Ohio Southern District

Bankruptcy Courts Disagree on Paying a ‘7’ Trustee Who Made No Distributions

Courts are split on whether chapter 7 trustees can be paid on another theory when the trustee had made no distributions to creditors under Section 326(a).

Court :

A Consensual Judgment Is a Judgment Lien Subject to Avoidance Under Section 522(f)

‘Obtained by’ legal proceedings, a consent judgment is still a judgment lien that can be avoided if it impairs an exemption.

Court :

Circuit Split May Deepen on Assuming a Franchise over the Franchisor’s Objection

Ohio’s Bankruptcy Judge Nami Khorrami sides with the minority on a circuit split that the Supreme Court ducked in 2009.

Court :

The ‘Ordinary Course’ Defense Is Satisfied by Showing One of the Two Tests, Not Both

Following the 2005 amendments, satisfying either the subject test or the objective test will prove the ‘ordinary course’ defense to a preference, Judge Hoffman says.

Court :

Courts Are Split on Including a Nonfiling Spouse’s Social Security Benefits

Judge Beth Buchanan decided that the ‘totality of the circumstances’ test for ‘abuse’ doesn’t permit disregarding the exemption for Social Security benefits.

Court :

Bankruptcy Judge Refuses to Enforce an Arbitration Agreement

An exculpation clause in a chapter 11 plan protected the owner’s counsel from a malpractice suit.

Court :

Taggart Means No Strict Liability for Violating a Corporate Debtor’s Automatic Stay

Persuasive authority is required before a creditor can be held in contempt for violating the automatic stay protecting a corporate debtor.

Court :

Circuit Split on U.S. Trustee Fees Likely Won’t Reach the Supreme Court Until Fall 2022

Judge Hoffman sets up Sixth Circuit to opine on the circuit split regarding the constitutionality of the 2018 increase in fees for the U.S. Trustee system.

Court :