Chicago District Court Considered Non-Debtor’s Attempt to Extend Protection of Automatic Stay from the Los Angeles Bankruptcy Cases of Girardi and Girardi & Keese
By Michael G. D’Alba Introduction The automatic stay that arises in a bankruptcy case can be a heavy shield, but it generally only protects the debtor. When a California attorney was recently sued in […]
Fraudulent Transfer Claim Defendant Obtains Insurance Coverage for Defending Claim
By Michael D’Alba Introduction A litigation trust tasked with prosecuting the debtor’s avoidance claims under a reorganization plan sued Verizon. Verizon sought coverage from its insurers for defending against the trustee. The insurers denied […]
Second Circuit Analyzes Concealment of a Debtor’s Beneficial Interest in Assets in the Name of Another Under Section 727(a)(2)(A): Gasson v. Premier Capital, LLC, 43 F.4th 37 (2d Cir. 2022)
By Shantal Malmed Brief Summary A creditor obtained judgment against the chapter 7 debtor for denial of the debtor’s discharge under 11 U.S.C. § 727. On the first appeal, the district court affirmed. On […]
Ninth Circuit to Consider Whether Mechanic’s Lien is Enforceable in Bankruptcy Case
By Michael G. D’Alba Introduction The filing of a bankruptcy case “operates as a stay . . . of . . . any act to create, perfect, or enforce any lien against property of […]
Results May be a Relevant Factor to Awards of Bankruptcy Professional Compensation, Says Sixth Circuit in In re Village Apothecary, Inc.
By Uzzi O. Raanan When deciding what is “reasonable compensation” to award to bankruptcy professionals, including trustees and their counsel, can courts consider the ultimate “results obtained” by the professionals as one of the […]
Third Circuit Addresses the Fiduciary Obligations of Future Representatives Under 11 U.S.C. § 524(g): In re Imerys Talc America, Inc., 38 F.4th 361 (3d Cir. 2022)
By Michael G. D’Alba Background Imerys mined, processed, and distributed talc. As of 2019, more than 14,000 claimants had sued Imerys, alleging bodily injuries from talc exposure. Imerys would inevitably face more of such […]
Appellate court rules that subchapter V small business debtors don’t need to be for profit businesses
By Zev Shechtman In re RS Air, LLC, __ B.R. __, 2022 WL 1288608 (B.A.P. 9th Cir. April 26, 2022) Case Synopsis In order to qualify for small business reorganization under subchapter V of […]
Bankruptcy Appellate Decision Subordinates Judgment Liens Under Section 510(b)
By Eric P. Israel and Alphamorlai “Mo” Kebeh Recently, the Bankruptcy Appellate Panel for the Ninth Circuit (the “BAP”) issued a ruling on an important issue. In Kurtin v. Ehrenberg (In re Elieff), 637 B.R. […]
Subchapter V Debt Limit Likely to Sunset at the End March
The subchapter V debt limit is likely to revert to $2,725,625 on March 28, 2022. Hope remains that Congress will soon restore it to $7.5 million. By Aaron E. de Leest, Danielle R. Gabai, […]