August 22, 2023
Three Circuits Agree: The ACA’s ‘Penalty’ Is Actually a Tax Entitled to Priority
Looking beyond the label assigned by the Affordable Care Act, three circuits have now held that failure to pay the ‘individual mandate’ for purchasing health insurance gave rise to a tax entitled to priority in bankruptcy.
6th CircuitAugust 21, 2023
Government Bar Date Applies to DOE Loans Even When the Servicer Is Private
As long as the student loan is owing to the government, the Fifth Circuit holds that the government bar date applies even when the servicer is a private company.
5th CircuitJuly 10, 2023
Government to Seek Supreme Court Review of Purdue’s Third-Party, Nondebtor Releases
In a motion to stay the issuance of the mandate, the government has announced that it will be filing a petition for certiorari asking the Supreme Court to review the Second Circuit’s Purdue decision allowing bankruptcy courts to issue releases to nondebtors.
Supreme CourtJuly 03, 2023
IRS Has No Sovereign Immunity to Bar a Fraudulent Transfer Suit Under Section 544(b)
The circuits are now split 3/1, with the majority finding a waiver of sovereign immunity under Section 544(b)(1) for lawsuits by a trustee based on claims that an actual creditor could not have brought outside of bankruptcy.
10th CircuitJune 16, 2023
Supreme Court: The Bankruptcy Code Waived Tribes’ Sovereign Immunity
The Supreme Court resolved a split of circuits in an opinion that could give support to the notion that arbitration agreements are not enforceable in bankruptcy.
Supreme CourtMay 31, 2023
Second Circuit Reverses, Reinstates Purdue’s Nondebtor, Third-Party Releases
The concurring opinion, which is really a dissent, urges the Supreme Court to grant certiorari and resolve the split of circuits on nondebtor releases.
2nd CircuitMay 30, 2023
Supreme Court Holds that Real Estate Tax Foreclosures Can Violate the Takings Clause
The high court’s ruling on the Takings Clause also seems to mean that real estate tax foreclosures can be avoided as constructively fraudulent transfers.
Supreme CourtMay 17, 2023
Supreme Court Holds that PROMESA Didn’t Waive Puerto Rico’s Sovereign Immunity
The Supreme Court ducked the question of whether Puerto Rico and other U.S. territories are entitled to Eleventh Amendment sovereign immunity just like states.
Supreme CourtMay 08, 2023
Disagreement on Bankruptcy Court’s Jurisdiction to Give ‘Innocent Spouse’ Relief
Bankruptcy Judges Marvin Isgur and Gregory Taddonio disagree on whether the bankruptcy court has subject matter jurisdiction to grant ‘innocent spouse’ relief to a debtor.
3rd Circuit, Pennsylvania, Pennsylvania Western DistrictApril 28, 2023
Supreme Court Argument: Can Real Estate Tax Foreclosure Violate the Takings Clause?
Eighteenth century ‘history and tradition’ might govern the constitutionality of real estate tax foreclosures where the government retains sale proceeds in excess of unpaid taxes.
Supreme Court