January 30, 2020

Another Court Approves an Arrangement for Paying Most Chapter 7 Fees After Filing

Careful drafting and copious documentation are required for a bifurcated fee arrangement to pass muster in chapter 7.

6th Circuit, Kentucky, Kentucky Eastern District

January 28, 2020

Circuit Split Widens over Discharging Taxes on Late-Filed Returns

The Supreme Court has ducked the split twice in recent years but should tackle the question this time around.

11th Circuit

January 27, 2020

Circuit Judge Questions Applicability of Veil Piercing and Alter Ego to Trusts

Sixth Circuit upholds dismissal of claims for reverse veil piercing and reverse alter ego.

6th Circuit

January 24, 2020

Incorporating AAA Rules by Reference Won’t Work with Consumers

Courts are split on the question of whether the incorporation of AAA rules by reference allows arbitrators to decide threshold questions of arbitrability and validity of an agreement to arbitrate.

4th Circuit, South Carolina

January 21, 2020

Chapter 13 Debtor Keeps Postpetition Appreciation in Nonexempt Property, BAP Says

Courts are split on whether creditors in chapter 13 are entitled to the postpetition appreciation in a debtor’s property.

9th Circuit

January 17, 2020

Technicalities Insulated a Lawyer from Liability for Misusing an IOLA

A creditor lost a dischargeability suit by failing to call the right witnesses to prove that a lawyer’s trust account was used to hide assets.

2nd Circuit, New York, New York Eastern District

January 15, 2020

A Prior BAP Opinion Is Virtually Binding on a Later BAP Panel

A later First Circuit BAP panel should follow BAP authority unless the prior opinion seems “dead wrong.”

1st Circuit

January 10, 2020

Fifth Circuit Stretches Equitable Notions to Bend Plain Language

A nonprecedential opinion applies Fifth Circuit authority to achieve a result that’s equitable for the debtor and creditors, and maybe also for a personal injury defendant.

5th Circuit

January 09, 2020

Courts Interpret Brunner Too Harshly, Bankruptcy Judge Cecelia Morris Says

A debtor with a law degree but only $37,500 in gross annual income was permitted to discharge more than $220,000 in student loans.

2nd Circuit, New York, New York Southern District

January 02, 2020

PACA Doesn’t Give Rise to Denial of Discharge for Defalcation, Chicago Judge Says

A PACA trust lacks the hallmarks of a trust, so a failure to pay a produce supplier doesn’t give rise to a nondischargeable debt for defalcation while acting in a fiduciary capacity, Judge Goldgar says.

7th Circuit, Illinois, Illinois Northern District