On March 16, 2026, Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey issued a closely watched letter opinion denying motions by the U.S. Trustee and an ad hoc cross‑holder group to dismiss or
Latest from In Solvency
Supreme Court Puts a Clock on Attacking “Void” Judgments
The U.S. Supreme Court has clarified that there is a time limit—specifically, a “reasonable time” under Rule 60(c)(1)—for filing motions to set aside judgments as “void” under Rule 60(b)(4), even where the alleged voidness stems from lack of proper service
New Jersey Bankruptcy Judge Michael Kaplan on Bankruptcy Practice – Pragmatism, Feasibility, and the Realities of Chapter 11
In Episode 22 of The Octus Download (available on Apple Podcasts, Spotify, Amazon Music), hosts Jason Sanjana and Kevin Eckhardt interviewed the Honorable Michael B. Kaplan, U.S. Bankruptcy Judge for the District of New Jersey, who
Christmas Tree Shops: Unwrapping the Delaware Court’s Gift for Pleading the Preference Due Diligence Requirement
If your holiday to‑do list includes lights, cocoa, and some year‑end legal news, here’s a little stocking stuffer for you. In a recent decision from the United States Bankruptcy Court for the District of Delaware, Judge Thomas M. Horan dismissed
Defining the Boundaries of Consensual Third-Party Releases – Tehum/YesCare Case Study
In 2024, the Supreme Court, in Harrington v. Purdue Pharma L.P., 603 U.S. 204 (2024), held that the Bankruptcy Code does not authorize nonconsensual third-party releases in Chapter 11 reorganization plans, meaning affected creditors cannot be forced to release claims
Trump Administration’s Proposed Health Care Cuts Pose Risks to Distressed Providers
Last week, the Trump administration and Congress proposed spending cuts that if enacted are likely to affect federally funded health insurance programs such as Medicaid and the Affordable Care Act (ACA). These cuts could disrupt cash flow for already vulnerable
New Jersey Bankruptcy Courts Remain a Strong Option for Debtors Seeking to Obtain a Third-Party Release in a post-Purdue Pharma World Following the BowFlex Decision
The restructuring industry held its proverbial breath following the Supreme Court’s decision in Harrington v. Purdue Pharma L.P., which invalidated the nonconsensual third-party release in the debtors’ plan. While various courts continue to interpret the Purdue Pharma decision, New Jersey
The Impact of Purdue Pharma
It has been approximately two months since the highly anticipated Supreme Court decision in Harrington v. Purdue Pharma L.P., and it is already making a significant impact in bankruptcies around the country.
In September 2019, Purdue Pharma L.P. and 23
New Jersey Releases New Chapter 11 Complex Procedures and Other Rule Updates
Pursuant to the New Jersey Bankruptcy Court’s (the “Court”) annual rule making cycle, the Court implemented various changes to the New Jersey Local Rules and Local Forms, which became effective on August 1, 2024.[1]
Of particular
The Circuit City Landmine Redux, the Final Word (Office of the United States Trustee v. John Q. Hammons Fall 2006, LLC): Supreme Court Holds that Chapter 11 Debtors Do Not Get a Refund on U.S. Trustee Quarterly Fees Under Unconstitutional Fee Increase
As previously discussed and anticipated in prior blog posts,[1] the United States Supreme Court’s decision in Siegel v. Fitzgerald, 596 U.S. 464, 142 S.Ct. 1770, 213 L.Ed.2d 39 (2022), which struck down as unconstitutional the United States Trustee System