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A District Court Decision Implies that Marshaling Is Impermissible in Bankruptcy

The circuits are split on whether a bankruptcy court can compel marshalling by the IRS.

Court :

Texas Northern District

Sub V Trustee May Be Discharged When the Debtor Makes Plan Payments

Bankruptcy Judge Larson administratively closed a Sub V case after substantial consummation.

Court :

Texas Northern District

Creditor Hit with $826,000 in Sanctions for Filing a Meritless Proof of Claim

Refusing to withdraw a meritless claim with prejudice contributed to the decision by Judge Jernigan to impose high-six-figure sanctions.

Court :

Texas Northern District

Debt for Selling a Gun Used in a Mass Killing Was Dischargeable

Congress might want to consider closing a dischargeability loophole when it comes to injuries indirectly resulting from commission of a felony.

Court :

Texas Northern District

A Trust Didn’t Defeat a Prior, Perfected Security Interest in Accounts Receivable

The district court characterized the agreement not as creating a trust but as a device designed to win priority over a prior, perfected security interest.

Court :

Texas Northern District

It’s Not Easy for a Lender to Block an LLC from Filing Bankruptcy

A small business debtor must consent for a case to be converted to Subchapter V, Judge Robert Jones says.

Court :

Texas Northern District

‘Gatekeeping’ in the Fifth Circuit May Be Broader than Exculpations

Bankruptcy Judge Jernigan interprets the Fifth Circuit’s Highland Capital opinion to mean that gatekeeping protections are not limited to parties entitled to exculpation in the Fifth Circuit.

Court :

Texas Northern District

‘Economic Unit Approach’ Best Fixes the Size of a ‘Household,’ Judge Larson Says

The IRS and Census methods for determining the size of a ‘household’ undercount or overcount economic realities, judge says.

Court :

Texas Northern District

Published Notice Doesn’t Result in Discharge of Some Types of Lease Claims

Status as a ‘known’ or ‘unknown’ creditor misses the point when a lease was either assumed or rode through the chapter 11 case, Judge Jernigan says.

Court :

Texas Northern District

Are Inheritances Estate Property in Chapter 13? You Decide

Plan amendments in chapter 13 must come before the debtors make their final payments to the trustee.

Court :

Texas Northern District

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