September 30, 2021
A Claim Objection Can Head Off Election of a Permanent Chapter 7 Trustee
A creditor can’t elect a trustee to pick its adversary in a lawsuit, Bankruptcy Judge Gunn says.
D.C. CircuitSeptember 28, 2021
Time Limits for Effecting Service of Process Can Be Flexible, Eleventh Circuit Says
Under unusual circumstances, a two-year delay in completing service of process was not fatal in the Eleventh Circuit.
11th CircuitSeptember 24, 2021
Estate Claims Can’t Be Sold for Trivial Recovery by Unsecured Creditors
Had the purchaser of estate claims offered to waive its own unsecured claim, the sale might have been approved.
2nd Circuit, New York, New York Eastern DistrictSeptember 22, 2021
Third Circuit Makes More Rules on the Proper Scope of Asbestos Channeling Injunctions
The Third Circuit made more rules to decide whether an insurance company can be insulated from failure-to-warn claims by the channeling injunction in a chapter 11 ‘asbestos’ plan.
3rd CircuitSeptember 20, 2021
Split Heading to the Tenth Circuit on Sovereign Immunity for Section 544(b) Claims
The Tenth Circuit will likely take sides on a split between the Ninth and Seventh Circuits on Section 544(b) state-law claims brought by a trustee in the shoes of an actual creditor.
10th Circuit, UtahSeptember 17, 2021
Affirmance Shows that Merit Management Has Been Gutted in the Second Circuit
Properly structuring a leveraged refinancing in the Second Circuit can avoid attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’
2nd Circuit, New York, New York Southern DistrictSeptember 15, 2021
Appeal from a ‘PPP’ Loan Dismissed as Equitably Moot
Would Section 364(c) validate a “PPP” loan even if an order compelling the SBA to make the loan was reversed on appeal?
9th Circuit, ArizonaSeptember 13, 2021
Pawn Loans May Be Modified in Chapter 13 if There Wasn’t a Default Before Filing
Eleventh Circuit limits its own precedent to say that pawn lenders aren’t entirely immune from bankruptcy.
11th CircuitSeptember 10, 2021
Civil Penalties for Defrauding Consumers Weren’t Discharged Under Section 1141(d)(6)(A)
Reversing the bankruptcy court, a district judge in New York held that a civil penalty wasn’t discharged even though the fraud wasn’t committed against the government.
2nd Circuit, New York, New York Southern DistrictSeptember 09, 2021
Eleventh Circuit Predicted to Split with the Second Circuit on Foreign Recognition
Judge Vaughan explains why a foreign debtor isn’t required to have a presence in the U.S. before the debtor’s foreign representatives can win recognition under chapter 15.
11th Circuit, Florida, Florida Middle District