9th Circuit

BAP Describes When a Nonbankruptcy Court’s Order Does or Does Not Violate the Stay

If a proceeding is sub judice when the defendant files bankruptcy, the plaintiff should figure out whether a decision after bankruptcy would violate the automatic stay.
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A Client Can Be Liable for Sanctions from the Lawyer’s Violation of Rule 9011

Judge Klein let a lawyer off the hook for violating Rule 9011 because the lawyer had already been punished enough.

Debtor Can’t Be Punished for Shifting Legal Theories After an Unfavorable Decision

ate law might provide an equitable basis for denying a state-law exemption, although Law v. Siegel won’t permit equity to defeat an exemption claim under federal law.
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Converting a Claim Based on Securities to Judgment Won’t Bar Subordination, BAP Says

A lien securing a claim based on the purchase or sale of securities is subordinated, just like the claim, the Ninth Circuit BAP says.
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California Judge Splits with his BAP; Subpoenas Require Court Approval Under Barton

Someone seeking to issue a subpoena to a trustee is the proper party to seek leave under the Barton doctrine, Judge Clarkson says.

Denial of Stay Modification Without Prejudice Can Be Final, Ninth Circuit Says

The Ninth Circuit answered a question left open by the Supreme Court in Ritzen.
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Debtors Get Mortgage Interest Deduction They Didn’t Pay in a Short Sale

For those entitled to the mortgage interest deduction, debtors may have unexpected tax benefits from short sales.
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Bad Faith Filings in Chapter 15 Can Be Entitled to ‘Foreign Main Recognition,’ BAP Says

The bankruptcy court has no discretion to deny recognition in chapter 15 if the requirements of Section 1517(a) have been met.
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The Two-Year Complaint Deadline Can’t Be Extended Without Notice to Defendants

Equitable tolling can extend the two-year deadline for filing complaints, but the deadline can’t be extended without notice to the defendants, even if they are unknown or unknowable.

District Court Says Chapter 13 Trustee Is Paid Even if Dismissal Precedes Confirmation

District judge in Idaho finds no ambiguity in a statute that doesn’t explicitly say whether a chapter 13 trustee is paid if the case is dismissed before confirmation.
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