By: Zach Williams, Associate, Fox Rothschild LLP (Las Vegas, NV)
On April 5, 2022, the Ninth Circuit Bankruptcy Appellate Panel (the “BAP”) published an opinion, Censo, LLC v. Newrez, LLC, BAP No. NV-21-1125-LTF (Apr. 5, 2022), which provides a
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A Day Late and Nearly $5 Million Short?: Legislation Introduced to Make Permanent the $7.5 Million Subchapter V Debt Limit As Temporary Extensions Sunset
On March 14, 2022, Senator Chuck Grassley (R-IA) introduced proposed legislation that—if enacted—would make permanent the $7.5 million debt limit applicable to debtors under subchapter V of chapter 11 of the Bankruptcy Code that has enjoyed only temporary status under…
City of Chicago v. Fulton Applied to Prepetition Garnishment
The City of Chicago impounded vehicles for nonpayment of fines. When the owners filed chapter 13 cases and requested that the city return their vehicles, the city refused. The bankruptcy court held that the city’s refusal violated § 362(a)(3) because…
When values become stale: valuation of collateral in bankruptcy proceedings – In re S-Tek 1, LLC, a case study
The Bankruptcy Code contemplates the valuation of a secured creditor’s collateral for a variety of purposes at different stages of a bankruptcy case. While title 11 of the United States Code (the “Bankruptcy Code”) does not define “value” or determine…
Bifurcated Fee Agreements Approved in Southern District of Florida, But Barred in Western District of Kentucky
The United States Supreme Court ruled that 11 U.S.C. § 330(a)(1) does not authorize compensation to debtors’ attorneys from estate funds. Lamie v. U.S. Trustee, 540 U.S. 1023 (2004). A chapter 7 lawyer cannot look to the estate or to…
COMPLIANCE WITH OFFICIAL BANKRUPTCY FORM 105 SATISFIES ASHCROFT V. IQBAL
Section 11 of Official Bankruptcy Form 105, Involuntary Petition Against an Individual, provides:
Allegation
Each petitioner is eligible to file this petition under 11 U.S.C. § 303(b).
The debtor may be the subject to an involuntary case under 11 U.S.C.…
Not all Forced-Sale Mortgage Foreclosures are Exempt from Avoidance as Fraudulent Transfers Under Section 548 – a Case Study Regarding Application of Supreme Court’s BFP Factors to State Tax Sale Statutes
The United States Supreme Court held in BFP v. Resolution Trust, that properties sold at “force-sale” mortgage foreclosure sales properly conducted pursuant to a state’s foreclosure statute are presumed to have been sold for “reasonably equivalent value” for purposes of…
You Have to Follow the Rules: The Importance of Adhering to Bankruptcy Rule 2002 When Serving Claims Bar Date Notices
A Delaware bankruptcy court recently held that the bar date for filing proofs of claim cannot be enforced against a creditor if the notice of the bar date was not sent by mail to that creditor. In re Cyber Litigation…
Fox Attorneys Take a Look at Supply Chain Issues
Among the potential prolonged impacts of the COVID-19 pandemic is the interruption to supply chains throughout several critical industries. As a result, prices have increased as various goods and materials have become difficult to obtain. A recent Washington Post article…
Bankruptcy Rules of Procedure Apply When a District Court is Hearing a “Related To” Proceeding
The First Circuit was required to decide whether the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) or the Federal Rules of Civil Procedure (the “Civil Rules”) govern a case that comes within the federal district court’s jurisdiction as a…