Personal Guaranty Unimpaired by Company’s Chapter 11 Plan
Tenth Circuit bars crafty evasion of a personal guaranty.
Value Can Be Indirect to Defeat Fraudulent Transfer Claim, Circuit Holds
Eleventh Circuit protects an innocent supplier from a “gotcha” fraudulent transfer suit.
Ninth Circuit Overrules Sternberg to Allow Fees for Stay Violation Damage Suits
The Ninth Circuit quickly rectifies its own mistake by allowing creditors to recover counsel fees in suits to recover damages for automatic stay violations.
Third Circuit Widens Split on Bad-Faith Dismissal of Involuntary Petition
Third Circuit ditches an otherwise proper involuntary petition for creditors’ bad faith.
Sixth Circuit Splits with Third on Substantial Contribution in Chapter 7
Creditors, rejoice! Substantial contribution is rewarded, at least in the Sixth Circuit.
Filing a Stale Claim Is Permitted Despite Crawford
District judge ignores the circuit’s policy argument to allow claims on time-barred debts.
Suit in Violation of the Stay Must Be Dismissed
Sixth Circuit is stricter than the Fifth when a suit violates the stay.
Third Circuit Gift Plans Are Ok Because No Estate Property Is Involved
Priority creditors beware: The Third Circuit approves both structured dismissals and gift plans.
Ninth Circuit Won’t Protect Purchasers with Equitable Mootness
The Ninth Circuit provides another reason to avoid reorganizing on the west coast.
Ninth Circuit Pens Generous Fee-Shifting Opinion for Contract Disputes
Corporate debtors anticipating disputes with secured lenders have a good reason for filing chapter 11 in California, assuming there is no need for an injunction barring suit against a
non-bankrupt third party.