July 27, 2020

Sixth Circuit Broadly Interprets Section 959(b) to Cover State Pension Plans

A split panel on the Sixth Circuit held that Section 959(b) barred the debtor from halting participation in a state employees’ pension plan.

6th Circuit

July 24, 2020

Increasingly Popular SBRA Permits Restructuring Personal Guarantees of Corporate Debt

More than 600 cases have already been filed under the SBRA since subchapter V of chapter 11 became effective in February.

5th Circuit, Louisiana, Louisiana Eastern District

July 23, 2020

Another Workaround Following the Prohibition of Nunc Pro Tunc Orders

The Supreme Court hasn’t prohibited paying counsel fees for services rendered before the entry of a retention order, Judge Preston says.

6th Circuit, Ohio, Ohio Southern District

July 22, 2020

Second Circuit Broadly Caps Wage Claims Accelerated Before Bankruptcy

Second Circuit prevents ‘artful drafting’ from evading the cap on golden parachutes under Section 502(b)(7).

2nd Circuit

July 21, 2020

Majority of Courts Still Permit Small-Dollar Avoidance Suits in the Debtor’s Home Court

New York district judge agrees with the ABI Journal: Congress did not succeed in requiring trustees to file small-dollar avoidance actions in the defendant’s district.

2nd Circuit, New York, New York Eastern District

July 17, 2020

Lower Courts Now Disagree on Modifying the Stay Retroactively After Acevedo

Did the Supreme Court’s Acevedo opinion preclude annulling the stay? The Ninth Circuit BAP says ‘no.’

9th Circuit

July 16, 2020

Fraudulent Transfer Suit Didn’t Succeed in ‘Discharging’ Student Loans

Can student loans be wiped out as fraudulent transfers that aren’t dischargeable under Section 523(a)(8)?

4th Circuit, North Carolina, North Carolina Eastern District

July 15, 2020

Fines for Defrauding Consumers Are Dischargeable in a Corporate Chapter 11 Plan

Courts are divided on discharging fines in a corporate chapter 11 case when the government itself was not defrauded.

2nd Circuit, New York, New York Southern District

July 13, 2020

Three Judges Permit Redesignation under the SBRA, But with Qualifications

The SBRA can be used to extinguish a creditors’ committee previously appointed in a ‘traditional’ chapter 11 case.

4th Circuit, Maryland

July 10, 2020

Eighth Circuit Won’t Impose Unwritten Requirements on Service of a Claim Objection

In the Bankruptcy Rules, a claim objection isn’t treated like a motion for all purposes, the Eighth Circuit says.

8th Circuit