8th Circuit

Courts Are Now Split on Whether a Subchapter V Debtor Must Be ‘Currently’ Engaged in Business

Debts acquired from running a business do not qualify someone for subchapter V of chapter 11 if the business has terminated and the assets are gone, according to Judge Cynthia Norton.

‘Doing Everything Possible’ Can Result in Cutting a Fee Request, Judge Thad Collins Says

An oversecured lender may not be entitled to a fee allowance from the estate that a private client might be willing to pay.

The 2005 Amendments to Section 546(c) Limited the Remedies of Reclamation Creditors

Reclamation creditors no longer have liens or administrative claims if a secured lender sucks up all the value in reclaimed goods.

Eighth Circuit Won’t Impose Unwritten Requirements on Service of a Claim Objection

In the Bankruptcy Rules, a claim objection isn’t treated like a motion for all purposes, the Eighth Circuit says.
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Confirmation Barred Claims Against a Coal Producer for Causing Global Warming

Global warming claims were discharged even though the chapter 11 plan did not discharge claims under environmental laws.
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Release of a Subordinate Lien Held to Be ‘New Value’ for a Preference Defense

Eighth Circuit BAP crafts a preference rule protecting lenders in out-of-court workouts.
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In the Minority, 8th Circuit BAP Disregards Equitable Considerations in Allowing Default Interest

As long as the rate is legal under state law, considerations of equity will not allow a court to disallow default interest to an oversecured creditor under Section 506(b).
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Eighth Circuit Applies Cap on Lease Claims to a Fraudulent Transfer Judgment

Appeals court had sympathy for the debtor by disallowing part but not all of a judgment for receipt of a fraudulent transfer with ‘actual intent.’
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Eighth Circuit Has No Per Se Rule Disallowing Exemptions for IRAs in Divorce

Eighth Circuit may have rejected blanket disallowance of exemptions for retirement accounts transferred in divorce.
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Law v. Segal Allowed a Fraudster to Retain $30,000

Eighth Circuit was compelled to overrule its own precedent that permitted the bankruptcy court to bar a debtor from amending schedules based on bad faith.
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