May 08, 2018

Bankruptcy Judge Predicts Circuit Split on Substantive Consolidation with Nondebtors

Seventh Circuit is averse to creating remedies under Section 105, Bankruptcy Judge Hollis says.

7th Circuit, Illinois, Illinois Northern District

May 01, 2018

Contract Wages for Executives Are Not Presumptively Allowable Postpetition, BAP Says

An executive with a rejected contract must prove value to have an allowable administrative claim, 9th Circuit BAP says.

9th Circuit

April 30, 2018

Non-Bankrupt Nonprofit Entities Are Not Subject to Substantive Consolidation

Eighth Circuit insulates parishes and church schools from substantive consolidation.

8th Circuit

April 26, 2018

Claims Located in the U.S. Make a Foreign Debtor Eligible for Chapter 15

The Second Circuit’s Barnet opinion on Section 109(a)’s requirement of property in the U.S. is satisfied by claims located in the U.S.

2nd Circuit, New York, New York Southern District

April 25, 2018

Violation of Discharge Is Now Difficult to Prove in the Ninth Circuit

An unreasonable but good faith, subjective belief that there is no injunction bars a finding of contempt in the Ninth Circuit.

9th Circuit

April 24, 2018

Tax Sales Can Be Avoided as Preferences, New Jersey District Judge Rules

Not a true public sale, a tax foreclosure in New Jersey can be attacked as a preference without implicating concerns about federalism.

3rd Circuit, New Jersey

April 21, 2018

Claims Under Section 544(b) Are Estate Property and Can Be Sold or Assigned, Judge Says

Courts are split on the status of inherited claims as estate property.

8th Circuit, Minnesota

April 20, 2018

Fully Encumbered Property Is Not a Debtor’s Asset, First Circuit Says

Perplexing opinion may only apply to the status of assets before bankruptcy.

1st Circuit

April 18, 2018

Nondischargeability Is No Bar to Feasibility in an Individual Chapter 11

Holders of nondischargeable claims can be forced to accept pro rata payments during the life of the plan and collect the remainder only after discharge or dismissal, the BAP rules.

6th Circuit

April 16, 2018

Leased but Unused Personal Property Qualifies for an Administrative Claim

Circuits are split on requiring use of leased equipment before allowing an administrative claim.

5th Circuit, Louisiana, Louisiana Western District