Although It Paid Creditors in Full, Eleventh Circuit Subordinates an Unauthorized Loan
Eleventh Circuit gives the bankruptcy judge wide discretion in subordinating debts and denying retroactive approval of loans.
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Eleventh Circuit Holds that PACA Trusts Do Not Give Rise to Nondischargeable Debts
Violating a PACA trust does not result in ‘defalcation while acting in a fiduciary capacity’ that makes a debt nondischargeable, the Eleventh Circuit held in upholding Bankruptcy Judge Roberta Colton.
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Filing ‘13’ Immediately After Renewing a Title Loan Might Be Bad Faith
Reversing the bankruptcy court, a district court says that renewing a title loan before filing might bar confirmation of a chapter 13 plan.
A Tax Refund from Withheld Social Security Benefits Does Not Lose the Exemption
With little authority one way or the other, lower courts are split on whether Social Security benefits lose their exemption if withheld and later paid as a tax refund.
‘Admin’ Claims for 20-Day Shipments Don’t Offset the New Value Defense, Circuit Says
A shipment received by a debtor within 20 days of filing gives the creditor both an administrative claim and a new value defense to a preference, the Eleventh Circuit says.
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Rule 11 Motion for Sanctions May Be Filed After Final Judgment, Eleventh Circuit Says
A motion for sanctions may be filed after judgment, as long as the 21-day safe harbor has elapsed before judgment.
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Courts Split on Committee Intervention as of Right in Adversary Proceedings
The circuits are split on whether a creditors’ committee may intervene as of right in adversary proceedings under Section 1109(b).
Importance of the Supreme Court’s Upcoming Bartenwerfer Decision Seen in Florida Case
The decision by the Supreme Court next term in Bartenwerfer will tell us whether debts can be automatically nondischargeable, even when the debtor is without fault.
Circuits Possibly Split on Bankruptcy as Discharging Coal Act Liability for Health Benefits
Over a dissent, the Eleventh Circuit held that a 1995 chapter 11 plan discharged the liability of ‘related persons’ to pay health care benefits when a coal producer defaulted on the obligation in 2016.
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Target of Lawsuit Doesn’t Have Standing to Appeal a Litigation Funding Agreement
The Eleventh Circuit explained how prudential (or ‘person aggrieved’) standing is a higher standard more difficult to meet than constitutional (or ‘Article III’) standing.
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