November 01, 2021

Debtors May Wind Up Operations in Chapter 12 and Farm Through LLCs

Judge Somers wrote two opinions on debtors’ eligibility to reorganize in chapter 12.

10th Circuit, Kansas

October 28, 2021

Status Conferences to Continue Prepetition State Court Suits Don’t Violate the Stay

The Ninth Circuit B.A.P. says that the automatic stay does not require dismissal of prepetition lawsuits against debtors.

9th Circuit

October 27, 2021

Three-Year Bar to Refiling in Chapter 13 Imposed for ‘Vexatious, Frivolous’ Litigation

Motions to recuse three bankruptcy judges fortified the third judge’s decision to dismiss and bar refiling for three years.

5th Circuit, Texas, Texas Northern District

October 26, 2021

Bar Date Notice by Email Is Insufficient, Delaware’s Judge Goldblatt Says

Notice by email may satisfy due process but doesn’t comply with notice by ‘mail’ under Bankruptcy Rule 2002.

3rd Circuit, Delaware

October 25, 2021

Barton Didn’t Stop Creditors from Garnishing a Chapter 13 Trustee After Dismissal

The debtor’s bad faith chapter 13 filings convinced Judge Hall to allow garnishment of funds held by the trustee after dismissal.

10th Circuit, Oklahoma, Oklahoma Western District

October 21, 2021

Disclosing a Lawsuit Only in the SOFA Won’t Result in Abandonment, Circuit Says

Disclosing a lawsuit in the SOFA and discussing the suit with the trustee was no substitute for listing the suit among a debtor’s assets, the Ninth Circuit held.

9th Circuit

October 20, 2021

Capped Landlord Claim Can Also Be Nondischargeable, Eighth Circuit Says

Retired Judge Kressel wrote the opinion in 2000 relied on by the Eighth Circuit.

8th Circuit

October 19, 2021

Bad Faith Permits Dismissal of a Chapter 13 Case with Conditions, Judge Waites Says

Debtor accepted a bar to refiling to avoid dismissal with prejudice of her chapter 13 case.

4th Circuit, South Carolina

October 14, 2021

Refusing to Release an Attachment After Filing Is No Stay Violation Following Fulton

Pennsylvania’s Judge Conway hints that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.

3rd Circuit, Pennsylvania, Pennsylvania Middle District

October 13, 2021

Bifurcated Fee Arrangements Barred in Western District of Kentucky

Curiously, bifurcated fee arrangements are sometimes permitted in the Eastern District of Kentucky.

6th Circuit, Kentucky, Kentucky Western District