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ABI Journal

Pennsylvania Western District

Pennsylvania District Court Disagrees with the Fourth Circuit on License Assignment

Overcoming the ‘hypothetical test’ preventing license assumption under Section 365(c) doesn’t require consent to assumption if it permits assignment, two courts say in differing with the Fourth Circuit

Congress Must Act to Permit Chapter 7 Debtors to Pay Counsel After Filing

Bifurcated fee arrangements are cumbersome, temporary fixes for a problem that the Supreme Court created in Lamie.

Lawyer Must Disclose a Client’s Misconduct, Even When It’s ‘Uncomfortable’

Lawyers aren’t guarantors for a client’s misconduct, but they may be sanctioned for a coverup.

Lack of Creditor Opposition Isn’t Grounds for Extending an Expiring Automatic Stay

A repeat filer in chapter 13 must show ‘clear and convincing evidence’ of improved financial condition to warrant an extension of the automatic stay under Section 362(c)(3)(B), Chief Judge Taddonio says.

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.

A Two-Year Delay in Filing a Retention Application Resulted in Denial of Fees

Pittsburgh Bankruptcy Judge Gregory Taddonio says that lawyers must search in PACER before signing up a new client.

Owner of a Long-Defunct Business Didn’t Qualify for Subchapter V

Being an ordinary employee didn’t mean that the debtor was engaged in business to qualify for Subchapter V.

Pennsylvania District Judge Holds that FLSA Suit Is Not Halted by Automatic Stay

Splitting with the Sixth Circuit, Pittsburgh district judge rules that a FLSA suit falls within the ‘police and regulatory’ exception to the automatic stay.

Bankruptcy Judge Won’t Rule on the Constitutionality of Pandemic Regulations

Finding a proper exercise of regulatory power isn’t required to invoke the exception to the automatic stay.

Exercise Caution in Electing Remedies Against Someone Who May File Bankruptcy

Sometimes, being too aggressive backfires when the defendant files bankruptcy.