December 05, 2024
Supreme Court Hears Argument on Allowing a Trustee to Sue the IRS for Fraudulent Transfers
Most justices seemed inclined to believe that the waiver of sovereign immunity in Section 106(a) does not abrogate the “actual creditor” requirement in Section 544(b)(1).
Supreme CourtDecember 03, 2024
Purdue Preliminary Injunction Protecting Nondebtors Upheld on Appeal
The same district judge who correctly predicted that Purdue’s nonconsensual releases were prohibited has nonetheless upheld a preliminary injunction barring suits against nondebtors.
2nd Circuit, New York, New York Southern DistrictDecember 02, 2024
A Business that Never Generated Income Is Eligible for Subchapter V, Judge Norman Says
The definition of ‘small business’ uses the word ‘activities,’ not ‘operations,’ making nonoperating small business eligible for Subchapter V.
5th Circuit, Texas, Texas Southern DistrictNovember 12, 2024
Judicial Immunity Can Protect a Trustee when Barton Doesn’t Apply, Circuit Says
When a trustee mistakenly seizes a nondebtor’s property, the Barton doctrine by itself doesn’t protect the trustee, but judicial immunity does.
11th CircuitNovember 07, 2024
A Plan Appeal Wasn’t Equitably Moot, Even Though Reversal Might Rejigger New Equity
A district court in Houston denied a motion to dismiss a confirmation appeal as equitably moot, although reversal might alter ownership of the reorganized debtor.
5th Circuit, Texas, Texas Southern DistrictNovember 06, 2024
Sufficiency of Preference and Fraudulent Transfer Complaints Described by Judge Goldblatt
To defeat motions to dismiss, preference and fraudulent transfer complaints need not contain all the information to be learned in discovery, Bankruptcy Judge Craig Goldblatt says.
3rd Circuit, DelawareNovember 05, 2024
Fully Secured, Nonrecourse Creditors Can Be Involuntary Petitioners, BAP Says
An involuntary petitioner whose claim was paid after filing is still counted as an involuntary petitioner, the Ninth Circuit BAP says.
9th CircuitOctober 23, 2024
Equitable Tolling Can Extend Statutes of Limitations Under Section 546(a)
Dilatory actions by a debtor tolled statutes of limitations for a trustee’s suit against a third party.
3rd Circuit, Pennsylvania, Pennsylvania Eastern DistrictOctober 08, 2024
Bankruptcy Judge Hursh Denies Arbitration over a Trustee’s Usury Claim
Arbitration was denied over a trustee’s claim objection based on the lender’s violation of state usury laws.
9th Circuit, MontanaOctober 04, 2024
Even if Ineligible for Chapter 13, Ninth Circuit Says the Debtor Can Still Dismiss
In a split decision, the Ninth Circuit majority held that a chapter 13 debtor has the right to dismiss under Section 1307(b) before the bankruptcy court decides whether the filing was in good faith.
9th Circuit