A minority of courts hold that a suit in bankruptcy court can violate the automatic stay if based on a claim that could have been brought before bankruptcy and did not arise under the Bankruptcy Code.

Filing bankruptcy to gain a ‘litigation advantage’ in the N.Y. Attorney General’s dissolution action meant the chapter 11 petition was not filed in good faith and must be dismissed, Judge Harlan Hale rules.

On an upcoming certified appeal, the Eleventh Circuit can decide whether violating a PACA trust is a ‘defalcation while acting in a fiduciary capacity’ that makes a debt nondischargeable.

At least in New York, a litigation finance agreement can’t be written to remove all of the lender’s exposure to the borrower’s bankruptcy.

Not having challenged pre-petition liens on time, a chapter 7 trustee was barred from taking over an adversary proceeding initiated by a now-dissolved chapter 11 creditors’ committee.

Courts disagree on whether a repudiated contract remains executory.

Dissenters in the Fourth and Fifth Circuits evidently believe that the dual U.S. Trustee/Bankruptcy Administrator system is unconstitutional.

Utah’s Judge Thurman says that a corporation liquidating its remaining assets is engaged in business ‘activities’ and is therefore eligible for Subchapter V.

Third Circuit dicta suggests that failure to create a trust is constitutionally deficient and won’t discharge claims of ‘unknown’ creditors in a chapter 11 plan.

A fast-food worker can (conceivably) qualify as a small business debtor under Subchapter V, according to Bankruptcy Judge Thomas B. McNamara.