Practice and Procedure

Lack of Creditor Opposition Isn’t Grounds for Extending an Expiring Automatic Stay

A repeat filer in chapter 13 must show ‘clear and convincing evidence’ of improved financial condition to warrant an extension of the automatic stay under Section 362(c)(3)(B), Chief Judge Taddonio says.

Equitable Tolling Cannot Extend the Deadline for a Dischargeability Objection

The Third Circuit lauded Bankruptcy Judge Craig Goldblatt for a ‘well-reasoned’ opinion correctly interpreting Supreme Court authority.

Bartenwerfer Doesn’t Apply if the Debtor Isn’t a Partner or Agent, Bankruptcy Judge Says

Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.

No Sales Free and Clear of a Lien on a Nondebtor Co-owner’s Interest

Although a court may sell a nondebtor’s interest in jointly owned property, the Ninth Circuit BAP won’t permit selling free and clear of lien on the nondebtor’s interest in the property being sold.

Sept 2023

A Bankruptcy Petition Automatically Stays the Filing of an Appeal or a Cross Appeal

When the debtor files bankruptcy before the time has elapsed for a creditor to file a cross appeal, the cross appeal is deemed timely when filed within 30 days after the stay terminated, the Tenth Circuit held.

IRS Has No Sovereign Immunity to Bar a Fraudulent Transfer Suit Under Section 544(b)

The circuits are now split 3/1, with the majority finding a waiver of sovereign immunity under Section 544(b)(1) for lawsuits by a trustee based on claims that an actual creditor could not have brought outside of bankruptcy.