Eastern District

August 31, 2020

Fifth Circuit Invalidates Local Chapter 13 Plan Regarding Tax Refunds

Below median debtors are no longer required to turn over tax refunds in excess of $2,000.

5th Circuit