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1st Circuit

Asset Exempt in Chapter 13 Retains the Exemption After Conversion, First Circuit Says

Circuit split is eroding on the loss of a homestead exemption for failing to reinvest proceeds from a sale after filing.
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Last Week, the Government Went 2 for 3 in Defeating Debtor’s Demands for PPP Loans

Courts are divided on whether PPP litigation is ‘core’ or not.
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BAP Didn’t See Barnhill as Prescribing the Date of Transfer from a Retirement Account

The First Circuit BAP evidently believes that a transfer occurred, even though an ordinary check wasn’t cashed.
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‘Chevron’ Deference Applied to Decisions by the Puerto Rico Oversight Board

District court invalidates expenditures adopted by the Puerto Rico legislature that were not approved by the PROMESA Oversight Board.

First Circuit Issues a Landmark Opinion on Valuation of Disputed Claims

The value of a disputed claim is proven by showing the likely validity of the claim and the likelihood of recovery, not just by establishing the possible damages.
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Taggart Didn’t Let Corporate Employees Off the Hook for a Stay Violation

Tortious or fraudulent conduct needn’t be shown to hold a corporate employee liable for violating the automatic stay.

Puerto Rico Bondholders Lose Another Appeal in the First Circuit

The First Circuit shows no inclination to allow creditors to bust out of the PROMESA restructuring of Puerto Rico’s debt.
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First Circuit Reverses the BAP for Fact-Finding on Appeal

First Circuit requires detailed fact-finding by the bankruptcy court on the credibility of witnesses and the elements of nondischargeability for false representations.
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Stay Violation Order Is Final Even Before Attorneys’ Fees Are Awarded, Circuit Says

First Circuit rules that an order finding a stay violation must be appealed before the bankruptcy court grants an award of attorneys’ fees.
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First Circuit’s Traditional Approach to Section 552 Cuts Off Bondholders’ Liens

Employer contributions to Puerto Rico’s retirement system did not qualify as ‘special revenues,’ with the result that bondholders’ liens were cut off on the filing date.
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