Seventh Circuit Offers Clarification on “Statutory Liens”

Admin on May 15, 2022 Posted in Articles, Bankruptcy Law, Blog

In April of 2022, an appellate court authored a decision influencing what judicial liens and statutory liens mean under bankruptcy law. The court found that the lien was judicial instead of statutory because the lien was part of a quasi-judicial process instead of a statute’s force. The appellate court found that a quasi-judicial process existed […]

Non-Consensual Releases of Third Parties Approved by Bankruptcy Court

Admin on March 30, 2022 Posted in Bankruptcy Law, Bankruptcy News, Blog

In February 2020, as one of several decisions concerning third-party releases (TPRs), a bankruptcy court judge confirmed a reorganization plan and its associated debtor entities which include third-party releases. As part of the plan’s confirmation, the judge noted recent decisions that introduced concerns involving a court’s authority in approving non-consensual (NC) TPRs but applied Third […]

Appellate Court Consider Statute of Limitations Following Bankruptcy Discharge

Admin on March 16, 2022 Posted in Bankruptcy Law, Blog

In January 2022, a Washington appellate court reaffirmed a regulation connected to real estate foreclosures and the statute of limitations following a discharge of bankruptcy. The regulation is that a bankruptcy court does not automatically raise the six-year statute of limitations associated with trust foreclosure. The outcome of this case is important because Washington state […]

Federal Circuit Court Rules Some Student Loans Can be Discharged in Bankruptcy

Admin on December 9, 2021 Posted in Bankruptcy Law, Blog, Chapter 7 Bankruptcy

In the recent circuit court case of Homaidan v. Sallie Mae, Inc., a federal circuit court held that a ruling by a New York bankruptcy court that private loans to pay for college education are not exempt from being discharged under the Bankruptcy Code’s Section 523. This section of the Bankruptcy Code excludes from discharge […]

Delaware Court Considers Rejection of Executory Contracts by Debtors During Bankruptcy

Admin on November 23, 2021 Posted in Bankruptcy Law, Blog

If a debtor declines a contract in a bankruptcy case, the non debtor can be impacted in several ways. In 2019, the Supreme Court heard the Mission Products case, which attempted to settle a split among circuit courts regarding the impact of rejecting a contract under the Bankruptcy Code’s Section 365.  This case required the […]

Maryland Court Questions When Debts are Incurred 

Admin on November 9, 2021 Posted in Bankruptcy Law, Blog

Pursuing Chapter 11 bankruptcy can prove to be an advantageous and appealing option for individuals as well as companies faced with a large amount of financial liabilities. Filing for Chapter 11 bankruptcy both results in the placement of a bar on any pending legal action against a company and provides businesses with the chance to […]

Eighth Circuit Addresses Interlocutory Order Appeals to Preserve Appellate Review Right

Admin on October 30, 2021 Posted in Bankruptcy Law, Blog

A federal district court recently issued an important and likely to be an influential decision that addressed equitable mootness during the appeal of bankruptcy cases. In the FishDish case, the Eight Circuit held that even though the issue of equitable mootness existed, the court additionally found that the question of if an order is interlocutory […]

Third Circuit Holds Pre-Effective and Post-Confirmation Date “Claims” Can be Discharged in Bankruptcy

Admin on October 15, 2021 Posted in Bankruptcy Law, Bankruptcy News, Blog

Toward the end of 2021, a federal circuit court found for the first time that claims that became connected to a debtor’s case after a Chapter 11 plan was confirmed but before the plan’s effective date was subject to discharge. This holding urges extra caution from all creditors and counterparties of a Chapter 11 case […]

Second Circuit Finds Certain Student Loans Can be Discharged

Admin on September 30, 2021 Posted in Bankruptcy Law, Blog, Recent Court Decisions, Student Loans

The Second Circuit in the recent case of In Homaidan v. Sallie Mae recently held that some kinds of private student loans do not require the repayment of debts that can be categorized as an educational benefit. This decision resulted in the Second Circuit joining the Fifth Circuit and Tenth Circuit on the matter. Neither […]

Avoidance Powers After the U.S. Glove Case Ruling Examines Whether Benefit Required for Avoidance Power

Admin on August 15, 2021 Posted in Bankruptcy Law, Blog

Under the US Bankruptcy Code, various powers are granted to debtors, creditors, and other parties involved with the bankruptcy process. One such power is found in section 544, which grants individuals the ability to avoid some interactions with bankruptcy trustees or debtors-in-possession. Questions, however, have lingered about whether  avoidance powers can only be exercised when […]