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ABI Journal

11th Circuit

Debtors and the SBA Fight to a Draw Last Week on PPP ‘Loans’

Courts still have no consensus about debtors’ right to receive PPP ‘loans’ under the Cares Act.

Eleventh Circuit Holds that a Chapter 13 Plan Alone Can’t Assume a Lease or Contract

In the first court of appeals decision on the topic, the Eleventh Circuit holds that the chapter 13 trustee alone has power to assume a lease or contract.

Routine Withdrawals from a Bank Account Aren’t ‘Transfers,’ Eleventh Circuit Says

Receiver barred from bringing aiding and abetting claims if the company was dominated by fraudsters.

Liquidating in Chapter 11 Won’t Stop an EEOC Suit for Employment Discrimination

Magistrate judge decided that the regulatory power exception to the automatic stay allows the EEOC to proceed, but he stayed the suit by the former employee seeking damages.

Executory Contract Was Deemed Rejected Even Though Not Scheduled as Executory

For the Eleventh Circuit, scheduling the unsecured claim resulted in automatic rejection even though the contract was not scheduled as executory.

Two-Year Statute for Avoidance Actions Doesn’t Apply to Claim Objections

Even if the two-year statute of limitations for avoidance actions has run, the trustee can still strip away the lender’s secured status in a claim objection.

2% of Increased U.S. Trustee Fees Held Unconstitutional

Florida judge largely agrees with a Delaware judge by holding that the increase in fees for the U.S. Trustee program is neither impermissibly retroactive nor unconstitutional, mostly speaking.

Eleventh Circuit Opinion Shows Taggart’s Effect on Discharge Contempt Disputes

Taggart allows a court to deny a contempt motion without deciding whether the creditor’s action actually violated the discharge injunction.

Circuit Split Widens over Discharging Taxes on Late-Filed Returns

The Supreme Court has ducked the split twice in recent years but should tackle the question this time around.

Courts Ignore Farrey to Achieve an Equitable Result in a Matrimonial Bankruptcy

In matrimonial cases, courts find creative reasons for not avoiding a lien that impairs an exemption.