June 10, 2022

Corporate Debtors in Subchapter V Can’t Discharge Nondischargeable Debts, Circuit Says

Both individuals and corporations in subchapter V of chapter 11 are barred from discharging debts that are nondischargeable under Section 523(a).

4th Circuit

June 09, 2022

Tenth Circuit BAP Defines the Elements of the Earmarking Defense

Earmarking only applies if the debtor had no dominion and control and the transfer did not diminish the debtor’s estate, BAP says.

10th Circuit

June 07, 2022

A Receiver May Move to Dismiss an Involuntary Petition, but May Not Answer

Surprisingly, there is little authority on whether or how a receiver may respond to the filing of an involuntary petition.

7th Circuit, Illinois, Illinois Northern District

June 06, 2022

Rochester Diocese Loses Stay Protection for Nondebtor Catholic Entities

After almost three years in chapter 11 without a consensual plan, Bankruptcy Judge Warren is allowing sexual abuse claimants to sue nondebtor parishes and schools.

2nd Circuit, New York, New York Western District

2018 Increase in U.S. Trustee Fees Held Unconstitutional by the Supreme Court

The Supreme Court’s unanimous opinion avoids saying whether the dual system of U.S. Trustees and Bankruptcy Administrators is itself unconstitutional.

Supreme Court

June 03, 2022

Judge Ambro Explains the Primacy of Section 327(a) over State Ethics Rules

Absent an ‘actual conflict,’ disqualification is not automatic, the Third Circuit says.

3rd Circuit

May 31, 2022

Supreme Court on Arbitration (Again): Perhaps Bankruptcy Is Exempt from Arbitration?

Cutting back on knee-jerk invocation of arbitration, the Supreme Court says that agreements to arbitrate are no more enforceable than ordinary contracts.

Supreme Court

May 27, 2022

Bankruptcy Didn’t Block Contempt Proceedings in District Court Against a Debtor

In a case headed for the Tenth Circuit, upholding the dignity of the court overcame the automatic stay.

10th Circuit, Utah

May 26, 2022

Courts Split on Committee Intervention as of Right in Adversary Proceedings

The circuits are split on whether a creditors’ committee may intervene as of right in adversary proceedings under Section 1109(b).

11th Circuit, Florida, Florida Southern District

May 25, 2022

In Reciprocity States, the Court Must Rule on Contract Issues to Shift Fees, Circuit Says

Even if a dischargeability suit is based on a contract, the winner is not entitled to fee-shifting if the court rules on noncontract issues.

9th Circuit