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ABI Journal

April 16, 2021

No Disqualification When Lawyers at Adversary Firms Were Dating

Delaware bankruptcy judge trusts that dating lawyers at adversary firms didn’t disclose client confidences.

3rd Circuit, Delaware

April 15, 2021

Holding Impounded Cars Still Might Violate the Automatic Stay, Seventh Circuit Says

Seventh Circuit says that Fulton left open the question of whether holding an impounded car violates Sections 362(a)(4) or (a)(6).

7th Circuit

April 12, 2021

Ninth Circuit BAP and a Brooklyn District Judge Agree on Removal to the Bankruptcy Court

Bankruptcy removal statute doesn’t permit moving a suit in district court to the bankruptcy court in another district.

9th Circuit

April 09, 2021

Judge Isgur Knocks Down a Special Counsel’s Fees for ‘Unprofessional’ Conduct

Incivility may be acceptable in matrimonial matters, but not when the lawyer represents a debtor.

5th Circuit, Texas, Texas Southern District

April 08, 2021

Deeply Subordinated Creditor Barred from Voting or Objecting to Plan Confirmation

Subordination agreement did not transfer voting rights, but prudential standing nevertheless barred the subordinated creditor from participating in confirmation, Judge Somers says.

10th Circuit, Kansas

April 06, 2021

Undisclosed Assets Revest in the Debtor After Dismissal but Not After Closing, BAP Says

If a case is dismissed, all assets revest in the debtor and nothing remains in the bankruptcy estate, not even undisclosed assets.

9th Circuit

April 05, 2021

Filing a Timely Extension Motion Won’t Extend a Deadline Without an Order

Creditors’ lawyers shot themselves in the foot by having the bankruptcy judge moot a motion for an extension of the dischargeability deadline.

5th Circuit, Texas, Texas Western District

March 31, 2021

Statutory Basis for Permanent Injunctions in Chapter 15 Explained by Judge Barnes

The statutory basis for permanent relief under today’s chapter 15 was found in former Section 304, which chapter 15 superseded.

7th Circuit, Illinois, Illinois Northern District

March 29, 2021

Pennsylvania District Judge Holds that FLSA Suit Is Not Halted by Automatic Stay

Splitting with the Sixth Circuit, Pittsburgh district judge rules that a FLSA suit falls within the ‘police and regulatory’ exception to the automatic stay.

3rd Circuit, Pennsylvania, Pennsylvania Western District

March 24, 2021

Corporate Debtors in Subchapter V May Discharge Nondischargeable Debts

Only individuals in subchapter V of chapter 11 are barred from discharging debts found to be nondischargeable under Section 523(a).

4th Circuit, Maryland