Benchnotes August 2023

Aug 2023

An Alter Ego Suit Doesn’t Violate the Discharge Injunction, BAP Says

At least where nondebtor releases are prohibited, and if Delaware law controls, a suit against an alter ego doesn’t violate the discharge injunction, the Ninth Circuit BAP says.

Lack of a Common Plan or Scheme Means It Isn’t Single Asset Real Estate

A two-story commercial condominium wasn’t ‘single asset real estate,’ Judge Mastando holds.

Chapter 11 Restructurings of Latin American Energy Companies

July 2023

Ultimate Success of the J&J Subsidiary’s Second ‘Talc’ Bankruptcy Is Up in the Air

The bankruptcy judge only gave nondebtor J&J companies a more limited stay in the second LTL chapter 11 case.

A Writ of Possession Doesn’t Terminate a Lease or Preclude Assumption

A landlord who terminates a lease isn’t entitled to a claim for future rent, at least in Florida, according to a district judge who affirmed Bankruptcy Judge Isicoff.

Failing to File a Claim Has Dire Consequences for a Secured Creditor

A secured lender who doesn’t file a claim doesn’t get paid by the chapter 13 plan and keeps its lien, but can’t reclaim the collateral during the life of the plan.

A Statement ‘For Informational Purposes’ Can Still Be a Stay Violation, BAP Says

A BAP strictly enforced the stay against a mortgage servicer who improperly listed a pre-petition debt in the portion of the monthly statement showing the next post-petition payment.

Circuit Splits and Hot Topics with Bill Rochelle and Friends

Notification of Bankruptcy Requires Lifting Garnishment of Post-Petition Income

Although the automatic stay does not require turning over property garnished before bankruptcy, a creditor may not continue garnishing property after filing, Judge Burgess says.