Ethics

Opting Out Won’t Justify Imposing Third-Party Releases, Delaware Judge Says

Saying she is in the minority in her district, a new Delaware judge ruled that allowing creditors to opt out won’t permit a plan to impose nonconsensual, third-party releases.

Law v. Segal Allowed a Fraudster to Retain $30,000

Eighth Circuit was compelled to overrule its own precedent that permitted the bankruptcy court to bar a debtor from amending schedules based on bad faith.

Walk a Mile in My Shoes: The Ethics Challenges of Bankruptcy Attorneys Who Represent Debtors in Chapter 13 Cases

Ethics Jeopardy

Committee Members Must Disclose the True Extent of Their Claims, Judge Says

The claim of a member of a creditors’ committee was subordinated because she evaded disclosure that her claims would consume the entire estate.

A Fugitive’s Civil Bankruptcy Appeal Can Be Dismissed, Sometimes

The ‘fugitive disentitlement doctrine’ does not allow a federal court to dismiss an appeal because of a fugitive’s contempt of a state court order, the First Circuit rules.

Help Meeee, Oooooh

Feb 2020

What Would You Do? Ethics in Bankruptcy Practice: Avoiding Problems — and Malpractice

Case Shows How Taggart Tilted the Scale Toward Lenders Accused of Contempt

An ambiguous demand letter violated the discharge injunction, but the lender was not held in contempt in light of Taggart.