February 03, 2021

Debtors Win in District Court: They Can Avoid Judicial Liens on Impounded Cars

Car owners lost in Fulton but won when a Chicago district judge affirmed and ruled that debtors may avoid judicial liens on impounded cars.

7th Circuit, Illinois, Illinois Northern District

February 02, 2021

‘Accrual Test’ Survives to Say Whether the Debtor or the Estate Owns a Claim

Are there two tests for the existence of a claim, one test for claims against the debtor and another for claims by the debtor?

6th Circuit

February 01, 2021

Entire Garnishment Is a Preference, Even What the Creditor’s Lawyer Keeps

The appeals court sticks to basics and rejects several clever arguments to beat a preference.

6th Circuit

January 29, 2021

Contested Matters Aren’t ‘Civil Actions’ Under the Equal Access to Justice Act

A contested matter in bankruptcy court isn’t a ‘civil action’ allowing the debtor to recover attorneys’ fees from the U.S. Trustee under the Equal Access to Justice Act.

6th Circuit, Ohio, Ohio Northern District

January 27, 2021

The Reason for Missing the Deadline Is Most Important in Finding ‘Excusable Neglect’

The length of time before filing a motion to extend the appeal-filing deadline isn’t dipositive under Rule 8002(d)(1)(B).

6th Circuit

January 26, 2021

Insurers Don’t Pay Bankruptcy Costs in a Mass-Tort Chapter 11

A voluntary chapter 11 case is neither a ‘suit’ nor a ‘claim’ against a debtor giving rise to an insurer’s duty to defend.

7th Circuit, Indiana, Indiana Southern District

January 25, 2021

Refusal to Arbitrate the Validity of a Security Interest Is Tersely Affirmed in California

Are the lower courts out of step with the Supreme Court when it comes to enforcement of arbitration of disputes in bankruptcy court?

9th Circuit, California, California Eastern District

January 20, 2021

Promising Payment in Full to Everyone Doesn’t Warrant Confirmation by Itself

Chapter 11 can’t modify a nondebtor’s guarantee of a debtor’s obligations, absent consent from the lender.

9th Circuit, Washington, Washington Eastern District

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