Courts Split on Whether Suits in Bankruptcy Court Can Violate the Automatic Stay
A minority of courts hold that a suit in bankruptcy court can violate the automatic stay if based on a claim that could have been brought before bankruptcy and did not arise under the Bankruptcy Code.
Court:
Automatic Stay Applies Automatically to the Archbishop of a Bankrupt Archdiocese
Although a lawsuit against the archbishop violated the automatic stay, Judge Thuma of Albuquerque declined to impose sanctions because precedent was ‘spotty or nonexistent.’
Court:
Federal Credit Union Held to Be a ‘Governmental Unit’ for All Purposes
Although federal credit unions are not controlled by the government, they are governmental units under the Bankruptcy Code, Judge Jacobvitz says.
Court:
Bankruptcy Judge Won’t Follow BAP Authority on Derivative Standing for Creditors
Bankruptcy Judge Thuma admonishes the parties to settle and not waste money on litigation that should go to sexual abuse victims.
Court:
Beware: Closing a Case Quickly Can Preclude Filing New Avoidance Actions
Judge Thuma describes nonstatutory exceptions to the statutes of limitations in Sections 546(a) and 550(f).
Court:
Postpetition Default on a Mortgage Is a Prepetition Debt for Setoff Purposes
The obligation on a mortgage is incurred when the mortgage is granted, even though the payment default may occur after filing, Judge Thuma says.
Court:
Another Judge Allows Switching to the SBRA When a Pending Chapter 11 Is About to Fail
Judge Jacobvitz allows the debtor to proceed under the SBRA more than a year after the initial chapter 11 filing
Court:
Two More Judges Rule that Chapter 11 Debtors Are Eligible for PPP Loans
Judge Thuma of Albuquerque threatens the SBA with punitive damages if the debtor is not granted a $900,000 PPP loan.
Court:
Courts Are Split on Breach of Contract Resulting in Nondischargeability
In some circuits, never intending to repay a loan can result in nondischargeability under Section 523(a)(6).
Court:
Challenging Student Loans Permissible Six Years after Discharge
Destitute debtor allowed to challenge student loans six years after a chapter 7 discharge.
Court: