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ABI Journal

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. Circuit

September 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 Circuit

September 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 District

September 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 Circuit

September 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, Utah

September 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 District

September 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, Arizona

September 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 Circuit

September 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 District

September 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