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January 18, 2021

Sanction for Discharge Violation: $450 in Actual Damages and $10,000 for Attorneys’ Fees
When there’s ‘no fair ground of doubt’ about a discharge violation, the creditor should settle or make an offer of settlement to avoid larger damages after trial.
11th Circuit, Florida, Florida Middle District

January 15, 2021

Third Circuit Upholds Equitable Mootness over a Dissent
Dissenter would have upheld horizontal gifting on the merits.
3rd Circuit

January 14, 2021

Even with Knowledge of Bankruptcy, Discharge Contempt Requires Notice of Discharge
The Ninth Circuit BAP says there must be knowledge of the discharge order to find contempt, even when the debtor continues the same conduct that violated the automatic stay.
9th Circuit

January 11, 2021

Guarantee of a Lease Survives Rejection if the Tenant Remains in Possession
District judge explains why veil-piercing is easier to prove in Michigan than elsewhere.
6th Circuit
Bankruptcy Judge Won’t Rule on the Constitutionality of Pandemic Regulations
Finding a proper exercise of regulatory power isn’t required to invoke the exception to the automatic stay.
3rd Circuit, Pennsylvania, Pennsylvania Western District

January 08, 2021

Court Narrowly Construes Taggart to Find Contempt of the Discharge Injunction
Atlanta judge gave the benefit of the doubt to the debtor on a discharge violation, but limited damages to the recovery of attorneys’ fees.
11th Circuit, Georgia, Georgia Northern District

January 07, 2021

Dissolved Corporation May Not File to Reorganize in Chapter 11, Only to Liquidate
Dissolved by forfeit, a corporation cannot reinstate a charter and may resort to bankruptcy only to liquidate, Judge Eduardo Rodriguez says.
5th Circuit, Texas, Texas Southern District

January 04, 2021

Safe Harbor Bars Foreign Liquidators from Recovering Money Stolen in the U.S.
Another opinion shows that Congress wrote Section 546(e) in a manner that goes far beyond protecting the securities markets in the U.S.
2nd Circuit, New York, New York Southern District

December 29, 2020

Eleventh Circuit Bans Chapter 11 Debtors from Receiving ‘PPP’ Loans
The Eleventh Circuit decided that the SBA acted within its rulemaking power by precluding chapter 11 debtors from receiving PPP loans under the CARES Act.
11th Circuit

December 28, 2020

Absent a Stay, Making Plan Payments for Two Years Renders an Appeal Equitably Moot
In the First Circuit, transferring the business or assets isn’t required before confirmation is equitably moot.
1st Circuit