Arbitration Clause Results in Temporary Stay of ‘Core’ Proceedings in Bankruptcy Court
Decision by Bankruptcy Judge Michelle Harner demonstrates the flaw in the Fourth Circuit’s rule requiring parallel proceedings in bankruptcy court and in arbitration when disputes are both core and non-core.
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Avoiding a Lien Doesn’t Bar Collecting the Underlying, Nondischargeable Debt
First Circuit BAP explains what lien avoidance does and doesn’t do.
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Circuit and District Court Splits on Important Bankruptcy Issues with Bill Rochelle
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.
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Brooklyn Decision Shows Why Litigation Finance Is Risky if the Plaintiff Files Bankruptcy
At least in New York, a litigation finance agreement can’t be written to remove all of the lender’s exposure to the borrower’s bankruptcy.
Anonymous Messages Calling the Debtor a Philanderer Isn’t a Stay Violation
Harassing a former lover isn’t an automatic stay violation.
On Dismissal of a ‘13,’ Barton May (or May Not) Bar Garnishments
Section 1326(a)(2) by itself does not bar garnishment of funds held by a trustee on dismissal before confirmation.
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First Circuit Liberally Interprets the Police and Regulatory Stay Exception
The appeals court reviews the ‘totality of the circumstances’ when government action has elements of both regulatory enforcement and furtherance of the state’s pecuniary interest.
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Benchnotes June 2021
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