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ABI Journal

January 28, 2021

Defenses to Preferences Are Considered in Counting an Involuntary Debtor’s Creditors

A former bankruptcy judge, now a district judge, makes important law on involuntary petitions.

5th Circuit, Louisiana, Louisiana Western District

January 27, 2021

The Reason for Missing the Deadline Is Most Important in Finding ‘Excusable Neglect’

The length of time before filing a motion to extend the appeal-filing deadline isn’t dipositive under Rule 8002(d)(1)(B).

6th Circuit

January 25, 2021

Refusal to Arbitrate the Validity of a Security Interest Is Tersely Affirmed in California

Are the lower courts out of step with the Supreme Court when it comes to enforcement of arbitration of disputes in bankruptcy court?

9th Circuit, California, California Eastern District

January 22, 2021

No Retroactive Adequate Protection in Chapter 13, Judge Trust Says

Long Island judge follows ‘Burt’ Lifland and rules that a secured creditor is not entitled to adequate protections for periods of time before filing a motion giving rise to adequate protection.

2nd Circuit, New York, New York Eastern District

January 21, 2021

The Standards for a Pre-Filing Injunction Against a Vexatious Litigant

The record as a whole and the likelihood of further abuse justify a pre-filing injunction.

2nd Circuit, New York, New York Eastern District

January 19, 2021

Cross-Collateralization Turns Two Loans into One Claim in the Fifth Circuit

When personal property loans are cross-collateralized, a chapter 13 plan must use the same option for cramming down both loans, the Fifth Circuit says.

5th Circuit

January 18, 2021

Sanction for Discharge Violation: $450 in Actual Damages and $10,000 for Attorneys’ Fees

When there’s ‘no fair ground of doubt’ about a discharge violation, the creditor should settle or make an offer of settlement to avoid larger damages after trial.

11th Circuit, Florida, Florida Middle District

January 14, 2021

Even with Knowledge of Bankruptcy, Discharge Contempt Requires Notice of Discharge

The Ninth Circuit BAP says there must be knowledge of the discharge order to find contempt, even when the debtor continues the same conduct that violated the automatic stay.

9th Circuit

January 14, 2021

Supreme Court Holds that Merely Holding Property Isn’t a Stay Violation

Justices rule that affirmative action is required before withholding property amounts to controlling estate property and results in an automatic stay violation.

Supreme Court

January 13, 2021

Another Court Lets the Debtor Keep Appreciation in a Home on Conversion from 13 to 7

Where the courts are split, Idaho judge sides with the Tenth Circuit BAP and allows a chapter 13 debtor to retain post-petition appreciation in the value of a homestead following conversion to chapter 7.

9th Circuit, Idaho