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Automatic Stay

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

Pennsylvania Western District

Becoming a Chapter 11 Bankruptcy Trustee for the First Time? What CPAs Need to Know Ahead of Time

When a Certified Public Accountant (CPA) steps into the role of a chapter 11 bankruptcy trustee for the first time, understanding the legal and financial landscape is essential. Chapter 11 bankruptcy primarily involves the reorganization of a debtor's business affairs, debts and assets, typically allowing the business to continue operations while formulating a plan to repay its creditors over time. The trustee is responsible for overseeing the debtor’s compliance with the Bankruptcy Code, managing estate assets, and ensuring that the reorganization plan is fair and feasible.

Proceedings for Contempt of a State Court Order Weren’t Stay Violations, BAP Says

An individual debtor conceded that being jailed for violation of a prepetition state court injunction wasn’t an automatic stay violation.

10th Circuit

Bestwall Concurrence Believes in ‘Liberalization’ of Bankruptcy Powers

The concurring opinion in Bestwall could be read to suggest that Circuit Judge G. Steven Agee might have an open mind if a confirmed plan comes to the Fourth Circuit on appeal.

4th Circuit

Bestwall Dissenting Opinion Reads Like Dismissal of LTL Mgmt for a Bad Faith Filing

The Bestwall dissenter understands the Bankruptcy Clause as having the 18th century definition of ‘bankruptcy,’ thus requiring insolvency or inability to pay debts.

4th Circuit

Fourth Circuit Rules on Jurisdiction, not ‘Financial Distress’ for a Chapter 11 Debtor

Fourth Circuit majority and dissenting opinions might be read to suggest that Bestwall could have tough sledding on an appeal from confirmation since the debtor is solvent.

4th Circuit

On a Split, the Deadline for Withdrawals Is 30 Days, not the 90 Days in Rule 9027

The time to withdraw a lawsuit to bankruptcy court is governed by a general federal statute that doesn’t refer to bankruptcy, not the Bankruptcy Rule that specifically governs withdrawals to bankruptcy cases, a district judge says.

Texas Northern District

A Suit Nominally Against a Debtor Does/Doesn’t Violate the Discharge Injunction

In the Tenth Circuit, there’s a workaround for courts that believe it’s not possible to modify the statutory discharge injunction.

Kansas

Benchnotes September 2025

Sept 2025

Bankruptcy Code
1192
11 U.S.C. § 362
507
523
550
Topic Tags
Automatic Stay
Discharge/Dischargeability

Forum Non Conveniens Applied When Chapter 15 Would Have Been a Better Fit

The Fourth Circuit’s nonprecedential opinion means that chapter 15 doesn’t have the exclusive remedy for enjoining U.S. litigation in cross-border bankruptcies.

4th Circuit
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