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ABI Journal

December 03, 2019

Fifth Circuit Revokes a Controversial Opinion with Dicta on the Solvent-Debtor Exception

Fifth Circuit upholds its prior ruling that disallowing part of a claim under the Bankruptcy Code does not render the claim ‘impaired’ to allow voting on a chapter 11 plan.

5th Circuit

December 02, 2019

First Circuit Explains How to Avoid Liability for an Underfunded Pension Plan

To avoid liability for an underfunded pension plan, the First Circuit describes a structure for investors to employ when buying a sick company

1st Circuit

November 22, 2019

Committee Members Must Disclose the True Extent of Their Claims, Judge Says

The claim of a member of a creditors’ committee was subordinated because she evaded disclosure that her claims would consume the entire estate.

9th Circuit, California, California Central District

November 21, 2019

Receivership Court May (Sometimes) Bar the Filing of an Involuntary Bankruptcy

Court weighs the relative advantages of receivership versus bankruptcy in deciding whether to bar the filing of an involuntary bankruptcy.

7th Circuit, Illinois, Illinois Northern District

November 18, 2019

Supreme Court Grapples with ‘Finality’ in Ritzen v. Jackson Masonry

Justices may narrow Bullard by drawing back from the requirement that finality requires a change in the status quo.

Supreme Court

November 15, 2019

First Circuit Starkly Holds that Tuition for an Adult Child Is a Fraudulent Transfer

The case in the appeals court apparently did not involve a student account structured to prevent the college from being the initial recipient of a fraudulent transfer.

1st Circuit

November 13, 2019

A Motion to Dismiss an Involuntary Petition Only Postpones Filing a Creditor List

Ninth Circuit BAP balances the need for quickly dealing with an involuntary petition against the petitioners’ right to discovery and a list of creditors.

9th Circuit

November 12, 2019

First and Second Circuits Agree: Trustees Alone May Sue Ponzi Scheme Net Winners

Rulings by the First and Second Circuits ensure that recoveries by a Ponzi scheme trustee will be distributed to all victims, not just those who sue on their own.

1st Circuit

November 07, 2019

One Owner May Strip a Lien Off Property Owned JTWROS, Judge Huennekens Says

Courts disagree on lien stripping by one owner of entireties property and jointly owned property.

4th Circuit, Virginia, Virginia Eastern District

November 05, 2019

Case Shows How Taggart Tilted the Scale Toward Lenders Accused of Contempt

An ambiguous demand letter violated the discharge injunction, but the lender was not held in contempt in light of Taggart.

6th Circuit, Michigan, Michigan Western District