Govt. Claims/Sovereign Immunity

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.

Breaking Barriers: Advocating for State Attorneys in Ch. 11 Proceedings

Sept 2025

Second Circuit Updates with Bill Rochelle

In Setting Aside a Tax-Lien Foreclosure, a Hypothetical Gave Standing to the Debtor

If state law prohibits assertion of the homestead exemption in tax foreclosure and the debtor can’t take federal exemptions, does the debtor lack standing to set aside a fraudulent transfer?

Sovereign Debt Restructuring

Estimated Tax Payments Made Before Filing Aren’t Fraudulent Transfers to the IRS

When estimated tax payments are ‘reasonable’ estimates of the year’s taxes, they aren’t fraudulent transfers, district judge says

Supreme Court Holds: § 106(a) Doesn’t Waive Sovereign Immunity for § 544(b) Suits

In an 8-1 opinion, the Supreme Court holds that the waiver of sovereign immunity under Section 106(a) does not extend to suits brought by a trustee under state law standing in the shoes of an actual creditor.

Class Actions: The Answer for Stay Violations with Small Damages for Each Debtor

A class action in Chicago will decide whether bankruptcy judges have the tools to rectify a single creditor’s violation of the rights of similarly situated debtors.

Texaco’s 1988 Confirmation Didn’t Kill Environmental Suits Decades Later

New York’s Bankruptcy Judge David Jones reopened Texaco’s 1988 bankruptcy to ensure that state courts wouldn’t mistakenly decide that environmental claims were discharged

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.