Small Business

No Jurisdiction over Post-Confirmation Breach of a Pre-Confirmation Contract

Not much caselaw on the bankruptcy court’s jurisdiction over breach of a contract made during a chapter 11 case when the breach occurred after confirmation.

Paying a Post-Petition Retainer Without Advance Approval Was Ok

Approving a retainer after the fact was a sensible exercise of the court’s discretion when the new lawyer’s services were necessary to avoid dismissal of the Subchapter V case.

BAP Upholds Confirmation of a Plan with No Trust for Future Asbestos Claimants

Ninth Circuit BAP confirmed a plan with no future creditors’ trust when the debtor claimed there were no future claims and no one was in court representing future claimants.

Supreme Court Update

Second Circuit Updates with Bill Rochelle

No Stay Pending Appeal on Nondebtor Opt-Out Releases in a Chapter 11 Plan

The debtor agreed not to raise equitable mootness on an appeal only challenging nondebtor opt-out releases.

Judges' Panel

Two Courts Hold: Injunctions Are Ok to Protect Nondebtors for the Life of a Plan

Judge Meredith Grabill of New Orleans agreed with New York’s Judge Mastando that a Subchapter V plan can enjoin lawsuits against nondebtors for the life of a three-year plan.

Taxation Without Representation? Due Process and Limits on Revocation of the S-Corp Election for Chapter 7 Debtors

July 2025

A Chapter 11 Debtor May Sometimes Prosecute an Appeal After Conversion to Chapter 7

After conversion, the debtor was entitled to prosecute an appeal at the debtor’s expense when the appeal involved the debtor’s personal liability.