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ABI Journal

5th Circuit

Fifth Circuit Receivership Opinion Raises Questions About the Automatic Stay

Fifth Circuit says that the court must have obtained personal jurisdiction over a third party in a receivership to enforce an injunction. Is the same true for the automatic stay and the discharge injunction in bankruptcy? Is there no injunction before there’s personal jurisdiction?

Fifth Circuit Tells Us What Ritzen and Travelers Mean and Don’t Mean

To revisit denial of a lift-stay motion, the prior order denying modification of the stay isn’t required to say ‘without prejudice.’

Enjoining a Prepetition Policy Doesn’t Violate the Automatic Stay, Fifth Circuit Says

Seeking attorneys’ fees from the debtor for a postpetition civil rights violation does not by itself make a postpetition lawsuit subject to the automatic stay.

First Nixing $240,000 for Contempt, Fifth Circuit Approves $450,000 for Civil Contempt

Having previously set aside a $240,000 sanction as criminal contempt, the Fifth Circuit affirmed $450,000 in civil contempt against the same contemnor in the same bankruptcy case.

Payments Made with Insurance Nevertheless Were Preferences, District Judge Says

Payments from insurance must be properly structured to avoid preference liability.

Three Years Is the ‘Default’ Duration for a Subchapter V Plan, Judge Robinson Says

The Code doesn’t contain any rules specifying when a Subchapter V plan should have a five-year duration rather than three years.

Sub V Trustee Lacks Standing to Pursue an Adversary Proceeding for the Debtor

Bankruptcy Judge Eduardo Rodriguez of Houston opined on the limited powers of a Subchapter V trustee.

Amending a Claim After Confirmation Requires ‘Compelling Circumstances’

The Fifth Circuit joins two other circuits in requiring ‘more’ to amend a proof of claim after confirmation of a chapter 11 plan.

Fifth Circuit Draws ‘Person Aggrieved’ into Question for Appellate Standing

The Bankruptcy Code dropped ‘person aggrieved’ as the standard for appellate standing. Did it survive nonetheless?

Sub V Plan Doesn’t Require Automatic Increases Based on Actual Disposable Income

Bankruptcy Judge Christopher Bradley disagreed with a district court in Florida that required a ‘true up’ if actual disposable income in Sub V exceeds projected disposable income.