April 20, 2024

Fifth and Fourth Circuits Hold that Debts in Sub V Can Be Nondischargeable

Differing with eight lower courts, the Fifth Circuit sided with the Fourth Circuit by holding that debts of corporate debtors in Subchapter V can be nondischargeable in nonconsensual plans.

5th Circuit

April 04, 2024

Evidence of Intent to ‘Hinder’ Wasn’t Sufficient to Deny Discharge, District Judge Says

The bankruptcy court’s inference of intent to hinder the trustee wasn’t supported by the evidence, the district judge says in reversing a denial discharge.

6th Circuit, Michigan, Michigan Eastern District

April 02, 2024

Offensive Appellate Rights May Be Sold, but Maybe Not Defensive Appellate Rights

State laws differ on whether defensive appellate rights are estate property that may be sold.

8th Circuit, Arkansas, Arkansas Western District

March 29, 2024

For No Notice in an ‘Asset’ Case, the Entire Debt Is Not Discharged, the Ninth Circuit Says

The Ninth Circuit explains why the debt owing to a creditor without notice is discharged in a ‘no asset’ case but not in an ‘asset’ case.

9th Circuit

March 15, 2024

Being a ‘Net Winner’ in a Ponzi Scheme Doesn’t Automatically Mean Nondischargeability

Alleging that a debtor realized an ‘impossibly high’ rate of return in a Ponzi scheme isn’t enough to state a claim of nondischargeability for ‘actual fraud.’

4th Circuit, North Carolina, North Carolina Eastern District

March 06, 2024

Judge Easterbrook Says: Bankruptcy Court Could Set Aside Erroneous State Court Ruling

By referring to the Rooker-Feldman doctrine, the appellant might have won an appeal where the bankruptcy court effectively set aside an erroneous decision by a state court regarding discharge.

7th Circuit

February 13, 2024

Eight Lower Courts Disagree with the Fourth Circuit on Sub V Nondischargeability

Nondischargeability for Sub V corporate debtors is sub judice in the Fifth Circuit.

7th Circuit, Illinois, Illinois Northern District

February 06, 2024

Rooker-Feldman Even Bars Review of State Court Judgments that Are ‘Void,’ Circuit Says

A debtor has one bite at the apple to enforce discharge. Take your pick: state or federal court, but not both.

5th Circuit

January 26, 2024

Agreements in Settlement of Nondischargeable Debts Are Themselves Nondischargeable

Fourth Circuit holds that attorneys’ fees and interest in pursuit of nondischargeable debts are themselves nondischargeable.

4th Circuit

January 24, 2024

Third Circuit Says: Bankruptcy Courts Have No Discretion to Deny Examiner Motions

Although examiners must be appointed on motion, the Third Circuit says that the bankruptcy court retains ‘broad discretion’ to fix the scope and cost of the investigation.

3rd Circuit