March 25, 2025
Equity Survives in the Ninth Circuit to Prevent Recoupment of Disability Overpayments
Reversing the BAP, the Ninth Circuit held that equitable considerations may stop the government from recovering disability overpayments, when the doctrine of recoupment otherwise would have allowed recovery despite the debtor’s chapter 7 discharge.
9th CircuitMarch 21, 2025
Courts Divided on Broad or Narrow Grounds for Transferring Venue Under Section 1412
Some courts don’t transfer venue under 28 U.S.C. § 1412 if the claims are only ‘related to’ the bankruptcy and don’t arise in the bankruptcy case or arise under the Bankruptcy Code.
2nd Circuit, New York, New York Western DistrictMarch 20, 2025
Bankruptcy Courts Disagree on Paying a ‘7’ Trustee Who Made No Distributions
Courts are split on whether chapter 7 trustees can be paid on another theory when the trustee had made no distributions to creditors under Section 326(a).
6th Circuit, Ohio, Ohio Southern DistrictMarch 18, 2025
Class Actions: The Answer for Stay Violations with Small Damages for Each Debtor
A class action in Chicago will decide whether bankruptcy judges have the tools to rectify a single creditor’s violation of the rights of similarly situated debtors.
7th Circuit, Illinois, Illinois Northern DistrictMarch 14, 2025
Chapter 13 Debtors Can’t Sell Co-Owned Property Under Section 363(h)
On a question where the courts are split, Bankruptcy Judge Pamela McAfee sides with the majority and holds that a chapter 13 debtor can’t sell co-owned property.
4th Circuit, North Carolina, North Carolina Eastern DistrictMarch 11, 2025
For Fraudulent Transfers, Retailers Needn’t Police Who Receives Value from the Purchase
Judge Peter Henderson declined to adopt an interpretation of Section 548 that would turn innocent retailers into recipients of fraudulent transfers when someone buys goods but turns the goods over to someone else.
7th Circuit, Illinois, Illinois Central DistrictMarch 05, 2025
New York Judge Devises a Flexible Remedy to Deal with Repeated Bad Faith Filings
New York’s Judge Philip Bentley and Prof. Robert Lawless urge Congress to adopt the ABI Commission’s recommendations for dealing with bad faith filings.
2nd Circuit, New York, New York Southern DistrictFebruary 27, 2025
Chicago Judge Devises a Better Method to Allocate Income Tax Refunds Between Spouses
Whoever was overwithheld is entitled to the IRS refund when one spouse doesn’t file, Judge Michael Slade says.
February 14, 2025
Although Exempt, Social Security Benefits Must Be Reported in Subchapter V
While neither Social Security benefits nor post-petition income are estate property in Subchapter V, they must be included in an individual’s monthly operating reports, Bankruptcy Judge Jacobvitz says.
10th Circuit, New MexicoFebruary 13, 2025
Judge Christopher Klein Writes ‘Cliffs Notes’ on Transferring Venue of Related Cases
In transferring venue of a related case under Rule 1014(b), the bankruptcy court can move sua sponte and need not await a venue motion by a creditor or party in interest.
9th Circuit, California, California Eastern District