February 01, 2024

Cursing the Debtor by Itself Isn’t a Violation of the Automatic Stay

A vulgarity directed at the debtor wasn’t a stay violation absent an act designed to collect a debt.

9th Circuit, California, California Eastern District

January 29, 2024

Courts May Create Trust Accounts to Pay Sub V Trustees and Other Admin Expenses

The court can’t require a debtor to give a ‘retainer’ to a Subchapter V trustee, Judge Pearson says.

9th Circuit, Oregon

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

January 17, 2024

Reference Withdrawal on Houston Ethics Probe Pits UST Against Bankruptcy Judge

Despite consent by the firm to withdraw the reference of motions to disgorge its fees, a bankruptcy judge in Houston recommended against withdrawal to district court and against transfer to another district.

5th Circuit, Texas, Texas Southern District

January 16, 2024

Supreme Court Seems Disinclined to Pay Refunds for Overpayment of U.S. Trustee Fees

Several justices seemed to believe that ‘prospective relief’ is sufficient to remedy the due process violation because the alternatives are ineffective.

Supreme Court

January 12, 2024

Lender’s Attorneys Paid Twice the Debtor’s Counsel Fees

Unnecessarily holding the lender’s feet to the fire resulted in the allowance of attorneys’ fees to the lender that were twice the debtor’s counsel fees.

5th Circuit, Texas, Texas Western District

January 11, 2024

For ‘Sub V’ Eligibility, Count the Debt of Affiliates Liquidating in Chapter 7

Bankruptcy court disregards SEC regulations defining ‘voting securities’ in deciding whether a Subchapter V debtor has ‘affiliates’ in bankruptcy.

11th Circuit, Georgia, Georgia Northern District

January 10, 2024

Equity Governs When Lease Rejection May Be Retroactive to the Filing Date

The ‘cap’ for lease-rejection damages can start when the debtor attempts to surrender the premises.

2nd Circuit, New York, New York Southern District

January 09, 2024

Denial of Modification of a Chapter 11 Plan Is Final and Appealable

Baltimore district judge applies the Fourth Circuit’s ‘substantial and unanticipated’ test to modifications of chapter 11 plans.

4th Circuit, Maryland

January 08, 2024

How to Turn Prepetition Work into a Postpetition Administrative Claim

Prepetition brokerage fees characterized as rent under an aircraft lease were administrative claims to be paid in full under Section 365(d)(5).

2nd Circuit, New York, New York Southern District