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ABI Journal

March 09, 2020

To Avoid U.S. Trustee Fees, Court Liberally Allows Closing a Case After Confirmation

Pending adversary proceedings don’t preclude a finding that the chapter 11 case has been ‘fully administered,’ thus allowing entry of a final decree and cutting off further fees owing to the U.S. Trustee Program.

2nd Circuit, Connecticut

March 04, 2020

Judge Kahn Finds No Constitutional Infirmities in Applying the SBRA Retroactively

Because the SBRA’s foundation is chapter 11, the new statute may be applied constitutionally to rights or property interests arising before enactment.

4th Circuit, North Carolina, North Carolina Middle District

March 03, 2020

Bankruptcy Discharge Cuts Off Future Liability on a Guaranty

Courts are split on whether a personal guaranty survives bankruptcy.

6th Circuit

February 27, 2020

Eleventh Circuit Opinion Shows Taggart’s Effect on Discharge Contempt Disputes

Taggart allows a court to deny a contempt motion without deciding whether the creditor’s action actually violated the discharge injunction.

11th Circuit

February 26, 2020

Supreme Court Bans Nunc Pro Tunc Orders

Despite the high court’s ban on nunc pro tunc orders, may bankruptcy courts make their orders retroactive?

Supreme Court

February 25, 2020

First Opinion on the SBRA Permits Conversion of an Existing Chapter 11 Case

Bankruptcy Judge Scott Clarkson of Santa Ana, Calif., issued the first reported decision on the new small business reorganization law that became effective on February 19.

9th Circuit, California, California Central District

February 25, 2020

Supreme Court Uses a Bankruptcy Case to Limit the Use of Federal Common Law

High court rules that federal courts may make federal common law only to protect ‘uniquely’ federal interests.

Supreme Court

February 18, 2020

Bankruptcy Court Still Has Power to Enter Final Judgments by Default after Wellness

Failure to respond to a well-pleaded complaint implies consent for the bankruptcy court to enter final judgment in an avoidance action, Judge Glenn rules.

2nd Circuit, New York, New York Southern District

February 11, 2020

Section 362(k)(1) Sanctions Apply to Automatic Stay Violation Continuing After Discharge

Almost $35,000 in actual and punitive damages was imposed on a judgment creditor and its collection law firm for failing to vacate a garnishment following notice of bankruptcy and discharge.

9th Circuit, California, California Eastern District

February 10, 2020

Fraudulent Transfer Damages Limited to Creditors’ Total Claims

Delaware’s Judge Owens won’t allow perpetrators of a fraudulent transfer to benefit from avoiding the transfer.

3rd Circuit, Delaware