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ABI Journal

September 11, 2024

‘Preserved’ Liens Can Sometimes Be Worthless, Ninth Circuit Says

When a lien is undersecured, the avoided portion of the lien takes nothing through preservation until the unavoidable portion of the lien is paid in full.

9th Circuit

August 27, 2024

Sovereign Immunity Is Difficult (Impossible?) to Waive in the Ninth Circuit

Reversing the BAP, the Ninth Circuit held that counsel’s oral waiver of sovereign immunity did not bind the state.

9th Circuit

August 14, 2024

Preserving Defensive Setoff Rights Doesn’t Require Filing a Claim, Judge Glenn Says

Defensive setoff rights are not discharged by chapter 11 confirmation, even when no proof of claim was filed.

2nd Circuit, New York, New York Southern District

July 31, 2024

Tyler Applied Retroactively to Set Aside a Judgment of Tax Foreclosure

Tyler was applied retroactively because the debtor’s efforts to set aside a tax foreclosure judgment were ‘in the pipeline’ when bankruptcy began.

3rd Circuit, New Jersey

July 22, 2024

BAP Pushes Back Against Kelly on the Dischargeability of Disciplinary Costs

The Ninth Circuit BAP rebelled against the Supreme Court’s departure from the statute in Kelly v. Robinson on dischargeability under Section 523(a)(7).

9th Circuit

July 03, 2024

Fourth Circuit Broadly Defines Restitutions that Aren’t Discharged in Chapter 13

The federal appeals court brushed aside technicalities under state criminal law in deciding that an order for restitution was not discharged under Section 1328(a)(3).

4th Circuit

July 01, 2024

Supreme Court to Rule on Waiver of Sovereign Immunity for Suits Under Section 544(b)(1)

To resolve a circuit split, the Supreme Court has agreed to decide whether a trustee can sue the government to recover a fraudulent transfer under state law when sovereign immunity would bar an ‘actual creditor’ from suing.

Supreme Court

June 28, 2024

Supreme Court Reverses Purdue: No Nondebtor, Third-Party, Nonconsensual Releases

Justice Gorsuch for the majority bans third-party releases broader than a discharge for those who don’t surrender all their assets to the court.

Supreme Court

May 23, 2024

Belated Seventh Circuit Opinion May Set Up ‘Cert’: Is Section 505(a) Jurisdictional?

Seventh Circuit again holds that Section 505(a) doesn’t confer jurisdiction for bankruptcy courts to decide how much debtors owe in taxes.

7th Circuit

May 16, 2024

Recoupment of Social Security Benefit Overpayments Is Barred as a Setoff

Medicaid overpayments may be recovered as ‘recoupment’ while Social Security overpayments are attempted setoffs barred by discharge, Bankruptcy Judge Harwood says.

1st Circuit, New Hampshire